Graphite Miners News For The Month Of May 2024

Welcome to the May edition of the graphite miners news.

May saw flake graphite prices unchanged/flat for the month. We did hear some news from the U.S. government including an extension on the current FEOC 50% rule for graphite to 2027, LPO funding eligibility for US miners (production & extraction activities), and an increase from 0% to 25% tariffs in 2026 on China graphite imports.

Graphite price news

During the past 30 days the China graphite flake-194 EXW spot price was flat The China graphite flake +195 EXW spot price was flat. 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. The spherical graphite 99.95% min EXW China price was down 0.43% the past 30 days.

Benchmark Mineral Intelligence 2023 flake graphite and spherical graphite price chart (source)

Graphite demand and supply forecast charts

Macquarie Research (March 2023) forecasts flake graphite deficits starting in 2025 and growing larger to 2030 (source)

Trend Investing v IEA demand forecast for EV metals (IEA)

2021 IEA forecast growth in demand for selected minerals from clean energy technologies by scenario, 2040 relative to 2020 – Increases Of Lithium 13x to 42x, Graphite 8x to 25x, Cobalt 6x to 21x, Nickel 7x to 19x, Manganese 3x to 8x, Rare Earths 3x to 7x, And Copper 2x to 3x

2022 – BMI forecasts we need 330+ new EV metal mines from 2022 to 2035 to meet surging demand – 97 new 56,000tpa natural flake graphite mines

Graphite market news

On April 30, the U.S. Loans Program Office announced:

How LPO can support all stages of the critical minerals supply chain. Further, the updated Title 17 Program Guidance added “supply of critical minerals” to the list of 1703 eligible technologies…Building on critical material and EV supply chain projects announced to date, LPO is clarifying that it may also fund “production” or mining and extraction activities as eligible expenses under LPO’s Title 17 Clean Energy Financing Program, which provides financing opportunities for innovative energy and supply chain projects.

Note: Bold emphasis by the author.

On April 30 Mining.com reported:

Graphite miners lobby US govt to impose levy on China-sourced EV material. North American graphite miners are lobbying the US government to impose a 25% tariff on three graphite products sourced from China in order to counter Beijing’s monopoly on a key material used in automobile batteries…The U.S. government is set to decide in May whether to bring graphite into the list of minerals that attract the higher Section 301 tariff.

On May 3 Seeking Alpha reported:

U.S. government gives EV makers two year reprieve on FEOC graphite for batteries. The U.S. Treasury and Internal Revenue Service have extended tax credits for electric vehicles containing Chinese graphite for another two years, allowing EV makers more flexibility to manufacture and sell vehicles that are eligible for the $7,500 tax credit…For determining qualifying critical mineral content for purposes of the critical minerals requirement, today’s release provides a new test, the traced qualifying value add test. Under this test, manufacturers must conduct a detailed supply chain tracing to determine the actual value-added percentage for extraction, processing, and recycling. The actual percentage is used to determine the value for the applicable critical mineral that is qualifying. Manufacturers may continue to use the 50 percent roll up described in the proposed regulations as a transition rule until 2027…Friday’s ruling will expand the timetable to use graphite and other critical minerals until 2027, giving EV makers much needed breathing room to locate other sources of critical minerals that do not fall within FEOC restrictions…Once the extension runs out in 2027, the limits on foreign-made components and minerals becomes increasingly more restrictive. By 2027, 80% of critical minerals and 80% of battery components must originate in the U.S. In 2028, 90% of battery components must come from the U.S., while in 2029 80% of critical minerals and 100% of battery components must be domestic.

On May 14 The White House announced:

FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices…

Batteries, Battery Components and Parts, and Critical Minerals

The tariff rate on lithium-ion EV batteries will increase from 7.5% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024. The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.

Graphite miners news

Graphite producers

We 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, Nacional de Grafite, Shanshan Technology, and LuiMao Graphite.

Note: AMG Critical Materials N.V. [AMS:AMG] [GR:ADG] (OTCPK:AMVMF) is also a “diversified producer”, producing graphite, vanadium, and lithium.

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

Syrah Resources Limited owns the Balama graphite mine in Mozambique. Syrah is also a vertically integrated producer of natural graphite Active Anode Material (“AAM”) at their Vidalia facility, Louisiana, USA.

On April 30, Syrah Resources Limited announced: “Quarterly activities report for the three months ending 31 March 2024.” Highlights include:

• “Volatile Chinese anode production with global electric vehicle (“EV”) sales growing 21% in the March 2024 quarter, compared with the March 2023 quarter, to 3.1 million units.
• China export licensing controls impacting demand for Balama natural graphite in China.
• Balama campaign production of 11kt at 78% recovery over the March 2024 quarter.
• Balama C1 costs (FOB Nacala/Pemba) of US$635 per tonne in operating periods and C1 fixed costs (FOB Nacala/Pemba) of US$4 million per month during non-operating periods.
• Steady quarter-on-quarter natural graphite sales with low demand from Chinese anode customers – 20kt natural graphite sold and shipped to 3rd party customers and 1kt shipped to Vidalia in USA.
• Weighted average sales price of US$607 per tonne (CIF)2 – 24% higher quarter on quarter.
• 10kt natural graphite breakbulk shipment sold to PT Indonesia BTR New Energy Materials in Indonesia – Syrah’s first large volume natural graphite sale to a battery supply chain participant destination outside of China.
• Six-year binding long-term offtake agreement signed with Posco Future M for Balama natural graphite product.
• Ramping up active anode material (“AAM”) production at 11.25ktpa AAM Vidalia facility in Louisiana, USA (“Vidalia”).
• Dispatched on-specification commercial-scale production samples to Tesla, Inc. (“Tesla”) and potential customers.
• Progressing offtake and project readiness for Vidalia’s expansion to a 45ktpa AAM, inclusive of 11.25ktpa AAM, production capacity (“Vidalia Further Expansion”) – customer and financing considerations will determine FID timing.
• Targeting completion and first disbursement of US$150 million loan for Balama from US International Development Finance Corporation in the June 2024 quarter.
• Completed A$98 million (US$65 million7) institutional placement and entitlement offer.
• AustralianSuper converting Series 1 and 3 Notes at a revised conversion price of A$0.6688 per share, subject to Syrah shareholder approval, to simplify Syrah’s capital structure and remove a material potential redemption requirement.
• Quarter end cash balance of US$99 million, including restricted cash of US$38 million.”

Catalysts:

• 2024 – Outcome of the U.S. Gov. additional US$350 million ATVM loan application to help fund Vidalia expansion.

Natural graphite and AAM demand is forecast to increase three and five times, respectively, over the next 10 years

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

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

On May 1, Ceylon Graphite announced:

Ceylon Graphite announces M1 license renewed allowing for recommencement of Mining Activities. Ceylon Graphite Corp. (“Ceylon” or the “Company”) (TSX-V: CYL) (OTC: CYLYF) (FSE: CCY) is pleased to announce that its IML C license at its M1 mine has been renewed. The delay in license renewal was due to a series of changes in the licensing process, requirements and personnel. The Company does not anticipate any further delays in licensing and intends to apply for the IML A license shortly which will allow high volume production and sales…”The site is highly prolific with many large graphite veins”, said Head of Mining, Klaus Leiders. “We are targeting a minimum of 200 tonnes per month from M1 once we have scaled and implemented efficiencies.” The Company intends to complete two exploration chambers underground to allow for horizontal drilling to further optimize production.

Mineral Commodities Ltd. (“MRC”) [ASX:MRC]

Skaland Graphite is 100% 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 plans to demerge its Norwegian graphite assets into a newly incorporated Norway company branded as Ascent Graphite.

On April 29, Mineral Commodities Ltd. announced:

Annual report 31 December 2023…EBITDA performance in 2023 recognises that while the business did recognise a loss in 2023 it did improve its operating position going into 2024, with a significant increase in inventory on hand as at 31 December 2023, which is available for future cash flows…

On April 29, Mineral Commodities Ltd. announced: “Quarterly activities report – March 2024.” Highlights include:

…Skaland:

• “Production and sales in line with budget, with target remaining to achieve annualized rate of 10Ktpa of saleable product for 2024.”

Subsequent to quarter end:

• “MRC gives notice to increase its interest in Munglinup Project from 51% to 90%.”

Corporate and Cash

• “Available Cash: US$1.1 million as at 31 March 2024 (US$1.1 million as at 31 December 2023).
• Borrowings: US$9.5 million as at 31 March 2024 (US$8.2 million as at 31 December 2023)…”

On May 10, Mineral Commodities Ltd. announced: “MRC enters into exclusivity agreement for potential sale of its interest in Tormin Mineral Sands – Plans to focus on graphite assets.” Highlights include:

• “Strategic decision to focus MRC’s efforts on advancing and developing its high-quality graphite assets and downstream active anode material project.
• These include Munglinup development project in Australia, the Skaland operating graphite mine in Norway, and the Active Anode Material Project.
• Process Deed entered with GMA Group for negotiation of potential sale of Tormin Sands Operation.
• GMA is the global leader in industrial garnet and has been MRC’s long-term partner.
• Agreement also includes standstill in respect of the GMA Group loan.
• 3-month exclusivity period, during which period Tormin to continue production as normal.”

On May 15, Mineral Commodities Ltd. announced:

MRC in negotiations to settle dispute and potentially increase interest in Munglinup Project to 100%…If successful, a completed settlement would result MRCG increasing its interest in Munglinup from 51% to 100%.

Tirupati Graphite [LSE:TGR]

On May 10, Tirupati Graphite announced: “Unaudited trading results for the year ended 31 March 2024.” Highlights include:

• “Total sales increased by 70% YoY to £4,903,856 (FY23: £2,890,010).
• Gross profit decreased 62% to £514,846 (FY23 £1,372,048)…
• Initiated engagement with a Development Finance Institution (“DFI”) for debt financing for the proposed expansion of the Madagascar operations from the current effective capacity of 20,000 metric tonnes to 54,000 metric tonnes. Discussions have advanced with documentation and a detailed financial model prepared by the Company currently under review by the DFI.
• Additionally, the DFI has expressed to our appointed intermediary its interest in potentially providing debt funding for the first 50,000tpa flake graphite project development at the Montepuez project in Mozambique.
• As at 31 March 2024, the company had cash and cash equivalents of £189,144…”

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

Northern Graphite purchased from Imerys the Lac des Iles producing graphite mine in Quebec and the Okanjande graphite deposit/Okorusu processing plant in Namibia. They also own 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.

On April 30, Northern Graphite announced: “Northern Graphite announces 2023 year-end results: A year of transformation.” Highlights include:

Optimizing Working Capital: Financial Highlights:

• “The Company optimized working capital by reducing its finished goods inventories by 4,326 tonnes and extending current lending/royalty agreements to generate cash for operations without diluting shareholders;
• Revenue of $17.1 million for 2023 based on 8,592 tonnes of graphite concentrate sold at an average realized sales price of $1,990 per tonne (US$1,474 per tonne); (1)
• Cash costs of $1,429 (US$1,059) per tonne of graphite concentrate sold in 2023; (1)
• 2023 income from mine operations of $1.9 million after depletion and depreciation of $2.9 million;
• Cash used in operating activities was $4.7 million in 2023;
• Largely due to a number of non-cash charges including depletion and depreciation, inventory impairments, adjustments and sales, capitalized interest expenses, share based compensation and the write-off of the South Okak property, a net loss of $23.6 million ($0.18 per share) was recorded versus a net loss of $14.6 million ($0.14 per share) in 2022;
• The Company’s financial performance on a cash flow and earnings basis was largely driven by LDI operating at less than half its nameplate capacity in 2023. In order to improve the Company’s financial performance and to respond to increased demand, which partially relates to concerns over Chinese supply, the Company has moved to a seven day per week operation targeting annual nameplate capacity of 25,000 tpy. In addition, the Company is implementing a number of cost control and working capital reduction measures;
• Cash and cash equivalents were $3.1 million as at December 31, 2023, compared to $5.1 million as of December 31, 2022…

On May 2, Northern Graphite announced:

Northern Graphite provides development update on its patented Porocarb® Product for all-solid-state-battery technologies. Porocarb® represents potentially significant new revenue stream for Northern…

On May 6, Northern Graphite announced:

Northern Graphite comments on new U.S. graphite procurement regulations. OEMs must show meaningful progress toward having a North American supply chain in place before January 2027…

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

Nextsource Materials Inc. 100% owns the Molo Graphite Mine in Madagascar. The Company also has the Green Giant Vanadium Project on the same property.

No news for the month.

Gratomic Inc. [TSXV:GRAT] [GR:CB82] (OTCQX:CBULF)

Gratomic’s Aukam Graphite Project is located in Namibia, Africa. Gratomic also 100% own the Capim Grosso Graphite Project in Brazil. Gratomic is also collaborating with Forge Nano to develop a second facility for graphite micronization and spheronization.

No news for the month.

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 Project and processing plant in central Sweden. The company also owns the Norra Karr REE project, and the 51% of the Bihor Sud Nickel-Cobalt exploration stage project in Romania.

On May 19, Leading Edge Materials Corp. announced: “Leading Edge Materials appoints Kurt Budge as Chief Executive Officer…”

Evion Group NL [ASX:EVG]

On April 30, Evion Group NL announced: “Quarterly activities/Appendix 5B Cash Flow report.”

On May 2 Evion Group announced: “Evion appoints new Leadership Team.”

Graphite developers

South Star Battery Metals [TSXV:STS] (OTCQB:STSBF)

South Star Battery Metals’ Santa Cruz Graphite Mine is in Bahia Brazil. The Company also owns the BamaStar Project in Coosa County, Alabama, USA. Commercial production at Santa Cruz is targeted to begin in Q3, 2024.

On May 6, Southern Star Battery Metals announced:

South Star Battery Metals announces the first sale of natural flake graphite concentrate from its Santa Cruz Graphite Mine in Brazil…of 100 tonnes of the Company’s graphite concentrate from its Santa Cruz Graphite Mine in Brazil…South Star anticipates that initial orders will be fulfilled and delivered during Q3 2024. The Agreement was formally executed on May 3, 2024, with a prominent American industrial graphite customer (the “US Client”). The US Client has also expressed interest in negotiating regular purchases, pending positive test results for specific applications. For competitive reasons, the US Client’s identity and the Agreement’s specific commercial details remain confidential.

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 April 30, Renascor Resources Ltd. announced: “Quarterly activities report for the period ended 31 March 2024.” Highlights include:

• “Export Finance Australia confirms that the previously announced and conditionally approved A$185 million loan facility from the Australian Government’s $4 billion Critical Minerals Facility has been approved to be utilised to fast track the construction of Renascor’s proposed graphite mining and processing operation, the upstream portion of Renascor’s Battery Anode Material [BAM] Project in South Australia.
• Renascor enters into an Indigenous Land Use Agreement (ILUA) with the Barngarla Determination Aboriginal Corporation RNTBC (BDAC), the registered Native Title Body Corporate of the Barngarla People…
• Renascor enters into an agreement to upgrade SA Power Network’s existing substation…
• Renascor revises the projected product mix for the upstream processing plant…The production of additional coarse flake graphite is intended to enable increased sales to high value industrial markets during the first phase of production.
• In preparation for the design, procurement and construction of the upstream operation, Renascor is currently progressing advanced engineering designs for the mineral processing plant and non-process infrastructure and concurrently discussing potential binding offtake terms with existing non-binding offtake partners, as well as other battery-anode market participants.
• Renascor’s cash position as of 31 March 2024 was approximately A$114 million.”

On May 15, Renascor Resources Ltd. announced:

Renascor Resources land buy to accelerate push to graphite production. Renascor Resources’ (ASX:RNU) Battery Anode Material [BAM] study completed earlier this year found that the project can deliver a globally competitive gross operating cost for purified spherical graphite of US$1,782 per tonne over the first 10 years and US$1,846/t over LOM (life of mine). This includes graphite concentrate operating costs of US$405/t over the first 10 years and US$472/t over LOM to deliver post-tax unleveraged NPV of $1.5bn, unleveraged IRR of 26%, and average annual EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $363m…

On May 15, Renascor Resources Ltd. announced:

Renascor optimises coarse flake metrics at Siviour to get more high-value graphite to market as part of Phase I production…

On May 15, Renascor Resources Ltd. announced:

Renascor secures A$185m EFA loan for Siviour graphite project…This financial support for the vertically integrated battery anode material manufacturing operation (the BAM Project) has come from the Australian Government’s A$4bn Critical Minerals Facility, which is administered by the EFA.

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

Talga Group 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 April 30, Talga Group announced: “Quarterly activities review for period ending 31 March 2024.” Highlights include:

Commercial and project development

• “Letter of Intent signed for expansion of property for Luleå Anode Refinery.
• Vittangi Anode Project funding update.
• Nunasvaara South natural graphite mine permitting update.”

Product and technology development

• “Anode recycling JDA signed with Altilium Metals.
• Commercial graphene product for rubber market developed.”

Corporate and finance

• “Martin Phillips appointed Talga Group CEO.
• Talga present at globally significant industry events.
• Cash balance of A$21.2 million as at 31 March 2024.”

Subsequent to the quarter

• “Vittangi Anode Project FEED study completed with strong results, including 23% reduction in energy requirements across Project.
• Studies highlight potential for increased Stage 1 output beyond 19,500tpa.”

On May 16, Talga Group announced: “Talga defines larger graphite target in Sweden.” Highlights include:

• “Growth plan launched to define larger and longer term production potential of Vittangi, amid rising demand for Li-ion battery anode material.
• Study boosts JORC Exploration Target at Vittangi to 240-350 million tonnes at 20-30% graphite* (excluding the current Mineral Resource of 35.0 million tonnes at 23.8% graphite)* Note that the potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
• Underscores larger potential for Vittangi to meet global Li-ion battery anode demand.
• New scoping study being finalised this quarter, focusing on potential for expanded mining of existing Mineral Resources.”

Westwater Resources (WWR)

Westwater Resources Inc. is developing an advanced battery graphite business in Alabama. The Coosa Graphite Plant (2023 production start) plans to source natural graphite initially from non-China suppliers and then from the USA from 2028.

No significant news for the month.

Magnis Energy Technologies Ltd [ASX:MNS] (OTCPK:MNSEF)

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 April 30, Magnis Energy Technologies announced: “Quarterly report for quarter ending March 2024.” Highlights include:

Nachu

• As previously advised, Singapore-based PEY Capital [PEY] was appointed to source US$320 Million in funding for the Nachu Graphite Project.
• As part of the financing process, PEY is working closely with their related Tanzanian entity Tantel ISAF Group Limited (Tantel) one the largest private investors in the country with businesses interests in multiple industries.
• The funding will allow the construction of the Nachu Graphite Project planned to produce 240,000 tpa of graphite concentrate, subject to final investment decision.
• Currently, PEY continues to actively progress several funding sources and remains committed to securing this capital for the Company. Shareholders are cautioned that there can be no assurance that the financing efforts will be successful.
• In addition, as reported in the December 2023 quarterly report, discussions continue with other counter-parties towards binding agreements, both in respect of off-take (in addition to what has already been advised in previous announcements) and financing.”

Black Rock Mining [ASX:BKT]

On April 24, Black Rock Mining announced: “March 2024 quarterly activities report.” Highlights include:

• “Black Rock secured the key approvals for the US$113m Term Loan for Mahenge, which, subject to documentation, is expected to comprise: US$59.6m from The Development Bank of Southern Africa (DBSA); and US$53.4m from the Industrial Development Corporation of South Africa (IDC).
• Black Rock also secured the key approvals for US$40m in additional debt facilities from Tanzanian lender CRDB Bank (CRDB). Subject to documentation, the ancillary debt facilities are expected to comprise: US$20m Working Capital Facility; and US$20m Cost Overrun Facility.
• Firm commitments received for A$10.0m at A$0.065 per share in a well-supported placement to new and existing institutional and sophisticated investors.
• A$2.9m cash at bank at 31 March 2024, excluding proceeds from the A$10m placement received subsequent to quarter end.”

Nouveau Monde Graphite [TSXV:NOU] (NMGRF) (NMG) and Mason Graphite [TSXV:LLG] [GR:M01] (OTCQX:MGPHF)

Nouveau Monde Graphite (“NMG”) own the Matawinie Graphite Project, located in the municipality of Saint-Michel-des-Saints and the Lac Guéret Project.

On May 1, Nouveau Monde Graphite announced: “Following shareholder approval, NMG set to close aggregate US$37.5m private placements by Mitsui and Pallinghurst.” Highlights include:

• “Approval by NMG shareholders of private placements for an aggregate amount of US$37.5M by strategic partner Mitsui and long-time investor Pallinghurst in accordance with Regulation-61-101.
• Private placements scheduled to close on May 2, 2024, with the surrender and cancellation of Mitsui and Pallinghurst’s convertible notes dated November 8, 2022.”

On May 2, Nouveau Monde Graphite announced: “NMG announces the closing of aggregate US$37.5-million private placement by Mitsui and Pallinghurst.”

On May 15, Nouveau Monde Graphite announced: “NMG provides quarterly update, presents highlights from its 2023 ESG report and provides notice of its Annual General Meeting of Shareholders.” Highlights include:

• “Following multiyear offtakes and strategic investments from Panasonic Energy and GM, reinforced commercial engagement with tier-1 EV and battery manufacturers toward additional offtake agreement(s) for the remainder of NMG’s Phase-2 active anode material production.
• Assisted by Société Générale and BMO Capital Markets, continued discussions with multiple governmental agencies and programs, strategic investors, and lenders to refine the targeted capital structure for the Phase-2 project financing.
• Project execution strategy outlined for the construction of Phase-2 facilities…
• Active engineering to update production parameters of the Phase-2 Bécancour Battery Material Plant in line with Anchor Customers’ specifications…
• Closing of US$37.5-million private placements by Mitsui and Pallinghurst for the surrender and cancellation of their convertible notes dated November 8, 2022, as amended and restated.
• Tree clearing activities started at the Phase-2 Bécancour Battery Material Plant site in advance of preparatory work…
• Period-end cash position of $88 million.”

Greenwing Resources Limited [ASX:GW1] (OTCPK:BSSMF)

On April 30 Greenwing Resources Limited announced: “Quarterly report period ending march 2024.” Highlights include:

Graphmada Graphite Mining Complex, Madagascar

• “The process for attracting strategic investment in Graphmada commenced, focusing on establishment of the mine with higher production volumes.
• Auger drilling commenced at the Andapa prospect (approximately 60klms closer to the country’s main port of Tamatave), aiming to expand Greenwing’s graphite asset base in Madagascar.
• Madagascan Federal elections concluded with incumbent Andry Rajoelina re-elected.”

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. Triton has two large graphite projects in Mozambique, not far from Syrah Resources Balama Project.

No news for the month.

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.

On May 21, SRG Mining Inc. announced: “SRG announces results of the annual general meeting…”

EcoGraf Limited [ASX:EGR] [FSE:FMK] (OTCQB:ECGFF)

On April 30, EcoGraf Limited announced: “Quarterly activities report…Cash and cash equivalents of $29.1 million at 31 March 2024…”

On May 23, EcoGraf Limited announced:

AngloGold Ashanti US$9.0m (A$13.5m) Gold Farm-in Agreement. 5-Year Gold Exploration Farm-In on Innogy’s Golden Eagle Project…EcoGraf is pleased to announce that it has signed a binding agreement with AngloGold Ashanti Holdings plc (AngloGold), a subsidiary of AngloGold Ashanti Plc (NYSE: AU; JSE: ANG) to enter into a US$9.0m (A$13.5m) 5-year farm-in agreement for the exploration of gold at EcoGraf’s wholly owned subsidiary Innogy Limited’s (Innogy) Golden Eagle gold project (the Golden Eagle Project) in the Lake Victoria Goldfields of Tanzania (Farm-in Agreement).

Lomiko Metals Inc. [TSXV:LMR](OTCQB:LMRMF)

Lomiko has two projects in Canada – La Loutre graphite Project (flagShip) (100% interest) and the Bourier lithium Project (70% earn in interest).

On May 6, Lomiko Metals Inc. announced:

Lomiko announces excellent results from La Loutre graphite testing with CRITM grant and corporate update…The reversible capacity of Lomiko’s Lac La Loutre spherical natural graphite averages 367 mAh/g in the NRC Study, which is the higher end of the specification for such anode material…Also, a high coulombic efficiency [CE] of 99,9% after 5 cycles is observed, and very small standard deviation values for all parameters…

On May 16, Lomiko Metals Inc. announced:

Lomiko Metals awarded US$8.35m grant from the United States of America Department of Defense (“DoD”) in a Technology Investment Agreement (“TIA”) and funding of CA$4.9m from Natural Resources Canada to support further studies at La Loutre natural flake graphite project in Quebec, Canada…

Metals Australia [ASX:MLS]

On April 30, Metals Australia announced:

Quarterly activities report – to 31 March 2024…The Company’s cash balance at the end of the Quarter has increased to $17.86 million, following net outflows of $487k (excluding the capital raise), including $315k (65%) on exploration and metallurgical test work, and net inflows from the capital raise of $3.38M (see Appendix 5b).

On May 8, Metals Australia announced: “Major contracts awarded to advance Lac Rainy high-grade flake graphite project.” Highlights include:

• “A Metallurgical & Laboratory Services Agreement with SGS Laboratories in Lakefield, Ontario and the appointment of specialist client advisor Metpro Management to oversee metallurgical test-work programs for the design of a flake-graphite concentrate plant.
• A Pre-Feasibility Study [PFS] for the design of a 100,000 tonnes per annum flake-graphite concentrate plant awarded to integrated engineering, design, and construction group Lycopodium. The PFS includes the flake-graphite concentrate plant and associated site infrastructure. It builds on the 2021 Scoping Study results1 that demonstrated Lac Rainy’s potential to generate high operating margins over a 14-year mine life – based on the current resource alone.
• A downstream battery-grade spherical graphite [SPG] concentrate purification options assessment, plant location and Scoping Study awarded to world-leading, German based, metallurgical test-work and process engineering design group ANZAPLAN…
• A drilling and full-service support contract signed with Magnor Exploration to complete the drilling and other exploration programs for Mineral Resource expansion and to test new regional targets at Lac Rainy, where the current resource is contained within only 1km of a demonstrated 36km strike-length of high-grade graphitic trends3 which have been tested to date.”

NGX Limited (100% owned subsidiary of Sovereign Metals [ASX:SVM] [GR:SVM][LSE:SVML])

On April 30, Sovereign Metals Limited announced:

March 2024 quarterly report. During the quarter, the Company composited, despatched and delivered a 30 tonne sample representative of the first probable 10 years of mining from the Kasiya rutile-graphite project (Kasiya or the Project) to a leading engineering consultancy laboratory in South Africa. The ore sample will be used for advanced material handling tests as part of the Project optimisation…At the end of the quarter, Sovereign is in a strong financial position with cash at bank of approximately A$36.6 million and no debt…

On May 1, Sovereign Metals Limited announced: “Sovereign to increase graphite bulk sample preparation capacity.”

On May 8, Sovereign Metals Limited announced: “Testwork delivers superior quality, low impurity graphite for battery anodes.” Highlights include:

• “Graphite circuit feed prepared at Sovereign’s existing Lilongwe laboratory facility has produced high quality concentrates in benchtop and pilot-scale flotation and cleaning.
• Four independent laboratories all successfully produced high-grade graphite concentrate averaging over 97% Total Graphite Content (TGC) with flotation recoveries exceeding 90%…
• Downstream testwork to produce and characterise Coated Spherical Purified Graphite (CSPG) active anode material continues at German graphite consultancy ProGraphite GmbH.”

On May 15, Sovereign Metals Limited announced: “Downstream testwork demonstrates high quality graphite for lithium-ion batteries.”

On May 22, Sovereign Metals Limited announced:

Kasiya optimisation advances to pilot phase…Excavated material will be processed on-site and at Sovereign’s laboratory in Malawi and will also provide additional bulk samples for graphite product qualification…

Sarytogan Graphite [ASX:SGA]

Sarytogan Graphite has an Indicated and Inferred Mineral Resource of 229Mt @ 28.9% TGC in Central Kazakhstan.

On April 29, Sarytogan Graphite announced: “Quarterly activities report quarter ending 31 March 2024.” Highlights include:

• “Five nines purity (up to 99.9992% C1, Figure 1) achieved in a single thermal purification step.
• Lithium-ion batteries manufactured with Sarytogan Graphite anodes and tested to outperform batteries with synthetic graphite anodes.
• Alkaline and Lithium primary batteries manufactured and tested with Sarytogan Graphite used as a cathode conductivity enhancer.
• Geotechnical drilling delivers more thick high grade drill intercepts.
• Pre-Feasibility Study on track for completion in Q3 2024 (July to September).”

On May 14, Sarytogan Graphite announced:

Nuclear specification confirmed. Sarytogan Graphite Limited (ASX: SGA, “the Company” or “Sarytogan”) is pleased to report that Sarytogan Graphite previously purified above ‘five nines’ purity has been assayed at 1.1 ppm Equivalent Boron Content (EBC), well under the maximum specification of 2 ppm for the highest-purity nuclear graphite…

On May 20, Sarytogan Graphite announced: “Li-ion battery endurance.” Highlights include:

• “Coin-cell batteries manufactured from Sarytogan Uncoated Spherical Purified Graphite (USPG) have now charged and discharged more than 140 times.
• 97.3% capacity has been retained after the benchmark 100 charges.
• Extrapolating performance to date suggests up to 1,000 charges to be possible until the typical useful threshold of 80% capacity.
• Li-ion batteries have also been made from Coated Spherical Purified Graphite (CSPG) and initial cycle testing will be reported shortly.”

On May 22, Sarytogan Graphite announced:

Micro-crystalline industrial uses. Sarytogan Graphite Limited (ASX: SGA, “the Company” or “Sarytogan”) is pleased to report that Sarytogan Micro-Crystalline Graphite has been tested as being highly suitable for use as a lubricant pigment in traditional industrial applications…

Albany Graphite Corp. (100% owned subsidiary of Zentek Ltd. [TSXV:ZEN] (ZTEK)

On May 6, Zentek Ltd. announced:

Zentek and Triera Biosciences Ltd. achieve positive results against Avian Influenza (H5N1) using Multivalent Aptamer Technology…

On May 7, Zentek Ltd. announced: “Zentek completes case study on HVAC total cost of ownership savings for the city of Toronto.”

On May 23, Zentek Ltd. announced: “Zentek and DCL Supply Ltd. sign distribution agreement for ZenGUARD enhanced air filters…”

On May 27, Zentek Ltd. announced: “Zentek granted second patent from the Canadian Intellectual Patent Office…”

Other graphite juniors

Armadale Capital [AIM:ACP], Castle Minerals [ASX:CDT], DNI Metals [CSE:DNI] (OTC:DMNKF), Eagle Graphite [TSXV:EGA] [GR:NJGP] (OTC:APMFF), Elcora Advanced Materials Corp. [TSXV:ERA] (OTCPK:ECORF), Electric Royalties [TSXV:ELEC], E-Power Resources [CSE:EPR], Evolution Energy Minerals [ASX:EV1] (OTCPK:EVMIF), Focus Graphite [TSXV:FMS][GR:FKC] (OTCQB:FCSMF), Graphite One Resources Inc. [TSXV:GPH] [GR:2JC] (OTCQX:GPHOF), Green Battery Minerals Inc. [TSXV:GEM] (OTCQB:GBMIF), Infinity Stone Ventures [CSE:GEMS] (OTCQB:GEMSF), International Graphite [ASX:IG6], Lithium Energy Limited [ASX:LEL], New Energy Metals Corp. [ASX:NXE], Volt Carbon Technologies [TSXV:VCT] (OTCQB:TORVF), Volt Resources [ASX:VRC] [GR:R8L], Reflex Advanced Materials Corp. [CSE:RFLX] (OTCQB:RFLXF), Walkabout Resources Ltd [ASX:WKT].

Spherical Graphite companies

• Aoyu Graphite Group
• Battery Minerals Ltd [ASX:BAT]
• Graphex Group [HKG: 6128] (GRFX)
• Imerys Graphite & Carbon [FR:NK](OTCPK:IMYSF) (OTCPK:IMYSY)
• Jixi BTR graphite Industrial Park
• Qingdao Black Dragon Graphite Group
• Qingdao Yanxin Graphite Products Co.
• Syrah Resources Limited [ASX:SYR] (SYAAF)
• Yingkou Botian Material Technology Limited Comp

Synthetic Graphite companies

• GrafTech International (EAF)
• Resonac Holdings [TYO:4004)
• BTR New Material Group [BJSE:835185]
• Lianyungang Jinli Carbon
• Shanshan Technology (SHA:600884)
• SGL Carbon [ETR:SGL] (OTCPK:SGLFF)
• Novonix Ltd [ASX:NVX](NVX)

Graphene companies

• Archer Materials [ASX:AXE]
• Black Swan Graphene Inc. [TSXV:SWAN]
• Elcora Advanced Materials Corp. [TSXV:ERA](ECORF)
• First Graphene [ASX:FGR] (OTCQB:FGPHF)
• Graphene Manufacturing Group Ltd [TSXV:GMG]
• NanoXplore Inc. [TSXV:GRA] (OTCQX:NNXPF)
• Strategic Elements Ltd [ASX:SOR]
• Zentek Ltd. [TSXV:ZEN] (ZTEK)

Conclusion

May saw China flake graphite prices unchanged/flat.

Highlights for the month were:

• The U.S. Loans Program Office has added “supply of critical minerals” to the list of 1703 eligible technologies. LPO is clarifying that it may also fund “production” or mining and extraction activities.
• Graphite miners lobby US govt to impose a 25% tariff on China-sourced EV material.
• The U.S. Treasury and Internal Revenue Service have extended tax credits for electric vehicles containing Chinese graphite for another two years.
• President Biden introduces a new tariff on imports stating certain other critical minerals (includes graphite) will increase from zero to 25% in 2024.
• Syrah Resources – Lower Balama graphite production (11kt in Q1) due to China export licensing controls impacting demand for Balama natural graphite in China.
• Ceylon Graphite announces M1 license renewed.
• Mineral Commodities to sell Tormin Mineral Sands and focus on graphite assets.
• Northern Graphite reports a net loss of $23.6m ($0.18 per share) for 2023.
• South Star Battery Metals announces the first sale of natural flake graphite concentrate from its Santa Cruz Graphite Mine in Brazil.
• Renascor secures A$185m EFA loan for Siviour Graphite Project.
• Talga Group – Vittangi Anode Project FEED study completed with strong results, potential for increased Stage 1 output beyond 19,500tpa.
• Black Rock Mining Quarterly Report – Have secured the key approvals for the US$113m Term Loan for Mahenge.
• NMG announces the closing of an aggregate US$37.5-million private placement by Mitsui and Pallinghurst. Tree clearing activities started at the Phase-2 Bécancour Battery Material Plant site.
• Lomiko Metals awarded US$8.35m grant from the United States of America Department of Defense (“DoD”).
• Metals Australia – Major contracts awarded to advance Lac Rainy high-grade flake graphite project.
• Sovereign Metals – Testwork delivers superior quality, low impurity graphite for battery anodes from the Kasiya rutile-graphite project.

• Sarytogan Graphite announced that their graphite purified above ‘five nines’ purity achieved nuclear specification.

• Zentek and DCL Supply Ltd. sign distribution agreement for ZenGUARD enhanced air filters.

As usual, all comments are welcome.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.