Graphite Miners News For The Month Of October 2023

Welcome to the October edition of the graphite miners news.

October saw continued weak graphite prices and some good progress from the graphite juniors.

The big news for the month was China planning graphite materials export licences starting from December 1, 2023. The general consensus is that these may potentially hinder ex-China anode development and consequently impact the whole EV supply chain. This is a huge wake-up call to the West that they need to urgently get their EV metal supply chains developed or risk being shut out by China.

Graphite price news

During the past 30 days the China graphite flake-194 EXW spot price was down 1.90%. The China graphite flake +195 EXW spot price was flat. 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 0.21% 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, 94-95%C, -100 mesh (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 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 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 October 2 Mining News reported:

UBS tips graphite price surge. Natural graphite prices are currently trading at circa US$570 per tonne. UBS sees 50% upside to current pricing and has set its long-term graphite price at $850/t. “Our view that a) global EV sales lift five times to more than 51 million per annum by 2030, and b) a 30% larger average batter size (circa 80kWh) by 2030, coupled with our battery teardown work suggesting a potentially higher anode intensity and a greater proportion of natural graphite anode, have us constructive on the natural graphite demand outlook,” the bank said. It sees natural graphite demand rising by six times to 6.3 million tonnes by 2030, with a deficit forming from 2025.

On October 13 Benchmark Mineral Intelligence reported:

Europe’s looming battery anode shortage. In a small clearing in the thick forest outside the small city of Luleå in the north of Sweden, last month the Australian mining group Talga broke ground on Europe’s first plant to produce active anode material [AAM] for lithium-ion batteries. The company hopes to source graphite from a nearby mine a few hours drive…

On October 20 CNBC reported:

China, world’s top graphite producer, to curb exports of key battery material. China will require export permits for some graphite products from Dec. 1 to protect national security…China is the world’s top producer, providing 67% of global supplies of the natural form, according to the U.S. Geological Survey. It also refines more than 90% of the world’s graphite into material used in virtually all EV battery anodes… Under the new restrictions announced on Friday, China will require exporters of two types graphite to apply for permits, including high-purity, high-hardness and high intensity synthetic graphite material, and natural flake graphite and its products.

On October 20 BMI reported:

China graphite export restrictions could hinder ex-China anode development. China’s decision to restrict some exports of graphite products could hinder production of battery anodes in South Korea and elsewhere, making the electric vehicle supply chain even more reliant on China…The announcement stated the new arrangement is temporary, however, if it lasts into the longer term, it is likely to accelerate the build out of a localised graphite and battery anode supply chain outside China.

On October 23 Reuters reported:

Graphite buyers to boost imports ahead of China’s curbs, analysts say. Some graphite consumers will aim to accelerate imports of the EV battery ingredient from China in November before the country’s export curbs for some products come into force, but it may be difficult due to complex specifications, analysts said…”I expect we will see a surge in November of both buying and prices,” said Tom Burkett at consultancy Global Graphite Advisory LCC. Existing producers in Canada and Africa will receive an immediate positive impact with new producers in Australia, Brazil, Africa, Canada and the U.S. likely to experience a new round of investment to move to production as quickly as possible, he added… “I would expect a similar scenario for graphite: an initial slow down and a gradual restart”…”Some anode manufacturers in Japan and South Korea could look to increase purchasing of spherical graphite from China in the near term, if they fear that export licensing applications either won’t be approved, or could take a while to be approved,” said Daisy Jennings-Gray at Benchmark Mineral Intelligence.

On October 23, Northern Graphite announced: “Northern Graphite, North America’s only producer of graphite, comments on China Graphite Export Controls.” Highlights include:

• “Controls Would Require Western Battery Makers to Source Graphite from Outside of China, the World’s Largest Producer.
• Controls Underscore Importance of Government, Markets to Drive Industry Development.”

On October 26 Syrah Resources announced:

China to implement export controls on graphite products. Highlights

• Permanent China export controls on designated graphite products including natural graphite and spherical graphite used in the battery supply chain
• China is the most significant global participant in natural graphite and spherical graphite markets globally
• Any disruption to China export supply would impact global battery and industrial markets for graphite products
• Near-term China supply uncertainties benefit Syrah’s development and commercial position.

Major purchasers of Chinese anode precursor and AAM used in batteries are based in Korea, Japan, USA and Europe. As China is the sole export supplier of spherical graphite, any interruption to or restriction of spherical graphite exports would immediately impact ex-China natural graphite AAM production, with no alternative source of supply available to South Korean and Japanese consumers. Further, given China’s significant export of natural graphite products into the global industrial market (refractories, foundries, lubricants, expandable products, and recarburizer), any interruption to export volumes of natural graphite would be a significant supply impact for industrial customers….

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](OTCQX:NVNXF) 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 October 2, Syrah Resources announced:

Balama production campaign and sales. Syrah Resources Limited (ASX:SYR) (“Syrah” or “Company”) notes that the Australian Financial Review published an article on Sunday, 1 October 2023, which incorrectly stated that the Company “continues to mine and stockpile rather than sell output”. A production campaign has been undertaken at Syrah’s Balama Graphite Operation in Mozambique (“Balama”), and natural graphite sales and shipments were completed, during the September 2023 quarter…

On October 9, Syrah Resources announced:

Syrah to issue Series 6 convertible note to AustralianSuper. Syrah Resources Limited (ASX:SYR) (“Syrah” or “Company”) has elected to issue a A$50 million (US$32 million1) convertible note tranche to AustralianSuper Pty Ltd as trustee for AustralianSuper…

On October 11, Syrah Resources announced:

Full operations of Balama Solar and Battery Hybrid System…at Balama. Solar & Battery Hybrid System will supply, on average, ~35% of power requirements of Balama, reducing diesel consumption by ~35% and product carbon equivalent emissions by ~13%.

On October 17, Syrah Resources announced: “Quarterly activities report for the three months ending 30 September 2023.” Highlights include:

• “…Continued record Chinese anode production, and apparent anode inventory drawdown, with global electric vehicle (“EV”) sales growing 41% in September 2023 quarter compared to September 2022 quarter, to ~4.1 million units.
• Higher quarter on quarter natural graphite sales and improved demand from Chinese anode customers – 23kt natural graphite sold and shipped to 3rd party customers and 4kt shipped to Vidalia in USA.
• Single production campaign produced 18kt produced at 73% recovery up to quarter end.
• Strong operational performance over the last two weeks of the quarter with recovery improved to 82%.
• Balama C1 costs (FOB Nacala/Pemba) of US$484 per tonne in the operating period in September 2023 and C1 fixed costs (FOB Nacala/Pemba) of US$4 million per month in the shutdown period
• Weighted average sales price of US$528 per tonne (CIF)2 lower quarter on quarter due to significantly higher fine flake sales and lower prices during China domestic production season.
• Multi-year binding offtake agreements signed with Graphex and Westwater for future natural graphite supply into USA.
• Syrah signed an additional AAM supply memorandum of understanding (“MOU”) with Samsung SDI.
• Progressing second binding AAM offtake agreement with Tesla and negotiating offtake with other potential customers.
• Construction of the 11.25ktpa AAM Vidalia facility (“Vidalia Initial Expansion”) nearing full completion – total installed capital cost estimate revised to US$198 million and commencement of production in the December 2023 quarter.
• Progressing transition and permitting activity for Vidalia’s expansion to a 45ktpa AAM, inclusive of 11.25ktpa AAM, production capacity (“Vidalia Further Expansion”) – FID timing in H1 2024 dependent on financing process.
• Completed final ~US$32 million advance of US$102 million loan from US Department of Energy (“DOE”) for the Vidalia Initial Expansion project4 and progressing financing options with DOE for the Vidalia Further Expansion project.
• US$150 million conditional loan commitment for Balama from US International Development Finance Corporation.
• Quarter end cash balance of US$81 million, including restricted cash of US$31 million.
• New convertible notes with AustralianSuper approved by shareholders6 – A$50 million (US$32 million7) series issued during quarter and further A$50 million series to be issued by no later than 23 October 2023.”

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 October 10, Mineral Commodities Ltd. announced:

Recommencement of operations at Skaland graphite mine…following a mechanical failure of the primary ore production drill rig.

Tirupati Graphite [LSE:TGR]

On October 19, Tirupati Graphite announced: “Madagascar operations progress and key trading results H1 FY24.” Highlights include:

• “H1 FY 2024 performance significantly ahead of the same period in the prior year with production up 160% and revenues up 170%, prior to significant further productivity improvements expected in Q3.
• During the period the Company continued the optimisation of its facilities including: Successfully addressing the bottlenecks in the mining and processing activities. c.50kms road kms road network with c.20bridgwes and culverts which enabled operations sustained through the recent rainy season without any disruptions. Extensive training of onsite personnel to improve skillsets and enable better implementation of the standard operating practices resulting in more efficient operations.

• As a result, operations at the mine and plant are running uninterrupted at a consistent rate since the start of Q3 FY24…”

On October 23, Tirupati Graphite announced:

Implications of China’s graphite export restrictions. Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist Flake Graphite company and supplier of the critical mineral for the global energy transition, notes the recent decision by the Chinese government to impose export controls on Graphite and related products from 1 December 2023 stating that the decision would ‘safeguard national security interests’…

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 September 27, Northern Graphite announced:

Northern Graphite completes additional royalty financing on Bissett Creek Project. Northern Graphite Corporation (NGC:TSX-V, NGPHF:OTCQB, FRA:0NG, XSTU:0NG) (the “Company” or “Northern) announces that it has sold an additional 0.5% gross revenue royalty (“GRR”) on its Bissett Creek Project to Electric Royalties Ltd. (“ELEC”) for cash consideration of CAD $950,000. ELEC had previously purchased a 1.0% GRR from the Company in 2020 such that it now holds a total 1.5% GRR on the Bissett Creek Project.

On October 5, Northern Graphite announced:

Drilling campaign confirms potential to extend life at Northern’s Lac des Iles Mine. Near-Surface mineralization indicates potential for near-term extension of mining operations…

On October 12, Northern Graphite announced:

Northern Graphite announces Resource Estimate and filing of technical report on Mousseau Graphite Property…“This report confirms the addition of almost 3 million tonnes of measured and indicated graphite resources to the Company’s portfolio and supports our long-term growth strategy of leveraging LDI’s permitted plant and tailings facility to bolster our position as the only significant producer of natural graphite in North America,” said Northern Chief Operating Officer Kirsty Liddicoat. “Early test work indicates concentrate grades of +95 percent and recovery of 90 percent. We believe the next phase of drilling will expand resources further at Mousseau”….The Company is also planning to start construction in 2026 on a 200,000-tpy Battery Anode Material plant in Baie-Comeau, Quebec….

On October 19, Northern Graphite announced: “Testing confirms Northern’s LDI Graphite is Battery Anode Material Grade.”

NextSource Materials Inc. [TSX:NEXT] [GR:1JW] (OTCQB: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 28, NextSource Materials Inc. announced:

NextSource Materials provides update on Mauritius Battery Anode Facility…In connection with the Mauritius BAF location, the Company advises that the lessor has not delivered the premises free from any occupant(s) or occupation pursuant to the terms of the long term lease agreement (the “Agreement”) and accordingly the Company has therefore terminated the Agreement in accordance with the terms thereof…

On October 23, NextSource Materials Inc. announced:

NextSource Materials announces first bulk shipment of SuperFlake® and full operation of its Solar Hybrid Plant at Molo Graphite Mine…This first shipment of Molo SuperFlake® graphite has been sent to the Company’s downstream technical partner’s Battery Anode Facility [BAF] to be processed into spheronized, purified graphite [SPG] that will then be further processed into coated SPG [CSPG] as part of large scale, multi-step verification tests being conducted by automotive EV supply chains in South Korea and Japan. The Company expects to receive its first series of verification test results starting in December 2023.

Gratomic Inc. [TSXV:GRAT] [GR:CB82] (OTCQX: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] (OTCQB: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 October 21, Reuters reported:

South Star eyes faster ramp up of Brazil graphite mine. South Star Battery Metals is looking into a faster ramp up of its Brazilian graphite mine, CEO Richard Pearce told Reuters on Friday, after China said it will require export permits for the key ingredient in electric vehicle batteries. “One of the scenarios, given everything that is going on in the world, is skipping Phase 2 and going straight to Phase 3,” said the chief executive of the Vancouver-based miner.

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 29, Renascor Resources announced: “2023 annual report.”

On October 10, Renascor Resources announced:

Siviour BAM Project update. Preparation continues for an accelerated commencement of the Graphite concentrate Operation…with value engineering and design work being undertaken in preparation for the detailed design, procurement and construction phase.

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 September 29, Talga Group announced:

Vittangi mine permit update…The environmental and Natura 2000 permit was granted by the Swedish Land and Environment Court earlier this year (ASX:TLG 6 April 2023) with the Court of Appeal deciding not to grant leave to try appeals that were subsequently submitted (ASX:TLG 1 September 2023). In accordance with statutory process, the rejected parties could appeal the Court of Appeal’s decision to the Supreme Court by the 28 September 2023…

On September 29, Talga Group announced: “2023 financial report.”

On October 6, Talga Group announced:

Talga boosts Swedish battery graphite…Talga has successfully intercepted wide zones of graphite in the first drilling of a 6km long zone of strong EM conductors up to 300m wide, with no surface expression (beneath soil and till cover), on its Vittangi nr 6 exploration permit (~8km northeast of the world-class Nunasvaara and Niska deposits)…

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 October 23, Westwater Resources Inc announced:

New Chinese restrictions on supply of natural graphite will negatively impact batteries used in EV Market…

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 October 3, Magnis Energy Technologies Ltd. announced:

Magnis Energy Technologies Ltd (ASX: MNS) – Continuation of suspension from quotation. The securities of Magnis Energy Technologies Ltd (‘MNS’) were suspended from quotation under Listing Rule 17.5 on Monday, 2 October 2023 because MNS did not lodge its Full Year Statutory Accounts by the due date. MNS has since lodged its Full Year Statutory Accounts, however ASX has concerns regarding the qualified audit opinion disclosed with the Full Year Statutory Accounts. As a consequence, the securities of MNS will now be suspended from quotation by ASX under Listing Rule 17.3. The securities will remain suspended until ASX is satisfied with MNS’s compliance with the Listing Rules (including Listing Rules 12.2 and 3.1) and that it is otherwise appropriate for MNS’s securities to be reinstated to quotation.

On October 6, Magnis Energy Technologies Ltd. announced: “iM3NY update.” Highlights include:

• “iM3NY expected to receive US$2 million ESD grant in Q4 2023.
• Sales commenced in the previous quarter.
• Collaboration with GTI Fabrication for Battery Energy Storage Systems.”

Black Rock Mining [ASX:BKT]

On September 28, Black Rock Mining announced: “Annual report to shareholders…”

On October 11, Black Rock Mining announced:

Potential lenders have submitted proposals to their internal credit committees. Tanzanian graphite developer Black Rock Mining Limited…is pleased to provide an update on the debt process being run as part of the potential funding solution for the Mahenge Graphite Project (Mahenge or the Project). Several potential lenders, including Development Finance Institutions and Tanzanian commercial banks, have progressed through the substantive part of the due diligence process, including site visits, and are progressing indicative term sheets based on their due diligence and the eDFS Update outcomes1. Short listed debt providers are now in the process of providing term sheets to their internal credit committees. Black Rock has received notification of an initial stage credit committee approval from a wholly owned subsidiary of the Government of South Africa. The Company notes that while it does not consider notification of an initial stage credit committee approval material in and of itself, the debt financing process is continuing on track, and initial stage credit committee approval is a pre-condition to receiving final approval.

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 October 6, Nouveau Monde Graphite announced:

NMG advances electrification efforts: Confirmed hydropower supply and progress on collaboration with Caterpillar…

On October 25, Nouveau Monde Graphite announced:

NMG selects Pomerleau for construction management preparation of its Phase-2 Facilities: Focus on efficient, cost-optimized, and safe execution once FID is reached…

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

On September 29, Greenwing Resources Limited announced: “Annual report for the year ended 30 June 2023.”

On October 26, Greenwing Resources Limited announced: “Madagascar update: Site visit completed to Graphmada Mining Complex.” Highlights include:

• “The Graphmada Mining Complex and infrastructure remains in good condition.
• The existing Mineral Resource1 of 61.9 Mt @ 4.5% Fixed Carbon [FC] is capable of sustaining substantially higher production volumes.
• Greenwing has commenced auger drilling at the Andapa prospect, which is the Company’s secondary graphite asset in Madagascar.
• Greenwing has commenced a process to attract strategic investment for its graphite assets.
• The Chinese Government has placed restrictions on the export of graphite effective from 1 December 2023…Consequently, the Company expects this to impede supply and have a positive impact on future graphite pricing.
• A revised Mining Code in Madagascar has passed parliamentary approvals, with World Bank support, and is expected to be enacted as law in the near term, to aid Madagascar’s economic development.
• Management completed several positive planning meetings regarding upcoming exploration work at the Millie’s Reward project.”

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 September 26, Triton Minerals announced: “SDS engaged to progress Ancuabe and Cobra Plains Projects.” Highlights include:

• “Triton has entered into a Project Management Services Agreement with Soluções De Desenvolvimento Sustentável [SDS] to accelerate the development of both the Ancuabe and Cobra Plains Projects.
• SDS is a highly skilled firm with deep experience in assisting resource and infrastructure companies progress projects across their entire life cycle.
• Based in Mozambique, SDS is well positioned to assist Triton with its development activities in Mozambique at its portfolio of graphite projects.
• SDS will assist Triton with stakeholder engagement, strategic advice and management, regulatory compliance, project development management services and commercial services.”

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.

No news for the month.

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 graphite news for the month.

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

On September 29, EcoGraf Limited announced: “EcoGraf annual report 2023.”

On October 3, EcoGraf Limited announced: “Australian product qualification facility. Key milestone for commercial scale development.” Highlights include:

• “Final detailed project planning and procurement activities have resulted in the decision to establish the PQF near Perth in Western Australia.
• The PQF is jointly funded through the Commonwealth Government’s A$48.9m Critical Minerals Development Program, which is supporting Australian battery minerals processing capability.
• The PQF will complement the Company’s product testing activities and support offtake discussions with prospective anode, battery and electric vehicle customers in Europe, North America and Asia.
• Successful completion of the PQF program is a key step towards the Company’s development of commercial scale active anode material operations.”

On October 9, EcoGraf Limited announced: “Strategic collaboration to evaluate BAM Facility. Opportunity fits EcoGraf’s strategy of developing downstream supply chains in key global battery regions.” Highlights include:

• “VinES has operating lithium-ion gigafactory plants in Vietnam and agreement allows opportunity to support VinES expansion plan into the US market.
• Agreement to undertake a feasibility study to evaluate development of a battery anode material facility in Vietnam using EcoGraf HFFree™ US patented processing technology.
• Subject to successful completion of the study on the Vietnam facility, VinES and EcoGraf to enter: Binding agreement and joint development of a battery anode supply chain in Vietnam. Feedstock supply, product offtake, investment and financing.
• VinES and EcoGraf to jointly evaluate local Vietnam graphite sources for feedstock for the production of a localised battery anode material with its Epanko graphite supply from Tanzania.”

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).

No news for the month.

Metals Australia [ASX:MLS]

On September 28, Metals Australia announced: “Annual financial report or the year ended 30 June 2023.”

On October 16, Metals Australia announced:

Extensive high-grade graphite sampling results highlight enormous potential for resource growth at Lac Rainy. Results highlight potential for one of the world’s most significant high-grade graphite projects, ideally located to supply battery grade graphite to North American markets. Exceptional results including more than 50% graphitic carbon [CG] achieved from an extensive graphite sampling program at the Lac Rainy Graphite Project in Quebec, which also produced several results of over 20% Cg and an average result of over 11% Cg…

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

On September 28, Sovereign Metals announced: “Kasiya Pre-Feasibility Study results. PFS confirms Kasiya as a major critical minerals project delivering industry-leading economic returns and sustainability metrics.” Highlights include:

“Market Leader” Position in Two Critical Minerals:

• “Positioned to become the world’s largest rutile producer at 222kt per annum for an initial 25 year life-of-mine (LOM).
• Potentially one of the world’s largest natural graphite producers outside of China at 244kt per annum.
• Natural graphite market moving into deficit as demand rapidly grows in the lithium-ion battery and electric vehicle (EV) sectors.
• Substantial production rate and mine life upside exists as the PFS modelling was limited to only 25 years.

Highly Compelling Cost Profile:

• “Cash operating costs of US$404/t of product will position Kasiya as the lowest cost producer of rutile and graphite globally…..”

Strong Support from the Government of Malawi:

• “Government of Malawi has applauded the timely investment by Rio Tinto and marked it as a milestone towards realising the country’s aspirations of growing the mining sector as a priority industry….”

Optimisation with Strategic Investor Rio Tinto to Commence:

• “Advancing into an optimisation phase prior to moving to the Definitive Feasibility Study [DFS] with support from the Company’s strategic investor, Rio Tinto.
• Formal establishment of the Technical Committee with Rio Tinto.”

Kasiya PFS highlights (source)

On October 16, Sovereign Metals announced:

Key management appointments to drive project optimisation and development at Kasiya. Appointment of experienced African based mining executive, Mr Frank Eagar, as the new Managing Director and CEO…

Sarytogan Graphite [ASX:SGA]

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

On September 29, Sarytogan Graphite announced: “Annual report – 30 June 2023.”

On October 18, Sarytogan Graphite announced: “Quarterly activities report quarter ending 30 September 2023.” Highlights include:

• “99.99% TGC graphite purity achieved by thermal purification.
• Bulk concentrate production complete; assays pending with samples to be distributed to several global labs for further purification, spheroidization and battery testing.
• Pre-Feasibility Study [PFS] for the Sarytogan Graphite Project advancing; an affordable modular approach is presently favoured.
• Exploration Drilling at the Kenesar Graphite Exploration Project complete; assays pending.
• Graphite market commentary; transition from synthetic to lower cost, environmentally friendly natural graphite forecast.”

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

On October 19, Evion Group NL announced: “Quarterly activities/appendix 5B cash flow report…”

Expandable graphite operations in India poised to commence (source)

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

On October 5, Zentek Ltd. announced: “Zentek announces the launch of subsidiary for Aptamer-Based Platform Technology…”

On October 10, Zentek Ltd. announced: “Zentek announces successful Aptamer testing for longevity of protection and minimum effective dose…”

On October 17, Zentek Ltd. announced: “Zentek completes return on investment analysis for Canadian Healthcare System…”

Other graphite juniors

Armadale Capital [AIM:ACP], Castle Minerals [ASX:CDT], DNI Metals [CSE:DNI] (OTC:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Elcora Advanced Materials Corp. [TSXV:ERA] (OTCPK:ECORF), Electric Royalties [TSXV:ELEC], E-Power Resources [CSE:EPR], Evolution Energy Minerals [ASX:EV1] (OTCPK:EVMIF), Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Graphite One Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Green Battery Minerals Inc. [TSXV:GEM] (OTCQB:GBMIF), Infinity Stone Ventures [CSE:GEMS] (OTCQB:GEMSF), International Graphite [ASX:IG6], New Energy Metals Corp. [ASX:NXE], Volt Carbon Technologies [TSXV:VCT] (OTCQB:TORVF), Volt Resources [ASX:VRC] [GR:R8L], Walkabout Resources Ltd [ASX:WKT].

Synthetic Graphite companies

• SGL Carbon [ETR:SGL]
• Novonix Ltd. [ASX:NVX](NVX)

Graphene companies

• Archer Materials [ASX:AXE]
• Black Swan Graphene Inc. [TSXV:SWAN]
• Elcora Advanced Materials Corp. [TSXV:ERA](OTCPK:ECORF)
• First Graphene [ASX:FGR] (OTCQB:FGPHF)
• Graphene Manufacturing Group Ltd [TSXV:GMG]
• NanoXplore Inc. [TSXV:GRA] (OTCQX:NNXPF)
• Strategic Elements Ltd [ASX:SOR]
• Zentek Ltd. [TSXV:ZEN] (ZTEK)

Conclusion

October saw flake graphite prices and spherical graphite prices slightly lower.

Highlights for the month were:

• UBS tips graphite price surge, sees 50% upside to current pricing and has set its long-term graphite price at $850/t. Sees natural graphite demand rising by six times to 6.3 million tonnes by 2030, with a deficit forming from 2025.
• Europe’s looming battery anode shortage…Talga broke ground on Europe’s first plant to produce active anode material for lithium-ion batteries.
• China, world’s top graphite producer, to curb exports of key battery material.
• BMI: China graphite export restrictions could hinder ex-China anode development.
• Graphite buyers to boost imports ahead of China’s curbs, analysts say.
• Syrah Resources: “China is the sole export supplier of spherical graphite, any interruption to or restriction of spherical graphite exports would immediately impact ex-China natural graphite AAM production.”
• Syrah Resources reports higher QOQ natural graphite sales and improved demand from Chinese anode customers – 23kt natural graphite sold and shipped to 3rd party customers and 4kt shipped to Vidalia in USA.
• Tirupati Graphite reports H1 FY 2024 production up 160% and revenues up 170%, with significant further productivity improvements expected in Q3.
• Northern Graphite testing confirms Northern’s LDI Graphite is Battery Anode Material Grade. Planning a 200,000tpa Battery Anode Material plant in Baie-Comeau, Quebec.
• NextSource Materials announces first bulk shipment of SuperFlake®.
• South Star eyes faster ramp up of Brazil graphite mine after China said it will require export permits.
• Renascor Resources Siviour BAM Project preparation continues for an accelerated commencement of the graphite concentrate operation.
• BlackRock Mining – Potential lenders have submitted proposals to their internal credit committees.
• EcoGraf and VinES form strategic collaboration to evaluate BAM Facility in Vietnam.
• Sovereign Metals delivers a strong PFS for their Kasiya rutile and graphite Project in Malawi.
• Sarytogan Graphite PFS is advancing for the Sarytogan Graphite Project in Kazakhstan.

As usual all comments are welcome.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.