3 Top Canadian Graphite Stocks of 2020

- July 6th, 2020

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

Click here to read the previous 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, a number of graphite-focused companies have still seen impressive share price gains.

In Q2, markets continued to be under pressure as the coronavirus outbreak spread around the world, with governments joining forces to battle the pandemic. Although uncertainty is the name of the game right now, some graphite-focused companies have still managed to hold onto gains year-to-date.

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Top Canadian graphite stocks to watch

Below we run through 2020’s top Canadian graphite stocks year-to-date on the TSX and TSXV. All year-to-date and share price information was obtained on July 6, 2020, from TradingView’s stock screener. All companies listed had market caps above C$5 million at that time.

1. Canada Carbon (TSXV:CCB)

Year-to-date growth: 185.71 percent; current share price: C$0.20

Canada Carbon is an exploration company with three Quebec-based graphite properties under its belt: Miller and Asbury, which are two past-producing graphite mines, and the Dun Raven project. The initial capital cost for the Miller project is set at US$44.38 million, with the company expecting to sell about 1,500 metric tons of high-purity thermally treated graphite annually.

Canada Carbon’s share price hit its highest point of the year so far in Q1 at C$0.38 on the back of an initial order of 50,000 grams of Miller thermally purified graphite from Analytical Reference Materials International. The company, which is focused on the life science sector, will use the graphite to develop a certified reference material for the analysis of ultra-high-purity graphite samples.

Although its share price has pulled back to trade at C$0.20 per share, the company is still up more than 185 percent year-to-date. Canada Carbon hasn’t released any news since late April.

2. Graphite One (TSXV:GPH)

Year-to-date growth: 89.29 percent, current share price: C$0.53

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 capital costs for the project at C$363 million. It also lays out a mine life of 40 years and 60,000 tonnes per year of graphite concentrate output at 95 percent graphitic carbon, once full production is reached in year six.

Graphite One’s share price jumped on May 27, reaching its highest point of the year at C$0.70. On May 13, the company said test work indicates that potential additional products could complement the company’s primary focus on EV batteries/energy storage systems, including high-purity coatings, industrial synthetic diamonds and fire-retardant/fire-suppressant foams.

3. Northern Graphite (TSXV:NGC)

Year-to-date growth: 50 percent; current share price: C$0.18

Ottawa-based Northern Graphite’s main asset is the Bissett Creek graphite project in Southern Canada. The estimated capital cost for the top Canadian graphite stock’s project is C$110 million, with the company hoping to be in production in 2022. The mine is expected to produce an average of 25,000 metric tons of graphite concentrate per year for 23 years.

The company’s share price reached its year-to-date high on February 21 at C$0.24, but as uncertainty hit the markets the stock price has corrected since then. Northern Graphite hasn’t released any news since late March, when it announced that it had secured a non-dilutive royalty financing for Bissett Creek.

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

 

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7 responses to “3 Top Canadian Graphite Stocks of 2020

    1. You bet. Syrah is the whole story at present. Financing for other mines will be hard to get while the market is concerned that Syrah’s ramp up will lower prices too far, making other projects unprofitable . The world market is Syrah’s to dominate, with the world’s biggest and best orebody and a massive production plant in place with about 200,000tpa (from memory) of production potential still to be absorbed by the market. Last time I looked though a serious forecast was talking about a 20%pa growth rate in demand for the next TEN years. Works out to a six-fold incrase. Syrah is in a similar position to De Beers’ position in the diamond market which they held on to for the best part of a century.

      To my mind, Syrah is cheap too. Very cheap. My other graphite stocks are Mason and Focus, and they are small positions based as much on their affiliates as on their progress in mining.

      EddieLuck

  1. Does anybody know of an Australian graphite company that is developing a technique for charging EV’s from some sort of sensor’s in the road.

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