Mike Rosenstreich of Hexagon Resources: This is the Biggest Valuation Driver of Graphite Companies

At this year’s Graphite+Anodes event, which was held as part of the Benchmark Minerals Week, the Investing News Network had the chance to catch up with Mike Rosenstreich, managing director of Hexagon Resources (ASX:HXG).

The Australia-listed company, which is looking to become a vertically integrated graphite business, is focused on developing its McIntosh project in Western Australia to supply high-specification graphite materials to both traditional and emerging markets, Rosenstreich explained.

Despite talks about next-generation anode technologies, demand for graphite, which is currently a key element in lithium-ion batteries anodes, will continue to be strong in the next few years, experts say.

“The sentiment in the market I can reflect [out of this conference] is neutral to positive in terms of demand for flake and graphite prices,” Rosenstreich said.  

He also talked about what he sees as the most challenging aspect of the graphite sector right now, which he thinks is being able to market a reasonable amount of material.

“We are looking to market 50,000 tonnes of concentrate flake,” Rosenstreich added, which Hexagon expects to convert into a dozen of different products.

For Rosenstreich, investors and promoters new to the sector should remember that the graphite market is not a mining play, it is not about mining metrics or resources or even grades, but marketing.

“The resources are relevant, but the biggest valuation driver is the company’s ability to penetrate specific markets and have a sound marketing strategy,” he added.

Speaking about what’s ahead for his company, Rosenstreich talked about its joint venture with Mineral Resources (ASX:MIN), the company’s technical test work and how Hexagon is focusing on its downstream business.

Listen to the interview above for more insight from Rosenstreich, including what he expects from the graphite market next year.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.