Heard of Graphite yet?

Discussion in 'Stocks & Derivatives' started by SilverSanchez, Apr 16, 2012.

  1. SilverSanchez

    SilverSanchez Active Member

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    [youtube]http://www.youtube.com/watch?v=7vBne5hfnvs[/youtube]

    My pick is Archer Exploration (AXE) i bought in Jan (im actually 100% free-carry on this now halved my position after it doubled) im set risking nothing of my seed capital

    Grade is good grading about 10%, width is good - large flakes
    Tight share structure 60+ million shares
    I like the management.

    There is also Syrah resources (SYR) i think (this one turned out to tripple from Dec/Jan - bummer) but I only had a small allocation to this material so didnt completely cover the companies.


    DYODD!
     
  2. Black_Sun

    Black_Sun New Member

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  3. Dirtbikepilot

    Dirtbikepilot Active Member

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    I was looking at them about 9 months or so ago and then forgot all about them until I saw the price take off recently.
     
  4. Spode

    Spode Member

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    Isn't it pencil lead?
     
  5. SilverSanchez

    SilverSanchez Active Member

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    Archer Exploration (AXE) my Target Zone is 20c-22.5c
     
  6. Trichter

    Trichter Member

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    The clue's in the name. It comes from the verb to write/draw.

    Graphite is a common allotrope of carbon; diamond will win you alot more favour with the ladies though.

    I gather graphite is used in modern lithium ion batteries. Not sure of the amounts though.
     
  7. SilverSanchez

    SilverSanchez Active Member

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    Used in lots of things, writing, sports equipment are all the common uses because of its strength/weight ratio

    But it also has carbon's tolerance for heat and hardness which makes it good for certain drilling (not much anymore) and nuclear power generation (the demand moving the current market)
     
  8. trew

    trew Active Member Silver Stacker

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  9. SilverSanchez

    SilverSanchez Active Member

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    I know the company - "single drill hole" should tell you the mentality is aproaching 'manic' - I really do wish I spread my dollars over both graphite companies not just one - oh well :)

    Although (without grade) its still an impressive drill hole :)
     
  10. SilverSanchez

    SilverSanchez Active Member

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    Nice little article in the Age today about the graphite junior space - reacting to Syrah (SYR) gaining about 100% on news of one drill hole.

    He is already calling it a bubble - premature.

    The term 'bubble' use to mean extreme illogical price gain that grows exponentially in an asset class or sector

    Using 'bubble' - this guy means just over-bought (because it would be the shortest lived bubble in history - only 5 months). The graphite sector isnt in a bubble - I havnt made 1000% yet - ive only made 100% on Archer - it may be over bought.... but its not a 'bubble'..... yet

    The reason SYR went up so much is simple supply demand fundamentals - 120mill shares a smaller % available to buy and more people wanting to buy than sell = price rises. Thats why you pick junior stock with a tight share structure! Sheesh
     
  11. SilverSanchez

    SilverSanchez Active Member

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    got it at 21.5

    Two managing directors (from Hudson Resource Investment) resigned when hudson ceased to be a substantial shareholder.

    Dont know exactly what this means - or why hudson would sell out - I could speculate, but i dont want to yet
     
  12. topstock

    topstock New Member

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    Hey SS,

    I believe graphite is the flavour of the month/year atm. Definitely worth jumping in and riding out the wave.

    I would be hesistant to hold it too long though. I am predicting a short term rally for the overall stock market and probably further downside if concerns over Europe and China's growth concerns intensifies.

    Good luck, I would definitely jump in these if there was more stability.
     
  13. SilverSanchez

    SilverSanchez Active Member

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    I have already doubled in share price from my buy and halved my possition in shares - bought into AXE at 15c - so im not risking much other than profit

    Average share price payed is 8c now
     
  14. SilverSanchez

    SilverSanchez Active Member

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    I was just going through Talga Gold's recent acquisition of Graphite deposits in Sweden

    They have a high % of carbon (22% resource)

    BUT

    The price paid for graphite is NOT on the % of carbon in the resource (this just tells you how dense the resource is) but on the flake size in the resource

    So Talga's 22% carbon resource is largely Amorphous Graphite (fine flakes) - but they also have projects with quite large flake sizes but lower down on the progress to production

    Axe has flake sizes ranging from medium to large

    Syr - dont know yet - we only know they have hit 200m or so of graphite mineralisation in ONE drill hole

    So IMHO Archer exploration (who have had and been progressing their graphite project for a longer time) - are in a FAR better position to really take this project further - they are looking to put out their maiden JORC estimates (that's the next step). Talga jumped from gold to graphite and may be a valid way to play graphite - syr well have to see

    So i think investors are confused between %carbon and flake sizes - its flake size not %of carbon in resource

    Imagine you have 20mil tonnes of dirt and that dirt contains 22% carbon - this tells you nothing about the flake size

    10m Tonnes of dirt @ 10% carbon and that 10% carbon contains +80% >200m size carbon flakes

    is FAR better than

    20mTonnes of dirt @ 15% carbon and that 15% carbon contains 90%+ <80m

    Now take all this carefully - because it is complicated for a PM guy to understand all this and I might be wrong - some use micrometres and some use mesh to measure. I have yet to ask my geologist friend about this and as usual the companies dont make it clear enough - im just writing this to say 'be careful that you dont THINK your investing in 'large flakes' when you are ACTUALLY investing in amorphous graphite but a high percentage.'
     
  15. Water&Food

    Water&Food New Member

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    Away from this hell bent place
    graphite crucibles are still best bang for buck crucibles, and there are plenty of smelters and labs out there folks... though i am not convinced of graphite shares when 'we' are so close to nailing cost effective assembling of particles...

    i reckon 5 years max in backing graphite stocks
     
  16. SilverSanchez

    SilverSanchez Active Member

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    Syrah Resources is running out of money (had about 450k end of last quarter for a projected spend of 2.2mil this quarter - and the sale of their non-core assets fell through) - they are on the sophisticated investor trail to raise some dosh.

    Just recently bought into Talga Gold (TLG) to add to my already owned Graphite play Archer Exploration (AXE)
     
  17. SilverSanchez

    SilverSanchez Active Member

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    Montezuma Mining Company (ASX: MZM) has reached an agreement for the sale of a majority stake in the Yalbra Graphite Project in Western Australia.

    Buxton Resources (ASX: BUX) has acquired a three month option to purchase 85% of the Yalbra project.

    Consideration for the option is $5,000 cash, with a further $5,000 to be paid if the offer is extended by three months.

    If the sale proceeds, Buxton will issue 1 million shares to Montezuma in consideration for the 85% interest in Yalbra. Based on Buxton's current share price, this equates to about $95,000.

    Montezuma will retain a 15% free-carried interest up to a decision to mine, following which the company can elect to contribute on a pro-rata basis or dilute to a 1% gross revenue royalty.

    With demand for graphite heating up, Montezuma has picked a good time to realise the value of its graphite asset, while retaining exposure to the project in the long term.

    Wide, high grade, near surface zones of graphite mineralisation have been identified over 4 kilometres of strike in historical trenches and drilling at Yalbra.

    Buxton is planning a field work program to follow up on historical percussion drilling results, which include:

    - 16.8 metres at 13.2% carbon from 15 metres, including 6.1 metres at 17.2% carbon;
    - 23.5 metres at 19.5% carbon from 9 metres, including 15.2 metres at 25/2% carbon; and
    - 39.6 metres at 10% carbon from 3 metres, including 12.2 metres at 23.6% carbon.

    Buxton has set an exploration target for the project of between 8 and 12 million tonnes at 7% to 11% carbon.

    Other projects

    Montezuma is focused on progressing the Butcherbird Manganese and Copper Project, along with the Peak Hill and Mt Padbury gold projects.

    Earlier this year the company announced the successful definition of high grade copper mineralisation over 600 metres of strike at Butcherbird, with potential to extend this along strike and at depth.

    Meanwhile, a Scoping Study for the development of the extensive manganese mineralisation at the Butcherbird has identified potential for robust economics.

    The Scoping Study projected a net present value of up to A$376 million, with an internal rate of return of up to 59%, based on the Yanneri Ridge JORC Inferred Resource of 64.7 million tonnes at 11.2% manganese.

    At Peak Hill, Montezuma has a 500,000 ounce gold JORC Resource, which includes the historical Peak Hill Gold Mine.

    The project is located within a 1 million ounce gold system, in a goldfield that has produced more than 900,000 ounces of gold.
    (proactive investor)
     
  18. SilverSanchez

    SilverSanchez Active Member

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  19. southerncross

    southerncross Well-Known Member Silver Stacker

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    SER, LTX. ? A bit suss on the SER team with recent and past history but maybe it is in their best interests to actually get something sorted this time round with uley which looks to be a world class deposit in S.A . LTX seem to be quietly chugging along in the background with recent acquisitions of some decent prospects in the Munglinup graphite project in W.A and a nice spread of amorphous and rough flake graphite.

    Thoughts ?
     
  20. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    If it walks like a duck and talks like a duck...
    Fool me once shame on you, fool me twice....
    'caveat emptor'
     

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