First Graphite surges after announcing strategic purchase agreement
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Shares in First Graphite rallied 17% in the first 30 minutes of trading after the company announced a strategic vein graphite purchase agreement.
It should be noted that historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
First Graphite (ASX:FGR), an emerging producer of premium grade vein graphite from its projects in Sri Lanka, has negotiated an important two-year binding agreement with government owned Kahatagaha Graphite Lanka Limited (KGLL).
Under the agreement, strategic supply will underpin First Graphite’s low-cost graphene production initiatives and allow for accelerated graphene production capacity.
Commenting on this development, Managing Director Craig McGuckin said, “First Graphite is very pleased to be associated with KGLL in a long-term supply agreement given that the group is an established supplier of high grade Sri Lankan graphite”.
The term of the agreement which specifies the quantity, quality and pricing of the material to be purchased provides a significant degree of certainty around the company’s operational and financial position in the near to medium-term.
McGuckin believes this development is an endorsement of First Graphite’s merits, considering it has been chosen as an exclusive partner at a time when other parties have been unable to secure similar deals.
From an operational perspective the agreement involves working with the government owned mine to provide assistance for value adding downstream opportunities for KGGL’s graphite.
In a statement that should be well received by investors, McGuckin said that the company is confident that saleable production from its mines will soon be available with production volumes improving throughout 2017.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.