Northern Graphite Corp V.NGC

Lets all remember to not get too lost in the weeds....

[Gorilladome47]

Some talking points to keep in mind:  

 

1)  Trump/Chinese Tariffs are coming very soon. 

 

2) Those tariffs will change non-Chinese pricing immediately.  Who benefits the most?  Producers.  Who are NA producers?  Oh ya, there's only one.  Industry leaders (anode) with US contracts have told the US gov't they need 920% tariffs just to compete with Chinese slave labour etc...ya, 920%!  

 

3)  With China hitting out lately at everything US related, Trump remains silent on China?  Why?  Very unlike Trump...the reason IMHO will be revealed shorty and oh boy, better buckle up!  

 

4) Fox News (gotta love Fox News) is running daily China this, China that...Taiwan, the Arctic, Panama, EU, Russia, cyber attacks, bans, tariffs, threats, restrictions...and still, Trump remains silent on China...nothing, nothing at all... Why oh why?  

 

5) Syrah going belly up is a massive supply SHOCK that North America is going to find out pretty quickly their goose is cooked re the supply they 'thought they had.'  Even if it was low qualify, crappy supply...at least it was something...now even that 'something' is gone!  

 

6) Where is the US military going to get their graphite from (currently facing a Chinese ban)?  Where are Syrah's industrial and OEM customers going to get their graphite from?  

 

7)  What is Syrah going to do with an empty, almost fully built anode facility...with zero feedstock?  and money owed to the US gov't?

 

8) What is the US gov't going to do after funding the Syrah flop?  An empty anode facility waiting for product from a mine located in an AK47 country controlled by China doesn't sound like a winning strategy...unpaid loans and zero product...good job DOE!  Now what?  Where's your feed stock coming from?

 

9)  Current anode tariffs 25%...current natural flake tariffs, ZERO until 2026...now fast forward a few weeks...new anode tariffs, 100%, 200%, 300%, 920%???  new natural flake tariffs, same or higher?    Who benefits from that type of pricing shock?  Ask the CEO of the only producing antimony mine in North America that question!  

 

10)  There is a Canadian company operating a graphite mine in Brazil...it's producing with plans to ramp up production...good operation.  Only problem is, Brazil...an original founding BRIC member who takes their marching orders from China...how long before China suggests to their little brother no more product will flow to the US period?  Instead China may purchase to avoid EU tariffs...

 

The macro continues by the day to get more juicy with every tit for tat between the US and China...the Syrah supply shock highlights and emphasizes the need for safe and secure NA supply chains...like poster child emphasizes...the US military will HAVE TO FIND and alternative to Chinese supply period...and fast...and here we sit at a measly .15 a share...I love it.  

 

How very both tragic and opportunistic for all us inspiring young and OLD...investors willing to put the time in to connect a few dots!  

 

IMHO all we need is that tariff number and we will never be the same company we are today.  That repricing will change everything if you are a current producer...think antimony. 

 

The rhetoric around China today, within the incoming GOP camp, China is no longer the US's #1 advisary; China is the US's #1 'enemy' on all geo political fronts.  If you think Trump will not come down hard on China with massive tariffs, you haven't been paying attention.  

 

The privilege of opportunity.  That is Northern's biggest advantage and leverage in my opinion...regardless of our incompetent management (I just had to mention Student1's ex wife just once) team...the sheer luck of our industry position as being the only entity producing the thing that everyone will need very badly and very quickly...is what keeps this investor buying at rock bottom prices.   

 

If I'm wrong and we get a small tariff number, then I will sell and move on...and it's that simple for me.  China wins, the US loses and Northern, along with every other graphite hopeful continues to struggle.  It's gonna be one way or ther other...there will be no middle ground in terms of how this industry in NA moves forward.  No business entity can compete with slave labour and endless gov't subsidies, on top of slave labour...and not to mention poor envionmental standars and nice to have regulations etc...its an unfair fight, and it will always be an unfair fight...unless, gov't can intervene and level the playing field...which I'm betting Trump will do, and in a big way.  

 

Get you popcorn, either way in like two weeks or less we will know!  

[MaterialsMan]

Gdome, You spelled out plenty of reasons why the u.s. will be hurting for graphite and related materials as well as Trumps proposed solutions. At the end you mentioned the possibility of an alternate scenario.. The saying 'Keep what you've got until you get what you want' may apply here. IMO, Trump will play ball with China and maintain the status quo. 

[1student]

MaterialsMan, Yes. What you pointed out, i.e."keep what you've got until you get what you want", can also be applied to precisely how Eric Sprott (Sprott") views his , Sprott's, only NGC creditor that matters position here in control of Northern Graphite's destiny. Do we know what Eric Sprott ("Sprott") intends to get while keeping what they undoubtedly have -

[Gorilladome47]

Materials, thanx for the reply.     I think the question you have to ask yourself is what is the status quo?   Reliance on China, the US's #1 enemy, would be the status quo.  Do you really think, from judgingTrump's actions thus far, that he is willing to allow the US to remain beholden to China going forward?     What would that look like? 

[MaterialsMan]

Gdome, Interesting debate. I totally agree that China and the U.S. coming to terms is inevitable. But, IMO, this business of witholding on the part of China and expanding tariffs on the part of the U.S. are nothing but political rhetoric and empty threats. Taking this out of the realm of minerals, I'll use an analogy Looking in my closet, it's difficult for me to find much of anything that

[Gorilladome47]

Materials, great response and thank you for that.     Specifically, where you are coming from, your viewpoint and position, is an ideal example of how most retail investors are viewing tariffs; and unfortunately how most people are getting it wrong.     I agree with you re a blanket tariff number, a high blanket tariff number, will most likely not materialize for the

[MaterialsMan]

Gdome47, If you don't write professionally, you should probably consider it. You've made some good conjecture. In particular, I'd agree that Trump would use tariffs as a significant form of revenue for the government. Needless to say, it will come at someone's expense since it is basically a form of taxation. As regards critical minerals, I feel it will take significant time

[Gorilladome47]

Materials, thanx again, some really good points and insight.  I must also congratulate you for being in the mining investment biz this long...you must be wise beyond your years!     Lots of good talking points, if I can address a few of them...   "Needless to say, it will come at someone's expense since it is basically a form of taxation."   Yes I

[1student]

Goriladome47, As pertaining to Northern Graphite Corporation and said company's current financial predicament - "Sprott" holding the creditor in control note over the business affairs of NGC and this company management not having two extra nickels to rub together, so to speak, - how does said predicament expressly limit the ways in which NGC would be allowed by "Sprott" to

[MaterialsMan]

G47, That's quite an analysis of the situation particularly as it applies to the graphite industry. You have brought up so many things to consider, that you have my head swimming. I'll just touch on the graphite issue. Everything I've researched says that the graphite spigot from China has not been turned off. The implications could be numerous. Are there stockpiles being built up? Are

[Gorilladome47]

Materials,    Your comments speak right to my heart re China...your research is bang on.  China has NOT slowed down its graphite 'overproduction' ...because THEY simply CANNOT take their foot off the pedal.     China is the only major country that has NOT recovered from COVID yet...their economy is in big trouble and on th ropes.  Xi continues to lie

[1student]

China leadership simply love it when points of view like your own, Gorilladome47, are running rampant amongst the various appointed incoming U.S. Government administration representatives. You have shown yourself as representing precisely some of the erred understanding which the very few who actually operate all aspects of "The U.S. Enterprise" simply know much better about. China

[MaterialsMan]

There goes the 'wild card'. Beginning to look like rhetoric after all.

[1student]

MaterialsMan, You stated "I totally agree that China and the U.S. coming to terms is inevitable". "Inevitable" is precisely what has long been intended to be triggered from this coming ramping up of an increasingly more comprehensively impacting war amongst the U.S. and certainly not only China. "Coming to terms" you say, lol. Historically, it is always

[MaterialsMan]

S1, I'll go right to the bottom line; "THE SCHEDULED EVENT". Statistics I've seen show that only .05% of investors are in this place. Sounds like we are a very, very small minority. Leaves AU with plenty of room to run.