Banca I.F.I.S Spa BNCIF

Big North Graphite Peter Epstein

[bossman]

Tiny Big North Graphite [NRT.V / BNCIF] is a Canadian-listed player with a market cap of just US$6 million. Yet of all the companies mentioned in this article, Big North is the ONLY one actually in production today. Make no mistake, revenues are small, but the growth potential at the company is huge. Big North is buying and mining amorphous graphite in Sonora Mexico. It crushes the run-of-mine ore and sells locally. Again, small potatoes so far, but this simple operation could grow towards 1,000 tons per month by year-end. That’s my estimate, not guidance from management. Next year, this segment could be generating a run-rate $US 2 million of cash flow annually. The real exciting part of the story though is a flake graphite acquisition the company recently announced. This past-producing operation could be up and running next year. Since most infrastructure is already in place, cap-ex to get into production will be quite manageable. By my rough estimates, this operation could be generating US$ 4 to 6 million or more annually by mid-2015, with ample success based, self-funded upside.ConclusionThree important developments, all fairly recent, point to a possible strengthening in the supply/demand dynamic of graphite prices. Tesla is single-handedly revitalizing the EV market, Chinalco has effectively taken up to 100,000 tonnes of future graphite supply off the market and China is rapidly cutting exports to the world. These developments are unequivocally good for graphite juniors, especially juniors that could reach production in the next five years. Of the names mentioned, Graphite One and Big North are very interesting investments to consider. Please see click on these links for more information.- See more at: https://www.miningfeeds.com/2014/03/28/graphite-juniors-graphite-one-and-big-north-graphite/#sthash.UZ78jaar.dpuf