ProEdgeWire Graphite & Graphene Index gains some ground during the last week of May
ProEdgeWire Graphite & Graphene Month-in-Review (May 2013): The ProEdgeWire Graphite & Graphene Index went down by -3.82%. While most of the stocks declined or were almost flat Zenyatta Ventures (TSXV: ZEN) (OTCQX: ZENYF) stole the show by gaining 24% and 19.84% respectively in stock valuation and emerged a clear winner. Flinders Resources Ltd (TSXV: FDR) gained +8.54%, Focus Graphite. (TSXV: FMS) up +5.08% and Lomiko Metals (OTCQX: LMRMF) +6.35%.
In May, Zenyatta Ventures (TSXV : ZEN) listed its common shares on OTCQX International (“OTCQX”), a segment of the OTCQX marketplace reserved for high-quality non-U.S. companies, under the symbol “ZENYF”. “We are proud to join OTCQX, which will enable us to provide our U.S. investors with timely news and information to help them better analyze, value and trade our securities,” said Aubrey Eveleigh, President and CEO of Zenyatta. Roth Capital Partners LLC will serve as Zenyatta’s Principal American Liaison (“PAL”) on OTCQX, responsible for providing professional guidance on OTCQX requirements. Zenyatta’s common shares will continue to be traded on the TSX Venture Exchange under the symbol ZEN.
Flinders Resources (TSXV: FDR) declined for most part of the month and reached its lowest level for the month closing at $0.40 on May 29th. The stock witnessed upward movement closing the month at $0.445 after Flinders Resources announced an update on the metallurgical test programs being conducted on graphite-bearing rock from its Sweden-based Woxna mine, commenting that the flake size distributions from the current results and historical production show potential for improved flake size distribution. Further cleaning test work is currently underway to maximise graphite purity while maintaining a high flake size distribution. The metallurgical test program concludes with locked cycle tests of the proposed new process flow sheet. This work is expected to be completed in early June. Once the final results are available from the metallurgical test work, all of the components will be available to complete a preliminary economic assessment of resuming production at the Woxna graphite mine.
This is the best time to invest in Graphite. The future need for graphite is so great — and its current production so scarce — that both the United States and the European Union have labelled graphite a “critical minerals.” China controls more than 70% of global Graphite supply and thus has the capability to manipulate the market. The remaining 30% of produced by other countries is almost consumed within the country where it is mined. In future the demand of graphite will increase many folds which will put pressure on the supply side. The graphite producing companies operating outside china definitely have a great future.
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Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>