Northern Graphite (CVE:NGC) Shares Up 39.2% – Time to Buy?

Northern Graphite Co. (CVE:NGC) shares shot up 39.2% on Wednesday . The company traded as high as C$0.36 and last traded at C$0.36. 1,996,280 shares were traded during trading, an increase of 182% from the average session volume of 707,005 shares. The stock had previously closed at C$0.26.

Northern Graphite News Roundup

Here are the key news stories impacting Northern Graphite this week:

• Positive Sentiment: Term sheet with Al Obeikan for a US$200M battery anode-material plant — signals potential project funding, a large-scale buildout in Saudi Arabia and strategic access to GCC markets; this is the primary catalyst driving buying interest. Northern Graphite and Al Obeikan Group for Investment Company Sign Term Sheet
• Neutral Sentiment: Term sheet is an important milestone but typically non‑binding — the project still needs definitive agreements, permitting, engineering, and offtake/operational contracts before revenue is realized.
• Negative Sentiment: Execution and financial risks remain — Northern Graphite has thin current liquidity (current ratio ~0.35), a high debt-to-equity (~318%), and negative earnings, so the deal’s benefits depend on closing financing and on-time execution; delays or higher costs would pressure the stock.

Northern Graphite Trading Up 39.2%

The company has a debt-to-equity ratio of 318.09, a quick ratio of 0.91 and a current ratio of 0.35. The firm has a market cap of C$52.32 million, a P/E ratio of -1.48 and a beta of -0.32. The company has a 50 day moving average of C$0.20 and a 200 day moving average of C$0.16.

Northern Graphite Company Profile

Northern Graphite Corporation engages in the acquisition, exploration, development, and production of graphite and other battery mineral properties in North America. The company holds 100% interests in the Bissett Creek graphite project located in southern Canada, which comprises Ontario mining lease number 109550 covering 565 hectares, and Ontario mining lease number 109335 covering 1,938 hectares; Lac-des-Îles graphite mine in Quebec; and the Mousseau West graphite project located in Quebec. It also has an option to earn up to an 80% interest in the South Okak nickel-copper-cobalt project located southeast of Voisey's Bay, Labrador.