USA Graphite Inc. (OTCQB: USGT) started the month of December in pretty rough shape with shares trading as low as 0.3100 during the first week but the exploration company focused on the acquisition, exploration and development of world-class graphite properties in North America has had an impressive run over the past several weeks and on Friday they hit a 52-week high of 0.8490 before closing the day at 0.7600. Along with the climb in share price there has been a climb in volume for USGT with more than 3.2 million shares moving hands last Friday, well above Monday’s volume of 766,000.

While USGT certainly bounced on Friday there was little in the way of news that could be seen as a real trigger for the spurt. In fact, USGT simply stated in a press release that their “search for additional large tonnage high carbon content properties is proving to be very successful.” That statement doesn’t really give investors a very clear picture as to what’s happening with the company.

Now USGT says they intend to become a domestic (US) graphite supplier and in their press releases they like to point out the many uses and benefits of graphite; among them “Graphite is used in refractories — used to line high-temperature equipment; pencils; lithium-ion batteries — used in consumer electronics and electric vehicles, including the Nissan Leaf, Tesla Model S and others; fuel cells; and Pebble Bed nuclear reactors. It is used in foundries, lubricants and brake linings.”

“Graphite is also used to produce graphene, a tightly packed single layer of carbon atoms that can be used to make inexpensive solar panels, powerful transistors, and even a wafer-thin tablet that could be the next-generation iPad* or iPod*.” Of course this grapheme is supposed to “the world’s next wonder material.”

The opportunity for USGT presents itself in the fact that “The closure of graphite mines in China, which produces 75% of the world’s graphite, has resulted in a fall in global graphite production to 1.3 million tonnes per annum in 2011.” The only real problem for USGT is that they haven’t exactly produced any meaningful levels of graphite that would suggest they are capable of replacing the lost Chinese production.

Unfortunately there is very little in the way of information presented by USGT that would suggest the company is ready to really make a mark in the exploration and development of world-class graphite properties. Looking at their last filing for the period ended August 31, 2012 the company had $3 in cash and total assets that amounted to $2003. The only thing that has kept their operating losses in check has been a lack of operating activity.

With the lack of cash it should be interesting to see how USGT follows through with their fieldwork exploration plans they announced for their flagship graphite project for Q1 2013. In that announcement made on December 21, 2012 the company stated their intention to “conduct both a bulk sampling program and detailed mapping study over the entire extent of the graphitic hornfels units at its flagship Blue Wing Mountains graphite project in the first quarter of 2013. The Company believes that metamorphism has not altered the geologic structure of the original sedimentary beds, resulting in major chiastolite occurrences in black, graphite-rich politic pyroxene hornfels. The sampling program and mapping study will further define the scope and size of the tonnage of high quality graphite present at the Blue Wing Mountains graphite project.”

As it stands there are plenty of questions surrounding the future of USGT and the company really hasn’t been in the business of mining or exploring for graphite for very long. With no money USGT will have to rely on selling securities to raise cash and they will have to acquire properties by dealing shares as well; in both cases this will dilute shareholder value.

The run north for USGT may be short lived unless they can deliver some news that includes revenues and not simply intentions or plans for their future operation.