Today we will be looking at three of the most innovative graphite and graphene ASX stocks.
If you’ve heard of graphene before, but don’t know much about it, it’s a super-material with a bevy of incredible properties.
A carbon nanostructure, it is a single atom thick and consists of a hexagonal lattice of carbon atoms.
This is what it looks like at the molecular level:
Source: Graphenea Incorporated
And this is what it looks like to the naked eye:
Source: Graphenea Incorporated
It is the strongest, lightest material ever tested, as well as being the best known conductor of electricity.
We’ve previously talked about its ability to revolutionise the lithium-ion battery, but it doesn’t stop here.
It can vastly expand processing power and could even improve the delivery of life-saving drugs.
Graphene comes from graphite (pencils), so as an investor looking to bet on the sector it might be wise to diversify amongst miners of graphite and manufacturers of graphene.
So, without further hype, here are our profiles on three of the most innovative graphite/graphene companies on the ASX (we have more in our free report):
Talga Resources Ltd [ASX:TLG]
This company is exciting for a number of reasons. Perhaps the primary reason is that it is vertically integrated. This means that it is both a miner of graphite and a producer of graphene — so by investing in Talga Resources you get exposure to both the raw material and the finished product.
With mines in Sweden and operations in both Germany and the UK, it is well positioned for the European market.
It also has its own test facility for production and has an impressive array of academics and industry connections.
While it is going through cash relatively quickly (net loss of $5.2 million this past year), this is largely attributable to its investment in the test facility, and as a speculative play, it has a distinct appeal.
Syrah Resources Ltd [ASX:SYR]
While Syrah Resources has been locked in a slide for much of the year, I believe this company still has promise in the years ahead.
With its main asset being a graphite mine in Balama, Mozambique, the mine is currently positioned as the world’s largest producer with more than 100kt of production in its first year.
Recent operational difficulties such as fire damage and equipment interruptions, may have weighed on its share price performance recently, but the demand fundamentals are strong:
Source: Mason Graphite Incorporated
So, if you have a longer investment horizon, Syrah could be an intriguing option.
Eden Innovations Ltd [ASX:EDE]
We’ve covered Eden Innovations a fair bit here before, but it is worth looking into again.
Their share price has reacted favourably in the past to news about its sales in the US market.
The company sells its EdenCrete® concrete admixture which is enriched with carbon nanotubes. This provides significantly improved strength and corrosion resistance — something that is highly desirable in the construction industry.
It has increased sales by 131% over the past year and despite posting a loss of $4.1 million, has made some big strides with trials in the US.
With the potential for a major infrastructure deal to be struck in the US, Eden Innovations could be poised to capitalise and secure major contracts in the country.
While it remains a speculative investment sector, graphite and graphene hold immense potential to transform our lives over the coming decade.
Better batteries, faster computers and improved pharmaceuticals, are all part of the story.
If you want to get our extended look at the graphene/graphite sector, be sure to download our free report, titled ‘Three Stocks to Profit from a Versatile Material: Graphene.’
For Money Morning