axe good met work results, page-12

jennym

Exactly what supply are you referring to?

A few holes doesn't make a resource, let alone the ability to dig the stuff out of the ground for economic benefit to shareholders!

Most companies drilling for graphite now will never sell a gram of it to the market.

So, to answer your question

"Are we at the point now where we worry about an over supply of graphite..etc..."

No. Very very very far from it.

Take a look at the rare earths cycle - what the initial phase does is set up awareness to the market, new entrants enter, stuff gets crazy for a while, then as the mania dies down, the duds exit the market, the hopefuls stay on and attempt to develop a resource. Eventually as projects begin to come online, the market realises that profitability in fact does exist and interest returns with the early birds reaping the rewards.

Although graphite has gone on a run, the market is still very much a niche with only a handful of stocks actively drilling (5-8?) - if anything, there aren't enough players to keep the punters interested. Global sentiment for risk doesn't help things either. Any weakness has nothing to do with supply concerns.

There are no front runners yet, except possibly SYR and even then, if I my memory serves me correct Castle has had more work done on their tenements, of which they are still trying to obtain the results. Once we start talking reserves and resources, then we can start talking front runners.

Marchello