Graphite prices have experienced volatility recently due to bottlenecks in demand for electric vehicles.
One major factor experts are watching right now is China’s export restrictions on certain graphite products. They took effect on December 1, 2023, and require Chinese exporters to apply for special permits to ship the material to global markets. This decision has had an impact on graphite prices this year, and will remain key going forward.
‘Oversupply and increased competition from lower-priced synthetic graphite are likely to continue to put downward pressure on natural flake graphite prices over the next few years,’ according to Fastmarkets.
These dynamics will likely encourage the development of more ex-China graphite supply sources.
Against that backdrop, many Canadian graphite stocks have trended downward in 2024. However, several graphite-focused companies have seen strong performances so far this year.
Below is a look at the year’s best-performing graphite stocks on the TSXV. TSX and CSE stocks were considered, but none made the cut. Data was obtained on July 16, 2024, using TradingView’s stock screener, and all companies listed had market caps above C$5 million at that time. Read on to learn more about their work this year.
1. Lomiko Metals (TSXV:LMR)
Year-to-date gain: 70 percent; market cap: C$13.49 million; share price: C$0.35
Exploration-stage resource company Lomiko Metals is working on the La Loutre large-flake graphite project as well as the Bourier lithium project, both located in Québec, Canada.
Shares of Lomiko traded mostly flat for much of the year, but a spate of positive newsflow generated by activity at La Loutre helped boost its share price to a year-to-date high of C$0.70 on May 28.
In April and May, the company announced testing results that demonstrate La Loutre’s viability in supplying the EV battery anode market. “Lomiko has now successfully demonstrated the full value chain from ore to battery anode material on samples from the La Loutre project,” said Belinda Labatte, Lomiko CEO and interim chair of the board.
In other good news for the company and its shareholders, in mid-May Lomiko’s La Loutre project was awarded a US$8.35 million, or C$11.4 million, grant from the US Department of Defense as part of a Technology Investment Agreement, as well as C$4.9 million in funding from Natural Resources Canada.
2. Black Swan Graphene (TSXV:SWAN)
Year-to-date gain: 50 percent; market cap: C$20.33 million; share price: C$0.12
Black Swan Graphene describes itself as an emerging powerhouse in the bulk graphene business.
The company is a spinout of Mason Resources (TSXV:LLG,OTCQX:MGPHF), which owns the Uatnan graphite project in Québec, and holds a 39 percent stake in Black Swan. Graphite from Uatnan is used to supply Black Swan.
UK-based global chemicals manufacturer Thomas Swan & Co. holds a 15 percent interest in Black Swan, and brings a portfolio of patents and intellectual property related to graphene production. Through this partnership, Black Swan is building out a fully integrated supply chain from mine to graphene products.
Black Swan’s share price so far this year has benefited from the launch of a number of new graphene products, such as its GraphCore 01 family of graphene nanoplatelets products. Announced in April, these products include powders and polymer-ready masterbatches designed for the polymer industry.
Shares of Black Swan reached their highest year-to-date price of C$0.15 on June 19 following the announcement of a commercial partnership with advanced materials engineering company Graphene Composites. It will see Black Swan’s graphene used in the fabrication of GC Shield, a patented ballistic protection technology.
3. Ceylon Graphite (TSXV:CYL)
Year-to-date gain: 28.47 percent; market cap: C$7.48 million; current share price: C$0.045
Ceylon Graphite is an explorer and producer with a land package comprising 121 square kilometer grids containing historic vein graphite deposits in Sri Lanka, including the M1 graphite mine.
Ceylon plans to build a graphite processing plant at the M1 site to process the graphite to 99 percent purity, and supply anode material to the battery industry. Its license renewal for the site was delayed since last year following what it called “a series of changes in the licensing process, requirements and personnel.”
In May, the company had good news to report as the IML C license at M1 was finally renewed. Management said it would recommence graphite mining immediately. Ceylon’s shares reached a year-to-date peak of C$0.06 on June 6.
“The site is highly prolific with many large graphite veins,” Head of Mining Klaus Leiders said. “We are targeting a minimum of 200 tonnes per month from M1 once we have scaled and implemented efficiencies.”
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
