Graphite One Resistance LevelsGPH has been consistent with trading towards support/resistance levels. Nothing fancy here, just looking for breakouts from these levels. Hard to say where the bottom is, looking for a higher low.
GPH trade ideas
Self sufficiency for US makes Graphite One a good long term buy.Full disclosure, I'm long on this one and will probably hodl for 5 years or so. Below are my thoughts, do what you want.
One can read this year's USGS publication on critical minerals (been out for a while); graphite is listed as one of those. While Alabama's graphite is on the road system I hear from people who read more than me that the Alaskan stockpile is significantly better quality; fuller discloser, I live about 70 miles from the Alaskan deposit. While the POTUS continually escalates tensions with China and as more and more products use graphite, we're going to need a domestic source. As far as ownership and permitting go, I understand that the graphite is on privately owned land (obviously shareholders) which extends north from the mountains to the Imuruk Basin which can carry ore barges; this being said there are other concerns as listed below
Alaska Native's concerns about their way of life and environmental degradation. These concerns went away for the red dog mine once they started employing hundreds of people from the surrounding villages and I see no reason why that won't happen again here. I believe the Pebble mine will open also and people will see the career-long jobs created (with excellent pay in my opinion) in a place where there are almost no employment opportunities. I'm not saying the concerns about the environment aren't real; they should be taken seriously but not enough people care when they're making money and the prospect of well paying work will win over environmental protection.
Insufficient demand. Investing here is basically banking on the deterioration of relations with graphite exporting countries as well as technological innovation. Japan and the US are the largest importers of graphite by a huge margin (Thank you MIT grad students atlas.media.mit.edu) and the largest exporter is a country that has historical enmity with Japan and is the target of a US initiated pissing match over trade. Concurrently, Moore's Law is still in effect (kinda) and high quality graphite can/is contributing to that (lookup graphene CPU); also emerging green technologies utilize graphite. Demand for domestic graphite will probably exist in the not too distant future.
Investment. This is a big hurdle. No one wants to be associated with a mine as the public considers mining dirty. This company is going to need a big fish investor or a lot of retail investors to get behind this project in order to succeed or (more likely) make the company attractive enough for a larger mining company to buy up. This situation could also be aided with one tweet from the POTUS (I think most people lowkey wish Trump would positively tweet about a stock they own).
