Peter Wright of Bass Metals: The Graphite Market Will Be Moderately Stronger in 2019

TL;DR

There is a strong demand for graphite from both end-users and investors, despite frustrations in the equity market performance in the resource space.

Transcript

I'm Priscilla beretta with the investing news network and here with me today is Peter Wright executive director of bass metals Peter thank you so much for joining us today so we're here at the graphite and anodes conference which is almost wrapping up what's your main takeaway so far it's like - and we come here from a dual perspective obviously to... Read More

Key Insights

• ❤️‍🩹 There is strong demand for graphite from both end-users and investors.
• 👾 Equity market performance has affected the cost of funding for development projects in the resource space.
• 😮 Graphite prices in 2018 remained relatively static, with no major surprises.
• 📽️ Misunderstandings in the graphite market include pricing differences across various concentrates and the challenges of commercializing and financing projects.
• 😨 Graphite remains essential for electric car batteries, although alternative anode technologies exist.
• 🇨🇷 Natural and synthetic graphite will coexist due to cost considerations and consumer demand for cheaper products.
• 👊 The graphite market is expected to have moderate growth in the coming year, and producers should focus on reducing costs to improve margins.

Questions & Answers

Q: What are the main trends observed in the graphite market in 2018?

The graphite market has seen static prices, with no significant surprises. The forecasted basket prices remained conservative throughout the year.

Q: What is the biggest misunderstanding in the graphite market that investors should know about?

There are several misunderstandings in the graphite market, including the difference in pricing across various concentrates and the difficulty in commercializing and financing projects. Margin and profitability vary depending on the concentrate type and scaling.

Q: Will the rise of alternative anode technologies impact the demand for graphite?

Graphite will remain essential for electric car batteries as most major automakers have settled on graphite-based technology. While alternative anode technologies may have an impact, basing business operations on traditional usage provides some insulation.

Q: Can natural graphite and synthetic graphite coexist in the market?

Yes, there will always be a demand for both natural and synthetic graphite. Cost considerations and consumer demand for cheaper products ensure the continued existence of natural graphite in the market.

Summary & Key Takeaways

• The graphite and anodes conference has been enormously helpful for marketing graphite products and connecting with end-users.

• The resource space has experienced frustration due to equity market performance, leading to higher costs of funding for development projects.

• The graphite market in 2018 has seen relatively static prices, with no significant surprises, and a conservative forecast for basket prices.