Does MM have a standout graphite stock?
Hi James and the team! Thanks for your advice as always. Graphite. Is it the next Lithium in terms of returns and is there a stand out company? Thanks Kim
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Answer
Hi Kim,
Interesting timing as the lithium stocks get hammered e.g. Pilbara Minerals (PLS) has fallen over 30% from its October high. Moving onto graphite we would probably opt for Syrah Resources (SYR) at the larger end of town, we believe this $1.55bn miner looks good around thee $2.20 area.
Elsewhere we could look at Renascor Resources (RNU) , Volt Resources (VRC), Magnis Energy Technologies (MNS), EcoGraf (EGR) and Quantum Graphite (QGL) but these are a very speculative bunch of miners who find doubling/halving an effortless occurrence.
In terms of whether graphite is the next lithium as investors search for cheap exposure to the EV revolution our “Gut Feel” is probably not but battery technology is likely to evolve significantly over the next decade with a few false dawns almost guaranteed to hurt investors, when playing these new spaces, spreading the risk makes sense to us.
