Following a challenging period associated with the failed Hengda merger, Hexagon Energy Minerals Ltd (Formerly Hexagon Resources Limited and Lamboo Resources Limited), under new management, has now regrouped and has had success in its refocussed efforts on delineating and bringing into production a high quality graphite resource at its key McIntosh Graphite Project in Western Australia. As part of its development strategy the Company is also looking at value add opportunities, including spherical graphite production. Following a VTEM survey in 2014, the new management took a step back and focussed activities on areas that it felt would deliver a quality resource that would provide the basis for a long term mining operation. The Company has now defined such a resource, with scope for future resource expansions. In addition, drilling results have led to a significant resource to be defined at Geumam in South Korea, with the South Korean projects providing blue sky, however given the focus on McIntosh; the Company is considering strategies in relation to the South Korean assets. Both projects have returned excellent metallurgical results, exhibiting the potential to produce a high quality flake graphite concentrate, suitable for use in the lucrative and growing battery (and expandable) graphite markets, and which should command a premium price. We rate Hexagon as a Speculative Buy, with short to medium term price drivers being material progress on development studies which are now to commence at McIntosh and progressing offtake opportunities. Hexagon Resources (ASX: HXG) is a graphite development company with its flagship project being the McIntosh Graphite Project in the Kimberley region of Western Australia, which it now plans to progress through feasibility. As part of an overall strategy Hexagon is also investigating the potential to produce value added products, including spherical graphite. The three South Korean projects are being progressed in parallel; Hexagon is currently considering development options for these projects. Download the report for more information.