ABOUT GRAPHITE

GRAPHITE QUICK FACTS

Graphite, along with diamonds and Coal, are crystalline forms of Carbon:

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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:

  • Properties of both metals and non-metals (ideal for industrial applications)

  • Highest natural strength and stiffness of any material

  • Lightest weight of all reinforcement materials

  • Very high melting point; low thermal expansion/shrinkage

  • High electrical and thermal conductivity

  • Low frictional resistance and hydrophobic behaviour (excellent lubricant)

  • 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.

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GRAPHITE GLOBAL PRODUCTION

Graphite is not a homogenous commodity; it occurs naturally in 3 forms:

FLAKE

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AMORPHOUS

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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

  • China also faced with a reduction of large and medium flake production

Flake graphite production outside of China:

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Brazil

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Canada

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India

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Madagascar

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Norway

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Zimbabwe

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Germany

Graphite Global Consumption

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  • Urbanization of China and India is driving the demand of graphite in traditional applications

  • China to build Strategic Reserve: By 2020, reserve must exceed 80% of China’s domestic capacity to hold a steady “bottom line” of supply

  • New Tax on Chinese polluting operations coming in effect in January 2018

  • 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

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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

  • Prices are negotiated between end users and producers for annual and, sometimes, multi-year contracts

  • Prices for graphite vary according to different parameters such as carbon content (purity), size, impurities and shape

  • Continuous contact with customers is necessary

  • There is a market for 100% of mined graphite material (from large to fine flakes)

  • Market Study is underway to identify all end users in all market segments

CONTACT US

HEAD OFFICE
3030 Le Carrefour blvd., Suite 600
Laval, QC H7T 2P5
+1 (514) 289 3580

INVESTOR RELATIONS
T +1-514-289-3580 ext. 104
info@masongraphite.com

ABOUT US

INVESTORS