Investors may think that the reason for a slump in prices and perceived over supply of natural graphite (and lithium) is that the big end of town wants to create conditions for a diversified long lead supply chain.
TON is current Ancuabe Project may be more involved with expandable graphite value adding products, but we may have a JV with the Balama projects for the EV market soon.
It is interesting to see that there are over a dozen good graphite projects that seek to start of small and grow production as demand increases. This also indicates that industry believes the diversified long term supply of natural graphite is important.
I even expect progress in a few high quality natural graphite projects in South Australia soon (eg AXE). But brokers are saying that some value-adding is the name of the game for many graphite producers to be competitive and profitable long term.
No investment advice intended. TON (and other graphite companies) are looking good in 2020.
TON Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
