Syrah Resources Ltd is up 34%, and there could be more to come

Is there more positive news in the pipeline for the graphite miner?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Over the past month, graphite and vanadium company Syrah Resources Ltd (ASX: SYR) has seen its share price soar 34.5%, as excitement over its future prospects rise.

But there could be more to come, with the Australian Financial Review (AFR) reporting that rumours of global commodities house Glencore running the ruler over Syrah has sparked a number of Japanese companies into action.

That could see Syrah sign a number of graphite offtake deals with some large Japanese trading companies in the coming weeks or months. The AFR reports that Marubeni, Mitsui and Sumitomo are expected to enter talks with Syrah in the coming weeks.

The Japanese companies are said to be keen to diversify their dependence away from China for graphite supply, with the country clamping down on polluting miners. Graphite is a key ingredient in the production of lithium-ion batteries, and the Japanese and Korean battery makers have a huge head start, which they want to maintain.

Syrah is developing the giant Balama graphite and vanadium mine in Mozambique in Africa, which is said to contain more resources than the rest of the world's graphite mines combined. The mine is expected to go into production in 2016.

Investors may also want to keep an eye on other graphite miners Lamboo Resources Ltd (ASX: LMB), Triton Minerals Ltd (ASX: TON) and Kibaran Resources Ltd (ASX: KNL).

Lamboo Resources is in the process of merging with privately owned China Scinese Hengda Graphite Co, but could leave the ASX to list on an Asian exchange once the merger has been completed.

Triton Minerals is developing its Balama North project – which is also tipped to be one of the largest in the world, according to Triton managing director Brad Boyle.

Kibaran Resources plans to have a feasibility study completed by mid-2015 on its Epanko deposit located in Tanzania, Africa, as we discussed in this article.

Graphite is the hot new theme at the moment , and it remains to be seen whether the hype will match the returns to investors. Still, investors may want to keep a beady eye on these four stocks.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »