A graphite market analysis report by Chris Berry of House Mountain Partners identifies Northern Graphite as potentially a good investment. The report, published today in Morning Notes, considers a range of recent developments in the junior graphite market and within Northern Graphite itself. In particular the report praises the company’s continued execution throughout a period of receding graphite prices which we are witnessing. Indeed Northern Graphite is looking very good after its recent filing of a mine closure plan. Northern Graphite is a publicly traded Canadian mining company, expected to start mining high-quality flake graphite for making graphene.
It is interesting to look at Mr. Berry’s comparison of junior graphite explorers based on the value per share. Flinders Resources Ltd. has the highest value per share of all graphite projects that are publicly traded and have a published NI 43-101 or JORC resource estimate. The value per share is $0.93, which is significantly higher than that of other projects considered. For example, for Northern Graphite and Focus Graphite this value is around $0.50. The value per share is a commonly used variable which determines the relative value of publicly available stock, however it should be compared to the actual share price. If we divide the actual share price by the value to share ratio, most projects turn out to have the same value, indicating that you get the same value for your money at the current prices and with the current net worth of the companies. The best way to decide on investment is to closely observe recent developments in the companies and on the graphite market, and Mr. Berry’s report does just that for us.
Morning Notes is a publication of House Mountain Partners and Dr. Michael Berry. House Mountain Partners is market research firm that focuses on junior mining and resource stocks.