About Graphite

GRAPHITE QUICK FACTS

Graphite, along with diamonds and Coal, are crystalline forms of Carbon:

Properties

Graphite is an essential but often unrecognized material for modern life, with broad industrial applications due to its unique properties:

  • Properties of both metals and non-metals (ideal for industrial applications)

  • Highest natural strength and stiffness of any material

  • Lightest weight of all reinforcement materials

  • Very high melting point; low thermal expansion/shrinkage

  • High electrical and thermal conductivity

  • Low frictional resistance and hydrophobic behaviour (excellent lubricant)

  • Non-toxic, chemically inert and high resistance to corrosion

Properties vary depending on the purity and size of the graphite crystals; this directly affects the price of the resource.

GRAPHITE GLOBAL PRODUCTION

Graphite is not a homogenous commodity; it occurs naturally in 3 forms:

FLAKE

Highest Price, Lowest Supply
High Purity: 85%-99%+ carbon

AMORPHOUS

Least graphitic of the three
Lower Purity: 60%-90% carbon

VEIN/LUMP

Uncommon & highly localized;
<1% of world production;
Marginal applications

40% of global production

60% of global production

Flake graphite

  • Widest range of end uses
  • Increasing demand for high purity flake graphite
  • No substitute​


Flake graphite used in batteries – not amorphous

* Source: Comark Securities

RESTRICTED AND UNSTABLE SUPPLY = OPPORTUNITY

  • China (+70% of world production) is losing dominance over graphite market due to export tariffs and environmental regulations that reduce supply and increase prices

  • China also faced with a reduction of large and medium flake production

Flake graphite production outside of China:

  • Brazil
  • Canada
  • Mozambique
  • India
  • Madagascar
  • Ukraine
  • Norway
  • Zimbabwe
  • Germany

Graphite Global Consumption

  • Urbanization of China and India is driving the demand of graphite in traditional applications

  • China to build Strategic Reserve: By 2020, reserve must exceed 80% of China’s domestic capacity to hold a steady “bottom line” of supply

  • Natural Graphite classified as one of 14 critical raw materials by the European Union in 2014

HOW Graphite IS BEING SOLD

  • Graphite is not an openly traded mineral

  • Prices are negotiated between end users and producers for annual and, sometimes, multi-year contracts

  • Prices for graphite vary according to different parameters such as carbon content (purity), size, impurities and shape

  • Continuous contact with customers is necessary

  • There is a market for 100% of mined graphite material (from large to fine flakes)

  • Market Study is underway to identify all end users in all market segments

Graphite mine

Inventory of different sizes for different uses and users