In the infographic below, we give background on graphite itself and then dive into the fundamentals of the international graphite market. Graphite demand is currently surging due to the its key role in many green technologies, namely lithium-ion batteries, fuel-cells, and Pebble Bed nuclear reactors. Graphene, a product of large flake graphite, has the potential to have an impact on manufacturing not seen since the advent of plastic. Furthermore, China supplies 70% of global graphite market. All of these factors are combining to create excellent investment opportunities for those who act quickly.
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We try to cover the context of a commodity, in this case graphite, and we encourage investors to do their own due diligence on companies in this space. That said, we do have some recommendations on where to start your research.
Focus Metals is about to undergo rebranding and will become Focus Graphite. The company is the owner of the 16% carbon grade Lac Knife crystalline flake graphite deposit located in the Côte Nord region of Quebec, and its stock has increased by more than 30% since January.
Northern Graphite also has a promising graphite property in Canada - it holds 100% interest in the Bissett Creek mining lease and surrounding claims, located 17km from the Trans Canada Highway between the cities of Ottawa and North Bay, Ontario. If you had bought stock in this company at the beginning of this year, you would have seen 150% returns.
A more balanced, safer play would be Zimtu Capital Corp. Zimtu is an investment company that invest in, grows, and creates junior resources companies. Zimtu has significant holdings in many companies with a graphite focus, including Standard Graphite, Big North Capital, Galaxy Capital, Strike Graphite, and First Graphite. Zimtu's stock price has risen more than 40% since the beginning of January.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: Visual Capitalist content is researched independently with the goal of educating investors on resource investing and management. Visual Capitalist does not receive direct compensation to produce this content, though it does provide other services and sponsorship opportunities from time-to-time to help cover costs.