||The lithium-ion batteries for hybrid and plug-in cars,
smart phones and tablets require 20 to 30 times more
graphite than they do lithium!
||China and the US plan to construct 100s of the latest pebble-bed nuclear reactors, each of which requires 1,400 tons of nuclear grade graphite to build and another 1,000 tons a year to run!
Western Graphite (WSGP) could supply the graphite U.S. industry will need to replace Chinese exports!
Do you remember what happened back in 2009 when Wall Street woke up to the fact that China controlled 85% of the world’s production of rare earths – essential to everything from smart phones to wind turbines rocket guidance systems – and that China had plans to restrict exports?
The stocks of almost any rare earth related mining company rewarded intrepid investors with astonishing gains:
- Rare Element Resources (REE) gained 4,126% in just 21 months!
- Avalon Rare Metals (AVL) gained 2,097% in 25 months!
- Great Western Minerals (GWG) gained 2,020% in 26 months!
- Lithium One Inc. (LI.V) gained 1,745% in less than 8 months!
- Rodina Minerals (RM.V) gained 1,500% in less than 8 months.
- Thompson Creek Metals (TC) gained 1,096% in 16 months!
Most incredible of all. . .back on April 20th, 2009, you could have snatched shares of Quest Rare Minerals (QRM) at its all-time low of just $0.02 a share, only to unload them two years later at $8.64. That’s an astonishing – but accurate – gain of 43,100%! If you caught it just right, you could have...
...turned $5,000 into a fortune of $2,155,000.
Unreal! But, guess what?
It’s about to be déjà vu all over again!
I believe that graphite today represents an opportunity that’s identical to rare earths before all their stocks exploded in value!
Like rare earths, graphite is essential to most of today’s high-tech electronics industry.
Like rare earths before the profit fest, graphite now is produced mostly (70-80%) by the Chinese.
Like rare earths back in 2009, few investors have given much thought to graphite.
And just as the Chinese government has now restricted exports of rare earths, the evidence suggests it is about to do the same with its graphite exports.
And best of all, for you as an investor, is the fact that Wall Street has not yet caught on that the stock of Western Graphite (WSGP) appears on the verge of duplicating the astonishing gains of some of those past rare earth fortune-makers!
Don’t get me wrong, I’m not predicting that WSGP will match the 43,100% gain racked up by Quest Rare Minerals, but I’m urging my readers to invest in Western Graphite (WSGP) now, before China takes action, and the stock is still trading around $2.00.
A sudden shortage of graphite could precipitate a rare-earth-type run on graphite stocks (you’ll discover as you read on why I believe that’s almost certain to happen), that could turn an investment of $10,000 into $30,000 by the end of this year, and perhaps as much as $100,000 by the end of 2014!
Am I nuts?
Look again at what happened to all those rare earth stocks.
What are you waiting for?
Overlooked, under-appreciated graphite is every bit as essential to today’s high-tech electronics as rare earths and lithium, both of which have already enjoyed their days in the Wall Street limelight!
Graphite, the miracle material of the future!
(Still-unnoticed by Wall Street, but as critical as lithium and rare earths)
Graphite is a mineral composed entirely of carbon. It is the most stable form of carbon and maintains its strength and stability to temperatures in excess of 3,600 degrees.
Graphite is an excellent conductor of heat and electricity and has the highest natural strength and stiffness of any material known today. Given its unique crystal structure, it is also one of the lightest of all reinforcing agents and has high self-lubricity.
Graphite is not exactly a scarce resource, but here’s the thing: China currently accounts for about 75% of the world’s production. There is no active graphite mine in the U.S., and, China has suddenly become the biggest importer of graphite, having closed some 200 graphite mines due to environmental and safety issues.
According to a recent report in Industrial Minerals magazine...
|“The days of cheap abundant supply from China are over.”
The British Geological Survey has given graphite a relative supply risk index of 7 compared to its worst index of 8.5.
That’s bad news if you’re a US industry that needs graphite, because on top of China shutting down, it’s estimated that increased demand for the graphite needed to make the lithium-ion batteries needed for hybrid and all-electric cars will require...
A six-fold increase in annual flake
graphite production by 2020!
That’s great news for you, the investor looking for the next, NEXT big thing, because it means the world must now look beyond China for its graphite.And I believe still-unnoticed Western Graphite (WSGP) is strategically positioned to quickly become a major supplier of pure, high-grade flake graphite.
Graphite is essential to many of
today’s high-tech new industries.
Few investors realize yet that graphite is as essential to the lithium-ion battery revolution – seen in everything from hybrid and plug-in cars to Boeing’s new 787 superliner - as lithium itself.
In fact, there is up to 30 times more graphite in a lithium-ion battery than there is lithium!
And as most experts agree, lithium-ion batteries are the power source of the future.
U.S. Sales of lithium powered cars soared 73% in 2012!
The entire world is making the inevitable switch from gasoline-powered vehicles to cars and trucks powered by electric motors that run on electricity stored in light-weight, fast-charging, slow-to-discharge lithium-ion batteries which require 30-times more graphite per battery than lithium.
Currently, batteries account for roughly 5% of global graphite demand; however, there are some accounts that suggest that demand for lithium-ion batteries, for use in various applications, is growing by 20% per year.
As the graph below clearly shows, it’s happening fastest in China.
Chinese car makers – forced to the forefront of the electric vehicle revolution by China’s horrendous pollution problems – are desperate for the graphite they need for their batteries.
According to the Chinese Ministry of Science, the government aims to have one million electric-powered
vehicles on the road by 2015, and electric car sales will exceed those in the U.S. by 2020.
In the U.S., where sales of electric powered vehicles are also on a fast track, Ford sales of electric vehicles were up 73% in 2012. Toyota was the leader in the U.S. hybrid market, last year with its Prius line alone posting 236,659 in sales. That’s a whole lot of batteries needing a whole lot of graphite.
There are 20-30 kgs of graphite in the average hybrid electric vehicle and 25-50 kgs in an all-electric vehicle. To meet President Obama’s target of one million electric cars on America’s roads by 2015 will require a whole lot of graphite!
And, let’s not forget that, in addition to the automotive industry, the batteries being used to provide storage from renewable energy sources such as wind and solar are also heavily dependent on graphite. As much as 300 kg (kilograms) of graphite is needed for every 1 MWh (megawatt hour) produced.
Where is all that graphite for all those batteries going to come from if not from China?
I believe Western Graphic is about to step to the plate! But wait. There’s more to this story than just batteries.
Graphite is also key to China’s electrical needs!
China is suffocating under a giant cloud of coal-related air pollution. It has no realistic solution but to turn to clean, low-cost nuclear generated power.
China has built and is currently testing a 210MW fourth-generation nuclear reactor using high-temperature, gas-cooled Pebble Bed Technology, the very latest and safest design.
In a Pebble Bed Nuclear Reactor, the uranium fuel is imbedded in graphite balls the size of tennis balls. These tennis ball-sized pebbles are made of pyrolytic graphite (which acts as the moderator), and they contain thousands of micro fuel particles called TRISO particles.
Graphite enables PBMRs to operate at higher temperatures than previous designs, which makes more efficient use of fuel and enables them to directly heat fluids for low pressure gas turbines.
China has firm plans to build 30 PBMRs by 2020 with capacity of up to 300 gigawatts.
Researchers at West Virginia University estimate that something like 500 new 100 GW pebble reactors will be installed in the U.S. by 2020.
Sounds great. But, here’s the thing, these Pebble Bed Reactors require huge amounts of graphite to build and run.
The US alone will require an estimated 400,000 tonnes of graphite! That alone is equal to the world’s current annual production of flake graphite without taking into account PBMR demand from China and the rest of the world. Not to mention the exploding demand worldwide due to applications such as Lithium-ion batteries for cars, smart phones and the all the rest of it!.
You can profit from the big squeeze that’s coming!
China currently has a 70-80% monopoly on the irreplaceable, high-grade carbon graphite the U.S. defense industry absolutely must have to keep making missile guidance systems. . .drones. . .smart bombs. . . orbiting surveillance equipment and a host of other high-tech weapons and communications.
What’s more, without out these critical materials, America’s electronics industry could no longer manufacture iPhones. . . iPads. . . iPods. . . MacBooks. . . PcC. . .HD-TVs. . . GPSs or most of today’s hot electronics.
China has already instituted an export licensing system and imposed an export duty in order to ensure an adequate supply of graphite to its domestic economy As a result of increasing regulation in China and a shortage of raw material, graphite prices have almost tripled since 2005.
The United States and Europe have both listed graphite as a supply critical material and its price and availability will continue to play an important role in the global mineral market for years to come.
The USGS provides an excellent overview
of the current Graphite market:
The U.S. has no current production, and is entirely dependent on imports. China, Canada, Mexico, Brazil and Madagascar account for 98% of the total tonnage produced. While China produces an estimated 80% of the world's graphite, it only exports 40% of production due to its own internal domestic consumption. In addition, China currently imposes a 20% export duty and a 17% value-added tax on graphite, and an export permit is required.
As graphite demand and prices continue to surge, prices for a range of grades have continued to rise since the start of the year as supplies from China, the world's biggest graphite producer, have dwindled. All graphite mines from the main mining area in Hunan province in China have been closed for extended periods, constraining supply. The Hunan province, usually producing 200,000 tpa or more amorphous graphite a year, has been very strictly controlled since September 2010.
Here’s where all that needed graphite could come from! And why Western Graphite Stock (WSGP) could explode by 400%:
Western Graphite Inc., is a publicly traded graphite company in the United States that is focused on acquiring graphite rich properties around the world. The company has acquired two strategic properties which will allow the company to produce high quality graphite after its aggressive exploration program has been successfully deployed.
- Western Graphite 100% owned flagship Pure Flake Graphite property is located in Canada and is comprised of over 2400 hectares of land that is situated next door to one of the only few producing graphite properties in North America.
- Its second project named the “Amorf Graphite Property” in South Turkey comprises over 496 hectares.
Western Graphite aims to rapidly advance its projects into production to capture favorable graphite market conditions.
Pure Flake Graphite Property
The Pure Flake mining property owned by Western Graphite Inc. is comprised of five contiguous mineral tenures covering approximately 2,464 hectares located in the Omineca mining division in the province of British Columbia, Canada.
Western Graphite’s easterly claim boundary is directly west of the Black Crystal graphite quarry, the only natural flake graphite mine in British Columbia operated by private corporation Eagle Graphite Corp.. The claims are accessible by forestry roads, and a high-tension power line passes approximately five kilometers southwest of the property.
The company is planning a summer mapping and sampling program followed by a drill target selection program for this field season.
Western Graphite was smart to jump on an emerging graphite camp with current production in close proximity to its project area. Its neighbor, Eagle Graphite, is one of only two natural flake graphite mines operating in North America.
Western Graphite’s neighbor, Eagle Graphite, produces high carbon natural flake graphite with a purity level ranging from 93%-99%. Flake size ranges from 75 to 400 microns with naturally low sulfur, iron and copper content.
Amorf Graphite Property
The Amorf Graphite property owned by Western Graphite which is located in south Turkey comprises 495 hectares.
Within the area of license are what geologists refer to as the Lower Cambrian Kurtbeleni Formation, the Middle Cambrian Karagedik Formation and the Upper Cambrian-Ordovician Paval formation.
The Lower Cambrian aged unit that is composed of light colored quartzite and quartz schist is named the Kurtbeleni Formation. Quartzites that are located on the bottom of the Kurtbeleni Formation are mid-density and stratified with white, reddish brown and dun colors. The quartzite stratifications are quite consistent and contain occasional bands of thin quartz schist. The size of the well-developed and rounded quartz grains is approximately 0.4 – 0.5 mm.
A sharp edged, broken, articulated quartzite, whose cracks are filled with calcite, dominates the rough topography on the upper side.
Type cross-section reveals approximate thickness of 150 – 300 m.
The overall color of the unit, thick stratification, and the development of well rounded homogenous quartz pieces may be interpreted as sedimentation in shallow shore environment under wave impact. The bands of quartz schist correspond to periods of low activity when clays were not washed out.
What does all that technical jargon mean? To a geologist, it’s all indicative of vast amounts of graphite!
And it’s no coincidence that man who is at the helm of Western Graphite is a metallurgist.
Mr. Steven Kucuk, President, C.E.O. Director
Mr. Kucuk is a mining and graphite specialist with 32 years with the German firm, Deutsche Rohstoff AG before becoming involved in Canadian and Turkish graphite properties.
Fluent, in German, English and Turkish, Mr. Kucuk was employed by and authorized to act on behalf of Deutsche Rohstoff AG of Heidelberg, Germany mainly to identify worldwide mining interests of chrome, manganese and other ores and concentrates.
Mr. Kucuk received his education in Montabaur City, Germany at Metal Technical University. His interest in graphite arose when he began to realize the critical role of graphite as the miracle material of the future. Now that he has brought two of his prize properties to Western Graphite he will be heading up the mining operations with the company’s team at the Pure Flake Graphite property in Canada and the Amorf Graphite property to ensure that both mines can be put into production as soon as possible.
Lauren Notar, Vice President, Director
Ms. Notar has worked in the investment community as an investment advisor for over a decade with BMO Nesbitt Burns and Canaccord Capital Corporation which was Canada's largest independent investment firm before going public.
Subsequent to that, she became an advisor to small and medium sized enterprises. During her time as an advisor, Ms. Notar assisted these micro-to-small-cap companies in developing sales, marketing and fundraising strategies. Ms. Notar resides in Canada where she will spend all her efforts in getting the company’s Pure Flake Graphite mine into production along with her Western Graphite team members.
With more than 10 years’ experience in the investment industry , Ms. Notar is very versed in raising the capital needed to continue the company's growth and many of her existing investment bank contacts have proven to be major assets.
Mr. Osmond Gulyurt, Head of Mining Operations
Mr. Gulyurt has a very long and impressive resume, has vast experience in mining, and is recognized as one of the leading engineers in his field.
He received his education at some of the most prestigious schools in the world, and has worked for various mining companies, including Bohemia copper mine which he put into production, as well as ADO Mining where he was business development and consulting manager. In addition he also worked for Anadolu Mining where he was a production manager and also at EMT Mining and Energy Company as a general manager.
Mr. Gulyurt will be applying his geotechnical engineering expertise to develop the company’s Pure Flake Graphite property and Amorf property into world class producing mines. His main areas of expertise will include:
- Securing all Mining Licenses
- Law Process Mining License
- Organize Mining Team and Operation
- Advance Preparation Work in Mining Area
- Preparing Concentrate Material for Plant
- Developing Export and Transport Documents in Ports of Turkey
Mr. Andrew Suozer, Manager of Operations
Mr. Suozer is an American-educated mining specialist and has also joined the team as a specialist in putting mines into production and the process required to get the raw ore to port and ready for export . Mr. Suozer will be in charge of managing the daily crew on the Pure Flake Graphite property and ensure that all employees are working diligently while ensuring that all rules and regulations of safe mining practices are followed as instructed by the Canadian and Turkish Govt. Mr. Suozer is very familiar with both Canadian and Turkish mining laws and will implement the best strategy to put the company’s mines into production.
So, you can see why I believe Western Graphite is in good hands, as regard to both the mining and operations end of things as well as the all-important financial end.
There is just no doubt in my mind that the high-tech graphite-dependent industrial world is on the verge of a cataclysmic shortage of indispensable graphite as China’s supplies disappear.
The only question I have is when will Wall Street realize what’s coming and start wondering where else the world is going to get all that graphite?
When that happens, I’m convinced that any analysts worth their salt is going to spot WSGP and that the stock will explode in value.
Remember what happened to all those rare earth stocks back in 2009, when that sector was in exactly the same situation as graphite is now.
I’m looking for this now-under-$2 stock to trade at $6 before the end of this year and to hit $20 or higher by the end of 2014.
Let me wrap up by summarizing:
8 Cogent Reasons to own
Western Graphite Inc.
#1 Triple or quadruple your investment – quite simply, graphite could be poised to repeat the incredible gains run up ( as much as 4,126%) by rare earth stocks back in 2009.
#2 Increasing demand. Over the next five to seven years, the “green initiative” will continue to create huge demand for graphite-dependent lithium- ion batteries, fuel cells and potentially consume more graphite than all current uses combined.
The numbers tell the story.
- The U.S. wants 1m all-electric vehicles on the road by 2015 and an electric-powered car requires ½ lb of graphite. A fuel-cell-powered car requires 10-30lbs of up-graded graphite.
- The new breed of small Pebble Bed nuclear reactors requires 300t of up-graded graphite at start-up and 60-100 t/y on-going. An estimated 530 of these reactors could be built in the next 10 years.
#3 Shrinking Supply. Over 80% of the world’s graphite is produced in China and China is already restricting supply, has an export tax and licensing system , and is controlling and manipulating the price.
#4 A supply critical mineral as designated by both EU and USGS.
#5 Need is about to stimulate North American development. The U.S. is vulnerable to graphite shortages. For economic and reasons of homeland security, this reliance must be broken.
#6 The sector is in its infancy. In the last twenty years, numerous factors have retarded the development of the graphite sector – boom and bust cycles, price dumping, and market manipulation. The current situation changes all that with graphite more important in a high-tech and green economy.
#7 The discovery of graphene. Hailed as the “new silicon”, graphene will change the way we live and work in the future. Graphene research and development requires laboratory-grade graphite, which FMS can produce.
#8 Western Graphite is positioned perfectly. It has the backing and expertise behind it to be successful. Key management personnel have launched and run successful publicly traded enterprises. The company has a significant strategic partnership in the government of Turkey. Its property is in a mining friendly environment. And, most interestingly, neodymium and copper and limestone are a bonus; the company will be successful on graphite alone.
I do hope I’ve convinced you to take a hard look at Western Graphite (WSGP) and that you’ll add shares to your portfolio before the Chinese slam the door on exports and the stock takes off. At under $2 a share, I’m looking for a 300% pop to $6 by the end of this year and as high as $20 by the end of 2014!
Of course, I’m also hoping that you’re impressed enough with the information in this report that you’ll want to continue to profit from our diverse ideas and future great finds like Western Graphite.
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