The junior graphite stocks we’ve dug up have rallied on average 38% year-to-date, and could go higher as demand for the metal is expected to increase with electric vehicle growth
SmallCapPower | February 7, 2020: Graphite is used as a key anode in battery manufacturing and there are currently no superior substitutes. This is because of its high electrical conductance, allowing for higher energy storage and more efficient dispersion that other anode materials. This characteristic is particularly beneficial for electric vehicle batteries. Graphite consumption for batteries is currently about 10% of total graphite demand. But 80% of graphite consumption in the battery sector is directed towards lithium-ion batteries used in electric vehicle production. Current global graphite production is 750K tonnes. Minmetals estimates an additional 1.2M tonnes will be needed by 2024 to satisfy global EV demand. Today we have found four TSXV-listed junior graphite stocks that have seen strong price momentum since the beginning of January.
*Share prices as at February 5, 2020, data obtained from S&P Capital IQ
Northern Graphite Corporation (TSXV:NGC) – $0.155
Northern Graphite explores for and develops mineral properties in Canada. Its principal asset is the Bissett Creek graphite project located in north of Ottawa, Canada. Northern Graphite has completed a feasibility study on the Bissett Creek location and estimates that the mine could sustain an annual production of 45,000 tonnes for 22 years with average operating costs of $600/tonne. The Company expects to begin construction on the mine in H2/2020, with commercial production expected to begin in 2022.
- Market Cap: $10.1M
- Weekly Return: +10.7%
- YTD-Return: +29.2%
- 90-Day Return: +138.5%
- 90-Day Average Trading Volume: 68,400
Mason Graphite Inc. (TSXV:LLG) – $0.30
Mason Graphite, a graphite mining and processing company, engages in the acquisition, exploration, evaluation, and development of mineral properties in Canada. It owns a 100% interest in the Lac Guéret graphite property, which consists of 215 claims covering an area of 11,630 hectares located in northeastern Quebec. In December, Mason Graphite announced that lithium-ion battery tests results using graphite from Mason Graphite confirmed the hypothesis that the fine graphite flakes extracted from the Lac Guéret deposit are a suitable material to manufacture spherical graphite for the lithium-ion anode market, particularly for electric vehicles.
- Market Cap: $40.9M
- Weekly Return: +3.4%
- YTD-Return: +52.5%
- 90-Day Return: +29.8%
- 90-Day Average Trading Volume: 212,710
Leading Edge Materials Corp. (TSXV:LEM) – $0.10
Leading Edge Materials is a Canadian public company focused on production of high value critical raw materials for the European market. LEM’s assets and research focus are towards the raw materials for Li-ion batteries, high thermal efficiency and materials that improve the efficiency of energy generation. Investments are linked to the global shift to low-carbon energy generation and energy storage. The Company’s owns the Woxna Graphite Mine, with permits to produce 10,000 tons of graphite annually.
- Market Cap: $11.4M
- Weekly Return: 0.0%
- YTD-Return: +5.9%
- 90-Day Return: +12.5%
- 90-Day Average Trading Volume: 77,040
Focus Graphite Inc. (TSXV:FMS) – $0.02
Focus Graphite is a graphite explorer focused on properties in Quebec, Canada. The Company explores for graphite, iron, copper, rare-earth elements, and gold deposits. Its principal property is the Lac Knife graphite deposit that consists of 57 claims covering an area of 2,986.31 hectares located in the Côte-Nord region of Québec.
- Market Cap: $7.5M
- Weekly Return: 0.0%
- YTD-Return: +66.7%
- 90-Day Return: +25.0%
- 90-Day Average Trading Volume: 276,280
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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