@Capraise, good points about supply and demand.
Nothing is guaranteed in the stock market. However, natural graphite is often blended with synthetic graphite to maintain consistent properties, and better ways in developing synthetic graphite could be found. However, it can be very expensive and difficult to make something that nature has made and is just waiting to be used.
Not all natural graphite is the same quality and properties, and the economics of being a low cost producer is considerable with helping things go forward. The uses of natural graphite are customers specific for some growth areas, like batteries, renewables and fire safety in building products, etc. This one reason I invested in graphite due to the broader applications and the possible feed stock for graphene production that is also just taking off.
I do not have a crystal ball to predict the future, but I have read many reports from China and they indicate that their graphite is not all the same type or quality. China, and many other countries including Australia, Japan and Germany have miners investing into places in Africa, for example. If you look at what is being said by many new junior graphite miners looking to get started, they say they are going to start off slow and grow with demand. That is what a coordinated and diversified supply chain is about. SYR was fortunate to be a first mover outside of China.
The chemistry and uses of natural graphite in batteries or fire safety building panels may change in demand or be replaced by new technologies. However, for the next 5 to 10 years there is demand for natural graphite. I think the Chinese are more more intelligent in business matters than many give them credit and diversification of supply chains for graphite for example is another way to promote being open to global trade. It should be noted tha USA and others are keen to establish supply chains for many resources used in renewable energy and electric batteries domestically or outside of China or Russia.
Sure, China and Russia could develop new supply of rare earth metals and graphite to try and corner the market. But considering the experiences of global oil and gas supply, I think the game plan is about to change and China is going along a slightly similar strategy to Japan by establishing industry in other nations, as they also have a rapidly aging population in the near future.
Several miners have overcome finance issues issues by using green bonds as a new product and also using strong support from local investors in Africa. Finance is not easy but can be done.
Then there is that problems of a potential down turn in an overheated stock market !
