"What are the Implications for Metals and Mining Stocks? Okay....

"What are the Implications for Metals and Mining Stocks?

Okay. So graphene is the new wonder material. There are windows of opportunity for mining companies to get involved, if they have the right geology. It seems that the graphite needs to be crystalline, high grade and with minimum impurities – if you want to be at the bottom end of the cost curve. Run-of-the-mill graphite, such as those found in Mozambique and elsewhere, needs to go through a much more expensive process.

But what are the implications for the rest of the mining sector? That is where you need to focus for a minute. Consider that if you add graphene to steel, to aluminium or to copper you greatly improve their performance. You could reduce the amount of steel you need by 50% to achieve the same structural strength. This means you don’t need as much iron ore. If you can add graphene to concrete and increase the tensile strength by 40% or more – and tests are confirming this – you won’t need Rebar in the concrete. Demand for steel will decline.

If you can add a little graphene to copper you may find that electric motors can use 80% less copper, offering great savings in the weight of electric cars.

Graphene promises to be very disruptive to the metals business. Greater efficiencies will lead to at best moderated growth in demand, and at worst, demand could fall away significantly. Think about who will be the winners and losers. Run your “what if” scenarios to consider the possibilities."

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I think Gigor is right over the Target !!!
What do you think?


Kind Regards