Top Canadian Graphite Stocks

Which graphite stocks have gained the most so far this year? These five companies on the TSX and TSXV are up the most year-to-date.

Click here to read the latest top Canadian graphite stocks article.

As the electric vehicle (EV) revolution moves forward, many expect increasing EV sales to drive demand for graphite, a key metal in lithium-ion batteries.

Even though pricing for the metal has been disappointing for some investors in the past few years, 2021 kicked off with what seems to be a slight turn for flake graphite prices.

Despite the continued uncertainty brought by the coronavirus pandemic, several Canadian graphite stocks have seen impressive year-to-date gains.

Below we run through 2021’s top graphite stocks year-to-date on the TSX and TSXV. All year-to-date and share price information was obtained on July 6, 2021, from TradingView’s stock screener. All companies listed had market caps above C$10 million at that time.

1. Gratomic (TSXV:GRAT)

Year-to-date growth: 370.59 percent; current share price: C$1.60

Exploration and advanced materials company Gratomic has two graphite projects: Aukam in Namibia and Buckingham in Quebec. The company has two offtake deals for Aukam, which covers a historical vein graphite mine, and is solidifying plans to micronize and spheronize graphite from the asset.

During Q1, Gratomic provided updates on the commissioning of its flagship Aukam project, which has been underway since March 29. On April 8, Gratomic said it is in the research and planning phase of its goal to take Aukam solar, which will enable the company’s Aukam processing plant to transition from traditional fuel generators to clean, renewable and sustainable solar power.

The second quarter of the year saw Gratomic appoint new staff members to its team, as well as announce it will soon start trading on the metals exchange platform Technology Metals Market. Major news for the company came at the end of June, when it finalized an agreement to acquire the remaining 37 percent interest in Aukam.

2. South Star Battery Metals (TSXV:STS)

Year-to-date growth: 240 percent; current share price: C$0.17

South Star Battery Metals is focused on the acquisition and development of near-term production graphite projects in Brazil. South Star’s Santa Cruz graphite project, located in Southern Bahia, has at-surface mineralization in friable materials, and successful large-scale pilot plant testing has been completed. The results of the testing show that approximately 65 percent of graphitic carbon (Cg) concentrate is +80 mesh with good recoveries and 95 to 99 percent Cg. The company is carrying its development plan towards Phase 1 production, which is projected in Q4 2022, pending financing.

During the first half of 2021, South Star Battery Metals announced its partnership with a US laboratory that specializes in industrial graphite and technology to complete an advanced graphite metals and value-add testing program for battery and non-battery applications. In May, it provided positive purification results using a thermal process — a technology used for improving the quality of concentrate graphite for a broad range of value-add applications, including lithium-ion batteries.

Also in Q2, the company signed its first memorandum of understanding for 4,000 tonnes of natural flake graphite for a period of four years for Santa Cruz. Later that month, it signed an additional offtake deal for 20,000 tonnes of natural flake graphite concentrate over a period of five years. In June, South Star announced it had produced uncoated and coated spherical purified graphite suitable for use as anode active material for lithium-ion batteries.

3. NextSource Materials (TSXV:NEXT)

Year-to-date growth: 193.33 percent; current share price: C$2.64

Toronto-based NextSource Materials is a mine development company in the final development stage for its 100 percent owned Molo graphite project in Southern Madagascar. The Molo project is a fully permitted, feasibility-stage project and is the only project with SuperFlake graphite.

On February 6, the company secured a strategic investment led by former Xstrata CEO Mick Davis to fully fund the construction of its Molo graphite project. Late in March, the company kicked off the construction process by awarding the engineering, procurement and construction management contract to Erudite Strategies of South Africa. At the start of Q2, NextSource finalized a binding agreement to construct and operate a value-added battery anode facility to produce spheronized and purified graphite required in lithium-ion batteries for EVs and hybrid vehicle applications.

NextSource said the exclusive partnership pairs the company with two well-established and leading companies that process and supply spherical graphite to leading Japanese anode and battery makers, which in turn supply the Tesla (NASDAQ:TSLA) supply chain and other major automotive companies.

In May, NextSource started procurement for Molo ahead of expected mine construction in August 2021 and mine commissioning in April 2022. Later that month, it executed an offtake agreement with thyssenkrupp Materials Trading.

Before the end of the second quarter, the company kicked off a technical study for Phase 2 production capacity of at least 150,000 tonnes per annum of SuperFlake for Molo — a significant increase from a 2019 feasibility study that considered a Phase 2 capacity of only 45,000 tonnes per annum.

4. Lomiko Metals (TSXV:LMR)

Year-to-date growth: 136.36 percent, current share price: C$0.13

Lomiko Metals is engaged in the acquisition, exploration and development of resource properties that contain minerals for the new green economy. It owns 100 percent of the La Loutre graphite property and 20 percent of Promethieus Technologies.

On February 1, the company completed its 100 percent acquisition of the La Loutre flake graphite project, with Lomiko now working on a preliminary economic assessment to advance the project. On April 7, the company published some initial testing results. Later that month, the company announced that Critical Elements Lithium (TSXV:CRE,OTCQX:CRECF) and Lomiko have entered into an option agreement that gives Lomiko the right to acquire up to a 70 percent interest in the Bourier project.

5. Graphite One (TSXV:GPH)

Year-to-date growth: 104.08 percent, current share price: C$1

Graphite One is focused on becoming an American producer of high-grade coated spherical graphite, primarily for the lithium-ion EV battery market. The company plans to develop its Graphite Creek deposit, located in Alaska, into a vertically integrated operation.

A 2017 preliminary economic assessment estimates the capital costs for the project at C$363 million, with a mine life of 40 years and 60,000 tonnes per year of graphite concentrate output at 95 percent Cg, once full production is reached in year six.

On January 17, the company announced its Graphite Creek project has been designated a high-priority infrastructure project by the US government’s Federal Permitting Improvement Steering Committee.

In June, Graphite One announced plans to execute a 2021 drilling program at Graphite Creek. The drill program came after the company’s funding of C$10 million to advance a preliminary feasibility study, scheduled for completion in Q4 2021.

Don’t forget to follow us @INN_Resource for real-time news updates!

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

Editorial Disclosure: Critical Elements Lithium, Gratomic, Lomiko Metals, NextSource Materials and South Star Battery Metals are clients of the Investing News Network. This article is not paid-for content.

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Nouveau Monde commissions its advanced R&D facility at its premises in Saint-Michel-des-Saints » The new laboratory will provide Nouveau Monde with the in-house capacity for testing advanced anode material and providing customized specifications to battery and EV manufacturers » Nouveau Monde has recruited two additional leading scientists, expanding its R&D and technical team to 25 professionals including six ...

» Nouveau Monde commissions its advanced R&D facility at its premises in Saint-Michel-des-Saints

» The new laboratory will provide Nouveau Monde with the in-house capacity for testing advanced anode material and providing customized specifications to battery and EV manufacturers

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Last week’s top-gaining stocks on the TSX were NextSource Materials, Gear Energy, Entree Resources, Pipestone Energy and Crew Energy. 

The S&P/TSX Composite Index (INDEXTSI:OSPTX) opened lower last Friday (September 24), trading at 20,401.85 by midday. It closed the period at 20,400.44.

The index avoided a weekly loss, although healthcare and technology stocks were trending lower.

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city harbour with boats

Australia isn't a producer of graphite (yet), but three states in the country are home to millions of tonnes of reserves and resources.

Graphite has been growing in popularity in recent years as its applications as a battery mineral are realised, and as the popularity of electric vehicles grows around the world.

A form of carbon, graphite is a good conductor and is invaluable in electronics. It comes in three different forms, each with their own valuable applications in modern technology, making it a sought-after commodity without which supply lines for many industries around the world would grind to a halt.

Graphite isn't produced in Australia (yet), but the country sits on 1.05 million tonnes of ore reserves, and 7.14 million tonnes of economic demonstrated resources (EDR), as per 2017 government data — and those numbers are way up from the previously disclosed data from Canberra in 2013.

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text saying "top stories this week"

Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction youtu.be

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.


If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to cmcleod@investingnews.com.

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, 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 the interviews it conducts. 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.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.


Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

Don't forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

MARKETS

Markets
TSX21125.90-487.28
TSXV944.05-31.53
DOW34899.34-905.04
S&P 5004594.62-106.84
NASD15491.66-353.57
ASX7279.30-128.00

COMMODITIES

Commodities
Gold1792.600.00
Silver23.130.00
Copper4.29-0.18
Palladium1751.490.00
Platinum955.500.00
Oil68.17-10.22
Heating Oil2.09-0.29
Natural Gas5.49+0.43

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