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What are MM’s thoughts on Graphite stocks?

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Question asked 26/08/2023

What are MM’s thoughts on Graphite stocks?

Hi James, could you please comment on Graphite stocks, they look oversold compared to their lithium cousins, both are ingredients for a lithium-ion battery. However, prices for the two materials are poles apart, yet, both are exposed to the same end market, batteries used in electric vehicles (EVs), and static electricity storage systems. Does M&M believe graphite has fallen too far and is there the possibility of a price recovery any time soon? For example, the M&M website previous comments about SYR although being a volatile stock you recommended a buy price at approx. $1.00, SYR has now fallen to 0.60 cents. What graphite stocks would M&M look at for best value? Thank you

Answer

Hi Tony,

We regard graphite and lithium as far riskier EV plays than say copper for a number of reasons from processing issues to future supply coming on line in the years ahead. SYR is now trading at 55c illustrating this point after falling almost 80% from its late 2022 high.

MM prefers the eclectic mix of copper and uranium for clean energy plays.
We do own Minerals Resources (MIN) in our Flagship Growth Portfolio and Global Lithium (GL1) in the Emerging Companies Portfolio

However, as an illustration of the 1st point both of these lithium plays are under water.

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Syrah Resources Ltd (SYR)

LAST UPDATED 25/08/2023 12:14

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