Lithium & diversification

  1. 3,881 Posts.
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    What's everyone's thoughts on EcoGraf expanding the business model into other rare precious metals to further diversify & de-risk?

    I completely understand that EcoGraf already has a 3 tier business model in graphite mining, graphite processing & lithium-battery recycling....However.

    If we are able to execute on a few more objectives & get the share price over $2 I was thinking expanding into lithium could be a very good strategic move for EGR?

    Clearly it would be heavily dependant on a feasibility study however if it stacked up...I was think a long the lines of acquiring a small cap lithium tenement that was developed enough that we could piggyback a lot of the exploration without the cost yet still steal it for a bargain...The right project would at the right price would be critical.

    If we can get the share price over $2 it would give us a little more freedom to consider using equity with limited dilution to help cover this expansion.

    Not that I'm personally worried about the role of graphite in lithium batteries but it would definitely potentially create a significant revenue stream completely independent to the graphite model? That would quiet down a few of the synthetic graphite dooms day prepers.

    Clearly the EV revolution is upon us...I'm concious of only reaching for fruit that doesn't dangerously extend the company however equally...If we are going to consider expanding our scope of precious metals now is the time to be completing some due diligence...There will be significant ramping of demand in the coming decades for the different metals in the EV chain but the early movers will be the winners and securing early off-takes & establishing both infrastructure & relationships will be critical.

    Just food for thought.
 
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