seraficus/E+ via Getty Images
seraficus/E+ via Getty Images
Welcome to the May edition of the graphite miners news.
May saw a busy month of news with plenty of good progress by the graphite juniors. On the political front we saw USA and Canada increase their efforts towards supporting the EV battery manufacturing and battery materials supply chains. We also heard more forecasts of battery and EV metals shortages ahead.
During the past 30 days the China graphite flake-194 EXW spot price was flat (0.00%), and is up 21.7% over the past 360 days. Note that 94-97% is considered best suited for use in batteries; it is then upgraded to 99.9% purity to make “spherical” graphite used in Li-ion batteries. The spherical graphite 99.95% min EXW China price was up 0.68% the past 30 days.
Fastmarkets (see below) shows China graphite flake 94% C (-100 mesh) prices at US$830/t and Europe graphite flake 94% C (-100 mesh) prices at US$920/t.
Fastmarkets graphite prices the week ending May 12, 2022
Note: You can read about the different types of graphite and their uses here.
In an April 25, 2021 report from Leading Edge Materials they stated:
A recent price assessment produced by Benchmark Mineral Intelligence for the Company shows average pricing in 2020 for uncoated natural spherical graphite at around US$3,000 per tonne and for coated natural spherical graphite between US$7,000 per tonne (domestic China and non-EU) and US$12,000 per tonne (high-end applications), with an average price of around US9,500 per tonne for material used in cells for Western OEMs.....
A reminder of a 2016 Elon Musk quote:
Our cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is graphite with silicon oxide.
UBS's EV metals demand forecast (from Nov. 2020)
Source: Mining.com courtesy UBS
2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 - Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x
Source: International Energy Agency 2021 report
BMI forecasts graphite deficits to begin from 2022 as demand for graphite grows strongly
Source: Lomiko Metals company presentation courtesy Benchmark Mineral Intelligence
An article I missed from last month, on April 10 the South China Morning Post reported:
Shortage of EV battery raw material graphite could delay global drive to go green.....While graphite deposits are not scarce, the supply of battery-grade graphite – used as a raw material in EV batteries – is much tighter.....Graphite, a critical mineral used in electric vehicle batteries, could see a shortage in supply amid surging demand for EVs, which may delay the global drive to go green......With electric vehicle sales expected to reach up to 11 million units in 2022, there could be a deficit of around 40,000 tonnes of graphite this year, said George Miller, an analyst from London-based battery materials data and intelligence provider Benchmark Mineral Intelligence in an interview.
On May 10 Bloomberg BNN reported:
Stellantis CEO says supply issues risk derailing electric shift.....The shift to EVs will work only if the region [Europe] ensures access to enough clean energy, batteries, raw materials and charging infrastructure.....
Pentagon asks Congress to fund mining projects in Australia, U.K......that process strategic minerals used to make electric vehicles and weapons, calling the proposal crucial to national defense. The request to alter the Cold War-era Defense Production Act.....Congress may reject or accept the proposed changes when it finalizes the bill later this year.....Relying only on domestic or Canadian sources, the Pentagon said, "unnecessarily constrains" the DPA program's ability to "ensure a robust industrial base."
Flake graphite market softening on rising supplies, uncertainty, sources say. The strengthening of flake graphite prices since last September has eased with increasing volumes of supplies available following the restart of operations in China’s Heilongjiang province, although the Ukraine-Russia war and new Covid-19 outbreaks in China have added new uncertainties.
On May 25 Mining Weekly reported:
Severe global battery shortage likely post 2025, GlobalData forecasts. Extraction of raw materials will not meet soaring battery demand unless capital markets change course in the face of environmental, social and governance pressures and invest heavily in new mines, says business data and analytics company GlobalData in its 'Batteries – Thematic Research' report.......An emerging challenge for the next decade will be whether extraction of natural resources and raw materials such as lithium, nickel, cobalt and graphite can meet the soaring demand for batteries.
I have not covered the following graphite producers as they are not typically accessible to most Western investors. They include - Aoyu Graphite Group, BTR New Energy Materials, Qingdao Black Dragon, National de Grafite, Shanshan Technology, and LuiMao Graphite.
Note: AMG Advanced Metallurgical Group NV [NA:AMG] [GR:ADG] (OTCPK:AMVMF) is also a "diversified producer", producing graphite and lithium. SGL Carbon (ETR:SGL) (OTCPK:SGLFF) is a synthetic graphite producer and Novonix [ASX:NVX] (OTCQX:NVNXF) is commercializing their synthetic graphite product. Graphex Group Limited [HK:6128] (OTCQX:GRFXY) makes spherical graphite.
Syrah Resources Limited owns the Balama graphite mine in Mozambique. Syrah is also working to become a vertically integrated producer of natural graphite Active Anode Material (“AAM”) at their Vidalia facility, Louisiana, USA.
On April 27, Syrah Resources announced: "Quarterly activities report – Period ended 31 March 2022." Highlights include:
You can view the latest investor presentation here.
Ceylon Graphite has 'Vein graphite' production out of one mine in Sri Lanka with 121 square kilometers of tenements.
On May 13, Ceylon Graphite announced: "Ceylon Graphite closes upsized $3,500,000 private placement and extension of debentures....."
Skaland Graphite is 90% owned by MRC. Skaland is the highest grade flake graphite operation in the world and largest producing mine in Europe; with immediate European graphite production of up to 10,000 tonnes per annum with regulatory approval to increase to 16,000. MRC plans to demerge its Norwegian graphite assets into a newly incorporated Norway company branded as Ascent Graphite.
On April 26, Mineral Commodities Ltd. announced: "Priority targets identified at Bukken, Hesten and Vardfjellet graphite prospects near Skaland."
On April 29, Mineral Commodities Ltd. announced: "Quarterly activities report - March 2022." Highlights include:
On April 29, Mineral Commodities Ltd. announced: "MRC unveils five year strategic plan 2022-2026."
On May 18, Mineral Commodities Ltd. announced: "Strategic collaboration agreement with Mitsubishi Chemical Corporation ." Highlights include:
On May 20, Mineral Commodities Ltd. announced:
MRC signs graphitic anode sales and marketing MOU with Traxys. Exclusive Graphite Anode Agency Sales and Marketing Memorandum of Understanding (MOU) signed with Traxys for MRC’s downstream graphite anode products including coated, spherical and/or purified graphite produced from Skaland and Munglinup concentrate.
On April 28, Tirupati Graphite announced:
Transaction Update - Variation of long stop date. Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist graphite and graphene company developing sustainable new age materials, announces the following update to its agreement to acquire the entire issued share capital of Suni Resources SA from Battery Minerals Limited as announced on 17 August 2021. The acquisition of Suni Resources will mean that Tirupati will hold the advanced Montepuez and Balama Central graphite projects in Mozambique, alongside associated technical intellectual property related to the assets....
Northern Graphite has agreed to purchase from Imerys the Lac des Iles producing graphite mine in Quebec and the Okanjande graphite deposit/Okorusu processing plant in Namibia. They also own the Bissett Creek graphite project located 100km east of North Bay, Ontario, Canada and close to major roads and infrastructure. The Company has completed an NI 43-101 Bankable final Feasibility Study and received its major environmental permit.
On May 2, Market Screener reported: "Northern Graphite: Closes acquisition of two graphite mines." Highlights include:
You can view the latest investor presentation here and the latest Trend Investing article on Northern Graphite here or the very recent and excellent Trend Investing CEO interview here.
Westwater Resources Inc. is developing an advanced battery graphite business in Alabama. The Coosa Graphite Plant (2023 production start) plans to source natural graphite initially from non-China suppliers and then from the USA from 2028.
On May 11, Westwater Resources Inc. announced: "Westwater Resources, Inc. announces results for first quarter ended March 31, 2022 & business update." Highlights include:
You can view the latest investor presentation here.
Gratomic’s Aukam Graphite Project is located in Namibia, Africa. The Project is undergoing 'operational readiness'. Gratomic also 100% own the Capim Grosso Graphite Project in Brazil. Gratomic is also collaborating with Forge Nano to develop a second facility for graphite micronization and spheronization.
On May 2, Gratomic Inc. announced:
Gratomic provides drilling update on Capim Grosso Graphite Project. Gratomic Inc. announces that 1,734.30 m of the 5,000-meter drilling campaign on its Capim Grosso graphite project has been completed. 15 diamond drillholes were completed to date, with two additional holes in progress. The project is located in the Bahia State of Brazil, with the Company holding a 100% controlling interest in the property......
On May 4, Gratomic Inc. announced:
Gratomic provides trenching update on Jacobina Graphite Project....This initial trench proved that the property is highly prospective for graphite mineralization.
On May 9, Gratomic Inc. announced:
Gratomic provides further drilling update on Capim Grosso Graphite Project. Gratomic Inc. announces that 2,047.5 m of the 5,000-meter drilling campaign on its Capim Grosso graphite project has been completed.
On May 24, Gratomic Inc. announced:
Gratomic discovers possible largest graphite vein ever recorded at its Aukam Project in Namibia. Gratomic Inc.is pleased to announce an update on the planned 1,250 m Diamond Drill [DD] campaign currently underway at Aukam. The drillholes are planned to intersect mineralization below the current mine adits. The first hole of 2022 (AKD001) is a twin hole of AKR026, which was drilled towards the end of 2021.....
On April 29, Walkabout Resources announced: "March 2022 quarterly activities report." Highlights include:
Lindi Jumbo Graphite Mine - Tanzania
On May 6, Black Rock Mining announced: "Black Rock raises $25m in placement to institutional and sophisticated investors." Highlights include:
NextSource Materials Inc. is a mine development company based in Toronto, Canada, that's developing its 100%-owned, Feasibility-Stage Molo Graphite Project in Madagascar. The Company also has the Green Giant Vanadium Project on the same property. The Molo mine is fully-funded and scheduled to commission in March, 2022.
On April 28, NextSource Materials Inc. announced:
NextSource Materials announces initiation of civil works and shipment of buildings to the Molo Graphite mine site in Madagascar and filing of updated PEA. President and CEO, Craig Scherba commented, “With the mobilization of construction crews to the mine site and initiation of civils and earthworks, we have reached yet another key milestone towards commissioning of the Molo Graphite mine later this year.”
On May 24, NextSource Materials Inc. announced:
NextSource Materials announces solar and battery hybrid power plant construction and site works update.....
Investors can view the latest company presentation here or the latest Trend Investing article here.
Nouveau Monde Graphite ("NMG") own the Matawinie graphite project, located in the municipality of Saint-Michel-des-Saints, approximately 150 km north of Montreal, Canada. NMG (51%) and Mason Graphite (49%) have agreed to JV (subject to approvals) on the Lac Guéret Project.
On May 13, Nouveau Monde Graphite announced: "NMG provides a quarterly update amid favorable shift in battery material market conditions." Highlights include:
On May 16, Nouveau Monde Graphite announced: "Nouveau Monde and Mason Graphite announce strategic investment and conditional option and joint venture agreement on Lac Guéret Project." Highlights include:
On May 19, Nouveau Monde Graphite announced: "NMG releases 2021 ESG report and provides notice of its annual general and special meeting of shareholders."
You can view the latest investor presentation here.
On April 29, Greenwing Resources Limited announced: "Quarterly activities report – March 2022 quarter 29 April 2022." Highlights include:
You can view the latest company presentation here.
Triton Minerals Ltd. engages in the acquisition, exploration and development of areas that are highly prospective for gold, graphite and other minerals. The company was founded on March 28, 2006 and is headquartered in West Perth, Australia. Triton has two large graphite projects in Mozambique, not far from Syrah Resources Balama project.
On April 27, Triton Minerals announced: "Placement to raise up to approximately $4.1 million....."
You can view the latest investor presentation here and the latest article on Trend Investing here.
Magnis is an Australian based company that has rapidly moved into battery technology and is planning to become one of the world's largest manufacturers of lithium-ion battery cells. Magnis has a world class graphite deposit in Tanzania known as the Nachu Graphite Project.
On April 29, Magnis Energy Technologies Ltd. announced: "Q uarterly report 29 th April 2022." Highlights include:
On May 5, Magnis Energy Technologies Ltd. announced: "Exceptional anode results continue using mechanical processes only." Highlights include:
The Black Crystal Project is located in the Slocan Valley area of British Columbia, Canada, 35km West of the city of Nelson, and 70km North of the border to the USA. The quarry and plant areas are the project’s two main centers of activity.
No news for the month.
Talga Group is a technology minerals company enabling stronger, lighter and more functional materials for the multi-billion dollar global coatings, battery, construction and carbon composites markets using graphene and graphite. Talga 100% owned graphite deposits are in Sweden, proprietary process test facility is in Germany.
On April 29, Talga Group announced: "Quarterly activi ti es review f or period ending 31 March 2022." Highlights include:
You can view the latest investor presentation here.
SRG is focused on developing the Lola graphite deposit, which is located in the Republic of Guinea, West Africa. The Lola Graphite occurrence has a prospective surface outline of 3.22 km2 of continuous graphitic gneiss, one of the largest graphitic surface areas in the world. SRG owns 100% of the Lola Graphite Project.
On May 18, SRG Mining Inc. announced:
SRG Mining announces strategic corporate update. Updated feasibility study underway to double mine production. Second transformation CSPG Preliminary Economic Assessment also Awarded. The Company announced today the start of an independent, updated feasibility study (the “Updated Feasibility Study” or “UFS”), which will include basic engineering, to confirm technical opportunities and capital and operating costs for target initial production of 100,000 tonnes per annum (“tpa”) of graphite as concentrate from the Lola Project. The UFS follows the 2019 Feasibility Study which was prepared by DRA Global Limited (“DRA”)..... The Company is advancing discussions with multiple parties who have expressed interest in providing debt financing to advance SRG towards first production. Binding offtake offers have been received for more than 50% of the initial 100,000 tpa graphite concentrate production......
You can view the latest investor presentation here.
Leading Edge Materials Corp. is a Canadian company focused on becoming a sustainable supplier of a range of critical materials. Leading Edge Materials’ flagship asset is the Woxna Graphite Project and processing plant in central Sweden. The company also owns the Norra Karr REE project, and the 51% of the Bihor Sud Nickel-Cobalt exploration stage project in Romania.
On May 17, Leading Edge Materials Corp. announced: "Leading Edge Materials signs exploration license for Romanian Nickel and Cobalt Project."
Investors can view the latest company presentation here.
Renascor Resources Ltd. is an Australian exploration company, which focuses on the discovery and development of economically viable deposits containing uranium, gold, copper, and associated minerals. Its projects include graphite, copper, precious metals, and uranium.
On April 29, Renascor Resources announced: "Quarterly activities report for the period ended 3 1 March 2022 ." Highlights include:
You can view the latest investor presentation here.
On April 29, EcoGraf Limited announced: "Quarterly activities report. Australian government conditionally approves US$40m expansion loan for HFfree battery anode material facility." Highlights include:
On May 12, EcoGraf Limited announced: "Approval update for construction of EcoGraf HFfree™ BAM Facility....."
On May 20, EcoGraf Limited announced: "EcoGraf TanzGraphite expansion options to support market growth. Epanko and Merelani-Arusha to provide a scalable, long-term TanzGraphite production hub for key export regions." Highlights include:
You can view the latest investor presentation here.
Lomiko has two projects in Canada - La Loutre graphite Project (flagship) (100% interest) and the Bourier lithium Project (70% earn in interest).
On April 28, Lomiko Metals Inc. announced:
Lomiko announces positive results on its initial metallurgical test programs at its La Loutre Graphite Project with results indicating purity of >99.9% C[T] of its concentrate and positive response of samples to expanded graphite for all Flake sizes tested.....
On May 16, Lomiko Metals Inc. announced:
Lomiko provides update on Strategy and Regional Flake Graphite Exploration Program. Belinda Labatte, CEO and director of Lomiko stated: “Our team is keen to take on new opportunities in the region, around our La Loutre property, as we develop the potential for natural flake graphite via organic growth and acquisition.......The Company has staked approximately 14,255 hectares of mineral claims, 236 claims in total, on six projects in the Laurentian region of Quebec and within First Nations territory. These new claims lie within a 100 km radius of the Company’s flagship La Loutre graphite project and 28 claims are directly contiguous to La Loutre, with the Company claim package now covering 4,528 hectares......
On May 19, Lomiko Metals Inc. announced:
Lomiko announces commencement of exploration drilling for its La Loutre Graphite Project......The program anticipates approximately 18,000 meters in 120 holes to be drilled at the “Electric Vehicle” or “EV” and the Battery zones.
On May 13, Zentek Ltd. announced: "Zentek announces sales and distribution of ZenGUARD™ masks through Mark’s in Canada."
On May 19, Zentek Ltd. announced: "Zentek’s Rapid Diagnostic Platform receives two NSERC grants towards commercialization."
South Star Battery Metals owns the Santa Cruz Graphite Project in Brazil with a Phase 1 commercial production target for Q4 2022. Plus the right to earn-in to up to 75% for the Graphite Project in Coosa County, Alabama.
On May 3, South Star Battery Metals announced:
South Star Battery Metals announces small-scale pilot metallurgical testing program for Alabama Graphite Project.....The small-scale pilot test will also generate approximately 15kg of concentrates (> 94% Cg) as well as intermediate products and tailings samples for future geotechnical, chemical, and physical testing programs to better characterize the ore, the tailings as well as final concentrates.....
Sovereign Metals Ltd. is an exploration company, which engages in the explorations of graphite, copper and gold resources. It operates through the Queensland, Australia and Malawi geographical segments. Sovereign Metals has world's biggest graphite saprolith resource of 65m tonnes at 7.1% TGC at their Maligunde project in Malawi.
On April 29, Sovereign Metals announced: "March 2022 quarterly report." Highlights include:
MRE upgrade confirmed Kasiya as the largest rutile deposit ever discovered
On May 3, Sovereign Metals announced: "Institutional placement to raise $15m."
You can view the latest investor presentation here.
Armadale Capital [AIM:ACP], BlackEarth Minerals [ASX:BEM], DNI Metals [CSE:DNI] (OTCPK:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Electric Royalties [TSXV:ELEC], Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Graphite One Resources Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Green Battery Minerals Inc. [TSXV:GEM] (OTCQB:GBMIF), International Graphite [ASX:IG6], Metals Australia [ASX:MLS], New Energy Metals Corp. [ASX:NXE], Volt Resources [ASX:VRC] [GR:R8L].
May saw flat flake graphite prices.
Highlights for the month were:
As usual, all comments are welcome.
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This article was written by
Disclosure: I/we have a beneficial long position in the shares of SYRAH RESOURCES [ASX:SYR], TRITON MINERALS [ASX:TON], AMG ADVANCED METALLURGICAL GROUP NV [AMS:AMG], MAGNIS ENERGY TECHNOLOGIES [ASX:MNS], ZENTEK LTD [TSXV:ZEN], LEADING EDGE MATERIALS [TSXV:LEM], METALS AUSTRALIA [ASX:MLS] either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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