Eagle Graphite Inc V.EGA.H

RE:What I can see

[dashriprock1234]

There are many hurdles for this junior miner to ovecome. Most revolve around financing and good client contracts. Financing has been horrible for any speculative mine for years.  Commodity prices have been horrible. Graphite prices are not as visible as other materials or metals as there is no pubically traded market for them. Chinese miners have for years dominated the graphite market driving the economic argument for mines in the rest of the world below water line.

 Why I am long is there is a lot to like in this very speculative stock.

 It is permitted.
It has been in production in the past
The base material is sand. Much easier and less expensive to seperate the graphite from then hard rock.
The byproduct, sand, is a marketable commodity(google "sand wars").
No harsh chemicals are used in the flotation process
Connected to the BC Hydro grid for a economical and environmental advantage over remote mines run by diesel generators.
Close to railroad accessing the US
Purity of the graphite exceeds safely the minimums for battery use
Coin test was succesful

You have mentioned the high insider ownership as being both positive and negative. Hard to argue. Management has been very frugal on compensation for themselves. No sign of some of the consulting contracts that benefit management that other graphite mines have specialized in. There has been no big PR program to artifically and temporarily boost share price(lots of us want them to share more aggresively its benefits). Management seems to believe in developing a real mine and not just promote a stock.

It was a operating mine, closed due to economics. Present management bought it while in BK.
It has to raise funds to change the scale of production, but probably need a contract(not an offtake agreement which they have in place from a refactory) to really have a chance to raise funds needed. Good thing is that unlike other mines, the infastucture is in place and funds go to plant and equipment, not road building and other access issues. Cost to increase production small in comparison.

The mega trend to battery energy storage is growing and accelerating with Eurpoean gov'ts talking diesel engine bans very soon. This trend is powered by concern over the environment. As the washington post article outlined, china is not a friend of the environment. Companies who want to maintain a reputation of good environmental stewardship will have to pay very close attention to their supply lines. From everything I have researched, this mine is at the top of graphite mines for a minimal environmental impact. Makes sense that some consumer company will want to develop a relationship with the cleanest mine. The cost of graphite in the battery pack of a EV is a very small percentage. Eventually, even if Eagle's price is a little higher, the cost of buying graphite from a mine that has bad environmental safeguards will be too high for many multi nationals