Topic: How To Invest

Hi Pat: Could you please give me your opinion of Northern Graphite Corp.? I keep hearing that the demand for graphite is increasing.

Article Excerpt

Northern Graphite Corp., $1.03, symbol NGC on Toronto (Shares outstanding: 30.9 million; Market cap: $31.9 million; www.northerngraphite.com), has been exploring for graphite on its wholly owned Bissett Creek graphite property near Mattawa, Ontario, since 2002. The company changed its name from Industrial Minerals Canada Inc. on March 1, 2011. Its parent company, Industrial Minerals Inc., based in Delaware, owns 31.5% of Northern Graphite. Northern Graphite first sold shares to the public in April 2011, when it raised $4 million by issuing 8 million common shares at $0.50 each. The company subsequently listed on the Toronto exchange. Northern Graphite believes that its deposit contains large crystal graphite flakes, which command a premium market price. However, it must keep drilling to further define the deposit. It also needs to conduct a prefeasibility study. In the steel industry, graphite is mainly used to strengthen the bricks that line furnaces. It is also added to steel to increase carbon content and add strength. In…