GRFXF - Graphite Miners News For The Month Of December 2023
2023-12-27 09:56:19 ET
Summary
- China flake graphite prices & spherical graphite prices were flat the past month.
- Graphite market news - The U.S. DoE releases proposed interpretive guidance on Foreign Entity of Concern ("FOEC") rules. Select Committee recommends creating a critical mineral 'Resilient Resource Reserve'.
- Graphite company news - NextSource Materials Molo Mine FS resulted in a pre-tax NPV8 of US$424.1m and a pre-tax IRR of 31.1%. Talga Group secures a $31 million environmental bond facility.
- Westwater Resources announces Coosa Graphite Deposit estimated Pre-tax NPV of $229 million and Pre-tax IRR of 26.7%. EcoGraf announces KfW IPEX-Bank mandated for UFK loan of up to US$105m.
Welcome to the December edition of the graphite miners news.
December saw generally flat flake graphite prices with minimal impact from the new China export licenses introduced from December 1, 2023.
Graphite price news
During the past 30 days, the China graphite flake-194 EXW spot price was down 0.64%. The China graphite flake +195 EXW spot price was up 0.41% . 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 0.19% in the past 30 days.
BMI Flake graphite 1-year price chart, 94-95%C, -100 mesh (as of September 2023) ( source )
Graphite demand and supply forecast charts
BMI graphite-market-balance benchmarkweek-2022 ( source )
Macquarie Research (March 2023) forecasts flake graphite deficits starting in 2025 and growing larger to 2030 ( source )
Trend Investing vs. 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 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
On December 1 Energy.gov announced : "Department of Energy releases proposed interpretive guidance on Foreign Entity of Concern for public comment."
On December 5 Fastmarkets reported :
A Foreign Entity of Concern ((FEOC)) includes any foreign entity that is "owned by, controlled by or subject to the jurisdiction or direction of a government of a covered nation". Those countries that currently fall into this "covered nation" category are China, Russia, North Korea and Iran...Starting from next year, with a period of transition, companies that have a more than 25% ownership or control by a FEOC - including board seats, voting rights or equity - will not be eligible for tax credits available under the Inflation Reduction Act ((IRA)). "To strengthen the security of America's supply chains, beginning in 2024, an eligible clean vehicle may not contain any battery components that are manufactured or assembled by a FEOC, and, beginning in 2025, an eligible clean vehicle may not contain any critical minerals that were extracted, processed or recycled by a FEOC," the Department stated...
On December 8 Benchmark Mineral Intelligence reported :
Graphite prices tick up following China's proposed export regulations. Following the announcement that China will regulate the export of some graphite products from 1st December, natural graphite prices experienced an uptick in November for the first time this year. Benchmark's Flake Graphite Price Assessment showed an increase of 3.7% in the price of flake graphite (FOB China -100, 94-95% C) to $560 per tonne....
On December 13 Investing News Network reported :
Graphite market forecast: Top trends that will affect graphite in 2024... According to Fastmarkets battery materials research analyst Georgi Georgiev, "The combination of graphitization overcapacity, declining coke prices and weaker-than-expected demand from the EV sector has led prices for synthetic active anode material ((AAM)) to decrease significantly, with the price differential between synthetic and natural-based AAM narrowing to previously unseen levels"... "Natural and synthetic supply from existing graphite producers, together with ramp ups in new-built synthetic graphite capacity in China and natural graphite projects in Africa, should keep the market in balance in 2024," Dr. Nils Backeberg, co-founder and director of market intelligence firm Project Blue...When it comes to natural graphite demand, strong growth is expected from outside of China in 2024, especially as other players in the market seek to establish ex-China graphite supply chains. "Ex-China anode manufacturers are still keen on natural graphite due to its lower carbon emissions, and will be looking to tie up agreements in order to diversify their supply chains away from China, particularly given the recent announcement of export licenses," said Willoughby....
On December 14 Fastmarkets reported :
The US House of Representatives Select Committee on Strategic Competition between the US and Chinese Communist Party recommended congress to authorize the creation of a critical mineral "Resilient Resource Reserve," it said in a report with around 150 policy recommendations published on Tuesday December 12. The adoption of such a reserve is intended to "insulate American producers from price volatility and (the People's Republic of China's) weaponization of its dominance in critical mineral supply chains," according to the report. Such a reserve would be used to sustain the price of a critical mineral when prices fall below a certain threshold and would be replenished through contribution from companies when prices are "significantly" higher, the report stated. The fund would target critical metals where there is high price volatility, low US domestic production and import dependence on China. Cobalt, manganese, light and heavy rare earths, vanadium, gallium, graphite, germanium and boron are critical minerals that fall under that category , according to the report.
Note: Bold emphasis by the author.
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. SGL Carbon [ETR:SGL] is a synthetic graphite producer and Novonix [ASX:NVX]( NVX ) is commercializing their synthetic graphite product. Graphex Group Limited [HK:6128] ( 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 December 1, Syrah Resources announced :
US Government releases proposed guidance to foster supply diversification of critical minerals for the North American Battery Supply Chain. Syrah's scaled supply of vertically integrated natural graphite and AAM products offers a strong base for the North American battery manufacturers...
Catalysts:
- December 2023 quarter - First Stage 11.25ktpa AAM Vidalia facility targeted to start production.
Natural graphite and AAM demand will increase three and five times, respectively, over the next 10 years
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.
On November 29, Ceylon Graphite announced : "Ceylon Graphite announces warrant extension."
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 Ascent Graphite.
On November 28, Mineral Commodities Ltd. announced :
Entitlement offer - Results and shortfall. The Company has raised a total of $8,790,500 as a result of the Entitlement Offer...With cash of US$5,555,380 (AUD$8,472,312)2 at the end of June 2023, and now an additional AUD$8,790,500 (US$5,761,294)3 raised by the Entitlement Offer, the Company will be able to strengthen its balance sheet including immediate working capital support and provide capital investment aimed to turnaround the profitability of the Company and increase the value of our battery metals projects.
Tirupati Graphite [LSE:TGR]
No significant news for the month.
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 November 29, Northern Graphite announced :
Northern Graphite announces secured debt and royalty financing and amendments to senior secured credit facility and royalty agreement...it has completed a financing consisting of US$1 million in secured debt and US$2 million in royalty financing provided ?by funds managed by Sprott Resource Streaming and Royalty Corp. (collectively, "Sprott")...
On November 30, Northern Graphite announced : "Northern Graphite announces third quarter 2023 results." Highlights include:
- "Revenue of $4.9 million generated on 2,587 tonnes of graphite concentrate sold at an average realized sales price of $1,907 /tonne (US$1,422 /tonne) (1); Sales volumes increased by 28.3 percent in Q3 2023 compared to Q2 2023.
- Positive cash flow from operating activities of $1.7 million.
- Cash costs of $1,335 (US$995) per tonne of graphite concentrate sold.
- Income from mine operations of $0.7 million; operating loss of $2.1 million.
- Cash position improved to $2.2 million as at September 30, 2023, compared to $0.7 million as of June 30, 2023, as a result of working capital management measures, improved sales volumes and additional financing.
- As at September 30, 2023, the Company had working capital of $17.0 million (December 31, 2022 - $19.4 million) including $22.4 million in inventory valued at cost. Inventory includes 5,476 tonnes of graphite concentrate and 147,672 tonnes of ore stockpiles containing approximately 9,198 tonnes of recoverable graphite.
- A net loss of $6.8 million ($0.05 per share)."
NextSource Materials Inc. [TSX:NEXT] [GR:1JW] ( 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 December 12, NextSource Materials Inc. announced : "NextSource Materials announces robust Feasibility Study results for Molo Mine expansion to 150,000 tonnes per annum of SuperFlake® graphite concentrate." Highlights include:
- "Feasibility Study confirms highly attractive economics for a large-scale expansion of the Molo Mine and processing facility to a steady-state production rate of 150,000 tpa of graphite concentrate.
- Estimated capital cost of US$161.7 million (including contingency), with pre-tax NPV 8 of US$424.1 million and a pre-tax IRR of 31.1%.
- Expansion significantly de-risked through the application of NextSource's all-modular construction approach and sharing of infrastructure with existing operations.
- Discussions with OEMs and battery manufacturers indicate robust demand for the Company's product."
Gratomic Inc. [TSXV:GRAT] [GR:CB82] ( 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.
No significant news for the month.
Graphite developers
Evion Group NL [ASX:EVG] - (Formerly BlackEarth Minerals [ASX:BEM])
No significant news for the month.
South Star Battery Metals [TSXV:STS] ( STSBF )
South Star Battery Metals' Santa Cruz Graphite Mine (in Bahia Brazil) Phase 1 commercial production is planned for the EOY 2023. The Company also owns the BamaStar Project in Alabama, USA.
On November 29, South Star Battery Metals announced :
The United States Department of Defense awards multi-million-dollar grant to South Star Battery Metals to support the accelerated expansion of U.S. Domestic Battery Graphite Production within the contiguous United States of America...it has received a US$3.2 million grant (equaling approximately CA$4.4 million) from the Department of Defense ("DoD") under the Defense Production Act ("DPA") Title III authorities utilizing funds appropriated by the Inflation Reduction Act, to advance a National Instrument 43-101 Feasibility Study ("FS") for the BamaStar Graphite Project, South Star's flagship graphite project in the USA, located in central Alabama...
On December 14, South Star Battery Metals announced :
South Star Battery Metals announces Non-Brokered Private Placement. South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it intends to complete a non-brokered private placement (the "Private Placement" or "Offering") of common shares (the "Shares") at a price of C$0.72 per Share to raise up to C$5,000,000. Management believes the Private Placement will be fully subscribed.
On December 22, South Star Battery Metals announced : "South Star Battery Metals announces Option grants and RSU grants..."
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 November 28, Renascor Resources announced : "Siviour land acquisition. Renascor enters definitive agreement to acquire land hosting the Siviour Graphite Deposit." Highlights include:
- "Renascor has entered into a land purchase agreement to acquire the property that hosts the Siviour Graphite Deposit in South Australia...
- The South Australian Department of Energy and Mining has previously approved the Program for Environment Protection and Rehabilitation for the proposed graphite mine and processing plant on ML 6495, permitting Renascor to process up to 1.65 million tonnes per annum, which would permit Renascor to produce up to 150,000 tonnes of Graphite Concentrates per year.
- The acquisition of the freehold land hosting both the Siviour Graphite Deposit and the wider mineral lease will facilitate additional on-ground preparatory works and the planned transition from development into construction as part of Renascor's strategy to accelerate the upstream development to permit Renascor's new supply to enter the market in alignment with forecasted near-term shortages of Graphite Concentrates.
- China, which supplies ~70% of the global supply of graphite and 90% of the global supply of anodes for lithium-ion batteries2, has recently announced graphite export restrictions, highlighting the need for new ex-China supply sources, such as from Renascor's BAM Project."
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 November 29, Talga Group announced :
Talga completes upsized and oversubscribed Share Purchase Plan...The SPP, targeting A$15 million, closed oversubscribed on Friday 24 November 2023. In light of the strong shareholder support and to further bolster the Company's balance sheet, the Talga Board has exercised its discretion under the terms of the SPP to increase the offer size to A$19.0 million and to scale back applications in excess of this amount.
On November 30, Talga Group announced :
Updated - Talga secures $31M environmental bond facility for Swedish Anode Project. Talga Group Ltd ("Talga" or "the Company") ((ASX: TLG )) notes that the Company's ASX announcement titled "Talga secures $31 million environmental bond facility for Swedish Anode Project" was lodged on Wednesday 22 November 2023 without an outline of all relevant key terms. Accordingly the Company provides an updated ASX announcement with a table of key terms set out in Appendix A.
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.
On December 13, Westwater Resources announced :
Westwater announces availability of an initial assessment with economic analysis for the Coosa Graphite Deposit. Estimated Pre-tax NPV of $229 million and Pre-tax IRR of 26.7%. Coosa is the largest, most advanced graphite deposit in the contiguous U.S...
Magnis Energy Technologies Ltd [ASX:MNS] ( 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 December 1, Magnis Energy Technologies Ltd. announced :
iM3NY credit facility...As noted in the Announcements, the Company has an approximately 73% economic interest in Imperium3 New York, Inc.2 (the "Borrower"), the borrower under a US$100m Credit Facility between it (and others, including iM3NY LLC ("iM3NY") and Charge CCCV LLC ("C4V")) and various other parties from time to time (who together are referred to in this announcement as the "Lender").
On December 18, Magnis Energy Technologies Ltd. announced :
iM3NY credit facility. Magnis Energy Technologies Ltd ("Magnis", or the "Company") (ASX: MNS; OTCQX: MNSEF; FSE: U1P) refers to its ASX announcements dated 10 and 15 November 2023 and 1 December 2023 (together, the "Announcements") regarding the Default Notices received under, and the alleged Events of Default in relation to, the Credit Facility...Magnis is engaging with the newly appointed directors of Inc (and with representatives of the Lender) with the view to assisting it govern and manage Inc from an operational and financial perspective and, ultimately, to potentially see control of the Board of Inc pass back to Magnis, including by seeking to procure alternative financing to refinance the Credit Facility3.
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, 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 December 6, Nouveau Monde Graphite announced :
NMG identified as industry-leading natural graphite producer in Benchmark Mineral Intelligence's Sustainability Index...
Greenwing Resources Limited [ASX:GW1] ( BSSMF )
No graphite related news but some lithium news.
On December 18, Greenwing Resources Limited announced : "Greenwing progresses lithium brine drilling at San Jorge Project following site visit."
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 November 29, Triton Minerals announced : "Notification of expiry of listed Options and announcement of Options offer..."
On November 30, Triton Minerals announced : "Letter to option holders - amended."
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. SRG and C-ONE plan to develop an anode material facility in Morocco.
On November 29, SRG Mining Inc. announced :
SRG and C-ONE sign non-binding term sheet. C-ONE to make C$17M investment in SRG. SRG and C-ONE to develop anode material facility in Morocco. SRG to maintain TSX-V listing and redomicile outside of Canada...
Leading Edge Materials [TSXV:LEM] ( 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 graphite related news for the month.
EcoGraf Limited [ASX:EGR] [FSE:FMK] ( ECGFF )
On November 29, EcoGraf Limited announced : "KfW IPEX-Bank mandated for UFK loan of up to US$105m (A$160m)1 for development of Epanko." Highlights include:
- "German Government confirms Epanko eligibility for cover in principle for the Untied Loan Guarantee ("UFK") scheme based on the support of German offtakers for the Company's initial 73,000tpa Epanko development.
- Strong demand and pricing outlook in Germany and Europe for new, sustainably produced supplies of natural graphite for industrial and lithium-ion battery markets is expected to support the future expansion of Epanko, with preliminary studies indicating the potential for a phased increase to approximately 300,000tpa to meet forecast volumes.
- KfW IPEX-Bank may act as sole funder for the UFK Tranche for an amount of up to US$105 million, subject to satisfactory due diligence and credit approvals.
- Program commenced to appoint independent experts to undertake due diligence processes on the updated Epanko development (refer ASX announcement Epanko Pre-Development Program Delivers Outstanding Results 28 April 2023) that builds on the Bankable Feasibility Study and rigorous Independent Engineers' Review completed in 2017."
On December 21, EcoGraf Limited announced :
EcoGraf completes Epanko Pre-Development Field Programs. Drilling demonstrates southern extension and continued high grade nature with 45m at 12.98 % TGC and 47m at 11.04 % TGC...
Lomiko Metals Inc. [TSXV:LMR]( LMRMF )
Lomiko has two projects in Canada - La Loutre graphite Project (flag S hip) (100% interest) and the Bourier lithium Project (70% earn in interest).
On December 5, Lomiko Metals Inc. announced : "Lomiko announces closing of the hard dollar private placement...for gross proceeds of $500,000."
Metals Australia [ASX:MLS]
On December 20, Metals Australia announced :
Metals Australia appoints highly-experienced mining Executive as CEO. Metals Australia Ltd (ASX: MLS) is delighted to announce the appointment of Mr Paul Ferguson as Chief Executive Officer ("CEO") to guide development of the Company's flagship Lac Rainy high-grade graphite project and advance its suite of highly-prospective battery metals exploration projects.
NGX Limited (100% owned subsidiary of Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML])
No news for the month.
Sarytogan Graphite [ASX:SGA]
Sarytogan Graphite has an Indicated and Inferred Mineral Resource of 229Mt @ 28.9% TGC in Central Kazakhstan.
On December 7, Sarytogan Graphite announced : "99.998% purity at larger scale." Highlights include:
- "The first purification effort on the bulk concentrate has purified the graphite from 81.4% TGC to a new best of 99.998% C at the kilogram scale.
- The result improves on the previous results by being higher purity, larger scale, without any chemical pre-treatment and was achieved at the lower temperature of 2700?C.
- This thermally purified sample will now be advanced to spheroidization. The spheres will be targeted to lithium-ion batteries and the high-purity fine by-product for advanced industrial uses, including many other battery types, subject to product qualification.
- The Pre-Feasibility Study [PFS] is advancing and is scheduled for completion no later than Q3 2024."
On December 19, Sarytogan Graphite announced : "First spheroidized graphite produced."
For further details see:
Graphite Miners News For The Month Of December 2023