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Welcome to the September edition of the graphite miners news. September saw natural flake graphite prices generally flat; however the value-add products such as spherical graphite and prebaked anode prices have been rising, boosted by EV demand.
September saw plenty of great progress from the graphite juniors.
During the past 30 days, the China graphite flake-194 EXW spot price was up by 0.14% and China Flake-195+ EXW was down 0.21%. 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. China pre-baked anode 3% prices are doing better than graphite prices and are up 23.79% over the past year.
On September 23 Fastmarkets reported: "Soaring costs, strong demand drive up spherical prices."
Fastmarkets graphite prices as of September 23, 2021
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.
Source: Syrah Resources (Courtesy Benchmark Minerals - 2019)
Benchmark Mineral Intelligence - Simon Moores' - forecasts (total demand)
Source: Benchmark Mineral Intelligence Twitter
Graphite demand versus supply forecast
Source: Triton Minerals courtesy Roskill
BloombergNEF EV metals demand forecast
UBS's EV metals demand forecast (from Nov. 2020)
UBS forecasts Year battery metals go into deficit
Source: UBS courtesy Carlos Vincens LinkedIn
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
On June 30 Mining.com reported:
CHART: Study predicts over 400% increase in copper, lithium, nickel battery demand. BNEF predicts annual demand for lithium-ion batteries will pass 2.7 terawatt-hours per year by 2030 - a 35% increase from the analytics company's forecast made last year.
On September 10 Fastmarkets reported: "China's large flake graphite prices rise on tight supply."
Posco Chemical buys 13% stake in Chinese spherical graphite company. Posco Chemical acquired a 13% stake in Qingdao Zhongshuo New Energy Technology for 4.9 billion South Korean won ($4.2 million) late in the week ended Friday September 10, to secure the stable supply of spherical graphite that it needs to produce anode materials, according to sources.....The company is a subsidiary of Haida, a major graphite producer in China.
On September 16 Fastmarkets reported: "Tight supply, logistics costs support amorphous markets."
Natural, synthetic flake graphite producers position themselves in fight for anode market. Producers of natural and synthetic graphite are vying to improve their material for consumption in the rapidly developing anode sector, market participants said. The consumption of natural graphite in China's anode sector is expected to increase in response to energy restrictions in Inner Mongolia, which have added to the cost of production of synthetic graphite.
On September 22 Bloomberg Green reported:
Biden doubles climate pledge in test to spur global action. U.S. is now offering $11.4 billion to fight climate change.
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: Imerys (OTC:IMYSF), Tirupati Graphite [LSE:TGR], and AMG Advanced Metallurgical Group NV [NA:AMG] [GR:ADG] (OTCPK:AMVMF) are also "diversified producers", producing graphite. SGL Carbon (OTCPK:SGLFF) [ETR:SGL] is a synthetic graphite producer and Novonix [ASX:NVX] (OTCQX:NVNXF) is commercializing their synthetic graphite product.
Syrah Resources Limited [ASX:SYR][GR:3S7] (OTCPK:SYAAF)(OTC:SRHYY)
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 September 7, Syrah Resources announced: "Interim Report for the half-year ended 30 June 2021."
On September 17, Syrah Resources announced:
Balama shipping update Syrah Resources advises due to scheduling changes by a shipping services provider, approximately 12kt of natural graphite sales from its Balama Graphite Operation ("Balama") in Mozambique planned to ship from Nacala in late September 2021 has been delayed to October 2021, highlighting the impact of container shipping market disruption on Balama product shipments. Natural graphite sales in the September 2021 quarter, which were already constrained by shipping availability, were expected to be approximately 29kt prior to the scheduling delay and are now expected to be approximately 17kt. Weighted average sales price for the September 2021 quarter is expected to be higher than the June 2021 quarter.
You can view the latest investor presentation here.
Greenwing Resources Limited [ASX:GW1] (OTCPK:BSSMF) (formerly Bass Metals [ASX:BSM]
No significant news for the month.
You can view the latest company presentation here.
Ceylon Graphite [TSXV:CYL] [GR:CCY] (OTC:CYLYF)
Ceylon Graphite has 'Vein graphite' production out of one mine in Sri Lanka with 121 square kilometers of tenements.
On September 22, Ceylon Graphite announced:
Ceylon Graphite files Annual Financial Statements. Ceylon Graphite Corp. is pleased to announce that the Company filed its audited annual financial statements for the year ended March 31, 2021. In addition, the Company filed the quarterly financial statement and MD&A for quarter ended June 30, 2021. COVID-19 related interruptions and restrictions in Sri Lanka had caused the delay in the Company's filings. Sri Lanka continues to be in the midst of a nation-wide lockdown as a result of the COVID-19 pandemic. The Company had sought an extension for filings and was approved for a management cease trade order by the British Columbia Securities Commission as of July 30, 2021. The MCTO will be revoked upon BCSC review of the filings.
Mineral Commodities Ltd. ("MRC") [ASX:MRC]
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 owns 90%.
On August 30, Mineral Commodities Ltd. announced: "June 2021 half-year results summary." Highlights include:
On September 7, Mineral Commodities Ltd. announced:
Appointment of CEO. Mineral Commodities [ASX: MRC] is pleased to announce that Jacob Deysel will join MRC as its new Chief Executive Officer to commence on 4 October 2021.
On September 8, Mineral Commodities Ltd. announced: "High grade results continue from Traelen Graphite Mine." Highlights include:
On September 13, Mineral Commodities Ltd. announced: "Active Anode Materials Plant [AAMP] purification success." Highlights include:
Tirupati Graphite starts flake graphite production at Vatomina. Tirupati Graphite has commissioned the Vatomina flake graphite plant in Madagascar, with capacity for 9,000 tonnes per year at full operational rate......UK-listed Tirupati has begun production of saleable material from its first module at the Vatomina project. This brings Tirupati's total capacity in Madagascar to 12,000 tpy, and puts the company on track to achieve capacity for 84,000 tpy by 2024.
NextSource Materials Inc. [TSX:NEXT] [GR:1JW] (OTCQB:NSRCF)
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 September 8, NextSource Materials Inc. announced:
NextSource Materials to explore additional strategic asset opportunities in Clean Energy Materials.....Following recent discussions with the Company's existing offtake partners in graphite, many of whom are significant participants in the global supply and trading of battery materials, there is clear enthusiasm for NextSource to secure additional capacity in graphite and other critical minerals.
Investors can view the latest company presentation here. You can watch the company's Senior Vice President Brent Nykoliation video interview here.
Walkabout Resources Ltd. [ASX:WKT]
On September 20, Walkabout Resources Ltd. announced: "Lindi Jumbo Project update: Multiple contractors active." Highlights include:
Gratomic Inc. [TSXV:GRAT] [GR:CB82 ] (OTCQX:CBULF)
Gratomic's Aukam Graphite Project is located in Namibia, Africa. The Project is in process of plant commissioning for full operational capabilities and an open pit operation in Q4 of 2021 to produce high grade vein graphite. Gratomic is also collaborating with Forge Nano to develop a second facility for graphite micronization and spheronization.
On September 1, Gratomic Inc. announced: "Gratomic grants stock options."
On September 7, Gratomic Inc. announced:
Gratomic provides update on Pre-Feasibility Study, independent lab results, and the Aukam Vein Graphite Project. Gratomic.....has commenced an independent Prefeasibility Study ("PFS"), alongside providing an operational update on the commissioning progress currently underway at the Company's flagship Aukam Vein Graphite Project in Namibia.....The PFS to date has been able to independently verify that Aukam Graphite is capable of being upgraded without any chemical or heat treatment to a grade of 99.38% Cg. Gratomic has also begun construction and extensive testing on Gratomic TM coin cell batteries using graphite sourced from the lower adit of the Aukam graphite project and prepared by Ortech to 99.81% Cg. The Company will be assisted by Robert Rice, the inventor and provisional patent-owner of the air-classification system that is being used in conducting the non-chemical refining process that is intended to upgrade the graphite concentrate from 99.38 to 99.98 %Cg for the purpose of achieving battery grade material....
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 September 21, Westwater Resources Inc. announced: "Westwater Resources provides progress update on Definitive Feasibility Study." (NB: Link not working properly).
You can view the latest investor presentation here.
Triton Minerals [ASX:TON][GR:1TG]
Triton Minerals Ltd. engages in the acquisition, exploration and development of areas that are highly prospective for gold, graphite and other minerals. Triton has large graphite projects in Mozambique, not far from Syrah Resources Balama project.
On September 23, Triton Minerals Ltd. announced:
Lodgement of Prospectuses. The Entitlement Prospectus is for the pro rata non-renounceable entitlement issue to Eligible Shareholders of up to approximately 238,835,383 New Shares at an issue price of $0.041 per New Share on the basis of four [4] New Shares for every nineteen [19] Shares held on the Record Date and up to approximately 238,835,383 New TONO Options on the basis of one [1] free attaching New TONO Option for every one [1] New Share issued, with each New TONO Option having an exercise price of $0.09 and expiring on 31 December 2023 (New Options) to raise up to approximately $9,792,251 before expenses (Entitlement Offer).
On September 23, Triton Minerals Ltd. announced: "Company update & capital raising." Highlights include:
Up to ~$10m Capital Raising, comprising up to ~$9.79m Entitlement Offer and up to ~$320,000 Options Placement.
Nicanda Hill Whilst its primary and near term focus has been the Ancuabe Graphite Project, the Company has for some time sought the support of the Mozambique authorities for it to maintain its interest in the Nicanda Hill project in the hope of also developing the Nicanda Hill project over the longer term. The Company has been advised that the Cadastre states the area is marked as reserved for public tender. Notwithstanding the best efforts of the Company to have the Nicanda Hill licence renewed, it has not been renewed.....Triton has instructed its advisers in Mozambique to appeal to the Minister. Triton will make every effort to obtain a renewal of the licence via the Minister and keep the market updated in this regard.
You can view the latest investor presentation here, an excellent video here, and my recent article on Trend Investing here.
Magnis Energy Technologies Ltd [ASX:MNS] (OTCQX:MNSEF)
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 September 7, Magnis Energy Technologies announced: "North American Trading in Magnis Shares." Highlights include:
On September 15, Magnis Energy Technologies announced: "Company update-Offtake signed with Omega Seiki." Highlights include:
On September 23, Magnis Energy Technologies announced: "New York Lithium-ion Battery Plant update." Highlights include:
Eagle Graphite [TSXV:EGA] (OTCPK:APMFF)
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.
Battery Minerals [ASX:BAT] [GR:0FS] (OTCPK:BTRYF)
Battery Minerals core commodity targets are graphite, zinc/lead and copper. BAT is maintaining a focus on its two graphite development assets Montepuez and Balama which are located in Mozambique. In August 2021 Battery Minerals agreed to sell their Mozambique Graphite Projects to Tirupati Graphite.
On September 7, Battery Minerals announced: "Condensed Interim Financial Statements 30 June 2021."
You can view the latest investor presentation here.
Mason Graphite [TSXV:LLG] [GR:M01] (OTCQX:MGPHF)
Mason Graphite is a Canadian graphite mining and processing company focused on the development of the Lac Guéret project located in northeastern Quebec, where the graphite grade is believed by management to be among the highest in the world. Mason will also soon own 66.67% Black Swan Graphene, subject to the transaction completing.
On September 2, Mason Graphite announced:
Mason Graphite announces closing of investment in Black Swan Graphene. As disclosed in the Company's news release of July 26, 2021, Mason Graphite, Thomas Swan and Black Swan Graphene entered into a Definitive Agreement pursuant to which Black Swan Graphene, a special purpose subsidiary launched by Mason Graphite, has acquired strategic assets related to a patented graphene processing technology from Thomas Swan (the "Transaction"). On closing of the joint-venture Transaction, Thomas Swan received £3M and shares representing 33.33% of Black Swan Graphene's issued and outstanding capital. Mason Graphite has also invested approximately CAD$2.5M in Black Swan Graphene for working capital purposes and holds a 66.67% equity interest in Black Swan Graphene.
On September 15, Mason Graphite announced: "Mason Graphite announces commercial usage of Black Swan Graphene product in concrete."
On September 20, Mason Graphite announced: "Mason Graphite announces appointment of Harry Swan as Chairman of Black Swan Graphene and option grant."
You can view the latest investor presentation here.
Northern Graphite [TSXV:NGC][GR:ONG] (OTCQX:NGPHF)
Northern's principal asset is 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.
No news for the month.
You can view the latest investor presentation here.
Talga Group [ASX:TLG] [GR:TGX] (OTCPK:TLGRF)
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 August 30, Talga Group announced: "Depth extension drilling commences at Europe's largest graphite resource." Highlights include:
On September 1, Talga Group announced: "Graphite trial mine to commence and Niska Mining applications submitted."
On September 13, Talga Group announced: "ABB and Talga expand agreement to mine electrification."
On September 23, Talga Group announced: "Talga's Vittangi graphite trial mine commenced." Highlights include:
You can view the latest investor presentation here.
SRG Mining Inc. [TSXV:SRG] [GR:18Y] [Formerly SRG Graphite Inc.] (OTCPK:SRGMF)
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.
No news for the month.
You can view the latest investor presentation here.
Leading Edge Materials [TSXV:LEM] (OTCQB:LEMIF)
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.
No news for the month.
Investors can view the latest company presentation here.
Nouveau Monde Graphite [TSXV:NOU] (OTCQX:NMGRF) (NYSE:NMG)
Nouveau Monde Graphite owns the Matawinie graphite project, located in the municipality of Saint-Michel-des-Saints, approximately 150 km north of Montreal, Canada.
On August 31, Nouveau Monde Graphite announced:
Nouveau Monde admitted to the Global Battery Alliance - with focus on promoting sustainability and accountability for the entire Battery Materials Value Chain.
On September 23, Nouveau Monde Graphite announced: "Nouveau Monde provides update on the deployment of its fully financed Phase-1 LiB Anode Material Project." Highlights include:
You can view the latest investor 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 August 31, Renascor Resources announced: "Successful completion of large scale pilot flotation trials samples have been dispatched to advance technical and binding offtake work streams." Highlights include:
On September 7, Renascor Resources announced:
Australian and South Australian Ministers for Trade and Investment Media Releases Showcase Renascor -POSCO Strategic Cooperation and Offtake Agreement....
On September 15, Renascor Resources announced: "Major project status Awarded by Australian Government."
You can view the latest investor presentation here.
EcoGraf Limited [ASX:EGR] [FSE:FMK] (ECGFF)
On September 8, EcoGraf Limited announced:
Enhanced anode coatings for lithium-ion battery market. EcoGraf and FYI Resources collaboration to develop HPA-carbon coatings for the lithium-ion battery market. Diversified battery anode materials company EcoGraf Limited (EcoGraf or the Company) (ASX: EGR; FSE: FMK; OTCQX: ECGFF) is pleased to announce it has signed a non-binding Memorandum of Understanding (MoU) with FYI Resources Limited (ASX: FYI) to develop enhanced High Purity Alumina (HPA) doped carbon coatings material for the lithium-ion battery market.
On September 23, EcoGraf Limited announced: "EcoGraf Annual Report 2021."
You can view the latest investor presentation here.
ZEN Graphene Solutions Ltd. [TSXV:ZEN] (OTCPK:ZENYF)
ZEN Graphene Solutions Ltd. is a mineral development company based in Thunder Bay, Ontario. ZEN Graphene is currently developing the Albany Graphite Deposit ("Albany"), as well as developing graphene and graphene applications.
On August 25, ZEN Graphene Solutions Ltd. announced:
ZEN Graphene Solutions announces proposed change of classification on the TSX Venture Exchange to Industrial, Technology, Life Sciences Issuer.
On September 3, ZEN Graphene Solutions Ltd. announced: "ZEN Graphene Solutions announces Grant of Options."
On September 22, ZEN Graphene Solutions Ltd. announced: "ZEN Graphene Solutions and Trebor Rx announce Health Canada approval for ZENGuard™ Mask."
On September 23, ZEN Graphene Solutions Ltd. announced: "ZEN Graphene Solutions announces initial revenue generation from delivery of first ZENGuard shipment."
Lomiko Metals Inc. [TSXV:LMR] (OTCQB:LMRMF)
On September 14, Lomiko Metals Inc. announced:
Bourier Lithium Project update: Lomiko Metals and Critical Elements report discoveries and identify lithium targets for exploration using GoldSpot Discoveries' Artificial Intelligence methods.
Black Rock Mining [ASX:BKT] (OTCPK:BKTRF)
No news for the month.
South Star Battery Metals [TSXV:STS] (OTCQB:STSBF)
Own the Santa Cruz Graphite Project in Brazil with a Phase 1 commercial production target for Q4 2022.
On August 30, South Star Battery Metals announced:
South Star Battery Metals announces successful production of LiB Battery-Grade Anode Materials and positive initial cycle testing results for the Santa Cruz Graphite Project. "We are pleased to continue announcing robust battery testing results and advancing to production in 2022," commented Richard Pearce, President and CEO of South Star. "We have produced several types of battery-grade spherical, purified graphites [SPG] with ultra-high purity of 99.99w% Cg and excellent workability with average particle sizes ranging from 8 to 23 microns. The cycle testing with anodes produced using Santa Cruz graphite in CR2016 LiB batteries has proven to be very stable with little degradation throughout the initial 35 cycles.
On September 22, South Star Battery Metals announced:
South Star Battery Metals announces successful results from ongoing cycle and value-add testing program....
Sovereign Metals [ASX:SVM] [GR:SVM]
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.
No news for the month.
You can view the latest investor presentation here.
Armadale Capital [AIM:ACP], BlackEarth Minerals [ASX:BEM], Black Rock Mining [ASX:BKT], DNI Metals [CSE:DNI] (OTCPK:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Electric Royalties (OTCQB:ELECF) [TSXV:ELEC], Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Goldcore Resources Ltd. [TSXV:GEM] (CZSVF), Graphite One Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Graphite Energy Corp. [CSE:GRE] [GR:GOA], New Energy Metals Corp. (OTCPK:NEMCF) [ASX:NXE], Volt Resources [ASX:VRC] [GR:R8L].
September saw flat flake graphite prices.
Highlights for the month were:
As usual, all comments are welcome.
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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], ZEN GRAPHENE SOLUTIONS [TSXV:ZEN], LEADING EDGE MATERIALS [TSXV:LEM] 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.
Additional disclosure: The information in this article is general in nature and should not be relied upon as personal financial advice.