Shares of Armadale Capital PLC (LON: ACP) surged 12.8% despite the graphite mining company not making any significant announcements today.
It appears the company is benefitting from the recent rally in graphite companies such as Tirupati Graphite, which we covered recently and many others.
Investors have recently taken a keen interest in graphite mining companies since graphite is the single most significant component of lithium-ion batteries used in most electronic devices.
Armadale Capital is an investment company focused on resource projects in Africa, with its primary asset being the Mahenge Graphite Project in Tanzania.
Demand for battery metals such as graphite has recently skyrocketed with the massive shift towards electric vehicles as most carmakers expand their fleet of electric vehicles.
Armadale recently unveiled a revised mine plat for the Mahenge Project, which doubles the initial production output to a maximum of 500,000 tonnes each year.
Graphite is also used within the global steel industry, where it is used as a liner for the ladles and crucibles in conjunction with the heat resistant fire brick used in blast furnaces. The element is also used to increase the carbon content of the manufactured steel.
The company is set to profit from the current and project high demand for graphite within the sustainable energy sector. The World Bank estimates that annual graphite demand will hit 4.5 million tonnes by 2050, a 500% jump from 2018 figures.
Armadale Capital share price.
Armadale Capital shares rallied 12.76% to trade at 4.905p, rising from Wednesday’s closing price of 4.35p.