Welcome to the September edition of the graphite miners news. September saw graphite prices essentially flat and lots of news from the graphite miners.

Graphite price news

During September China graphite flake-195 EXW spot prices were up 0.16%, and are up 6.5% over the past year. 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.

Graphite price chart - Large flake graphite price is ~USD 830/t (slightly out of date now, but an ok rough guide still)

Source: Northern Graphite

A reminder of a 2016 Elon Musk quote:

Our cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is graphite with silicon oxide.

In my January 30, 2018 Trend Investing Interview with Benchmark Minerals Simon Moores said about graphite:

Spherical graphite anode plants, predominately based in China, were traditionally 5-10,000 tpa but now we are tacking four megafactories are looking to produce 60,000 to 100,000 tpa from 2020 onwards.

2019 to 2030 demand increase forecast for EV metals as the EV boom takes off - 'Battery' graphite demand forecast to grow 10x.

Source: Courtesy BloombergNEF

The impact of the proposed megafactories on raw material demand (graphite in red)

Source: Benchmark Mineral Intelligence

Benchmark Mineral Intelligence - Simon Moores's - forecasts (total demand)

Source: Benchmark Mineral Intelligence Twitter

Graphite demand versus supply forecast

Source: Triton Minerals courtesy Roskill

Graphite market news

On August 28 The Driven reported:

"Wild times:" Tesla value hits $US420 billion as Musk dampens Battery Day speculation... Adding silicon to carbon anode makes sense. We already do," said Musk, who also pointed out that the use of silicon in batteries has challenges that reduces battery life. "Question is just what ratio of silicon to carbon & what shape? Silicon expands like crazy during discharge & comes apart, so cycle life is usually bad," he said.

On September 11 Mining Weekly reported:

Battery metals to boom despite widespread Covid-19 disruption. Battery metals, including lithium, vanadium, copper, cobalt, nickel, lead and graphite, are increasingly used in larger-scale battery storage products and in components used to transmit and distribute electricity. In terms of EVs, the focus is on electric-only EV development and roll-out. The progression of the EV will also shift development away from the concept car and towards the mass production of EVs for daily use. "All these will be enormous drivers of the demand for lithium, cobalt, nickel and vanadium, but above all copper."

The battery boom will lead to a battery metals boom

Source

On September 11 Mining.com reported:

Eight mines the size of Glencore's Katanga needed to meet battery metals demand - report. Nearly 800 kt LCE of additional lithium would need to come online in the next five years to meet the needs of the battery sector, a new report by Wood Mackenzie states... electric vehicle market requiring over 1 million tonnes LCE in 2025. Similarly, the report states that the cobalt market would have to double by 2025. "To put this into perspective, to meet the incremental demand from EVs through 2030, an additional eight mines the size of Glencore's Katanga would be required," the document reads. "Wood Mackenzie's AET brings electric vehicle [EV] uptake forward by ten years and sees EVs make up around 40% of passenger car sales by 2030. This considerably accelerates the demand for batteries and the raw materials that go into them." When it comes to graphite, the report forecasts that the battery sector would make up more than 35% of demand by 2030, with demand growing by 1.6 million tonnes by that date.

On September 17 Investing News reported:

Simon Moores: What to expect at Tesla's Battery Day and beyond. But Tesla's ambitions and future plans will not come to pass without hurdles. "Raw material availability should raise the alarm bells for Tesla considering their rapid Gigafactory expansions in Berlin, Shanghai and Austin," Moores said. In fact, unlike when the Gigafactory 1 in Nevada started, there are now 167 more gigafactories or battery megafactories competing for the same raw materials, as per Benchmark Mineral Intelligence data. ...For Moores, both quantity and quality of lithium, cobalt and nickel will be Tesla's biggest hurdles to get right. Graphite anode and manganese will also come with their own sourcing challenges. "There is no doubt now that regardless of how well Tesla's vehicles continue to sell, raw material availability will be the primary slowing factor on the company scaling.

Graphite miner news

Graphite producers

I 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: Imerys Graphite and Carbon (OTC:IMYSF) and AMG Advanced Metallurgical Group NV [NA:AMG] [GR:ADG] (OTCPK:AMVMF) are also "diversified producers", producing graphite. SGL Carbon (ETR:SGL) is a synthetic graphite producer.

Syrah Resources Limited [ASX:SYR][GR:3S7] (SYAAF) (SRHYY)

Syrah Resources Limited owns the Balama graphite mine in Mozambique.

On September 7, Syrah Resources announced:

Interim financial statements - half-year ended 30 June 2020... Balama produced 12,000 tonnes (H1 2019: 92,000 tonnes) of graphite, sold and shipped 16,000 tonnes (H1 2019: 101,000 tonnes). Production at Balama was suspended from 28 March 2020 to beyond the end of the interim financial period due to impacts of COVID 19. Specifically, travel restrictions that limit the mobility of the Balama workforce and weak end user demand due to lockdowns, mobility restrictions and economic uncertainty negatively impacted electric vehicle sales during the period. During the interim financial period, the BAM project continued to progress the Company's strategy to become the first ex-China vertically integrated producer of natural graphite active anode material... The loss for the consolidated entity after income tax amounted to $28.7 million during the interim financial period ended 30 June 2020 (2019: $81.4 million loss).

You can view the latest investor presentation here.

Bass Metals [ASX:BSM] [GR:R2F] (OTC:BSSMF)

On September 15, Bass Metals announced: "Exploration update." Highlights include:

• "Bass, post the initial stages of its exploration program, identified large flake graphite mineralization of at least 4.5km in strike length, between the Mahela and Loharano large flake graphite deposits.

• Bass is seeking to expand its resource at Graphmada and establish a globally significant resource already proven to produce, without penalty or rejection, clean graphite concentrates saleable into traditional and emerging advanced carbon materials markets.

• Bass has to date completed 56 holes of a planned 543 drill hole program (~10% of the program), the results of which were reported to the ASX in accordance with the JORC Code [2012] on 16 July 20201, announcing the Mangabe discovery.

• The Company continues to drill and expects further results to be received in the coming weeks.

• Bass has utilized results so far to update its geological model for Graphmada, which now interprets the deposits of Mahela, Mangabe and Loharano are in fact part of an extensive large flake graphite mineralization system, with a wide and shallow morphology.

• The Company aims to provide an updated 2020 Mineral Resource Statement, to be reported in accordance with the JORC Code [2012], interpreting the mineralization as a single deposit that takes into account this morphology."

Ceylon Graphite [TSXV:CYL] [GR:CCY] (OTCPK:CYLYF)

Ceylon Graphite has 'Vein graphite' production out of one mine in Sri Lanka with 121 square kilometers of tenements.

On August 28, Ceylon Graphite announced:

Ceylon updates private placement... Further to its press release of August 6, 2020, the Company intends to raise gross proceeds of up to C$8,100,000 or US$6,000,000 (US$1= C$1.35) from a consortium of four international investors (the "Offering") through the issuance of an aggregate of 90,000,000 units (the "Units")...

On August 31 Ceylon Garphite released: "A Message from the President." Some highlights include:

• "Ceylon Graphite has some of the purest natural graphite available and is building some of the cheapest and quickest-to-market natural graphite facilities.

• K1 site has declared commercial production.

• The company's first commercial sales - to Singapore and South Korea - have already been achieved.

• The company is rapidly expanding its capabilities - the M1 site will apply for Industrial Mining License Category A shortly.

• Product from both sites has been certified as battery grade marketable by US and German laboratories....

• Most importantly Ceylon Graphite has a firm commitment from a consortium of international investors to invest C$ 8.1 million in the Company to develop new sites and fund the company's plans to start upgrading its natural graphite."

Mineral Commodities Ltd. ("MRC") [ASX:MRC]

Skaland Graphite is 90% 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 owns 90%.

On September 21, Mineral Commodities Ltd. announced: "MRC completes PFS for active anode material plant in Norway." Highlights include:

• "MRC's anode strategy targets production of low CO2 emission, environmentally friendly, active anode material without using highly toxic hydrofluoric acid ("HF").

• Two highly compelling economic study outcomes; integrated post-tax pre-finance: Caustic Process NPV7 US$1.0 billion, IRR 67%. Carbochlorination Process NPV7 US$1.07 billion, IRR 58%.

• Manufactured at a dedicated Active Anode Materials Plant ("AAMP") in Norway, using low cost, renewable energy in the fastest growing battery manufacturing region globally.

• The AAMP will: Initially be built to produce up to 10,000tpa of active anode material, supplied with highquality graphite concentrate from MRC's Skaland operations in the Northern part of Norway. Be expanded (in 20,000 tonne modules) to process graphite concentrate from MRC's Munglinup operations in Australia.

• Pre-Feasibility Study ("PFS") investigates the optimal approach to producing active anode material for batteries in EVs and stationary uses, investigating two alternative environmentally friendly methods of purification - a caustic roast process and a carbochlorination process - that do not use HF.

• The study adopted an integrated approach incorporating the following key components: Skaland Life of Mine ("LOM") Plan. Munglinup Graphite Project ("MGP") Definitive Feasibility Study [DFS]. AAMP metallurgy, process engineering design and cost estimation.

• Staged, risk-management based approach taken with the first module of the AAMP, with technology de-risking decision points before expansion.

• Commencement of first production - single train [2GWh] planned for mid-2022 with initial production from full module in the September quarter 2023."

Graphite developers

Magnis Energy Technologies Ltd [ASX:MNS] (URNXF)

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 September 11 The Driven reported:

Magnis takes next step towards "six-minute" electric vehicle battery......."The unoptimised cell is within 99% energy density of a regular energy cell, which means minimal energy density loss for a super fast charge cell. Following the exciting results, a decision has been made to commence testing of EFC (extra-fast-charging) on optimised composition of commercial cells." If successful, Magnis Energy Technologies plans to make the batteries at a planned "gigafactory" near Townsville, Queensland, as well as at a factory in New York, US...... NYSERDA will now also fund a 12-month demonstration of the extra-fast charging batteries in electric buses in collaboration with New York energy utility Consolidated Edison and defence technology firm BAE Systems.

On September 14, Magnis Energy Technologies Ltd announced: "Extra fast charging Battery program....EFS allows 85% charge in 6 mins" Over 1,000 charges and retains over 80% strength.

Eagle Graphite [TSXV:EGA] (OTC:APMFF)

The Black Crystal Project is located in the Slocan Valley area of British Columbia, Canada, 35km West of the city of Nelson, and 70km North of the border to the USA. The quarry and plant areas are the project's two main centers of activity.

No news for the month.

Battery Minerals [ASX:BAT] [GR:0FS]

Battery Minerals core commodity targets are graphite, zinc/lead and copper. BAT is maintaining a focus on its two graphite development assets Montepuez and Balama which are located in Mozambique.

On August 27, Battery Minerals announced: "Half yearly accounts - 30 June, 2020."

You can view the latest investor presentation here.

Mason Graphite [TSXV:LLG] [GR:M01] (MGPHF)

Mason Graphite is a Canadian graphite mining and processing company focused on the development of the Lac Guéret project located in northeastern Quebec, where the graphite grade is believed by management to be among the highest in the world.

No significant news for the month.

You can view the latest investor presentation here.

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. The company was founded on March 28, 2006 and is headquartered in West Perth, Australia. Triton has three large graphite projects in Mozambique, not far from Syrah Resources Balama project.

On September 22, Triton Minerals announced: "Option placement heavily oversubscribed...."

You can view the latest investor presentation here and an excellent video here.

NextSource Materials Inc. [TSX:NEXT] [GR:1JW] (OTCQB:NSRCF)

NextSource Materials Inc. is a mine development company based in Toronto, Canada, that's developing its 100%-owned, Feasibility-Stage Molo Graphite Project in Madagascar. The Company also has the Green Giant Vanadium Project on the same property.

No news for the month.

Investors can view the latest company presentation here. You can watch the company's Senior Vice President Brent Nykoliation video interview here.

Northern Graphite [TSXV:NGC][GR:ONG] (OTCQB:NGPHF)

Northern's principal asset is 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.

No news for the month.

You can view the latest investor presentation here.

Talga Resources [ASX:TLG] [GR:TGX] (TLGRF)

Talga Resources Ltd 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 17, Talga Resources announced: "Talga boosts European natural graphite resources." Highlights include:

• "Updated Nunasvaara South Mineral Resource Estimate defines 15% increase in total natural graphite resources at Vittangi.

• Vittangi graphite mineral resource now stands at 19.5 million tonnes at 24.0% graphite (based on a revised 10% cut-off grade across the project).

• Vittangi remains the world's highest grade natural graphite resource1, set to play a significant role in battery anode production for the booming electric vehicle market.

• Talga's total graphite resource inventory in Sweden increases to 55.3 million tonnes at 17.5% graphite, representing the largest source of natural graphite defined in Europe.

• Additional growth Exploration Targets totalling 26-46 million tonnes at 20-30% graphite defined within Vittangi and set to be drill-tested for potential further increases in scale."

You can view the latest investor presentation here.

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.

You can view the latest investor presentation here.

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 production facility in central Sweden. The company also owns the Bergby lithium project, the Norra Karr REE project, and the Kontio cobalt project all located in Scandinavia.

On August 27, Leading Edge Materials announced:

Leading Edge Materials commences preliminary economic assessment study on the Norra Karr Ree-Project......Norra Karr is one of the most significant heavy rare earth projects globally and is unusually enriched in some of the materials critical for the production of permanent magnets, such as dysprosium and terbium.

On September 4, Leading Edge Materials announced: "European action plan on critical raw materials and launch of European raw materials alliance."

On September 22, Leading Edge Materials announced: "Leading Edge Materials reports quarterly results to July 31, 2020." Highlights include:

During the three months ended July 31, 2020 the Company:

• "Announced changes to board of directors and management.

• Received confirmation of a five year extension on the Norra Karr exploration license.

• Announced the participation of its subsidiary, Woxna Graphite AB, in the newly launched research project "Graphite and Graphene as Battery Electrodes" which is part of the Vinnova funded competence centre Batteries Sweden ("BASE").

• Held its Annual General Meeting with shareholders approving all proposed agenda points.......

• Received information that the Bucharest Court of Appeal published a ruling dismissing the appeal against the Agenţia Natională Pentru Resurse Minerale ("NAMR") by the competing bidder for the Bihor Sud Exploration license in Romania as groundless. Pending the full ruling being served to the parties of the appeal and a subsequent appeal window, NAMR can reinstate the adjudication process of the competing bids for the Bihor Sud Exploration license......"

Investors can view the latest company presentation here.

Nouveau Monde Graphite [TSXV:NOU] (NMGRF)

Nouveau Monde Graphite own the Matawinie graphite project, located in the municipality of Saint-Michel-des-Saints, approximately 150 km north of Montreal, Canada.

On August 28, Nouveau Monde Graphite announced: "Nouveau Monde successfully closes the financing transactions with Pallinghurst."

On September 21, Nouveau Monde Graphite announced: "Nouveau Monde's research & development consortium advances its carbon-neutral battery anode program."

On September 24, Nouveau Monde Graphite announced: "Sales across three continents, an important step in the commercialization of advanced carbon-neutral materials." Highlights include:

• "Commercialization of carbon-neutral advanced materials is well progressed across all NMG's key markets, from electric vehicles to energy storage, refractories and niche segments.

• Nouveau Monde is ideally situated to cater to the booming electric vehicle and energy storage markets as a clean and reliable alternative to China's controlled supply chain."

You can view the latest investor presentation here.

Volt Resources [ASX:VRC] [GR:R8L]

Volt Resources Ltd is a graphite exploration company. The Company is focused on the exploration and development of its existing wholly owned Bunyu Graphite Project in Tanzania and the identification of further assets globally which have the potential to add value to shareholders.

No graphite related news for the month.

You can view the latest investor presentation here.

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 18, Renascor Resources announced: "Placement to raise $3.6 million to advance the development of graphite and gold projects."

• "Siviour Battery Anode Material Project - containing the world's second largest reported Proven Reserve of graphite on the Eyre Peninsula, South Australia."

Key work streams to be funded from the equity raise are:

• "Siviour (Graphite) - including sample preparation, advanced metallurgical testing and marketing.

• Working capital and corporate costs."

You can view the latest investor presentation here.

EcoGraf Limited [ASX:EGR]

On September 28 EcoGraf reported:

EcoGraf Secures WA Government support with 6.7ha site..... The large industrial site was selected to provide significant area for future plant expansion to meet the expected demand. The proposed 20,000tpa plant requires ~2ha. Securing the site provides location certainty, as due diligence processes continue in relation to in-principle debt funding support received by Export Finance Australia.

You can view the latest investor presentation here.

ZEN Graphene Solutions Ltd. [TSXV:ZEN] (OTCPK:ZENYF) (formerly Zenyatta Ventures)

ZEN Graphene Solutions Ltd. is a mineral development company based in Thunder Bay, Ontario. ZEN Graphene is currently developing the Albany Graphite Deposit ("Albany"), as well as developing graphene and graphene applications.

On September 3, ZEN Graphene Solutions Ltd. announced:

ZEN Graphene Solutions provides corporate update. The company is also pleased to announce the recent award of two NSERC Alliance COVID-19 project grants, a Mitacs Elevate Postdoctoral Fellowship grant, and two Mitacs Accelerate grants for a total of $355,000 to its university collaborators increasing ZEN's total research and development budget for the next 12 months to over $1.4M......

On September 22, ZEN Graphene Solutions Ltd. announced: "ZEN Graphene Solutions develops graphene-based ink with 99% virucidal activity against COVID-19." Highlights include:

• "ZEN's Virucidal ink is 99% effective against the COVID-19 virus.

• ZEN's Virucidal ink was still 99% effective a minimum of 35 days after application to N95 mask material.

• ZEN is now developing plans to expedite commercialization of this product, pending regulatory approval.

• ZEN has filed a provisional patent for this graphene-based virucidal product.

• ZEN invites PPE companies to reach out for potential partnerships to bring this new technology to market: [email protected].

• ZEN is beginning antibacterial and antifungal tests utilizing its proprietary ink formulation."

Sovereign Metals [ASX:SVM] [GR:SVM]

Sovereign Metals Ltd. is an exploration company, which engages in the explorations of graphite, copper and gold resources. It operates through the Queensland, Australia and Malawi geographical segments. Sovereign Metals has world's biggest graphite saprolith resource of 65m tonnes at 7.1% TGC at their Maligunde project in Malawi.

No graphite related news for the month.

You can view the latest investor presentation here.

Westwater Resources (WWR) (formerly Alabama Graphite)

Westwater Resources Inc. is developing an advanced battery graphite business in Alabama, holds dominant mineral rights positions in the Western United States and the Republic of Turkey for both lithium and uranium deposits, as well as licensed production facilities for uranium in Texas.

On September 8, Westwater Resources Inc. announced: "Westwater Resources announces agreement to sell its North American uranium business."

You can view the latest investor presentation here.

Black Rock Mining [ASX:BKT]

On September 8, Black Rock Mining announced: "Black Rock advances POSCO alliance with the commencement of battery performance testing."

Other graphite juniors

Goldcore Resources [TSXV:BKR] [GR:BR2N] (OTC:CZSVF), BlackEarth Minerals [ASX:BEM], Black Rock Mining [ASX:BKT], DNI Metals [CSE:DNI], Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Elcora Advanced Materials Corp. [TSXV:ERA](OTCPK:ECORF), First Graphene [ASX:FGR] (OTCPK:FGPHF), Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Graphite One Resources Inc. [TSXV:GPH] [GR:2JC] (OTCQB:GPHOF), Gratomic Inc. (TSXV:GRAT), Graphite Energy Corp. [CSE:GRE] [GR:GOA] (OTC:GRXXF), Lomiko Metals Inc. [TSXV:LMR] (OTCQB:LMRMF), New Energy Metals Corp. [ASX:NXE], NovoCarbon Corp. (formerly Great Lakes Graphite [TSXV:GLK] [GR:8GL] (OTCPK:GLKIF)), Walkabout Resources Ltd [ASX:WKT].

Conclusion

September saw graphite prices flat.

Highlights for the month were:

• Battery metals (including graphite) to boom despite widespread Covid-19 disruption.

• WoodMac - Graphite.....forecasts that the battery sector would make up more than 35% of demand by 2030, with demand growing by 1.6 million tonnes by that date.

• Simon Moores - "There is no doubt now that regardless of how well Tesla's vehicles continue to sell, raw material availability will be the primary slowing factor on the company scaling."

• Syrah Resources posts a half year loss of $28.7 million due to very large production cut-backs and COVID-19. BAM Project progresses.

• Bass Metals identified large flake graphite mineralization of at least 4.5km in strike length.

• Ceylon Graphite has a firm commitment from a consortium of international investors to invest C$ 8.1 million in the Company to develop new sites and fund the company's plans to start upgrading its natural graphite.

• MRC completes PFS for active anode material plant in Norway. Two highly compelling economic study outcomes; integrated post-tax pre-finance: Caustic Process NPV7 US$1.0 billion, IRR 67%. Carbochlorination Process NPV7 US$1.07 billion, IRR 58%.

• Magnis Energy Technologies - Extra fast charging Battery program....EFS allows 85% charge in 6 mins." Over 1,000 charges and retains over 80% strength.

• Talga Resources boosts European natural graphite resources by 15%.

• EcoGraf Secures WA Government support with 6.7ha site.

• ZEN Graphene Solution's Virucidal ink is 99% effective against the COVID-19 virus.