Blackearth Minerals Share Price Soars 160% on Supply Agreement

It’s no secret that commodities have been on fire lately — led by huge gains from the lithium sector.

However, it certainly isn’t the only mineral that can benefit from the ongoing battery boom. With plenty of other key metals required to power electric cars in particular.

Which is precisely why we’re seeing other, more niche miners — like Blackearth Minerals NL [ASX:BEM] — come to the fore. With the BEM share price of this tiny miner up over 160% at time of writing!

Surging on the back of their new supply deal for another key battery material: graphite.

Demand all the way up the supply chain

As Blackearth announced today, they’ve signed a landmark supply and marketing deal with Luxcarbon. A German based company that is one of the world’s largest procurers of graphite.

Luxcarbon is renowned for selling its graphite and carbon products to prominent carmakers. Including the likes of Volkswagen, Mercedes-Benz, and Ford. As well as a range of other, more varied customers.

Point is, they’re a major player in the rapidly expanding EV and alternative energy markets.

So, for Blackearth and their shareholders, this deal is a huge win. Making them a key part of this evolving supply chain. Agreeing to deliver up to 25,000 tonnes of graphite per annum.

A deal that should yield plenty of commercial upside for both parties. As Blackearth’s managing director Tom Revy comments:

The Board are delighted to sign this Agreement with Luxcarbon, a leader in the graphite supply and marketing of graphite concentrate and downstream products throughout                      Europe.

…Luxcarbon are leaders in the supply and understanding of downstream graphite products and this will assist us greatly. Members of the Luxcarbon team and BlackEarth Director, David Round, have previously worked extensively together in developing sales and market networks for the supply of substantial quantities of graphite and we are very confident this relationship will ensure similar, positive commercial outcomes for our companies.

What’s next for Blackearth?

With this deal now done and dusted, the focus for Blackearth turns to their operations.

Both of their prospective sites (located in Madagascar and Australia) are yet to be finalised. With ongoing studies still evaluating the final potential of these mines before committing to any kind of pilot facility or otherwise.

For that reason, today’s agreement is somewhat reliant on Blackearth getting these sites up and running. With a slight caveat surrounding an established production site via a joint venture.

Nevertheless, both the Madagascan and Australian sites are the focus. Both of which will likely be key in securing the production levels that both Blackearth and Luxcarbon are aspiring towards.

For that reason, shareholders may need to be a little patient. At least for any that are hoping to wait for the company to actually break ground.

Because of this, any interested investors should definitely not limit themselves to just this one stock. There are plenty of up-and-coming miners/producers that are thriving right now. Many of which are delivering astonishing returns thanks to the massive disruption we’re seeing right now.

For more details, including three stock examples, check out our renewable energy report.

You can get a copy for yourself, right here.


Ryan Clarkson-Ledward,
For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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