As the electric vehicle (EV) revolution moves forward, many expect increasing EV sales to drive demand for graphite, a key metal in lithium-ion batteries.
Even though pricing for the metal has been disappointing for some investors in the past few years, a number of graphite-focused companies have still seen impressive share price gains.
In Q1, markets continued to be under pressure as the coronavirus outbreak spread around the world, with governments joining forces to battle the pandemic. Although uncertainty is the name of the game right now, some graphite-focused companies have still managed to hold onto gains year-to-date.
Below we run through 2020’s top graphite stocks year-to-date on the TSX and TSXV. All year-to-date and share price information was obtained on April 6, 2020, from TradingView’s stock screener. All companies listed had market caps above C$5 million at that time.
1. Canada Carbon (TSXV:CCB)
Year-to-date growth: 171.43 percent; current share price: C$0.19
Canada Carbon is an exploration company with three Quebec-based graphite properties under its belt: Miller and Asbury, which are two past-producing graphite mines, and the Dun Raven project. The initial capital cost for the Miller project is set at US$44.38 million, with the company expecting to sell about 1,500 metric tons of high-purity thermally treated graphite annually.
On March 8, Canada Carbon’s share price hit its highest point in Q1 at C$0.38 on the back of an initial order of 50,000 grams of Miller thermally purified graphite from Analytical Reference Materials International. The company, which is focused on the life science sector, will use the graphite to develop a certified reference material for the analysis of ultra-high-purity graphite samples.
2. Northern Graphite (TSXV:NGC)
Year-to-date growth: 33.33 percent; current share price: C$0.16
Northern Graphite’s main asset is the Bissett Creek graphite project in Ontario. The estimated capital cost for the project is C$110 million, with the company hoping to be in production in 2022. The mine is expected to produce an average of 25,000 metric tons of graphite concentrate per year for 23 years.
The company’s share price reached its quarterly high on February 21 at C$0.24, but as uncertainty hit the markets the stock took a hit in early March. By the end of last month, Northern Graphite’s share price had started to take a turn, trending upwards after the company announced that it had secured a non-dilutive royalty financing for Bissett Creek.
3. Focus Graphite (TSXV:FMS)
Year-to-date growth: 33.33 percent; current share price: C$0.02
Advanced exploration and mining company Focus Graphite is aiming to produce graphite concentrate at its wholly owned Lac Knife flake graphite deposit in Quebec. A 2014 feasibility study shows an initial capital cost of US$166 million for the project, with estimated production of 44,300 metric tons per year over a 25 year period.
Trading with volatility during the first quarter of the year, Focus Graphite’s share price has moved up and down between the C$0.02 and C$0.03 range, with no significant news released so far in 2020.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.