Mars_2050
03 Mar 2016
Graphite: IPhones, Tesla,... Graphite: What iPhones, NASCAR and Tesla Have in CommonSource: Special to The Gold Report (2/29/16) Gary Economo Focus Graphite CEO and Director Gary Economo says the tipping point is coming for natural flake mining developers—even during a depressed commodities cycle. This optimistic view is based on the urgent necessity of manufacturers today to source those critical materials and technologies needed to meet globally mandated CleanTech targets in advance of a 2020 deadline. Focus, says Economo, is on strategic trajectory to capitalize on global change with his company's high-purity graphite deposit, Lac Knife in Quebec.Tesla54 kg of graphite is used in an 85kw Tesla S vehicle batteryManagement Q&A: View From the TopThe Gold Report: Focus Graphite Inc. (FMS:TSX.V; FCSMF:OTCQX; FKC:FSE)was an early entrant into the graphite mining development space in 2010. It currently sits near the development stage and has ambitions to move into the highly profitable technology graphite space. What leads you to believe Focus can break out of the commodity doldrums?Gary Economo: Focus has positioned itself perfectly as a future niche supplier of technology graphite. A high purity deposit affords us the advantages of being able to project very competitive operating costs with the potential to further mitigate our manufacturing costs for value-added, highly refined technology graphite.From a management perspective, however, Focus remains the keystone to a global technology business platform with graphene applications developer Grafoid Inc., technology-focused Stria Lithium Inc. (SRA:TSX.V) and Braille Battery Inc.This relationship platform is unique in the world and unique to the junior mining sector. It has enabled us to extend our marketing efforts into those sectors with the greatest potential for growth from demand during the next decade, including China."Focus Graphite has positioned itself perfectly as a future niche supplier of technology graphite."We anticipate continued growth in demand for electronic devices, novel polymer composites used by the automotive and construction material supply industries, and continued growth and expansion of the electric vehicle market. More, the emergence of graphene-based materials makes a compelling case for the restoration of investor confidence in the North American graphite development sector.TGR: Can you provide a specific example of where you see demand causing you to be optimistic about a graphite market turnaround?GE: I can answer that in two parts. First, some recent historical context. At the Paris climate conference in December 2015, 195 countries adopted the first-ever universal, legally binding global climate deal. The agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C. The agreement is due to enter into force in 2020.Goldman Sachs Global Market Research's "The Low Carbon Economy" report says low carbon regulation is coming. Period. Graphite and lithium are the two key critical raw materials destined to feed next generation renewable energy manufacturers' demands for the foreseeable future. But time is short – 50 months—and those transformative technologies required for mass production need to be sourced today. For example, Goldman Sachs predicts sales of grid-connected vehicles—pure electric and plug-in hybrids—will grow from $12 billion in 2015 to $88 billion by 2020 and to $244 billion by 2025.The two key industrial markets we've positioned ourselves to supply into are the automotive and the lithium-ion battery manufacturing sectors. And we see the added impetus from a global emissions mandate as cause for some economic optimism not only for Focus, but also for our industry as a whole. Supplies of technology lithium cannot currently meet demand.The automotive sector is engaged in perpetual R&D. It constantly seeks to lower input costs from ma
Mars_2050
03 Mar 2016
Graphite players Graphite players lay the cards on the tableMarch 2, 2016 Paydirt MagazineGraphite’s supply/demand dynamics may be opaque, its pricing structures may be opaque and future growth projections may be opaque, but one thing is becoming clearer by the month – lithium-ion batteries and the battery storage market are well on their way to solidifying their place in the base-load energy mix of future decades.Graphite is a key component of such batteries. In fact, there is more graphite used in a lithium-ion battery than there is lithium. Lithium is the cathode, graphite then anode. And, as the likes of Tesla, Panasonic and LG ramp up their ambitions for the sector, their demand for graphite supply is only set to increase.However, while lithium stocks on the ASX have catapulted in the last 12 months, their graphite counterparts have flat-lined as investors continue to struggle to come to terms with the vagaries of the sector.For brokers, fund managers and retail investors more used to the traditional tonnes times grade equation, discussions about flake size, purity and product specifications often lead to confusion and disillusionment.It is to counter this confusion that Paydirt has chosen to launch the Australian Graphite Conference, to be hosted in Perth on March 22. The conference will bring together the best of the ASX’s graphite players to share their experiences of the sector and their strategies for development.Without a traditional trading market, companies have been left to source their own off-take agreements and even in this space, investors are struggling to comprehend exactly what it is these companies are proposing to supply.Competing companies are making differing and even conflicting claims regarding what precisely it is that off-take customers are looking for. This is not to suggest companies are being misleading, just that even for those involved in the market the signs are difficult to decipher.China currently dominates all facets of the graphite market from mining to processing into spherical graphite to its eventual application but there are a number of international rivals who are intent on breaking this stranglehold and establishing their own spherical graphite and battery-making plants.The challenge until now for these companies has been securing reliable, affordable supplies of graphite. If the emerging crop of Australian juniors can offer a solution to this problem, widespread adoption of natural graphite may turbo-charge graphite demand.The same reasoning can be applied to other applications. While the lithium-ion battery market provides the most easily identifiable market, other uses for graphite are growing. Expandable graphite has been widely adopted as a fire retardant in high-end electrical goods and now building materials in China. As with batteries, the market has been stunted by supply. Expandable graphite makes use of the larger flake graphite products and while China is still the world’s largest producer of flake graphite, the quality of its production has been in decline for years.Even Chinese end-users are eager to find new sources of supply.Further down the development pipeline, graphene, a derivative of graphite, is the sort of material science fiction ideas are born of.First identified at the University of Manchester in 2003, graphene is a two-dimensional allotrope of carbon and consists of single atomic layers of carbon (around 0.3nm thick) while extending many hundreds of nanometres in the lateral dimension.Graphene’s properties are staggering. It is the thinnest and strongest material ever discovered (breaking strength of 42 Nm-2, 100 times greater than steel). It shows electrical and thermal conductivity greater than copper at a fraction of the weight and absorbs only 2.3% of the light passing through it. These properties are expected to see graphene revolutionise many industries and its potential applications are endless.In just a de
Dorset 53
01 Mar 2016
Re: CEO Thanks, Mars. Back now. Not sure if it's frustrating to see the price fall back down, or whether to up the ante further. You can email me via [email protected] if you'd like to discuss.
Mars_2050
25 Feb 2016
Graphite demand Low-cost EVs to swamp China market, strong demand for lithium and graphite[link] videoElectric vehicles can trigger an oil crash sooner than you think.[link]
Mars_2050
25 Feb 2016
Why we invest in graphite [link]
Mars_2050
25 Feb 2016
Electric car war Electric Car War Sends Lithium Prices Sky HighTue, 23 February 2016 With lithium prices skyrocketing beyond wildest expectations, talk heating up about acquisitions and mergers in this space and a fast-brewing war among electric car rivals, it’s no wonder everyone’s bullish on this golden commodity that promises to become the ‘’new gasoline”.Moreover, land grabs, rising price predictions, and expectations of a major demand spike are leaping out of the shadows of a pending energy revolution and a new technology-driven resource era.For once, we have agreement across the board on a commodity: Demand for lithium will continue to rise throughout the year--and beyond--spurred by the rise of battery mega/gigafactories and a burgeoning energy storage business that will change the way we live.That’s why Goldman Sachs calls lithium the “new gasoline”. It’s also why The Economist calls it “the world’s hottest commodity”, and talks about a “global scramble to secure supplies of lithium by the world’s largest battery producers, and by end-users such as carmakers.”In fact, as the Economist notes, the price of 99%-pure lithium carbonate imported to China more than doubled in the two months to the end of December—putting it at a whopping $13,000 per ton.But what you might not know is that this playing field is fast becoming a battlefield that has huge names such as Apple, Google and start-up Faraday Future throwing down for electric car market share and even reportedly gaming to see who can steal the best engineers.Apple has now come out of the closet with plans for its own electric car by 2019, putting it on a direct collision course with Tesla. And Google, too, is pushing fast into this arena with its self-driving car project through its Alphabet holding company.Then we have the Faraday Future start-up—backed by Chinese billionaire Jia Yueting--which has charged onto this scene with plans for a new $1-billion factory in Las Vegas, and is hoping to produce its first car next year already.Ensuring the best engineers for all these rival projects opens up a second front line in the war. They’ve all been at each other’s recruitment throats for months, stealing each other’s prized staff.And when the wave of megafactories starts pumping out batteries—with the first slated to come online as soon as next year--we could need up to 100,000 tons of new lithium carbonate by 2021. It’s an amount of lithium we just don’t have right now.The war is definitely on, and lithium prices are the immediate and long-term beneficiary. It all depends on batteries, so it all depends on lithium.The Lithium Oligopoly Ends Here, In NevadaThis is where the lithium oligopoly ends. It's where new entrants to the lithium mining game step in to forge a very lucrative future.Right now, lithium isn't even traded as a commodity; rather, it is managed through an oligopoly of three or four major global suppliers who have managed supply and demand for decades. That's why everything is priced on a contract basis.This year could see that change, which makes it a prime time to get in on lithium."The few major suppliers who have so far been responsible for all lithium supply and demand are not going to be able to meet new demand. This is why 2016 will be a very interesting year for anyone with the foresight to see the end of this oligopoly and the potential decoupling of lithium from other commodities," Dr. Andy Robinson, COO of Pure Energy Minerals (OTMKTS:HMGLF), told Oilprice.com.Producers are now working quickly to stake their claims and position themselves strategically to become key suppliers.The current market turmoil has created a once in a generation opportunity for savvy energy investors.Whilst the mainstream media prints scare stories of oil prices falling through the floor smart investors are setting up their next winning oil plays.So far, so good. Pure Energy, for one, is the only player in Nev
Mars_2050
25 Feb 2016
CEO Great chat with Brett.Currently diversifying sales to European end users and achieving higher margins.Bass funding on it's way.Lohorano plant to produce 600t per month, company breakeven at 300t CAPEX for new plant will be around $5 million.Working on corporate deal to supply new plant production exclusively to Energy Storage Providers, then sort out funding.Exploration and resource update pending.Good summary for new investors, Allenby Research note[link] currently the most undervalued listed graphite company, despite already producing.GLTAH and DYOR
Dorset 53
18 Feb 2016
Re: Sales Bother! I am in Costa Rica at the mo', and won't be back in the UK till next Saturday, and travelling quite a lot of it. A couple of weeks later I can make myself free at any time in UK. Have been in touch with BB and and Shishir Poddar, but only via email so far. I agree, steadily good signs in the Update, and direct European sales a great de-risker.It's all about how much capex will really be needed to get to stage three, and whether they have the credibility to raise it without further dilution (given of course some anyway through their share-based remuneration).If you do meet, any chance of your direct email address, so I could pose a couple of questions?Thank
Mars_2050
18 Feb 2016
Sales jimbobtechstock, LSEDirect sales in the graphite market is a step change IMO. Think many on here were disappointed by the margins lost to our offtake partner, whose role in wholesaling is to match bulk buyers with supply.Graphite being a nuanced market, where 'quality' is subjective to each use, means buyers wanting a specified flake, mesh size or carbon content need to find their own reliable supply.I think having first direct sales probably unlocks doors to more, and having a diversified sales channel (a) proves market demand for Stratmin's output and (b) will lead to more sales and hence even better margins off a low cost base for production. Personal thoughts only applies as always.I think established graphite player Tirupati are probably key here in making this leap forwards.Something other new entrants won't have, btw.A glimpse maybe as to why a director was happy to provide unsecured short term interest-free financing - if there are more sales in the pipeline his cash is safe.And having approval for the JV mine is a great step towards securing multiple expansion routes.And finally point 8 about Mahefadok ore bulk test tallies very closely with my hypothesis for delayed JORC - I heard Stratmin wanted to save costs my coupling mineral analysis with finalising design for the input stages of the 12kpa plant.In summary all still happening and all to play for despite the sp (and the spread). They have a working refurbished mine in production. This update wasn't yet another list of 'close but no cigar' moments we saw under MY but a statement of progress on the production, on the expansion and on the sales/margins.P.S BB is in London next week. Meeting?
Mars_2050
17 Feb 2016
Positive update Dorset, count me in. Would be great to meet.Good update. Selling graphite to end users in Europe is the way forward.(most likely German Major AMG GK and Austria's RHI AG)Just shows Stratmin is not reliant on Asbury and can achieve higher margins elsewhere.Feels like we will see a rerate to double figures in the next few months imo.GLA
Dorset 53
17 Feb 2016
Re: Beat the shorters Thanks Mars. You're ahead at the moment, if you're using 151m total, as opposed to 95m free float. We're about 2.2% of total., and not sure if I want the price back down to take more. I see it's jumped a bit on the update just now. Have been in contact too, and said if they come to UK would love to meet. Interested?
Mars_2050
17 Feb 2016
Re: Beat the shorters Dorset, I upped my stake to 2.5% of the company.Good post by jimbobtechstockFor me the cost-aware approach is in this case a very good signal. As most here are aware Stratmin have been on the cusp of profitable production for quite some time now, one CEO has gone for failing to deliver and anyone would be forgiven for thinking his replacement might not be up to the challenge too...EXECPT for the fact that neither Mr Boynton nor My Poddar are taking salaries - clear to me the main thing driving them is creating value in this business; value we'll all share - and that's a major departure from the couple of years prior to Brett taking over, when the CEO secured a pay rise despite failing to deliver anywhere near an operating profit.The directors believe, in their unsecured loans and time-for-shares; and I firmly believe they have the skills between them to get the technical job done and build a profitable corporation around that. Sure it's a cause for concern that there's been no recovery in the sp - in fact a fall - since the milestones ticked last year, but I also know the way AIM works means that the true value of a share can be hidden from view for extended periods due to the way trading firms create false share capital in markets - it's not until their positions are closed that the true supply/demand value is realised.Yes it's a risk and continues to be a risk, but operationally Stratmin have the asset, the team and have made good progress in the first 7-8 months under new team.
Dorset 53
16 Feb 2016
Re: Beat the shorters We increased out stake over the past two weeks, and have checked that they cannot be lent out. Doesn't seem to have made much impact. Willing to disclose how much you have, Mars? I'll show you ours, if you show us yours!
Mars_2050
16 Feb 2016
Fair value 8p, upside 24p Good read for new investorsLondon's only graphite pure play has turned the cornerFair value 8p, upside 24p Allenby Capital Research Note[link] bagger to catch up with our peersInvesting longtermGLA
Mars_2050
16 Feb 2016
Goldman Sachs - EV Goldman Sachs predicts massively cheaper, lighter, better electric cars within 4 years[link] more graphite needed for electric vehicles batteries than lithium Stratmin aims for a 42ktpa, of which 100% will be signed up for and finance is when not if IMO. Our profitability is not dependent on the EV market but on existing markets, the EV story is a big big bonus that STGR will be ready to participate in once that gains momentum.GLA
