The future looks bright for graphite. A new report from Allied Market Research predicts that the global graphite market will reach $18,769 million by 2022. To put that in perspective, in 2015 the global graphite market was worth just $13,004 million.
Graphite demand is projected to increase partially due to more buying from automobile and aircraft companies, but lithium-ion batteries are expected to drive the most growth. These batteries are used to power electric cars, smartphones and tablets.
With demand for graphite poised to increase, many investors are looking to stocks as a way to gain exposure to the space. Below is a list of the five graphite stocks that have gained the most so far this year. All are listed on the TSX, TSXV or ASX and had market caps above $5 million as of April 26, 2017.
1. Ceylon Graphite (TSX:CYL,OTCMKTS:CYLYF)
Current price: C$0.22; year-to-date gain: 528.57 percent
Ceylon Graphite is currently exploring for graphite in an area of Sri Lanka where the metal has historically been found. It has a land package made up of 100 1-square-kilometer grids containing proven vein graphite deposits, which it says make up less than 1 percent of world graphite production.
In March, the company reported that it will be engaging in electromagnetic mapping to identify the precise location of graphite veins across its land package. More recently, it announced that it has purchased a drill rig that will be used as part of a 24-month drilling program.
2. Talga Resources (ASX:TLG,OTCMKTS:TLGRF)
Current price: AU$0.87; year-to-date gain: 200 percent
Talga Resources describes itself as a technology materials company, and says it has a unique, simple and cost-effective process for liberating graphene and nanographite from its graphite deposits in Sweden. In total, it has five graphite projects in the country, and most recently substantially increased the JORC mineral resource estimate for the Nunasvaara deposit, located at its Vittangi project.
In its 2016 Annual Report, the company said it has identified four industry sectors as prime markets for products made with graphite (coatings, composites, building products/construction and energy storage) and is developing products for those sectors. One of the products under development is thermally conductive concrete. Talga released positive test results for its prototype earlier this month.
3. Nextsource Materials (TSX:NEXT,OTCMKTS:NSRC)
Current price: C$0.095; year-to-date gain: 46.15 percent
Energizer Resources recently changed its name to Nextsource Materials to reflect its shift in focus from exploration to mine development. The company will soon be releasing an updated feasibility study for its Molo graphite project in Madagascar, and after funding is secured will begin completing Phase 1 of its mine development plan for Molo.
Phase 1 will involve constructing a mine and processing plant that can produce about 15,000 tonnes per year of high-quality flake concentrate over a 20-year mine life. Phase 1 could be completed in about six months; an expansion to Phase 2 will be predicated on market demand during Phase 1.
4. Focus Graphite (TSXV:FMS,OTCMKTS:FCSMF)
Current price: C$0.09; year-to-date gain: 38.46 percent
Focus Graphite’s goal is to produce technology-grade graphite concentrate from its Lac Knife and Lac Tetepisca projects in Quebec, and in 2017 it has completed work at both of those projects. It has released drill results from Lac Tetepisca, and in March it updated the resource estimate for Lac Knife. According to the company, the project’s measured and indicated resources are 42 percent higher than they were in 2014.
It’s also worth noting that Focus Graphite is the largest shareholder of Grafoid, a research and development company that is focused on graphene.
5. Nouveau Monde Mining Enterprises (TSXV:NOU,OTCMKTS:NMGRF)
Current price: C$0.285; year-to-date gain: 26.67 percent
Nouveau Monde Mining Enterprises’ main focus is its Matawinie graphite project in Quebec. It completed a preliminary economic assessment for the project’s West Zone deposit in 2016, and in Q1 2017 it updated the resource estimate for the deposit. The company expects to have a prefeasibility study for the deposit ready by September.
Most recently, the company announced plans to build a graphite demonstration plant in Quebec. According to a news release, the plant will have the capacity to produce 1,000 tonnes of natural graphite concentrate per year using material from Matawinie. The plant is expected to be up and running during the first half of 2018 once permits and financing are in place.
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Focus Graphite, Grafoid and Nextsource Materials are clients of the Investing News Network. This article is not paid-for content.
This article is updated periodically. Please scroll to the top for the most recent information.
4 Top Graphite Stocks Up in 2016
By Jocelyn Aspa, June 23, 2016
Last year, the Investing News Network (INN) chatted with Jon Hykawy of Stormcrow Capital to see what has contributed to graphite’s growing demand.
He said that, “natural graphite in a lithium-ion battery actually increases the energy density of the cell, makes the battery better,” which could be one reason why some graphite companies saw success in the last months of 2016.
Here’s a breakdown of top graphite stocks up in a one-year period, with market capitalizations of not less than $10 million. Read more below to learn about these top gainers:
Leading Edge Materials (TSXV:LEM)
Topping our graphite stocks list is Leading Edge Materials, who has made gains of 507 percent over a one-year period. The company has also steadily made gains of 66.67 percent year-to-date, with shares currently at $0.85.
Leading Edge Materials currently has the Woxna graphite project in Sweden, which commenced production almost two years ago, in July 2014. The facility is currently permitted to feed 100,000 tones of graphitic rock per year.
Mining at the Woxna project commenced in 2015.
Mason Graphite (TSXV:LLG)
Over a one-year period, shares of Mason Graphite rose over 303 percent, over a one-year period. The company has also started 2017 well, with gains of 2.31 percent year-to-date and shares currently at $1.33.
The company is focused on its 100 percent owned Lac Gueret graphite project in Quebec and is looking to obtain all permits required to begin construction this year, with production beginning in 2017.
In March, the company filed an amended technical report for the project. Mineral reserves of graphite reported in the technical report from November had been reduced to 4,741,00 tonnes grading 27.77 percent from 62,875,000 tonnes grading 17.18 percent.
Northern Graphite (TSXV:NGC)
Northern Graphite has not started the year well with its shares dropping 3.64 percent year-to-date to $0.26. However, over a one-year period, the company has gained 39.47 percent.
Northern Graphite owns 100 percent interest in its Bissett Creek deposit in eastern Ontario. In March of 2015, the company qualified Bissett Creek concentrates for major graphite markets. The testing, carried out by Naturgraphit, didn’t detect any limitations on potential uses for the detected flake graphite.
Northern Graphite’s most recent news in October 2016 together with Elcora Advanced Materials (TSXV:ERA), Nouveau Monde Mining Enterprises (TSXV:NOU), Metals of Africa (ASX:MTA) and Coulometrics LLC announced that the micronizing and spheronizing mill acquired by the group had been installed and is operational.
Eagle Graphite (TSXV:EGA)
Eagle Graphite owns one of two natural flake graphite facilities in North America: the Black Crystal graphite quarry and plant in British Columbia. In February, the company released new drill results and graphite discoveries, reporting that they had received all assays from its 2015 diamond drill program at the Black Crystal graphite project.
From the eight holes drilled at the plant site during the 2015 program, up to 1.75 graphite was intersected in near surface mineralization.
Over a one-year period, the company’s stocks have made gains of 20 percent, to sit at $0.45.
Other graphite stocks up year-to-date
The above graphite stocks may notably be up over a one-year period, but there are other companies who have also seen mild success year-to-date. Here’s a brief overview of those companies:
- Focus Graphite (OTCMKTS:FCSMF):up year-to-date by 33.33 percent, or $0.02 per share, to $0.060;
- Zenyatta Ventures (TSXV:ZEN): up year-to-date by 13.64 percent, with shares currently at $1.
- Noram Ventures (TSXV:NRM):Noram has not seen gains percent year-to-date, but over a one-year period, the company has made gains of 175 percent;
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Leading Edge Materials, Eagle Graphite, Noram Ventures and Focus Graphite are clients of the Investing News Network. This article is not paid-for content.