ABOUT GRAPHITE
GRAPHITE QUICK FACTS
Graphite, along with diamonds and Coal, are crystalline forms of Carbon:

Graphene - Individual layers
Graphene - Combined layers
Graphite is an essential but often unrecognized material for modern life, with broad industrial applications due to its unique properties:
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Properties of both metals and non-metals (ideal for industrial applications)
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Highest natural strength and stiffness of any material
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Lightest weight of all reinforcement materials
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Very high melting point; low thermal expansion/shrinkage
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High electrical and thermal conductivity
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Low frictional resistance and hydrophobic behaviour (excellent lubricant)
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Non-toxic, chemically inert and high resistance to corrosion
Properties vary depending on the purity and size of the graphite crystals; this directly affects the price of the resource.

GRAPHITE GLOBAL PRODUCTION
Graphite is not a homogenous commodity; it occurs naturally in 3 forms:
FLAKE

AMORPHOUS

VEIN/LUMP
Highest Price, Lowest Supply
High Purity: 85%-98% carbon
Least graphitic of the three
Lower Purity: 60%-90% carbon
Uncommon & highly localized;
<1% of world production;
Marginal applications
40% of global production
60% of global production
Flake graphite:
Widest range of end uses
Increasing demand for high purity flake graphite
No substitute
Flake graphite used in batteries - not amorphous
* Source: Comark Securities
RESTRICTED AND UNSTABLE SUPPLY = OPPORTUNITY

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China (+70% of world production) is losing dominance over graphite market due to export tariffs and environmental regulations that reduce supply and increase prices
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China also faced with a reduction of large and medium flake production
Flake graphite production outside of China:

Brazil

Canada

India

Madagascar

Norway

Zimbabwe

Germany
Graphite Global Consumption

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Urbanization of China and India is driving the demand of graphite in traditional applications
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China to build Strategic Reserve: By 2020, reserve must exceed 80% of China’s domestic capacity to hold a steady “bottom line” of supply
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New Tax on Chinese polluting operations coming in effect in January 2018
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Natural Graphite classified as one of 14 critical raw materials by the European Union in 2014
GRAPHITE - HOW IT IS BEING SOLD
Graphite Mine
Inventory of different sizes for different uses

Briques réfractaires
Pièces moulées
Lubrifiants haute température
Poutres métalliques - alliages
Plastiques, résines, caoutchoucs
Garnitures de frein
Fabrication de joints d'étanchéité
Graphite Mine
Inventory of different sizes for different uses and users

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Graphite is not an openly traded mineral
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Prices are negotiated between end users and producers for annual and, sometimes, multi-year contracts
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Prices for graphite vary according to different parameters such as carbon content (purity), size, impurities and shape
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Continuous contact with customers is necessary
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There is a market for 100% of mined graphite material (from large to fine flakes)
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Market Study is underway to identify all end users in all market segments