BlackEarth Minerals’ Stock Zooms Over 59% Today, Do You Know Why?

The entire world is fighting COVID-19 implications that have led to one of the steepest declines in markets, globally. 

However, recently, there has been some good news from all over the world including testing of new medicines and treatments, growing research efforts towards developing a vaccine for the virus, serious implementation of quarantine measures, and stimulus packages by governments to minimise the impact. Amongst all the countries impacted, the initial epicentre of the pandemic, China has recovered from the COVID-19 impacts and is limping back to normalcy, which could be good news for businesses exposed to the Asian country, especially resources sector.  

Moreover, global share market that witnessed massive sell offs in the past few weeks, started this week on a positive note, highlighting that investors, though steadily, are gaining back their lost confidence.  

In this backdrop, we are discussing one ASX-listed company that has recently garnered huge investor interest. Perth-based graphite exploration and development company, BlackEarth Minerals NL (ASX: BEM) witnessed a spike of 59.091% in its share price on 31 March 2020, settling the day’s trade at $0.035, with a daily traded volume of ~2.13 million as against an average daily volume of 164,240.     

Incorporated in the year 2016, BlackEarth Minerals is completely focused on fast-tracking its flagship and highly prospective property, Maniry Graphite Project (100% owned) in southern Madagascar, a favourable mining jurisdiction with more than 100 years of graphite history.  

The Company has successfully fast tracked the project to progress the BFS (Bankable Feasibility Study) stage, in under 2 years of getting listed, for a cost less than $6 million, with BEM expecting to complete the study in 2020.  

The primary aim of BEM is to produce high value, high demand, coarse flake product, based on a positive outlook for large flake high quality graphite for the upcoming 10-15 years. 

Let us graze through some of the recent activities of the Company that might have boosted the stock price.  

Increasing Director’s Interest  

BEM Managing Director, Tom Revy in the past few weeks acquired 361,647 ordinary shares in the Company, reflecting his confidence in the Company’s future performance  

BTR New Energy Materials Extends Support to BEM   

China-based world’s largest LiB anode manufacturer, BTR New Energy Materials is also a leading global player engaged in technology development and production of battery anode materials.  

Recently, BTR updated BEM with positive results from the evaluation of graphite concentrate from the Maniry project, highlighting very low impurity content in the concentrate, as a distinct advantage. Based on the testing results, BTR has stated that the Maniry graphite concentrate sample qualifies for use in spherical graphite production as a raw material.  

Consequently, with the completion of testing, BTR has asked the Madagascar-focused Company to send a larger concentrate sample for testing in the former’s facilities in Shenzhen. The Chinese company intends to undertake confirmatory testwork and evaluation to check the eligibility of the Maniry concentrate as a future feed to spheronising and its manufacturing plants for battery anode materials for lithium ion batteries. 

For the BTR testwork, the sample was derived from concentrate produced, as part of the recently completed first stage pilot program undertaken at Beijing-based piloting facilities of Beijing General Research Institute of Mining & Metallurgy (BGRIMM), demonstrating improvements in both graphite recovery and final product grades. The second stage pilot work is also being undertaken at BGRIMM’s facilities.   

The BTR testwork results reported also support positive testwork results earlier published by Dorfner ANZAPLAN.

As of now, all the testing results have highlighted significant and promising results for the project such as - 

• Spherical graphite from the project, with production yields of up to 52% were achieved vs industry average 40%, thereby meeting specifications consistent with those required by lithium-ion anode material manufacturers; 

• Highly encouraging feedback from spherical graphite producers and anode material manufacturers in China; 
• World’s largest producer of expanded graphite products reported excellent quality and expansion rates from testing on the Company’s coarse flake graphite samples;  
• Based on the Maniry concentrate testing, deleterious impurity content reported to be significantly lower compared to other natural graphite concentrate developers and producers;  
• Positive feedback received from the world’s leading refractory producer on the Company’s natural graphite.  

BlackEarth Minerals is among several other companies that have also identified the growing trends in demand for graphite – a critical material used in the growing markets of next generation of fire-retardant material building materials, lithium-ion batteries for EVs, and steel production, crucibles/refractories and lubricants. However, what differentiates BEM from its peers is the testing of its material via experts in the field.

Feedback shared by various globally renowned and leading sector players, along with strong outlook for the Company’s core offering – graphite, BEM seems to rapidly progress towards first cashflow, thereby delivering shareholder value.      

Disclaimer- Please note that the above information should be regarded as presentation of facts, not recommendation.