DMNKF - Graphite Miners News For The Month Of September 2023

2023-09-27 06:07:02 ET

Summary

• Flake graphite prices & spherical graphite prices were mostly lower the past month.
• Graphite market news - BMI: Amidst a robust graphite supply picture in China, downstream demand from the EV industry remained sluggish. Long-term demand forecasts remain strong.
• Graphite company news - Syrah Resources US$150m conditional loan commitment for Balama approved by U.S. IDFC. NextSource Materials announces MoU for strategic collaboration with POSCO.
• Talga commenced early works and construction of its 19,500tpa graphite anode refinery. Black Rock Mining signs MOU with POSCO for Mahenge Module 2 offtake. Triton Minerals granted a 25 year Mining Concession.

Welcome to the September edition of the graphite miners news.

September saw continued weak graphite prices and some good news from the graphite producers and juniors.

Graphite price news

During the past 30 days, the China graphite flake-194 EXW spot price was down 3.23%. The China graphite flake +195 EXW spot price was up 0.70 % . 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 0.42% the past 30 days.

A September 6 Stockhead article stated :

Benchmark’s flake graphite index has fallen 28.1% year to date, despite clear long term demand for more of the stuff. High purity -100 mesh 94-95% flake graphite for batteries was down 6.9% on the month and 28.9% YTD to US$578/t...Longer term Syrah believes demand growth from 2022-2030 for natural graphite anode will outstrip supply by more than four times.

BMI Flake graphite 1 year price chart, -100 mesh, 94-95%C ( 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 )

Macquarie Research (March 2023) forecasts flake graphite deficits starting in 2025 and growing larger to 2030 ( source )

Trend Investing v IEA demand forecast for EV metals ( 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

Benchmark breakdown of the supply chain estimated costs needed to reach 2030 battery cell demand estimates - Natural graphite will require $3b, synthetic graphite $1.5b ( source )

Graphite market news

On August 23, Investing News reported :

Quebec's potential as key player in North American — and European — graphite supply...Graphite is arguably one of the most critical minerals in the production of electric vehicles. Each electric vehicle contains between 50 and 100 kilograms of the material ...To meet energy storage demand, graphite supply needs to increase nearly 500 percent by 2050 , according to a World Bank report. As the number of gigafactories in North America continues to rise, supplying the raw materials they require will become increasingly untenable with the current state of the graphite supply market. We need to boost domestic mineral production, starting with exploration...The material makes up roughly 45 percent of each battery cell and roughly 28 percent of the entire battery. It's by far the largest component in both volume and mass.

On September 6, Stockhead reported :

How are the other battery metal products faring as China’s economy stutters? EV battery demand has chilled in China in August, with nickel, cobalt and graphite feeling the pinch. Chinese graphite production is ramping up in expectation of strong long-term demand...For all the talk of developing supply chains outside China, the battery and EV business is very much a China story for now. And at the moment, the general trend of the EV supply chain is down. While EV sales continue to increase, conversion capacity has caught up, with lithium and other battery metals facing headwinds...Benchmark’s flake graphite index has fallen 28.1% year to date, despite clear long term demand for more of the stuff. High purity -100 mesh 94-95% flake graphite for batteries was down 6.9% on the month and 28.9% YTD to US$578/t. BMI says there were strong supply increases in China’s Heilongjiang Province and its Luobei and Jixi Counties, aligned with seasonal norms. “Amidst a robust graphite supply picture in China, downstream demand from the EV industry remained sluggish. Moreover, comfortable anode material inventory levels at battery cell makers led to reduced demand for graphite material from anode manufacturers,” BMI said...Longer term Syrah believes demand growth from 2022-2030 for natural graphite anode will outstrip supply by more than four times.

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]( NVNXF ) is commercializing their synthetic graphite product. Graphex Group Limited [HK:6128] (GRFX) 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 September 11, Syrah Resources announced : "Interim report for the half-year ended 30 June 2023."

On September 11, Syrah Resources announced : "DFC Board of Directors approves US$150 million conditional loan commitment for Balama." Highlights include:

• "US$150 million conditional loan commitment for Balama approved by United States International Development Finance Corporation (“DFC”) Board of Directors.
• DFC loan is subject to completion of due diligence, legal documentation, DFC approval and Syrah Group approvals.
• If completed, the DFC loan will support funding of capital requirements at Balama and is aligned with the Biden-Harris Administration’s commitment to support development in Africa.
• Represents the first DFC loan to a graphite operation, demonstrating importance of Balama to bolstering US supply chain security for supply of critical minerals."

You can view the latest investor presentation here or the May 2023 AGM presentation here .

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.

No 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 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 August 31, Mineral Commodities Ltd. announced :

2023 half year results summary...Total revenue of US$15.2 million. EBITDA of US$1.9 million. NPBT of US$0.8 million. Cash balance of US$5.6 million. Working capital of US$7.9 million...

On September 7, Mineral Commodities Ltd. announced :

Temporary business interruption Skaland graphite mine...a mechanical failure of the primary ore production drill rig at the Skaland Graphite AS (Skaland) operations has led to a temporary business interruption of approximately 6 weeks...

Tirupati Graphite [LSE:TGR]

No 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 August 29, Northern Graphite announced : "

Northern Graphite signs extension on option to acquire stake in NeoGraf Solutions...With this six-month extension, Northern has the option to acquire an effective 50.1% voting interest and a 33.3% equity interest in NeoGraf. Northern also has an option to increase its interest up to 100%, at a later date, subject to the terms and conditions of the agreement. Northern has engaged Sprott Capital Partners LP to act as its financial advisor with respect to financing the investment...

On August 30, Northern Graphite announced : "Northern Graphite announces second quarter 2023 results." Highlights include:

Financial Summary for the second quarter:

• "Revenue of $3.963 million generated based on 2,016 tonnes of graphite concentrate sold at an average realized sales price of $1,966 /tonne (US$1,464/tonne) (1).
• Cash costs $1,333 (US$993) per tonne of graphite concentrate sold (1).
• Income from mine operations of $613,000.
• An operating loss of $1.915 million.
• The LDI mine and plant were temporarily shut down for the second quarter of 2023 while the Company sold inventory which it acquired with LDI to allow it to serve customers while preserving cash. Although there was no mining or production during the quarter, costs of $2.791 million were incurred for care and maintenance.
• A net loss of $4.633 million ($0.04 per share) after care and maintenance and financing costs and net of a foreign exchange gain.
• On April 27, 2023 the Company closed a non-brokered private placement financing of 3,000,000 units issued on a charity flow-through basis at a price of $0.75 per unit for proceeds of $2,250,000. Each unit consisted of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one common share at an exercise price of $0.75 for a period of two years."

You can view the latest investor presentation here and my article on Northern Graphite here .

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 September 5, NextSource Materials Inc. announced :

NextSource announces MoU for strategic collaboration with South Korea’s POSCO International...The MoU envisages the potential for a definitive offtake agreement for 30,000 tonnes per annum (“tpa”) of SuperFlake® graphite concentrate and 10,000 to 15,000 tpa of SPG over a ten year period, to be supplied to POSCO Future M, a POSCO Group subsidiary that is responsible for EV battery businesses and supplies all of South Korea’s major battery cell manufacturers with finished cathode and anode materials...

Investors can view the latest company presentation here .

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

Gratomic’s Aukam Graphite Project is located in Namibia, Africa. 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.

No news for the month.

Graphite developers

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 August 9 South Star Battery metals reported :

South Star Battery Metals announces Santa Cruz Graphite Mine Phase 1 construction and licensing Update...Santa Cruz Phase 1 construction is on budget and on schedule with commercial production planned for the EOY 2023. All main construction contracts have been executed. Overall construction advance at 68% complete.

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 August 29, Talga Group announced : "Talga lithium-pegmatite discovery in Sweden."

On September 1, Talga Group announced :

Vittangi Mine permit appeals rejected...The Court of Appeal confirmed yesterday, 31 August 2023, that it has determined that there are no grounds to grant leave to appeal to any of the parties. The Land and Environment Court decision to grant the environmental and Natura 2000 permit therefore stands.

On September 12, Talga Group announced :

Talga achieves anode project milestones...On Monday 11 September, Talga commenced early works and construction of its 19,500 tonne per annum graphite anode refinery in a groundbreaking ceremony in Luleå, Sweden. The refinery is projected to be the first commercial anode production in Europe for electric vehicle Li-ion batteries.

You can view the latest investor presentation here .

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.

You can view the latest investor presentation here .

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 September 8, Magnis Energy Technologies Ltd. announced :

Magnis enters into standby equity facility...Magnis has the discretion as to whether to request any share placements be conducted to Evolution Capital, the timing of each individual placement and, subject to the above mentioned issuance “cap”, the number of shares to be issued to Evolution Capital under each placement...

Black Rock Mining [ASX:BKT]

On September 4, Black Rock Mining announced : "Black Rock signs MOU with POSCO for Mahenge Module 2 offtake for BKT investment of up to US$40m." Highlights include:

• "Non-binding MOU signed with Strategic Alliance Partner, POSCO comprising: POSCO to secure long-term fines offtake for Mahenge Module 2. Subject to POSCO approval, POSCO to provide an additional equity investment in BKT of up to US$40m, or a stake of 19.99% in BKT (whichever is lower). Explore additional opportunities for POSCO and BKT to cooperate further to develop an Inflation Reduction Act compliant anode supply chain.
• Assuming a binding agreement can be reached, the proceeds from POSCO’s investment in BKT would be applied to the construction of Mahenge Module 1."

Nouveau Monde Graphite [TSXV:NOU] (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 September 21, NMG announced : "NMG and Panasonic Energy announce progress update on technological and commercial collaboration as Canada and Japan Reinforce Trade Relationship for a Low-Carbon Economy." Highlights include:

• "Production of EV lithium-ion batteries at Panasonic Energy facilities testing NMG’s active anode material, a step forward in qualification process toward a definitive offtake agreement.
• Continued advancement of commercial discussions towards a definitive offtake agreement with Panasonic Energy for NMG’s carbon-neutral active anode material.
• NMG and Panasonic Energy’s continued collaboration as evidence of Canada-Japan’s alliance for the establishment of a competitive and ESG-aligned battery supply chain supportive of economic development and respective Net Zero objectives.
• Constant engagement with Canadian governmental entities toward a participation in NMG’s Phase-2 project financing in line with governmental ambitions to accelerate critical minerals development for the green economy."

You can view the latest investor presentation here .

Greenwing Resources Limited [ASX:GW1] ( BSSMF )

No 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 August 30, Triton Minerals announced : "Cobra Plains Mining Concession granted amended." Highlights include:

• "Triton granted a 25 year Mining Concession for the Cobra Plains Graphite Deposit in Mozambique.
• Cobra Plains has an existing, globally significant graphite JORC Compliant Inferred Mineral Resource estimate of 103 Million Tonnes [MT] at an average grade of 5.2% TGC, containing 5.7 Mt of graphitic carbon1.
• Triton’s portfolio now comprises two world class graphite projects with a diversified mix of flake sizes.
• Granting of the Mining Concession is testament to Triton’s ongoing development activities and strong relationships within Mozambique."

You can view the latest investor presentation 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 September 7, SRG Mining Inc. announced :

SRG Mining Inc. announces Director DSU Grant. SRG Mining Inc. (TSXV: SRG) (“SRG” or the “Company) announced today that in connection with services rendered the Company has issued 351,043 Deferred Share Units (DSUs) to its directors....

You can view the latest investor presentation here .

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.

On September 20, Leading Edge Materials announced : "Leading Edge Materials reports quarterly results to July 31, 2023." Highlights include:

During the three months ended July 31, 2023:

• "On June 1, 2023, the Company announced in-situ assay results at over 30% Nickel and 4.7% Cobalt at Bihor Sud. Additionally, surface trench assay results indicate a zone of Pb-Zn-Ag mineralisation..."

Investors can view the latest company presentation here .

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 September 14, Renascor Resources announced :

Siviour Mineral Resource increases by 25%. Increase to Siviour Graphite Mineral Resource provides further support for expansions beyond those considered in the recently completed BAM Study...

You can view the latest investor presentation here .

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

On September 19, EcoGraf Limited announced : "Independent study confirms highly attractive mechanical shaping opportunity reduction in operating costs driven by low energy costs." Highlights include:

• "Four locations for the initial development of a 20,000 tonne per annum processing facility producing unpurified spherical graphite [SPG] and fines from natural flake graphite were assessed.
• Study confirmed Operating cost savings of up to 50%1 with similar Capital cost can be achieved by locating these activities in Tanzania, driven by substantially lower energy costs, the major cost component for milling and shaping.
• Tanzania is one of the world's lowest cost jurisdictions for energy..."

You can view the latest investor presentation here .

Lomiko Metals Inc. [TSXV:LMR]( LMRMF )

Lomiko has two projects in Canada - La Loutre graphite Project (flagship) (100% interest) and the Bourier lithium Project (70% earn in interest).

On September 18, Lomiko Metals Inc. announced :

Lomiko provides operational, market and corporate update...We have completed the first steps with the bulk sample material selection, and characterization work is underway with a 1,000kg representative sample from our La Loutre graphite project, located on Kitigan Zibi traditional land. With a partnership model, we believe that the responsible development of the La Loutre natural graphite project will ensure we can provide energy security, resilience, and a high quality product for North America. According to the International Energy Agency Global EV Outlook 2023, demand for EVs and the underlying batteries is robust: in 2020 only 5% of all new cars sold were electric, with that figure now at 14% and projected to be 18% by the end of 2023. The 30% to 40% annual growth rates in EV sales, and graphite demand, underline the importance and rapid acceleration of energy transition to critical minerals supply chains...

Metals Australia [ASX:MLS]

No news for the month.

NGX Limited (100% owned subsidiary of Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML])

No significant news for the month.

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.

No significant news for the month.

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

On September 15, Evion Group NL announced : "Annual report for the year ended 30 June 2023."

Albany Graphite Corp. (100% owned subsidiary of Zentek Ltd. [TSXV:ZEN] ( ZTEK )

For further details see:

Graphite Miners News For The Month Of September 2023