NGPHF - Expert Says Graphite Stock Is at a Great Entry Point | Benzinga
Source: Clive Maund 05/28/2024
In light of recent restrictions and tariffs surrounding Graphite, Technical Analyst Clive Maund takes a look at Graphano Energy Ltd. to explain why he believes it is an Immediate Strong Buy.
The intensifying debt crisis is expected to lead to a capital flight from all debt instruments and fiat, generally into tangible assets and specifically into commodities such as graphite, all of which are expected to soar.
Many people, perhaps not surprisingly, do not know much about the uses to which graphite is put, and the following slide, lifted from Graphano Energy Ltd.'s (OTC: GELEF) investor deck, provides some information on the characteristics of graphite and its uses. According to the United States Geological Survey, China accounted for 77% of natural graphite production in 2023, an increase relative to 2022, but last Fall, China announced restrictions on the export of graphite to the U.S. and other countries, and it was very recently in the news that the U.S. is to slap a 25% tariff on natural graphite imports from China starting in 2026, a development that is going to make the product of North American producers a lot more competitive and attractive.
In related news, the CEO and President of Graphite One Inc. (OTC: GPHOF), Anthony Huston, was invited by President Biden to a WHITE HOUSE INVESTMENT AND JOB CREATION SESSION, which gives an indication of how seriously the administration is taking the domestic production of this important raw material which is also interesting also because Graphite One was recommended in an article posted about a week before it took off strongly higher.
This being so, we are now believed to be at a favorable point to buy Graphano Energy stock as it is in a position to break out of a large base pattern and is at a very good entry point, as we will see when we review its charts toward the end of this article.
Graphano Energy has three graphite-bearing properties that are quite close to each other in Quebec, with the flagship LAB (Lac Aux Bouleaux) property being adjacent to the only producing graphite mine in North America which is the Lac de Iles mine belonging to Northern Graphite Corp. (OTC: NGPHF). The past two drilling seasons have produced consistently positive drill results, and the company has staked additional ground.
The extent of the LAB Project is shown on the following slide, and a very interesting and important point to observe is how the LAB ground is contiguous with Northern Graphite's Lac de Iles mine to the north, which, as mentioned above, is the only producing graphite mine in North America, and it is understood that Northern Graphite would gain greatly with the acquisition of Graphano Energy, which will lead to higher mine life and likely significantly lower production costs.
The company's ...