Over the past month, graphite and vanadium company Syrah Resources Ltd (ASX: SYR) has seen its share price soar 34.5%, as excitement over its future prospects rise.
But there could be more to come, with the Australian Financial Review (AFR) reporting that rumours of global commodities house Glencore running the ruler over Syrah has sparked a number of Japanese companies into action.
That could see Syrah sign a number of graphite offtake deals with some large Japanese trading companies in the coming weeks or months. The AFR reports that Marubeni, Mitsui and Sumitomo are expected to enter talks with Syrah in the coming weeks.
The Japanese companies are said to be keen to diversify their dependence away from China for graphite supply, with the country clamping down on polluting miners. Graphite is a key ingredient in the production of lithium-ion batteries, and the Japanese and Korean battery makers have a huge head start, which they want to maintain.
Syrah is developing the giant Balama graphite and vanadium mine in Mozambique in Africa, which is said to contain more resources than the rest of the world's graphite mines combined. The mine is expected to go into production in 2016.
Investors may also want to keep an eye on other graphite miners Lamboo Resources Ltd (ASX: LMB), Triton Minerals Ltd (ASX: TON) and Kibaran Resources Ltd (ASX: KNL).
Lamboo Resources is in the process of merging with privately owned China Scinese Hengda Graphite Co, but could leave the ASX to list on an Asian exchange once the merger has been completed.
Triton Minerals is developing its Balama North project – which is also tipped to be one of the largest in the world, according to Triton managing director Brad Boyle.
Kibaran Resources plans to have a feasibility study completed by mid-2015 on its Epanko deposit located in Tanzania, Africa, as we discussed in this article.
Graphite is the hot new theme at the moment , and it remains to be seen whether the hype will match the returns to investors. Still, investors may want to keep a beady eye on these four stocks.
