Two graphite stocks are on my radar, one is NGC and the other recently FDR. I have just started doind my own DD on FDR. Consequently I know quite a bit about NGC compared to FDR which is getting interesting. I have invested in other companies, but two stocks in one play area would be more manageable. My criteria include the following:

- Size of the deposit: This is not that crutial, as long as the deposit can last at least for 20 years or so. NGC seems to have a larger deposit, but FDR can potentially increase its resource.

- Location: This is important. Both NGC and FDR are located in stable countries (Canada and Sweden). The deposits are near transportation and power corridors and near to towns/cities that can provide the skilled labour and accommodations for the labour force and their family. NGC Bisset Creek deposit ia closer to large population centres and mining towns compared to FDR Kringel mine in Sweden.

- Ore grade, purity and flake size. As long as grade is high enough, purity is important (has to be higher than 90%, 94% is better, and the higher the better, since higher gardes will fetch much better price. Flake size is extremely important, the large the flakes the better, the jumbo flakes would get top dollars (see company websites for details)

- Flake size: This is singled out since the primary focus (mine) is on the immediate application of high quality graphite to make long-lived batteries for e-cars, power tools and back-up/portable power sources, which would require large or jumbo flakes. There are other applications including the demand for graphite in pebble bed nuclear reactors. But, as indicated I would rather focus on immediate needs, Li-ion batteries. This is a conservative approach: bird in hand is better than the exotic stuff at the end of the rainbow (not patient enough to wait years and years...aiming for good ROI within 3 years, 1 year is better).

- Management, ability to raise money, sahre structure, etc: Both seem to have good management teams. FDR has a processing facility that can be refurbished for about $20 M to start production within a year or so. NGC will need to build a facility, but this is not expensive compared to those for a gold mine, for example. The cost would be of the order $70-80 M which should not be difficult to raise.

I would leave it here for others to jump in with other points of view or additional items to discuss further.

goldhunter (dinner time, has to get off the computer)