NextSource signs offtake with thyssenkrupp, stock jumps
(Kitco News) - Madagascar graphite miner, NextSource Materials (TSX: NEXT), said Tuesday it signed a 10-year agreement with thyssenkrupp Materials Trading to deliver approximately 35,000 tonnes per annum of graphite concentrate from the company's Molo mine in Madagascar.
Investors liked the news. Today the stock jumped over 800% to C$3.20 a share.
Per the terms of the agreement with thyssenkrupp, NextSource said graphite will be for the refractory and expandable graphite (graphite foil) markets to be sold in Europe, the United Kingdom, North America, Mexico, China and South Korea.
"As Phase 1 initial production of the Molo mine in Madagascar will be approximately 17,000, the requested offtake sales volumes by thyssenkrupp will be phased," writes NextSource in a news release.
NextSource touts its production of SuperFlake, graphite that "...meets or exceeds quality requirements for all major end-markets for natural flake graphite.
The company said the products major end-markets are refractories, anode material for lithium-ion batteries, specialty graphite foils used as essential components in the chemical, aeronautical and fire-retardant industries, and graphene in high-end ink and substrate applications.
NextSource is based in Toronto.