Any major player in the energy sector must have seen what has been happening to the share prices of Global Li-Ion Graphite Corp (OTCMKTS:GBBGF).
In case you missed it, let us debrief you.
The company’s share price has spiked from a price just shy of $0.2 in August to a current price of $0.7, a 250% increase in less than two months: the definition of a true jump. That’s shockingly isn’t all. The volume of shares traded are in their hundreds of thousands, astronomical figures for a company whose volumes were at a near zero up until mid-October.
The chart below exemplifies the above:
Something must be going right for the company.
This piece will seek to audit what seems to be going right for them and explain it to readers in a bid to enable better decision making for them. Moreover, their history and future prospects will be brought to light and assessed.
With the above in mind, let us have a look at the company’s background and bring us all up to speed with who we are assessing.
Who are GBBGF?
Global Li-Ion Graphite is an exploration and development company focused on the acquisition and development of Graphite projects with an intent to supply the rapidly growing energy storage industry. With each Lithium-Ion(Li-Ion) Battery requiring Graphite, Lithium, Cobalt and nickel, the company views itself as strategically positioned and poised for dominance within an ever-growing industry.
Global Li-Ion Graphite is actively evaluating additional projects for acquisition to build a world class graphite supply company.
The company’s Chedic graphite project near Carson City Nevada is only a few miles from Tesla’s newly built and commissioned Giga Factory, an entity which GBBGF has established as a close ally in the long run given the demand they are expected to satisfy into the future within the United States.
With the above backdrop, the company has been leveraging on its strengths to build a brand and partner with other players within its space. The key developments which will be discussed below are thus in line with this.
Growth and Alignment
Earlier in October, the company released some information on one of the facilities they own: Ambato-Arana Graphite Project in Madagascar.
The company owns mining licenses for operations within this country. The three mining exploitation licenses that comprise the Project are located in the vicinity of Andasibe in Toamasina Province in Madagascar, near the major Ambatovy nickel/cobalt laterite open pit project which is about 20 km to the southwest.
According to the company, the licenses total 4,375 hectares (10,811 acres).The production has been free digging of lateritic ore and open pit mining access on hills, providing low cost exploitation without need for blasting.
Recent samples from the sites showed that the rocks within the area had as high as 10.09% of carbon, information that was welcome by the management as it provided a go-ahead for them to continue to more advanced stages of exploration into the future.
However, this is not all that drove the share prices soaring.
GBBGF further went to acquire 16% of BEGO and 49% of BEGO Energy Storage. BEGO is a Hong Kong incorporated private company, which was formed to commercialize a new and innovative way to produce low cost, high value graphene oxide and graphene from Graphite. Their priority is to become a low cost high value vendor of engineered graphene materials, one of which is dedicated to advancing the next generation graphene based electrode for energy storage.
This acquisition places GBBGF at a pivotal position to harness the technology that BEGO has to come up with more advanced technological solutions which would attract a premium when sold to the market. This therefore was a great strategic decision that will have amazing impact on the ability of GBBGF to produce high quality output at a low cost thus outshining the competition at every turn.
The company, courtesy of making no revenues, stood at a loss position over the first quarter of 2017. Unlike a similar period last year, 1Q2016 where they made $254,021 in profits, they made a net loss of nearly $250,000 this year. This profit could, however, be attributed to a $280,000 net gain on investments which was absent this year while the loss was driven by the increase in consultancy attributable to their ventures in Mozambique.
Despite this, the company still managed to conduct a placement exercise where they raised $529,500 while in the midst of this financials. This speaks to the market’s view on the company’s growth prospects which shines positive light for GBBGF.
Amidst all, the company is making strides geared towards growth. As such, their eventual success is imminent and will make a lot of investors gain a lot in future.
GBBGF, the soon to be holy grail of the energy stocks, is positioning itself for growth in addition to aligning itself with companies such as Tesla which have a ready market base and strong demand. They have a clear strategy and upon its execution will have nothing stopping the rise in prices.
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Disclosure: We have no position in GBBGF and have not been compensated for this article.