It's relevant because SYR will be a graphite producer.
The more the demand for graphite, obviously the better for the graphite price.
I have read about graphene...extensively. There are SEVERAL approaches to creating it. Yes some of those approaches do not use graphite at all, but ONE of those approaches is chemical processing of graphite. In fact there are more approaches to produce it from graphite under investigation, but that is the current one.
Graphite is simply layers of graphene...graphite can be 'stripped' to those individual layers.
Grab pencil and some tape and you can view videos online how to get graphene (here's a link if interested: http://www.physorg.com/news/2010-12-graphene-pencil-sticky-tape-videos.html).
Now since graphite is a fairly common ocurring substance (as you said its a form of carbon), it will be critical in any attempt to mass produce graphene since the other approaches are more intensive.
It doesnt matter how 'complicated' the process to make it is, if applications need it, tough luck, you need it you pay for it.
The reason for production of graphene currently being small (which I'm not disputing) is because applications that use it are only now starting to get moving. That is, its not used widespread so there has been no reason to mass produce it - unless you want to go out of business with warehouses full of useless product thats not going to be used.
Using another example of a substance that has small production only because of limited application use, take a look at scandium, a substance that sells for a fortune, thousands of bucks per kilo! But NOT because it's a rare substance...but because there is hardly any production since the application use for it is so small. You could dig it up, but you'd have noone to sell it too.
The difference with say scandium though is that the applications ARE coming. Check out the 'flexible' phone for example (I will finally be able to carry my phone in my back pocket!!!)
As to purity, that is also not relevant. Any substance can be processed to remove impurities. 99.999% pure graphite (they can't call it 100% due to legal reasons, similar to why most food products say 'this may contain nuts' even though they don't) is already being produced and it costs a fortune. ($35K a tonne or so).
But purity is not really a factor for SYR...they are just a miner. All they do is dig it up and sell it to whoever wants it...though its worth noting that there are different kinds of graphite.
For example, smaller flake graphite has higher tensile strength, while larger flake graphite has higher thermal conductivity. It's the latter that is the reason for the rocketing price of larger flake graphite, ie more applications are appearing that require its attributes.
Larger flake graphite can be further segregated into its shaping properties. If the flake graphite cannot be shaped spherically for example, forget about selling it to companies that want it for lithium ion battery production.
In fact, I would not be surprised to see the graphite pricing market further segregate in future years, ie its currently only differentiated on flake size, but I expect further differentiateion on shaping properties in future.
Again its important to differentiate between graphite prices and purity prices. The miner does not care about purity since purity is an enhancement...all the miner does is dig it up...someone else downstream does the enhancement. Though I see some silly mining companies (eg Focus Metals overseas) think they can be producer AND refiner...good luck to them, doomed to fail.
There is a heap of information available...google is your friend.
Cdchi1
SYR Price at posting:
70.0¢ Sentiment: LT Buy Disclosure: Held
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