EcoGraf (ASX:EGR) shares up 72% in a week

EcoGraf ASX shares are one of the few listed Australian miners focused on graphite, the material for lithium battery anodes.

| More on:
Hands grabbing for high rung on a ladder pointing to the sky

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We have seen a surge in companies positioning themselves for the rise of the lithium battery industry. For example, lithium mining company Galaxy Resources Limited (ASX: GXY) has seen a 56.5% rise in share price in year to date trading. Other metals required for cathodes include manganese, mined by South32 Ltd (ASX: S32), also nickel and cobalt, currently being developed by Ardea Resources Ltd (ASX: ARL). Nevertheless, one of the few listed Australian miners focused on graphite, the anode material is Ecograf Ltd (ASX: EGR). 

What is moving EcoGraf ASX shares?

In the past week, EcoGraf ASX shares rose by 72.414%. The company has two bases of operation. First, in Tanzania it is developing The Epanko Graphite Project. This is a long life, highly profitable graphite project. It is forecast to produce 60,000 tonnes / yr of natural flake graphite products.

Second, the company is developing a processing plant in Kwinana, Western Australia. This will to produce spherical graphite using a new eco-friendly process to sell directly to lithium-ion battery manufacturers. The plant will draw both from recycled battery materials as well as graphite flak products from the Americas, Asia and Australia. 

Over the past 6 months it has had a succession of very promising and positive releases. For example, it recently reported solid results from its proprietary purification process to recover high purity battery anode material from lithium-ion battery materials. Furthermore, it has also provided electrochemical analysis supporting the claim that battery products uniquely positioned as a superior and cost competitive material for battery anodes.

EcoGraf has already had a lot of positive support from the West Australian government. The company believes that it can deliver a plant in Kwinana within 11 months of a final investment decision.   

Foolish Takeaway

EcoGraf ASX shares currently value the company at $54.6 million. It appears to have a pathway top funding in Tanzania as well as  in Kwinana. The management team includes several resources professionals with a solid track record of bringing in large scale developments. 

With no funding secured, the company remains a speculative play. However, EcoGraf has an experienced leadership team, and is starting its development stage. I think this could be a great growth story in the battery business over the next few years. 

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Coronado, DroneShield, Lovisa, and Mayne Pharma shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Betr, Evolution, NIB, and West African Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Three friends leaping in the air in joy with a dog on the ground.
Share Gainers

Can May's top 3 performing ASX 50 stocks repeat in June?

These three blue chip stocks led the pack in the month of May. Do brokers think they can back it…

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in June

The broker is feeling bullish on these names this month. Let's find out why.

Read more »

Woman relaxing and using her Apple device
Share Market News

Is the ASX 200 stock owner of 'Australia's most trusted brand' in your portfolio?

New research shows which companies Aussies trust the most 

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Bell Potter says this ASX 200 share can rise 25%

Let's see what the broker is saying about this stock.

Read more »