DMNKF - Graphite Miners News For The Month Of April 2023

2023-04-28 07:15:15 ET

Summary

• Flake prices were slightly lower, and spherical graphite prices fell significantly over the past month.
• Graphite market news - China’s graphite industry struggles to adapt with anode oversupply affecting graphite prices in Q1, 2023.
• Graphite company news - Syrah Resources reports robust DFS results for Vidalia 45ktpa AAM facility. NextSource Materials initiates commissioning of Molo Graphite Mine.
• Talga Group environmental permit approved and upgrades resource to 36.9m tonnes at 23.1% graphite at their Vittangi Graphite Project. EcoGraf signs Framework Agreement with Tanzanian Government. Focus Graphite reports 77.14 m grading 17.63% Graphitic Carbon from its Lac Tétépisca Project in Québec.

Welcome to the April edition of the graphite miners news.

April saw subdued graphite prices and a busy month of news from the graphite miners.

Graphite price news

During the past 30 days the China graphite flake-194 EXW spot price was down 0.74%. The China graphite flake +195 EXW spot price was down 0.27% . 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 down 11.28% the past 30 days.

Fastmarkets’ latest price assessment for graphite flake, 94% C, -100 mesh, fob China , was $750-770/t on March 2, 2023 ( source )

Note: You can read about the different types of graphite and their uses here .

Graphite demand and supply forecast charts

BMI graphite-market-balance benchmarkweek-2022 ( source )

Trend Investing v IEA demand forecast for EV metals ( Trend Investing ) ( 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

2022 - BMI forecasts graphite deficits to begin from 2022 as demand for graphite grows strongly

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

Graphite market news

An article we missed from last month, on March 7 Investing News reported :

Should securing graphite supply be next on the list for EV makers? US electric vehicle pioneer Tesla (NASDAQ: TSLA ) has inked a graphite supply deal with Australia’s Magnis Energy ((ASX:MNS)), as carmakers continue to look for ways to secure battery metals output to meet their targets. The deal between Tesla and Magnis is only the second one signed for graphite production with a mining company. The first one also involved the Elon Musk led company, which secured supply from Syrah Resources ((ASX:SYR)) at the end of 2021... “There are several drivers in the graphite market that would suggest that securing graphite supply could be prudent for automakers,” Wood Mackenzie’s James Willoughby told the Investing News Network ((INN)). “However, deals have been more common between flake graphite miners and anode producers.”... As demand for electric vehicles continues to increase, Wood Mackenzie is forecasting graphite will be in short-supply ? particularly for natural, battery-grade material. “The supply chain is now starting to become aware of this and is looking to secure the material ahead of potential shortages,” Willoughby said.

On March 29 Politico reported :

Canada’s C$80B response to U.S. clean energy push: ‘We will not be left behind’... Prime Minister Justin Trudeau’s Liberal government is announcing C$80 billion in tax credits for clean technology over the next decade, including C$25 billion for investments in clean electricity... The government is also announcing a 30 percent tax credit on manufacturing equipment for renewable and nuclear energy projects, zero-emission vehicles and critical mineral extraction and recycling, expected to cost C$11 billion between now and 2035... The government is also promising to cut down the amount of time it takes to get major projects off the ground, including mines for critical minerals. The budget pledges a “concrete plan to improve the efficiency of the impact assessment and permitting processes” by the end of 2023.

On April 19 Fastmarkets reported :

China’s graphite industry struggles to adapt: ICCSINO. Despite a positive long-term outlook for new energy vehicles and energy storage, experts at the ICCSINO conference in Qingdao on Thursday April 13 suggested that the graphite industry is expected to face ongoing difficulties for the foreseeable future due to supply-demand imbalances. “The height of the graphite industry was in 2022. There was a prevailing sense of optimism amid reports of supply shortages and robust demand,” an attendee at the conference said. “However, in just one year, everything has changed. Bearish sentiment is now widespread due to increased graphite production capacity.”... Fastmarkets’ latest price assessment for graphite flake 94% C, -100 mesh, fob China was $720-738 per tonne on April 13, a 12.16% drop from its October 2022 high... Anode oversupply affecting graphite prices.

Graphite miners news

Graphite producers

I 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 Advanced Metallurgical Group NV [AMS:AMG] [GR:ADG] ( OTCPK:AMVMF ) is also a "diversified producer", producing graphite, vanadium, and lithium. SGL Carbon (ETR: SGL ) is a synthetic graphite producer and Novonix [ASX:NVX] ( OTCQX:NVNXF ) is commercializing their synthetic graphite product. Graphex Group Limited [HK:6128] ( OTCQX:GRFXY ) makes spherical graphite.

Syrah Resources Limited [ASX:SYR][GR:3S7]( OTCPK:SYAAF )( OTC:SRHYY )

Syrah Resources Limited owns the Balama graphite mine in Mozambique. Syrah is also working to become a vertically integrated producer of natural graphite Active Anode Material (“AAM”) at their Vidalia facility, Louisiana, USA.

On March 30 Syrah Resources announced : " 2022 annual report f or the financial year end 31 December 2022."

On March 30 Syrah Resources announced :

Syrah reports US$106 million revenue and record graphite production and sales for 2022. A nnual report for the full year ending 31 December 2022.

On March 30 Syrah Resources announced : " Updated Balama Ore Reserve and Mineral Resource." Highlights include:

• "2022 Balama Ore Reserve estimated at 110.3 Mt at 16.4% total graphitic carbon (“TGC”) for 18.0 Mt contained graphite – forecasts 50+ year mine life, 0.5 life of mine average strip ratio and ~19% TGC ore grade processed to 2047..."

On April 27 Syrah Resources announced: "March 2023 Quarterly Activities and Cashflow Report...

• 30kt natural graphite sold and shipped with 41kt produced at Balama at 71% recovery during quarter...
• Balama C1 cash costs (FOB Nacala/Pemba) of US$668 per tonne, impacted by volume, recoveries and diesel price.
• Weighted average sales price of US$6 36 per tonne ((CIF)) with weaker fines pricing quarter on quarter.
• Construction of the 11.25ktpa AAM Vidalia facility (“Vidalia Initial Expansion”) is advancing on schedule – t otal installed capital cost estimate revised to US $180 million (2% increase) , with potential for further increase to US$186 million... "

On April 27 Syrah Resources announced :

• "Robust DFS results for Vidalia 45ktpa AAM facility. DFS confirms that the expansion of Vidalia to a 45ktpa active anode material (“AAM”) production capacity is technically viable, financially robust and is expected to generate significant value for Syrah .

• NPV of US$208–794 million, IRR of 13.9-22.9% and 4-6 year payback period from commencement of operations, assuming a flat AAM price of US$5,000-7,000 per tonne (2023 real) ..."

You can view the latest investor presentation here .

Catalysts:

• September 2023 quarter - First Stage 11.25ktpa AAM Vidalia facility targeted to start production.

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 news for the month.

Mineral Commodities Ltd. ("MRC") [ASX:MRC]

Skaland Graphite is 90% owned by MRC. Skaland is the highest grade flake graphite operation in the world and 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.

No graphite related news.

Tirupati Graphite [LSE:TGR]

On April 3 Tirupati Graphite announced :

Completion of the acquisition of Suni Resources... The Acquisition includes all assets, infrastructure, permits, licenses, and intellectual property associated with the construction initiated Montepuez Project and the fully permitted Definitive Feasibility Study ready, Balama Central Project (the "Projects") in Mozambique held by Suni...

On April 4 Tirupati Graphite announced : "Operational update. Delivering 97% pure flake graphite at Vatomina." Highlights include:

High Purity Commercial Production

• "...Targeting c.10% uplift in basket price realisation from Madagascan production to between US$910 - US$935 per metric tonne in the fiscal year to March 2024."

Operational Update

• "...The ramp up of production at Sahamamy has continued in line with expectations since the commencement of operations in February 2023; with production in the month to 31 March 2023 remaining in the guidance range of 800 to 1000 tons.
• Total production for the quarter ending 31 March 2023 was however slightly lower than the guidance at c.2400 tons owing to precautionary shut downs due to adverse weather.
• We maintain combined production guidance for Q1-FY24: at between 6,100 - 6,500 tonnes..."

On April 19 Tirupati Graphite announced : "Update on the acquisition of Suni Resources..."

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 April 6 Northern Graphite announced : "Northern Graphite announces non-brokered charity flow-through private placement....."

You can view the latest investor presentation here and the very recent Trend Investing article on Northern Graphite here or a Trend Investing CEO interview here .

Graphite developers

NextSource Materials Inc. [TSX:NEXT] [GR:1JW] ( OTCQB:NSRCF )

NextSource Materials Inc. is a mine development company based in Toronto, Canada, that's developing its 100%-owned, Feasibility-Stage Molo Graphite Project in Madagascar. The Company also has the Green Giant Vanadium Project on the same property. The Molo mine is fully-funded and scheduled to commission in Q1 2023.

On March 23, NextSource Materials Inc. announced :

NextSource Materials initiates commissioning of Molo Graphite Mine and appoints ESG expert to Senior Management Team.....The hybrid power plant consists of a thermal generation facility, which is already in operation, and a solar and battery facility, consisting of a 2.6MW solar PV facility and a 1MWh battery energy storage system. The thermal facility currently supplies all of the plant’s power requirement, and once completed, the solar and battery facility will provide up to 33% of the mine’s total electricity needs using renewable energy... Subject to obtaining the necessary funding and completion of the ESIA process, the Company is targeting production from BAF1 in Q2 2024...

Investors can view the latest company presentation here or the latest Trend Investing article here .

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 April 3 Talga Group announced : " Successful exploration grows Talga’s Swedish natural graphite resource." Highlights include:

• " .... Updated total project resource , including new drill results and applying a higher cut - off grade of 11% graphite , boost ed by 23 % to 36.9 million tonnes at 23.1 % graphite . ..

On April 6 Talga Group announced :

Environment al permit a pprov ed for Talga’s Swedish natural graphite mine .....

You can view the latest investor presentation here .

Westwater Resources (NYSE: 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.

You can view the latest investor presentation here .

Magnis Energy Technologies Ltd [ASX:MNS] ( OTCQX: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 March 31 Magnis Energy Technologies Ltd. announced : " iM3NY update ." Highlights include:

• "Bridging finance provided to iM3NY LLC to assist with plant enhancements and additional working capital.
• Certification process is continuing, now with two independent certifiers."

On April 3 Magnis Energy Technologies Ltd. announced : "Magnis awards services contract for anode active materials project to Worley."

Gratomic Inc. [TSXV:GRAT] [GR:CB82 ] ( OTCQX:CBULF )

Gratomic’s Aukam Graphite Project is located in Namibia, Africa. The Project is undergoing ' operational readiness '. Gratomic also 100% own 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 March 30 Gratomic Inc. announced :

Gratomic announces closing of third tranche for a total of $3 million of its $6 million Non-Brokered Private Placement.....

On April 12 Gratomic Inc. announced :

Gratomic provides drilling update on Capim Grosso Graphite Project.....an additional 1621.30 m of drilling (for a total of 4784.10 m to date of the 5,000-meter drilling campaign) on its Capim Grosso graphite project has been completed. 34 diamond drill holes [DD] have been completed to date. Included in this press release are assay details on holes CGD017 to CGD034. The project is located in the Bahia State of Brazil, with the Company holding a 100% controlling interest in the property.....

Black Rock Mining [ASX:BKT]

No significant 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, approximately 150 km north of Montreal, Canada. NMG (51%) and Mason Graphite (49%) have agreed to JV (subject to approvals) on the Lac Guéret Project.

On April 17 Nouveau Monde Graphite announced :

NMG announces closing of US$22 million Public Offering of common shares in the United States and Canada.....

On April 20 Nouveau Monde Graphite announced : "Caterpillar and NMG strengthen their Zero-Exhaust Emission Collaboration through Definitive Agreements for sourcing the Matawinie Mine’s Fleet and Infrastructure, plus an Offtake MoU targeting NMG’s Battery Materials." Highlights include:

• "Caterpillar to develop an integrated solution covering a zero-exhaust emission fleet, infrastructure, and services for NMG’s Matawinie Mine.
• Definitive agreements underpinned by the 2021 collaboration agreement now frame the deployment of technology, testing collaboration, as well as procurement of fleet and infrastructure.
• Offtake MoU signed to explore opportunities for NMG to supply carbon-neutral graphite materials to Caterpillar for the development of its secure, resilient, and sustainable battery supply chain.
• Through this industry-leading collaboration, NMG’s Matawinie Mine is set to become the world’s first all-electric open-pit mine and a technological showcase site."

You can view the latest investor presentation here .

Greenwing Resources Limited [ASX:GW1] ( OTCPK:BSSMF )

No significant news for the month.

You can view the latest company presentation here .

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. The company was founded on March 28, 2006 and is headquartered in West Perth, Australia. Triton has two large graphite projects in Mozambique, not far from Syrah Resources Balama project.

On March 31 Triton Minerals announced : " Annual report f or the year ended 31 December 2022."

On April 5 Triton Minerals announced : " Interim Definitive Feasibility Study ( DFS ) Update for the Ancuabe Graphite Project. Updated upfront capital expenditure of US$99.1m – in-line with the 2017 DFS estimate despite material cost inflation over intervening period ." Highlights include:

• "... Site-visit currently underway with representatives of both Triton and Shandong Yulong, focused on execution planning and in-country establishment works.
• Final DFS Update expected to be finalised in Q2 CY2023 which will cover the remaining inputs to be refreshed as part of the DFS Update: graphite basket pricing, upfront capital expenditure, operating expenditure and sustaining capital expenditure. The DFS update works have largely been completed and currently the results are under review and finalisation. "

You can view the latest investor presentation here and the latest article on Trend Investing here .

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.

On April 12 SRG Mining Inc. announced :

SRG files a new NI 43-101 technical report for Lola Graphite Project..... The Lola Graphite Project UFS evaluates an annual production capacity of 94,000 tonnes of graphite flakes in concentrate per annum (“ktpa”) over a 17-year life of mine.

You can view the latest investor presentation here .

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.

No news for the month.

Investors can view the latest company presentation here .

Renascor Resources [ASX:RNU]( OTC:RSNUF )

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.

No news for the month.

You can view the latest investor presentation here .

EcoGraf Limited [ASX:EGR] [FSE:FMK] ( ECGFF )

On April 5 EcoGraf Limited announced : " EcoGraf Enters into MoU for Grid Power Supply to Epanko Graphite Project....."

On April 18 EcoGraf Limited announced : " EcoGraf Signs Framework Agreement with Tanzanian Government. Epanko positioned as a major new source of natural g raphite for Key Global Markets and Feedstock for the Company’s Vertically Integrated BAM Business." Highlights include:

Summary of the Key Terms of the Framework Agreement:

• "New joint venture entity Duma TanzGraphite has been incorporated to develop and operate Epanko, with an 84% interest held by EcoGraf and a 16% free carried interest held by the Government.
• Shareholder loans will not be subject to the issuance of Government loan notes, provided interest rates are on reasonable terms or the shareholder loans are interest-free.
• Existing Epanko licences, project approvals, environmental approvals, resettlement action plan and financial balances are to be transferred from the Company’s wholly- owned subsidiary TanzGraphite (TZ) Limited to Duma TanzGraphite. Those transfers will not be subject to any tax.
• A new Epanko life-of-mine Special Mining Licence will be issued to Duma TanzGraphite, a key requirement for project financiers.
• Government and EcoGraf will cooperate to secure financing for the development of Epanko.
• Government will facilitate consents and approvals for the development and operation of Epanko.
• Initial Board of Duma TanzGraphite consists of three EcoGraf appointees and two Government appointees.
• EcoGraf to appoint the Chairman and Chief Executive Officer of Duma TanzGraphite.
• Duma TanzGraphite is not required to list on the Dar es Salaam Stock Exchange."

You can view the latest investor presentation here .

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 April 13 Lomiko Metals Inc. announced : "Lomiko announces updated Mineral Resource Estimate for La Loutre Natural Flake Graphite Property in Southern Quebec achieving 195% increase in Tonnage in the Indicated Mineral Resources category." Highlights include:

• "Estimated 68.2 million tonnes of Indicated Mineral Resources averaging 4.50% Cg per tonne for 3.072 million tonnes of graphite, a tonnage increase of 195%. Indicated Mineral Resources increased 45.01 million tonnes as a result of the 2022 drilling campaign, from 23.2 million tonnes in 2021 MRE.
• Additional Mineral resources reported down-dip and within marble units resulted in the addition of 21.8 million tonnes of Inferred Mineral Resources averaging 3.51% Cg per tonne for 0.765 million tonnes of contained graphite...

Focus Graphite [TSXV:FMS][GR:FKC] ( OTCQB:FCSMF )

On April 19 Focus Graphite announced :

Focus Graphite Files Lac Knife Graphite Project Feasibility Study Technical Report.....

On April 20 Focus Graphite announced : "Focus Graphite reports 77.14 m grading 17.63% Graphitic Carbon [CG] in Hole LT-22-135 from its 2022 Definition Drilling Program at Lac Tétépisca Project, Québec." Highlights include:

• "Hole LT-22-135 , drilled at -65 ^o to a vertical depth of 190.3 metres on Section L9+00S, intersected 77.14 metres* grading 17.63% Cg (from 92.85 metres to 183.6 metres**; Table 1).
• Hole LT-22-136 , drilled at -68 ^o to a vertical depth of 191.9 metres on Section L9+50S intersected 88.44 metres* grading 12.60% Cg (from 57.66 metres to 166.2 metres**; Table 1)..."

Metals Australia [ASX:MLS]

No graphite news for the month.

You can view an August 2022 Metals Australia update video here .

Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML] - Plan to demerge graphite assets to a 100% owned subsidiary NGX Limited

On April 5 Sovereign Metals announced : " Kasiya Indicated Resource increased by over 80%." Highlights include:

• "Kasiya Indicated Resource now stands at 1.2 Billion tonnes at 1.0% rutile and 1.5% graphite .....
• Kasiya’s global MRE over 1.8 Billion tonnes at 1.0% rutile and 1.4% graphite .
• Kasiya remains the world’s largest natural rutile deposit and second largest flake graphite deposit.
• Updated MRE to underpin the mining inventory and mine plan for the forthcoming Pre- feasibility Study ( PFS ) ."

You can view the latest investor presentation here .

Sarytogan Graphite [ASX:SGA]

Sarytogan Graphite has an Indicated and Inferred Mineral Resource of 229Mt @ 28.9% TGC in Central Kazakhstan.

On March 29 Sarytogan Graphite announced : "Kenesar graphite exploration project." Highlights include:

• " Brand new 309 km2 exploration licence in northern Kazakhstan granted for six years.
• The geology at Kenesar is prospective for graphite mineralisation, complementary to the premium micro-crystalline graphite at Sarytogan’s flagship Sarytogan Graphite Project.
• Kenesar leverages Sarytogan’s exploration team’s skills to operate skilfully and efficiently in Kazakhstan.
• An EM geophysical survey is planned, with the highest priority targets scheduled for exploration drilling during the 2023 field season. "

On March 29 Sarytogan Graphite announced : "Amended - Kenesar graphite exploration project....."

On April 5 Sarytogan Graphite announced : "Capital raising to advance PFS...."

On April 17 Sarytogan Graphite announced :

Land access agreement signed..... The land access agreement provides for a USD $10,000 pre-payment and a lump-sum compensation payment of USD $240,000 upon the grant of the mining licence.....

On April 26 Sarytogan Graphite announced : "Quarterly activities report quarter ending 31 March 2023." Highlights include:

• " Upgraded Indicated and Inferred Mineral Resource of 229Mt @ 28.9% TGC.
• Commencement of bulk flotation test work.
• Selection of Pre-Feasibility Study [PFS] engineers.
• Pegging of New Kenesar Graphite Exploration Project.
• Signing of a Land Access Agreement for the Sarytogan Graphite Project. "

Evion Group NL [ASX:EVG] - (Formerly BlackEarth Minerals [ASX:BEM])

On April 3 Evion Group NL announced : "Placement to accelerate plans for graphite business....."

Zentek Ltd. [TSXV:ZEN] ( ZTEK )

On March 30 Zentek Ltd. announced : "Zentek engages Arka BRENStech Pvt Ltd to develop opportunities in India....."

On April 5 Zentek Ltd. announced : "Zentek files patent applications for ZenGUARD™ in multiple new jurisdictions."

For further details see:

Graphite Miners News For The Month Of April 2023