Timing over other emerging graphite projects
TSXV for the week ending December 5th. Focus is developing one of the most important graphite projects in North America at Lac Knife, Quebec. Last week, Focus filed its environmental and social impact assessments (ESIA) with the Quebec government for the Lac Knife Project.: “the ESIA is the main document used to communicate and discuss details of the project to all concerned regulators and community stakeholders regarding the project’s impact, risk mitigation, and potential benefits.” The filing of ESIA paves the way for the start of the regulatory work needed to secure all the relevant permits that Focus will need to bring Lac Knife to production. Lac Knife’s operating cost per ton of concentrate will be in the lowest quartile at $441/ton, making it one of the most economical graphite projects and it is one of the very few companies that have successfully produced and tested, “battery ready” graphite. Focus has already filed a feasibility study, which gives it an advantage in timing over other emerging graphite projects. Focus is also considering alternative project financing solution may include stocks and low interest loans, strengthening economic fundamentals for the Project (400,000 ton total) of graphite concentrate with a Chinese-based industrial consortium located in the port city of Dalian, Lianing Province, China; one of the China’s most important centers for trade and industry, and home to many of high-tech companies.
Graphite has been trailing the inconsistent trail of industrial metal prices on the London Metal Exchange. While copper and aluminum are under pressure, the price of nickel is strong; nickel is an important element in the manufacturing of Li-ion batteries, which, the rising demand of which is one of the main drivers of graphite mining. Indeed, among industrial raw materials, a number of materials which, although required in small amounts, will remain expensive due to high demand. One such raw material is graphite, which is expected to experience strong demand growth in the coming years. Similar to rare earths, China is the market leader in the market for graphite, which is there but mainly used in steel production. Very few will be able to provide the 90% + purity flake graphite needed to address emerging industrial requirements. Graphite, while suffering the same price disease that has affected most resource stocks, promising or not, is easier to mine than other minerals. Because of its electrical and thermodynamic qualities, electromagnetic survey equipment picks it up easily and thus it makes for a far less costly exploration process than other minerals. Moreover, much of flake graphite deposits are located near the surface, which also reduces risks while allowing for open-pit mining, a much cheaper alternative than other methods.