Industry Analysts Predict Very Few Graphite Mines will Enter Production
According to industry analysts, there is a shortage of primary sources of economic graphite in the world today. The majority of graphite exploration projects today have been either recycled, renamed or resold. While there has been a surge of new graphite projects over the past year, it is believed only a very few will succeed in bringing a graphite mine into production.
Molo Attributes
- Large, expandable NI 43-101 compliant resource that is able to meet market demand as required- All flake deposit- Full suite of flake sizes, which enables Energizer to supply products to all market segments- Indian Ocean location is close to key Asian purchasing and upgrading markets for graphite
Changing Strategies in the Market
Graphite is entering a new era. Graphite is moving from an industrial mineral to a strategic mineral, similar to that of lithium, vanadium and rare earths.
- British Geological Service has now ranked graphite in the top ten on its list of critical minerals- Graphite has moved ahead of lithium, cobalt and platinum group elements on The Critical Supply Index- There is ample opportunity to capitalize on the value-added benefits of a fully integrated supply chain in the new graphite era
According to industry analysts, China, the graphite market leader, has adopted a new paradigm.
- China dominates world production of graphite, which is mostly of the low grade quality, but does not control it to the extent it does other minerals, like rare earth elements.- In order to improve control, mine capacity and scale will be an important factor for China. There are aggressive plans to consolidate current mines to form a State monopoly, from 210 operating mines today down to 20 in this decade- Imposed combined 37% duty and VAT taxes on all exports of graphite- Strict duty and environmental regulations on new and existing graphite mines will constrain exports further- Existing mines are aging, and the accessible ore is now much deeper resulting in capacity decreases and expected increases in mining costs
New Energy-Based Technologies
Graphite, unlike most other minerals, has multiple layers of demand. Industry analysts expect new demand for graphite will be driven by energy-based technologies.
Historically, forecasts for electric vehicle sales have overpromised and under-delivered, consequently, automakers are now providing conservative sales forecasts.
Automakers now understand that the path to consumer acceptance of electric vehicles (EVs) is first through the adoption of hybrid vehicles. This is underscored by the fact that the Toyota Prius is now the world's third best-selling car. The evidence of the growing acceptance of EVs was demonstrated by the announcement of Motor Trend's 2013 Car of the Year, the Tesla Model S. The first time a full electric vehicle has ever won this award.
Paralleling the rapid advancement of batteries for electric vehicles, another important growth segment is the advancement of batteries for large-scale energy storage for commercial and grid-level applications.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is focused on developing the Molo flaked graphite deposit in Fotodrevo, southern Madagascar. The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the Project.
For more information, please visit our website at www.energizerresources.com.
Safe Harbour: This press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
Cautionary Statement: The above resource estimates were calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Among other things, the terms "measured", "indicated" and "inferred" mineral resources are required pursuant to National Instrument 43-101, the U.S. Securities and Exchange Commission does not recognize such terms. Canadian standards differ significantly from the requirements of the U.S. Securities and Exchange Commission, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange Commission.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. This mineral resource estimate includes inferred resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that the inferred mineral resource will be converted to the measured and indicated mineral resource categories through further drilling, or into a mineral reserve once economic considerations are applied.
U.S. investors should understand that "inferred" mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of the Company's mineral resources constitute or will be converted into reserves.
Contacts:
Energizer Resources Inc.
Brent Nykoliation
Senior Vice President, Corporate Development
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Craig Scherba
President and COO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com
