Graphite Miners News For The Month Of June 2024

RHJ/iStock via Getty Images Welcome to the June edition of the graphite miners news. June saw flake graphite prices generally slightly higher. Graphite price news During the past 30 days, the China graphite flake-194 EXW spot price was flat. The China graphite flake +195 EXW spot price was up 3.63%. 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. The spherical graphite 99.95% min EXW China price was up 0.82% in the past 30 days. Benchmark Mineral Intelligence 2023 flake graphite and spherical graphite price chart (source) BMI Graphite demand and supply forecast charts Macquarie Research (March 2023) forecasts flake graphite deficits starting in 2025 and growing larger to 2030 (source) Macquarie Research The IEA Global critical Minerals Outlook 2024 report forecasts graphite demand and supply pipeline to 2040 (source) IEA Trend Investing vs. IEA demand forecast for EV metals (IEA) Trend Investing & the IEA 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 IEA 2022 – BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand – 97 new 56,000tpa natural flake graphite mines BMI Graphite market news In May, the IEA released the IEA Global Critical Minerals Outlook 2024 which discusses graphite from page 168. On May 15, Stockhead reported: Mission Critical: Albanese and Chalmers’ budget delivers $7bn splash for critical minerals refiners. Canberra answers miners’ prayers, with $7b production tax credit at centre of $22b Future Made in Australia program. The budget announcement could see 10% of operating costs for downstream processing in critical minerals like nickel, vanadium, lithium and rare earths returned to miners as a tax credit…The Federal Government has acceded to demands from the mining industry, committing $7 billion over the next decade in a tax credit for companies who process and refine critical minerals on shore. A key demand of the Association of Mining and Exploration Companies, the Critical Minerals Production Tax Incentive will cover 10% of relevant processing and refining costs for the downstream processing of any of Australia’s 31 critical minerals for production between 2027-28 and 2039-40 as long as they reach FID by 2030… “We’re looking at the vanadium, the rare earths, lithium and the nickel players as being the most obvious but we’ve also highlighted graphite and cobalt, which we think are essentially the suite of commodities where there are substantial proposals around going downstream.” Note: Bold emphasis by the author. On May 24, Fastmarkets reported: “Graphite buyers are willing to pay IRA premium: Westwater Resources.” On May 28, Bloomberg reported: EU, Australia sign critical minerals pact to diversify supply chains. Ministers in Canberra and Brussels signed a memorandum of understanding on Tuesday, which will be followed by the joint development of “concrete actions” over the next six months to improve collaboration on critical minerals projects. On May 28 Fastmarkets reported: US to end tariff exemption on Chinese graphite anodes. The United States Trade Representative’s (USTR) office announced a further extension of all China Section 301 tariff exclusions on 352 Chinese import and 77 pandemic-related categories through June 14, after which, the tariff exclusion for China’s graphite anodes will not be extended, the USTR announced on Friday May 24…”Together with China’s export control, the latest tariff is bound to result in downstream battery makers’ trying to secure their source of raw materials by searching for alternative suppliers outside of China,” a third anode producer said… “The tariffs on Chinese anodes could help support local supply chain development by encouraging downstream buyers to sign off-take agreements with local suppliers, thus providing better funding conditions for some junior graphite players outside of China,” a graphite supplier outside of China said. The third anode producer added, “The 25% tariff is providing new producers with space [to impose] price premiums over Chinese anodes. If they can keep the price premium within 20-25%, they would maintain their competitiveness against Chinese materials.” On June 13, Fastmarkets reported: “CRMA ‘toothless’ to support European graphite producers; China, US abandon level playing field – Vianode CEO.” On June 25 International Graphite released: Why American batteries need Australian graphite…Andrew Worland said the message from the summit was clear that the US is fully committed to diversifying its critical minerals supply away from China. Graphite miners news Graphite producers We 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: AMG Critical Materials N.V. [AMS:AMG] [GR:ADG] (OTCPK:AMVMF) is also a “diversified producer”, producing graphite, vanadium, and lithium. Syrah Resources Limited [ASX:SYR][GR:3S7](OTCPK:SYAAF)(OTC:SRHYY) Syrah Resources Limited owns the Balama graphite mine in Mozambique. Syrah is also a vertically integrated producer of natural graphite Active Anode Material (“AAM”) at their Vidalia facility, Louisiana, USA. No significant news for the month apart from key some shareholder changes as you can view here. Catalysts: 2024 – Outcome of the U.S. Gov. additional US$350 million ATVM loan application to help fund Vidalia expansion. Natural graphite and AAM demand is forecast to increase four and five times, respectively, over the next 10 years (source) company presentation April 2024 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. No significant news for the month. Mineral Commodities Ltd. (“MRC”) [ASX:MRC] Skaland Graphite is 100% owned by MRC. Skaland is the highest grade flake graphite operation in the world and the 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 plans to demerge its Norwegian graphite assets into a newly incorporated Norway company branded as Ascent Graphite. On May 30, Mineral Commodities announced: “Results of Annual General Meeting.” Tirupati Graphite [LSE:TGR] On June 12, Tirupati Graphite announced: Confirmed appointment of Non-Executive Chairman…Mr Michael Lynch-Bell…Mr Lynch-Bell spent a 38-year career with Ernst & Young (‘EY’), where he led its Global Oil and Gas, UK IPO, and Global Oil and Gas and Mining transaction advisory practices. Northern Graphite [TSXV:NGC][FRA:ONG] (OTCQX:NGPHF) Northern Graphite purchased from Imerys the Lac des Iles producing graphite mine in Quebec and the Okanjande graphite deposit/Okorusu processing plant in Namibia. They also own 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. On May 31, Northern Graphite announced: “First quarter 2024 results. Lac des Iles mine production ramping up to meet customer demand and increase operating income. Record first quarter sales volumes and revenues. Strict cost control measures being implemented to preserve working capital…Amid record sales in the first quarter and in order to meet rising demand and to improve financial performance, the Company moved the LDI plant to a seven days per week operation, targeting annual nameplate capacity of 25,000 tpy.” Highlights include: “Revenue of $5.5 million based on 2,968 tonnes of graphite concentrate sold at an average realized sales price of $1,864 per tonne (US$1,382 per tonne); Cash costs of $1,628 (US$1,207) per tonne of graphite concentrate sold; Loss from mine operations of $0.5 million, mainly due to lower average sales prices and increased cash costs as part of the ramp-up to higher production levels; An operating loss of $2.8 million which included $1.4 million in non-cash charges relating to depletion and depreciation and share-based compensation. The LDI plant was in production for the full quarter with production volumes of 2,574 tonnes during the three month period ended March 31, 2024…” May 17, 2024 – Northern Graphite Comments on U.S. Tariffs on Graphite from China May 6, 2024 – Northern Graphite Comments on New U.S. Graphite Procurement Regulations NextSource Materials Inc. [TSX:NEXT] [GR:1JW] (OTCQB:NSRCF) NextSource Materials Inc. 100% owns the Molo Graphite Mine in Madagascar. The Company also has the Green Giant Vanadium Project on the same property. On June 13, NextSource Materials announced: NextSource Materials signs Mandate Letter for US$91 million Debt Facility with International Finance Corporation…to fund an expansion of the Molo Graphite Mine (the “Molo mine”) in southern Madagascar…The IFC Debt Facility would fund approximately 50% of the capital costs and working capital requirements for the mine expansion to 150,000 tpa. Gratomic Inc. [TSXV:GRAT] [GR:CB82] (OTCQX:CBULF) Gratomic’s Aukam Graphite Project is located in Namibia, Africa. Gratomic also 100% owns the Capim Grosso Graphite Project in Brazil. Gratomic is also collaborating with Forge Nano to develop a second facility for graphite micronization and spheronization. On June 17, NASDAQ reported: Gratomic signs Letter of Intent for $5.2 Million Royalty Financing…with Tristream Capital Pte…to acquire a 5% Gross Sales Royalty (the “5% GSR”) in respect of sales of graphite from the Aukam Property commencing six months after receipt of the Investment Amount for a period of 5.5 years after which the royalty will be reduced to a 1% Gross Sales Royalty. 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. On June 21, Leading Edge Materials announced: Leading Edge Materials reports quarterly results to April 30, 2024…During the three months ended April 30, 2024 (“Q2 2024”) the Company reported a net loss of $859,529. Evion Group NL [ASX:EVG] On June 20, Evion Group announced: “Progressing to full production at expandable graphite site.” Highlights include: “Ramp up is currently concluding with all testing completed in preparation for full production to commence. Initial production has yielded high value expandable graphite ready for export to Europe in Q3 2024 to coincide with first sales and revenue. All government permits, infrastructure and treatment plants are now in place, ready to ensure full production capacity is achieved in the short term. The JV has already commenced planning for an expansion to production that has the potential to more than double sales volumes and revenue. Planned increases to production are in response to very strong demand, which could see the JV become one of the world’s largest producers of Expandable Graphite outside of China – supplying expanding markets in Europe, the USA and Southeast Asia. The JV is currently finalising purchase of graphite concentrate and sales of expandable graphite terms that will provide pricing certainty and are well within budget forecasts.” Graphite developers South Star Battery Metals [TSXV:STS] (OTCQB:STSBF) South Star Battery Metals’ Santa Cruz Graphite Mine is in Bahia Brazil. The Company also owns the BamaStar Project in Coosa County, Alabama, USA. Commercial production at Santa Cruz is targeted to begin in Q3, 2024. On June 19, Southern Star Battery Metals announced: “South Star Battery Metals announces land purchase, construction update, and the approval of the Definitive Mining Licenses For Phases 1, 2 & 3 for its Santa Cruz Graphite Mine in Brazil.” Highlights include: “Final payment of land purchase for Phase 1 Plant and Operations. Approval of the Definitive Mining Licenses For Phases 1, 2 & 3. All mining and environmental licenses/permits are approved and in-hand for the future phased, modular expansion of Santa Cruz graphite production up to 50,000 tonnes/year. Phase 1 construction is on schedule for substantial completion by the end of June 2024 followed by a 6-week plant commissioning and ramp-up period. Commercial sales are planned to start in September 2024. Name plate production capacity is expected to be reached in Q4 2024.” Renascor Resources [ASX:RNU] 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 June 24, Renascor Resources announced: Competitive ECI process underway for Siviour Graphite Project. Renascor has awarded Early Contractor Involvement contracts to two leading engineering and construction firms to competitively bid the minerals processing plant package…The Australian Government, through Export Finance Australia (EFA), has conditionally approved a A$185 million loan facility (Loan Facility)2 from the Australian Government’s $4 billion Critical Minerals Facility to support Renascor’s BAM Project, with EFA recently confirming that the Loan Facility has been approved to be utilised to fast track the development and operation of the upstream operation. In parallel with the ECI works on the upstream, Renascor is in discussions with lithium-ion battery market participants regarding both potential binding offtake terms, as well as potential equity investments to help meet the BAM Project’s initial capital requirements. 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 May 31, Talga Group announced: Vittangi Anode Project expansion: Interim scoping study paves way to scale…Talga Group CEO, Martin Phillips, commented: “Our large-scale Swedish graphite project is a key alternative source of strategic raw materials to support the EU’s ambitions and the demand from key export markets. The completed mining study underpins the Scoping Study underway to outline expansion options to supply the global battery anode market beyond our initial 19,500tpa project.” On June 11, Talga Group announced: “Clarification – Vittangi Anode Project Expansion: Interim Scoping Study.” On June 21, Talga Group announced: “SQM to join Talga in Swedish lithium project.” Westwater Resources (WWR) 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. No news for the month. Magnis Energy Technologies Ltd [ASX:MNS] (OTCPK: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 June 3, Magnis Energy Technologies announced: Shareholder update. Magnis Energy Technologies Ltd…refers to its ASX announcement dated 1 May 2024 relating to a secured, short term loan from sophisticated and professional investors. The Company advises that the maturity date of this loan has been extended by the parties by mutual agreement to 30 June 2024. Apart from the maturity date, the other material terms of the loan are as previously disclosed to the market in the December 2023 half-year report and the March 2024 quarterly activities report and Appendix 5B. Black Rock Mining [ASX:BKT] No news for the month. Nouveau Monde Graphite [TSXV:NOU] (OTCQX:NMGRF) (NYSE:NMG) and Mason Graphite [TSXV:LLG] [GR:M01] (OTCQX:MGPHF) Nouveau Monde Graphite (“NMG”) own the Matawinie Graphite Project, located in the municipality of Saint-Michel-des-Saints and the Lac Guéret Project. No significant news for the month. Greenwing Resources Limited [ASX:GW1] (OTCPK:BSSMF) No graphite news. On May 27, Greenwing Resources Limited announced: “San Jorge Lithium Brine Project – Maiden Mineral Resource Estimate.” 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 two large graphite projects in Mozambique, not far from Syrah Resources Balama Project. On May 28 Triton Minerals announced: “Results of the annual general meeting held 28 May 2024.” SRG Mining Inc. [TSXV:SRG] [GR:18Y] [Formerly SRG Graphite Inc.] 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. EcoGraf Limited [ASX:EGR] [FSE:FMK] (OTCQB:ECGFF) No news for the month. Lomiko Metals Inc. [TSXV:LMR](OTCQB:LMRMF) Lomiko has two projects in Canada – La Loutre graphite Project (flagShip) (100% interest) and the Bourier lithium Project (70% earn in interest). On June 18, Lomiko Metals Inc. announced: Lomiko Metals announces its presence and continued commitment to engaging with communities around the La Loutre project…Belinda Labatte, CEO Interim Chair of the board stated: ” On June 24, Lomiko Metals Inc. announced: Lomiko Metals announces non-brokered private placement of up to $1.25 million and concurrent share consolidation…” Metals Australia [ASX:MLS] On June 24, Metals Australia announced: Quebec flake-graphite development project update. Metals Australia Ltd (“Metals Australia”, or “the Company”) continues to advance its flagship high-grade flake-graphite development project in the Tier 1 mining district of Quebec, Canada…Project Name change to Lac Carheil Graphite project: Metals Australia is changing the name of its graphite project to Lac Carheil Graphite Project to better align the projects proximity with its closest and most significant geographical feature…Further contract awards signed. Metals Australia has signed a contract with Lonestar Technical Minerals (LSTM) for the completion of its marketing and pricing strategy as part the overall pre-feasibility [PFS] assessment… NGX Limited (100% owned subsidiary of Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML]) On June 12, Sovereign Metals Limited announced: “Pilot phase site construction on schedule.” On June 20, Sovereign Metals Limited announced: “Malawi rail upgrades underway.” Sarytogan Graphite [ASX:SGA] Sarytogan Graphite has an Indicated and Inferred Mineral Resource of 229Mt @ 28.9% TGC in Central Kazakhstan. On June 11, Sarytogan Graphite announced: “High performing CSPG battery anodes.” Highlights include: “Coin-cell batteries manufactured from CPSG have now cycled 100 times… Pre-Feasibility Study on track for completion no later than September 2024.” On June 17, Sarytogan Graphite announced: “Another high value use – Lead acid battery anodes.” Highlights include: “Sarytogan’s inverted flowsheet delivers Ultra-High Purity Fines (UHPF) as the by-product for advanced industrial use at premium prices… Graphite for this application is sold at US$12,000 to US$20,000 at high volumes. Pre-Feasibility Study on track for completion no later than September 2024.” Albany Graphite Corp. (100% owned subsidiary of Zentek Ltd. [TSXV:ZEN] (ZTEK) No significant news for the month. Other graphite juniors Armadale Capital [AIM:ACP], Castle Minerals [ASX:CDT], DNI Metals [CSE:DNI] (OTC:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Elcora Advanced Materials Corp. [TSXV:ERA] (OTCPK:ECORF), Electric Royalties [TSXV:ELEC], E-Power Resources [CSE:EPR], Evolution Energy Minerals [ASX:EV1] (OTCPK:EVMIF), Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Graphite One Resources Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Green Battery Minerals Inc. [TSXV:GEM] (OTCQB:GBMIF), Infinity Stone Ventures [CSE:GEMS] (OTCQB:GEMSF), International Graphite [ASX:IG6], Lithium Energy Limited [ASX:LEL], New Energy Metals Corp. [ASX:NXE], Volt Carbon Technologies [TSXV:VCT] (OTCQB:TORVF), Volt Resources [ASX:VRC] [GR:R8L], Reflex Advanced Materials Corp. [CSE:RFLX] (OTCQB:RFLXF), Walkabout Resources Ltd [ASX:WKT]. Spherical Graphite companies Aoyu Graphite Group Battery Minerals Ltd [ASX:BAT] Graphex Group [HKG: 6128] (GRFX) Imerys Graphite & Carbon [FR:NK](OTCPK:IMYSF) (OTCPK:IMYSY) Jixi BTR graphite Industrial Park Qingdao Black Dragon Graphite Group Qingdao Yanxin Graphite Products Co. Syrah Resources Limited [ASX:SYR] (OTCPK:SYAAF) Yingkou Botian Material Technology Limited Comp Synthetic Graphite companies GrafTech International (EAF) Resonac Holdings [TYO:4004) BTR New Material Group [BJSE:835185] Lianyungang Jinli Carbon Shanshan Technology (SHA:600884) SGL Carbon [ETR:SGL] (OTCPK:SGLFF) Novonix Ltd [ASX:NVX](NVX) Graphene companies Archer Materials [ASX:AXE] Black Swan Graphene Inc. [TSXV:SWAN] Elcora Advanced Materials Corp. [TSXV:ERA](OTCPK:ECORF) First Graphene [ASX:FGR] (OTCQB:FGPHF) Graphene Manufacturing Group Ltd [TSXV:GMG] NanoXplore Inc. [TSXV:GRA] (OTCQX:NNXPF) Strategic Elements Ltd [ASX:SOR] Zentek Ltd. [TSXV:ZEN] (ZTEK) Conclusion June saw China flake graphite prices generally slightly higher. Highlights for the month were: Australia – Mission Critical: Albanese and Chalmers’ budget delivers $7bn splash for critical minerals refiners. EU, Australia sign critical minerals pact to diversify supply chains. US to end tariff exemption on Chinese graphite anodes on June 14, 2024. CRMA ‘toothless’ to support European graphite producers; China, US abandon level playing field – Vianode CEO. Why American batteries need Australian graphite. Northern Graphite reports a Q1 loss from mine operations of $0.5 million from their Lac des Iles mine as they aim to ramp production to a nameplate capacity of 25,000 tpy. NextSource Materials signs Mandate Letter for US$91m Debt Facility with International Finance Corporation to fund an expansion of the Molo Graphite Mine in Madagascar. Gratomic signs Letter of Intent for $5.2 Million Royalty Financing. Evion Group – Progressing to full production at Expandable Graphite site. Southern Star Battery Metals Santa Cruz Graphite Mine (in Brazil) Phase 1 construction is on schedule for substantial completion by the end of June 2024 followed by a 6-week plant commissioning and ramp-up period. Talga Group Vittangi Anode Project expansion Interim Scoping Study paves way to scale. Metals Australia is changing the name of its graphite project in Quebec to Lac Carheil Graphite Project. Sovereign Metals Limited announced Pilot phase site construction on schedule. As usual, all comments are welcome. Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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