There are many other junior resource exploration companies with such carbon assets: in America, Mozambique, Sweden, Australia, Madagascar, and more. The majority of these junior resource companies usually have only an undeveloped property, with a small number of drill holes; they would need substantial investment capital and expertise to produce even a low-purity graphite,
let alone the high-purity graphite required for the electric-vehicle battery market.
Now is the time to begin long-term accumulation of graphite stocks, to hold for the next few years, before the tidal wave of newly-awakened buyers arrive.
Syrah Resources, an Australian graphite miner, claims to be very close to being operational but this is yet to be proven. All other graphite companies in the public space need in the order of US$50-$200 million to build a mine and plant to match what LEM already has. This does not take into consideration the additional work others must do in order to demonstrate they could actually produce battery-grade material (99.999%C) from the flotation concentrate.
In a market currently supplied virtually exclusively by China, battery makers will surely seek to diversify their sources of supply.
James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter,
and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline,
and The New York Times,
among others.
Disclosure:
1) James Dines: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Leading Edge Materials, Syrah Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None.
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