6 Canadian Graphite Stocks to Watch

Growing demand for graphite in the battery, steel and automotive industries has the potential to lift the Canadian graphite stocks on our list

SmallCapPower | October 31, 2017: Graphite use in batteries has skyrocketed over the past decade, making it the second-largest component, in terms of weight, in Lithium-ion batteries. According to Persistence Market Research, 10% of graphite market share is located in North America. As a result, the six Canadian graphite stocks on our list should benefit from this trend.

Berkwood Resources Ltd. (TSXV:BKR) (FSE: BK2)- $0.35
Specialty Mining & Metals

Berkwood Resources Ltd is a Canada-based company focused on the exploration and development of battery metals and related minerals. The Company’s flagship Lac Gueret Extensions Graphite Project comprises ~19,000 hectares in Côte Nord, Quebec. On October 17, the Company announced the completion of its Phase 1 drill program at Lac Gueret, where graphite was intersected at all 13 holes drilled. Additionally, on October 13, the Company announced the acquisition of the Roscoe Vanadium Property, which is also located in the Cote Nord area in Quebec and comprises ~2,200 hectares.

  • Market Cap: $8 Million
  • Debt (Last Quarter): 0.00
  • Cash and Short-Term Investments (Last Quarter): $0.86 Million

Read: Berkwood Resources (TSXV:BKR) Discovers “New Black Gold” in Quebec

Mason Graphite Inc. (TSXV:LLG) – $2.65
Specialty Mining & Metals

Mason Graphite Inc. is a Canada-based, exploration-stage company, focused on the development of its Lac Gueret graphite property in Quebec, Canada. The Company has completed an Environmental Impact Study as of Q2/2017 and plans to begin construction in late 2017. Mason Graphite is currently in the process of financing negotiations to fund the project, which is expected to cost $166 million.

  • Market Cap: $306 Million
  • Debt (Last Quarter): $7.8 Million
  • Cash and Short-Term Investments (Last Quarter): $15 Million

Leading Edge Materials Corp. (TSXV:LEM) – $0.61
Specialty Mining & Metals

Leading Edge Materials Corp, formerly Flinders Resources Ltd, is a junior mining and exploration company with principle assets in Scandinavia. The Company’s flagship asset is the Woxna Graphite Mine and Processing facility, located in Central Sweden. The mine was initially commissioned in 1997, with permits to produce 100,000 tonnes per annum feed (10,000 tons of graphite), and has operated sporadically since then. Leading Edge re-opened the facility in July 2014, and is working on optimizing production at the facility in order to meet the demand for graphite in lithium ion batteries.

  • Market Cap: $54 Million
  • Debt (Last Quarter): 0.00
  • Cash and Short-Term Investments (Last Quarter): $4.5 Million

Canada Carbon Inc. (TSXV:CCB) – $0.16
Diversified Mining

Canada Carbon Inc. is a Canadian mining and exploration company focused on the development of its Miller Graphite Marble project. The project covers approximately 100 square kilometers and is located 80 kilometers west of Montreal, in Grenville. The Company expects initial Capex costs for the project to amount to $44 Million.

  • Market Cap: $16 Million
  • Debt (Last Quarter): 0.00
  • Cash and Short-Term Investments (Last Quarter): $1.6 Million

Elcora Advanced Materials Corp. (TSXV:ERA) – $0.21
Electrical Components & Equipment

Elcora Advanced Materials Corp, formerly Elcora Resources Corp., is a Canadian company focused on the development of its Ragedara Graphite Mine and facility. In 2014, Elcora acquired full operational control and a 40% equity interest in Sakura Graphite (PVT) Ltd, which operates the Ragedara mine. The mine has a long history of production, which amounted to 18,000 tonnes of graphite at its peak. Presently, Elcora is implementing advanced mining techniques to increase production from its current levels of about 500 tonnes per year.

  • Market Cap: $17 Million
  • Debt (Last Quarter): $0.19 Million
  • Cash and Short-Term Investments (Last Quarter): $0.77 Million

NextSource Materials Inc. (TSX:NEXT) – $0.07
Diversified Mining

NextSource Materials Inc is a mine development company based in Toronto, Canada, which currently focuses on developing its 100% owned Molo Graphite Project in Madagascar. The project is in its Feasibility Stage and the company has planned a two-phase development project. Phase One is expected to mine 17,000 tons per annum at a cost $18.5 million.

  • Market Cap: $30 Million
  • Debt (Last Quarter): $0.00
  • Cash and Short-Term Investments (Last Quarter): $2.5 Million

To find out more about Berkwood Resources Ltd. (TSXV:BKR) (FSE: BK2), please “visit the company’s Investor Hub.”

Ubika Research/SmallCapPower has received compensation from Berkwood Resources Ltd. (TSXV: BKR) (FSE: BK2) to provide analyst research coverage. For full disclosure please visit here >>.

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