Why is China keen to take over TON stock .. here you go all - shit this dirt as some say is now worth a shit load now compaed prior ... - go AF and your peers we have a number of shareholders who will support you...
Junior graphite miner Triton Minerals Ltd (ASX: TON) appears to have hit the jackpot after securing a minimum US$2 billion 20-year binding off-take agreement for rights to supply graphite to Chinese company Yichang Xincheng Graphite Co. Ltd.
The stock has been in a trading halt since March 30 and has today opened up 69% higher to 56.5 cents on the strength of the news. The WA-based company is the holder of the world’s largest known combined graphite-vandium resource in Mozambique, Africa.
The deal will also see the Chinese company source graphite concentrate supplied by Triton from Madagascar, Malawi and Tanzania.Notably the contract agreed with the Chinese buyer assures a minimum floor price of US$1,000 a tonne for graphite delivered, while the actual contract value may be far above that if future market prices make it so.
Investors will have to consider the potential for market prices to rise above the floor price given that graphite is an in demand commodity due to its use by global electronic and technology companies in manufacturing commonly used devices for global consumers.
Graphite is also commonly required in industrial manufacturing of motorised vehicles and by the petroleum and chemical industries.Triton has also announced an initial two-year agreement with global mining specialist AMG Mining to help develop the Triton Mozambique Graphite (TMG) project.
The next step is to get the TMG project into production and start earning a revenue stream if shareholders are to see their investment take another leg up.
The contract’s length and size certainly mean it would appear to have attractive prospects if able to deliver on its potential.However, Triton remains a speculative play and the key to speculative investing is finding the Triton of tomorrow, not today!
Wondering where you should invest $1,000 right now?When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocksare trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
TON Price at posting:
3.6¢ Sentiment: Hold Disclosure: Held
