Hi guys,
Large flakes graphite prices are rising, not due to some temporary factors, but rather due to fundamental changes in the demand-supply equilibriums for this material. This is now a new sustainable trend. In fact despite the chinese recent removal of export taxes on graphite (allowing the chinese to export graphite at lower prices) the large flakes prices are rising, reflecting a growing demand and diminishing supplies of this highly sought after and rare material.
This new trend constitutes of course a perfect storm for Bass Metals, allowing the company to secure much easier new customers, selling its product (mostly large flakes or 71% of total production) at higher prices and achieving higher levels of profitability much faster. The best thing any junior mining company could hope for when commissioning and ramping up production and sales at its plant, is to benefit from a rising price environment for its product, in other words to benefit from a perfect storm !
From Benchmark Minerals latest tweets :
By Andrew Miller : 08 august 2017
New expandable #graphite capacities adding to large flake pressures in Q3. The @benchmarkmin Price Index up >2% in July. More rises likely.
From Industrial Minerals latest articles :
By ALBERT LI, DAVIDE GHILOTTI , 31 july 2017
"Plus mesh graphite grades have posted another sharp increase by end-July while minus mesh grades have stabilised.
Spot prices for Chinese plus mesh graphite have increased further over the past week, while other grades appear to have stabilised for the time being.
Following the price upticks seen in the graphite market in China in earlier weeks, the material has appreciated again for a number of specifications, while..."
Happy multi-bagger graphite investment to all !
BSM Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
