The world’s largest companies are racing to secure supplies of one vital mineral resource called “Black Gold.”
Alex Reid thinks it could be the biggest investment opportunity of the next five years and at the center of it is one tiny graphite stock, currently trading for less than $1 per share.
The reason graphite is called “Black Gold” is because of three unique chemical properties that make it irreplaceable to our energy future.
Alex Reid is what our grandparents would call “green” to the investment newsletter space, having only launched Wealthpin last year. But he’s been busy since then, making a number of recommendations, including a “Future Fuel” teaser that we reviewed here. I also just covered a closely related teaser dubbed “iFuel” Hydrogen Stocks for 100x Gains by Eric Fry.
Back to the teaser, the three things graphite does really well are:
- Conduct heat
- Conduct electricity
- Be extremely energy dense
Just think about this, if there weren’t multiple layers of graphite surrounding your cell phone’s battery, it would burn your hand every time you held it.
Now scale this up about 20x because the battery pack on a Tesla Model S is packed with 7,104 individual lithium-ion batteries. Those 1,200 pounds worth of batteries generate a tremendous amount of heat that would scorch your…behind if you sat down in a Tesla without graphite blanketing the battery.
Graphite Powers the Future
Given the molecular structure of graphite, which is a honeycomb-like energy sponge that soaks up electrons by the truckload.
The carbon element is absolutely essential to the functioning of rechargeable batteries, which are found in just about everything nowadays.
Thus, it isn’t far-fetched to say that phones, tablets, electric vehicles, and the rapidly growing renewable energy market wouldn’t be possible without graphite.
To show us exactly what he means, Alex has put together a special report called Tap into the “Black Gold” Rush for Massive Profits. Not very original, I know.
The Factors Behind the Graphite Perfect Storm
Aside from graphite’s chemical qualities that are essential, there are several other catalysts making it indispensable.
According to the World Bank, 4.5 million metric tons of graphite will be required every year for the “green energy transition.” That’s more than triple the amount being produced today
Because of the increasing demand for graphite from all over the world, and the fact that high-quality graphite is scarce as I just outlined.
A supply shock is underway that has already started sending the price of graphite higher.
But a huge supply and demand imbalance and surging prices aren’t the only reasons graphite is surging.
A Matter of National Defense
The Defense Production Act of 1950 was recently amended to award graphite the DPA Title III designation.
In short, this means the US government now deems graphite a “critical mineral” that is essential to national defense.
It took such a drastic step because China is currently the world’s largest producer of graphite, controlling a massive 80% of global production. Ever since the 50s, America has been 100% dependent on foreign producers like China whose low labor costs make graphite cheaper to import.
This shortsighted decision was a strategic error and now the US is looking to bring graphite production back home. A major boon for one tiny company sitting on top of the largest known graphite deposit in the country.
Revealing Alex Reid’s “Black Gold” Graphite Stock
Here is what we know about the tiny company Alex says is giving investors the chance to rake in a 25,917% gain.
- This company’s graphite deposit spans over 20,000 acres and is home to over 20 million tons of ore. It is the largest known graphite deposit in the US.
- The US government has recently identified this company’s project as a High Priority Infrastructure Project
The company has a market cap of around $96 million, which is nothing compared to the estimated $24.9 billion worth of graphite it’s sitting on.
- Its CEO has over a decade of experience working on the front lines of the graphite mining industry and has raised in excess of $200 million throughout his career.
Alex is talking about Graphite One Inc. (OTC: GPHOF). How can I be so sure? Let’s take a look at how the clues align perfectly:
- The company’s Graphite Creek resource near Nome, Alaska is the largest graphite deposit in the United States.
- It is designated as a High-Priority Infrastructure Project by the US. government’s Federal Permitting Improvement Steering Committee (FPISC).
- Graphite One’s current market cap sits at just under $130 million. Up about 50% since the start of the year.
- CEO Anthony Huston’s bio says he has “played an integral role in raising in excess of $100 million in his career.”
Real Opportunity to Make 25,917%?
Graphite One is an exciting play for a few reasons.
First, the company is past the initial feasibility and permitting stage, meaning much of the long wait times associated with mining projects is now behind it. A great sign.
Second, in its most recent financial statement from Q4 2022. Graphite One lists its exploration property at a valuation of $48.8 million, with practically no liabilities on the other side of the balance sheet, apart from current accounts payable.
This property valuation should go up as soon as the company ships its first concentrate, something which could come as soon as 2024 if drilling commences this summer. Against this backdrop, the ability to buy a small stake at a valuation of just over $120 million isn’t a bad risk/reward proposition.
Quick Recap & Conclusion
- Alex Reid is teasing a vital mineral resource called “Black Gold” and one small company is at the center of it.
- “Black Gold” is Graphite and the mineral is critical to the production of everything from electronics to electric vehicles…basically anything that requires a rechargeable battery.
- Alex has put together a special report called Tap into the “Black Gold” Rush for Massive Profits, which reveals the name and ticker symbol of his top graphite pick. It is only available to subscribers of the Wealthpin Pro investment research newsletter, which costs only $49.
- Fortunately, if you made it this far, you don’t have to go through the hassle of subscribing, as we were able to reveal Alex’s pick for free as Graphite One Inc. (OTC: GPHOF).
- Graphite One is currently selling at just over double the value of its Graphite Creek mining property alone, with no debt on the books. The risk/reward is in our favor on this one.
Is graphite really “black gold”? Let us know your thoughts in the comment section below.
Two quick things.
1) When you say “if it weren’t for graphite surrounding your cell phone’s battery” you are speaking of properties of a thermal insulator, not a thermal conductor. Certain forms of graphite are anisotropic, so it can have different properties in different orientations; but I don’t believe graphite could be described as great thermal insulator in any orientation.
2) The article is not very critical of the Alex Reid point of view that graphite and graphine are only available as mined commodities; but there is a large industry of turning excess carbon produced in refining of heavy crude oils into industrially useful forms of carbon such as metallurgical coke. This brief at NASA https://ntrs.nasa.gov/citations/19710000042 demonstrates that controlling the transformation of this carbon into graphites with certain desired properties is a technology that is five decades old. It’s hard to imagine throwing too much money into graphite mining if there is a (nearly) cost-competitive alternative.
BTW. Thanks for writing about this, It’s forced me to think about this pitch more critically.
Thank you for the insight, glad you were able to get something out of it.
sometimes perception is reality to an investor. The stock seems to have gained quite a bit since January, so maybe the perception and not the reality will make this stock continue to rise. I have put it on my watch list. Thanks
NMG is the ticker of what my report said for this graphite play