What does a shrinking supply and skyrocketing demand equal? It equals happy investors if you can get in before the public participation phase. Right now, savvy investors are in the accumulation phase of the next massive resource trend, graphite. [Below are the keys to capitalizing on a graphite investment.] Words: 430
So say edited comments from an article posted at www.TheGraphiteInvestor.com
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.
The article goes on to say, in part:
China controls much of the world’s graphite mines (about 75%), but a few solid companies outside of China will be well positioned to capitalize on this trend. Some analyst say investing in graphite will be a fad, some call it a fundamental change in the resource industry, whatever you call it, there is no reason you can’t profit.
The key to capitalizing on a graphite investment now is to identify the explorers and miners who are established now.
How is China positioning themselves to capitalize on the worlds upcoming need for graphite? Well, they are implementing a VAT and export duty on graphite and already importing flake graphite from North Korea. This could indicate that China is already experiencing a strain on its on graphite supply, despite being in control of three quarters of the world’s graphite. Even though China controls so much of the world’s natural graphite, much of that graphite is low grade (meaning no visible crystallinity).
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So, how do you capitalize on the upcoming bullish graphite trend? I have narrowed down my research to several major criteria:
1) The country must be mining friendly
2) The projects must be close to infrastructure
3) The projects must have advanced deposit mines
4) The company must have experienced management
Given the above criteria, I found Canada, specifically the provinces of Ontario and Quebec, to be the best places to capitalize on the graphite trend. Now that the location is pinpointed, I looked at which companies have advanced deposit mines with experience management and found…[two such companies that] fit that criteria:
- Focus Graphite which has an extremely rich graphite deposit located at the Lac Knife deposit in Quebec and
- Northern Graphite. The quality of graphite in their deposit is low-grade (2% graphite), but the deposit is open pit and with their experienced management they may be well capitalized to be a major player in the area.
If you’re still in doubt about investing in graphite, just remember, a mine is a terrible thing to waste.
*http://thegraphiteinvestor.com/out-of-nowhere-one-bullish-trend-you-dont-want-to-miss/ Want to read more exclusive graphite investing articles like this? Go to www.TheGraphiteInvestor.com
1) The writers for TheGraphiteInvestor.com and/or their family own shares of the following companies mentioned in this interview: None.
Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
Editor’s Note: Having read to the bottom of the page you must be truly interested in graphite. That being the case here, here, here and here are other MUST read articles on the subject along with a number of related articles as outlined below.
Global consumption of natural graphite has doubled in the last 10 years and will increase even more so in the next decade due to a) the continuing modernization of China, India and other emerging economies given the strong demand from traditional end uses such as the steel and automotive industries and b) the advent of new applications for graphite such as lithium-ion batteries, fuel cells, and nuclear and solar power. As a result of such increased demand prices for large flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled making the mining of such a minerals increasingly profitable. Learn even more by viewing the infographic below.
Demand for lithium-ion (li-ion) batteries over the next 8 years – for use in electric and hybrid cars, smart power grids and mobile consumer devices – is going parabolic. Sales of electic/hybrid cars, for example, will be increasing 5-fold to 4,000,000 over that timeframe and every such car will have 30-110kg of graphite in their batteries, depending on the car, that can not be replaced economically. Forget the common refrain “Got gold?” A more appropriate refrain should be “How much graphite stock do you own?” Learn more about graphite in the infographic below.
The word ‘fad’ doesn’t exist in the minds of true miners and prospectors. However, fads are something that people like you and I can make a lot of money investing in if we are ahead of the curve and right now I believe the graphite sector is in the early stages of the ‘fad’ and will provide a ton of profitable opportunities. [Let’s take a look at just why, where and when you should get positioned in this fast developing sector.] Words: 1535
Tens of billions of dollars per year are being spent worldwide on graphene research. Why? Because graphene could have a dramatic impact on our future by changing the fields of computing, energy, materials and optics. How? By making everything smaller, stronger and more ecologically sustainable. Below is an infographic that provides all the details.
Natural resources are the building blocks of the world, essential to progress and prosperity. These commodities, like all investments, can have wide price fluctuations over time. The interactive table provided shows the ebb and flow of commodity prices over the past decade and illustrates the principle of mean reversion—the concept that returns eventually move back towards their mean or average. [Take a look.]
This infographic looks at the primary uses for vanadium, its supply and demand, and future applications that could potentially affect the metal’s demand.
95-97% of the supply of Rare Earth Elements (REE) – integral to the high-technology, nanotechnology, hybrid automotive, aerospace and defence industries – currently comes from China. China has continued to reduce its export quotas to the point where it will only be supplying 50% of the world’s needs by 2015. This will have a major impact on prices for each of the 17 Light (LREE) and Heavy (HREE) elements that comprise the category – and the products in which they are used – unless alternate sources of supply are found. A Canadian company has done just that and will be bringing one of the largest HREE resources in the world (44% HREE, 56% LREE) into production by 2017. Below is an infographic on the REE market and a link to a Proactive One 2One Investor Forum presentation I attended on REE market fundamentals and the development and prospects of Quest Rare Minerals Ltd. and their Strange Lake project.
Tungsten is unique in its extremes. It’s extremely hard, heat resistant, dense, and environmentally benign. It’s used to make cemented carbide, one of the strongest and most durable compounds. That’s the positives. but, unfortunately there are negatives too. Take a look at the infographic below for more information.