RE: RE: RE: New to this stock/commodity Spherical graphite potential:
Due to the large flake nature of graphite to be recovered from Bissett Creek, the project has the potential to upgrade and purify their concentrate to battery grade spherical graphite containing 99.5% Cg. The abundance of large flakes within the deposit will minimize loss during the shaping process and allow Northern Graphite to sell this at a price upwards of $7,000US/t. Ore from the property is still undergoing tests to confirm the viability of the upgrade process and whether or not the product will be ideal for use within Li-ion batteries. Should the results return positive, the economic favorability of the project should increase substantially and the Company would begin to investigate its options for including an upgrade facility at Bissett Creek.
Recommendation:
By continuing to achieve project milestones, Bissett Creek is on the fast track to development and we believe the Company’s Management has the proven track record of success to bring Bissett Creek into full production in 2013. Further de-risking of the project should assist in attracting potential off-take suitors as well as the overall market interest as the story continues to unfold. We believe this to be an attractive entry point for Northern Graphite as it is on the cusp of permitting approval and project development, at a time when markets are showing signs of stabilizing. With recent changes to our forecasted outlook for the USD/CDN exchange rate, we have slightly increased our target to $2.20 (previously $2.00) based on 0.8x our NAVPS(10%) for Bissett Creek.