Wall Street Signals: LMR.V LMRMF Lomiko Metals: Poised for Batteries

LMR.V LMRMF Lomiko Metals: Poised for Batteries

A graphene waferLomiko Metals Inc.

"At the present time," said Gill, "the overall interest for chip graphite is holding enduring at around 120,000 tons for each year. Yet, that market will quickly grow as organizations like Tesla and Volvo convey electric vehicles to the standard market. In any case, we are additionally observing a move in supply. A couple of years back China was providing 90% of the market, now that is down to 60%."We’ve been talking to Paul Gill, President, and CEO of Lomiko Metals (V.LMR), for several years as the company has evolved. Lomiko’s goal has always been to develop graphite properties in Quebec. But like many graphite producers, the questions of timing, grade, purity, and CAPEX have all had impacts on Lomiko’s path forward.

“The prediction is that by 2020 the worldwide demand will increase by 50,000 tons per year and there is going to be a supply gap as China continues to reduce production.” said Gill, “The base price at the moment for 94% pure flake graphite is around $1200 a ton, for the 99.99% pure graphite needed for batteries and the nuclear industry the price is closer to $2500 a ton.”

“In fact, most of the graphite used by Tesla is actually synthetic graphite which is derived from petroleum coke,” said Gill. “You have to bake that coke for 60 minutes at 2500 degrees Celcius to get synthetic graphite and that is hardly an environmentally friendly process. So now battery companies are looking seriously at natural graphite which can be converted to Li-ion battery anodes much cheaper with less energy consumption.  The problem has always been there is not a steady supply of graphite material in North America.”

For a pilgrim like Lomiko, the key factors in evaluating a store and turning into that consistent provider are the review, immaculateness, amount, the expense of redesigning and a mine arrangement which bodes well. 

"We've been chipping away at the La Loutre store in Quebec since 2015," said Gill. "We bored it in 2015 and we've continued penetrating. We had a 43-101 report in March 2016 which gave us 18 million tons evaluating 3.9% demonstrated and another 16.7 million tons reviewing 3.75% derived."

"The go/no go question for us was virtue and drop qualities. We had numerous examples with a virtue of 90%+, with tests reviewing as high as 99.999%. 1/3 to 2/3 of the metal created graphite material was huge piece utilizing a genuinely basic extraction process. We are entirely sure we can expand the recuperation of extensive chip by modifying the devastating and floatation cycles." 

"What we are anticipating, where the fun will be, is in our next revealing cycle on the Refractory zone where we have focused a large portion of our ongoing boring. We are seeing twofold the review we had in the Graphene-Battery Zone. In our next 43-101 report will incorporate high evaluations on the request of 14% crosswise over captures of up to 100 meters." 

"We're boring at the present time and we ought to have enough openings bored and results in to distribute a reconsidered 43-101 by December or January," said Gill. 

Some portion of Lomiko's technique is to plan to mine "units" of graphite. "We need convergences of shallow, close surface, high review, high virtue graphite with incredible piece attributes. We see outcrops at surface. So far we have distinguished 14 or 15 of these cases." said Gill. "You require a nice number of them since end clients need security of supply. You need to demonstrate your long haul supply to the end client." 

Lomiko has satisfied the alternative conditions which have given it a 80% stake in the La Loutre property and Gill is certain that the organization will wind up owning 100% of the property inside and out. 

In the meantime, Lomiko, in the same way as other of its graphite peers, has been doing combating headwinds raising value financing. Toward the finish of June, the organization declared a 1.2 million dollar private arrangement consolidating move through and hard dollar units. 

"There was some underlying trouble," said Gill. "The lesser market was being overflowed with maryjane and lithium contributions and it was difficult to pick up footing." 

In any case, Lomiko could report the fruition of its first, $500,000 tranche toward the beginning of July and Gill is sure that the position will be filled. 

"Individuals are taking a gander at batteries and understanding that cobalt and graphite are key segments," said Gill. "So we are getting subsidizing responsibilities and one duty prompts another. We likewise have extraordinary circumstance speculation finances inspired by the Lomiko story." 

From the planning point of view Lomiko needs to complete the boring required for its refreshed 43-101 including the higher evaluations of the Refractory Zone. At that point, the organization needs to proceed onward to a Feasibility Study of the La Loutre store. "We require hard numbers on the CAPEX," clarified Gill. "In the event that it is under 100 million, it ought to be a go, on the off chance that it is under 50 million it will be a grand slam." 

With its close surface, high review, case mining, low CAPEX, system, Lomiko is situating itself to begin filling what the organization accepts is a developing graphite supply hole. At the point when that hole shows up, Lomiko is ready to go into creation rapidly and effectively to fill it. 

At the time of composing, Lomiko was exchanging at 21 pennies with22.3 million offers exceptional and a market top of $ 4.4 million.