Report

Commencing Production Next Month / Trump Win May Propel Graphite Stocks

South Star Battery Metals Corp. (TSXV: STS / OTCQB: STSBF) is set to commence production next month at its Santa Cruz graphite project in Brazil, aiming for an annual output of 12,000 tonnes of flake graphite. The company has made significant strides since April 2023, including securing permits, entering sales agreements, and receiving funding from Sprott Resource Streaming and Royalty Corp. for its three-phase development plan.

Additionally, their BamaStar project in Alabama has shown promising results with high-grade graphite intercepts and metallurgical tests yielding up to 99.5% Cg. A Preliminary Economic Assessment (PEA) is expected soon, with a feasibility study planned for Q4 2024, partially funded by the U.S. Department of Defense.

Despite a 20% YoY drop in graphite prices due to slower EV sales and increased supply, long-term demand is expected to rise, with the U.S. seeking to reduce reliance on Chinese graphite imports. Upcoming catalysts include the start of commercial production at Santa Cruz, a resource update, and the PEA on BamaStar. A potential Trump win could increase trade tensions with China, potentially boosting graphite stocks.
Underlying
South Star Mining Corp.

Provider
Fundamental Research
Fundamental Research

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Analysts
Sid Rajeev

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