Wall Street Signals: Lomiko Metals – Moving Forward

Lomiko Metals – Moving Forward

Lomiko Metals – Moving Forward

President of Junior Gold Report, Dr. Kal Kotecha
"The occasions are changing, and there are new requests for electric vehicles. Tesla has now gotten more significant than Toyota. In a horrifying business sector, it has significantly increased since March 2020. More Electric Vehicles means a growing demand for energy storage and charging stations that will drive the growth of the battery materials market. Driven by CEO A. Paul Gill, Lomiko Metals Inc. (TSXV: LMR) is centered around the investigation and advancement of minerals for the new green economy, for example, lithium and graphite."

A. Paul Gill, CEO states, “Lomiko in an ideal position to participate in the Electrical Vehicle market with the potential to become a North American supplier of graphite materials, a market currently dominated by foreign supply from China. Graphite is a major and critical material in the manufacture of lithium-ion and other batteries, specifically battery anodes.” See release here.

Lomiko Metals Inc. is a Canada-based, investigation stage organization. The Company is occupied with the procurement, investigation and improvement of asset properties that contain minerals for the new green economy. Its primary center is the La Loutre Graphite Property. 

The organization has found high-grade graphite at its La Loutre Property in Quebec and is moving in the direction of a Pre-Economic Assessment (PEA) that will build its current demonstrated asset of 4.1 Mt of 6.5% Cg to more than 10 Mt of 10%+ Cg. 

Paul Gill, CEO of Lomiko Metals has expressed that the investigation has been finished and it is demonstrating two unique regions of stores: the graphene battery zone and the headstrong zone. The solidified 43-101 asset gauge is normal soon.

According to Mr Gill, the material at Lomiko's discovery is of similar or better quality than the material at the IMERYS Carbon Graphite Mine 53 km to the Northwest and 100 km from the IMERYS processing facility at the Port of Montreal.
The IMERYS mine has a mine closure plan for 2022 and needs replacement. Located near a producing mine with an experienced workforce with excellent infrastructure and year around working capability, La Loutre property has great potential to become the next graphite mine.
Lomiko Metals has been working in the battery materials space for about six years now. Lomiko Metals has focused on graphite because that is the material that makes up the anode of a lithium-ion battery, which is the main power source for most electric vehicles.
They have discovered a very good deposit of material in Quebec and now with 170 drill holes, are showing two different areas of near surface mineralization. One is called the graphene battery zone and the other is the refractory zone. They have finished the refractory zone drilling in 2019 and will be going to a consolidated 43-101 resource estimate shortly. Click here for more.
“What makes us different from other companies in this particular sector is that we are located only 53 kilometres from the only operating graphite mine in North America, the Imerys Carbon and Graphite Mine.”
The use of large flake graphite as a refractory (heat-resistant) material began before 1900 with the graphite crucible used to hold molten metal. In the mid-1980s, the carbon-magnesite brick became important, and a bit later alumina-graphite material.
Graphite blocks are also used in parts of blast furnace linings where the high thermal conductivity of the graphite is critical. Graphite electrodes are another long-term market for natural flake graphite.
Graphite conductors which release electric energy in the form of an electric arc, are used to heat and melt the steel scraps in an electric arc furnace. They are currently the only products with high electrical conductivity and are able to maintain extremely high heat generation in this demanding environment.
With the growing demand for quality steel in the aerospace, automotive and electronics industries, graphite electrodes are also becoming increasingly popular.
The graphite market is predicted to hit $27 billion by 2025.
With demands for graphite from various industries, the market growth of graphite has been exponential. At present, much of the raw graphite mined is processed in China. See highlights here.
The price for 95% C (purity), 15 microns Spherical Graphite is $2,700-2,800 USD/tonne, far above the price of other forms of graphite as indicated by the Industrial Minerals.
Lomiko’s Preliminary Economic Assessment (PEA) will include costs and the potential market for this key product. In order to start the PEA, Lomiko must first deliver its second resource prepared in compliance with NI 43-101 Regulations from La Loutre.
Industrial Minerals indicates China imported 21,486 tonnes of flake graphite in June 2019, 14,864 tonnes came from Mozambique, accounting for 70% of total Chinese imports.
The principal source of graphite flake in Mozambique is Syrah Resources, which primarily produces 94% C, -100 mesh material. Increased exports from Mozambique has weighed on the market since Syrah began commercial production at the start of this year. June's import volumes into China were the highest since at least January 2017. See statistics here.
In 2019, Benchmark Minerals forecasts China to be responsible for 77% of anode production and 86% of feedstock supply for the anode market. We were also given a historical context of China’s position in the supply chain.
The 2010s have seen China dramatically increase its share of both natural and synthetic graphite markets as it has become the dominant force in the space. This dependence on China will become a growing concern to western auto companies, particularly as they ramp up electrification plans from the mid-2020s.
Anode materials are entering a new era of growth with plans in the pipeline set to increase nameplate capacity to as much as 1.7million tonnes, up from today’s existing capacity of 660,000 tonnes. Benchmark forecasts that lithium ion demand for anode materials will increase to 1.9 million tonnes by 2028, as electric vehicle penetration rates increase through the 2020s.
Throughout this period the consensus is that graphite will remain the anode material of choice for lithium ion batteries, despite advances in technology for other materials such as silicon. By 2030 Benchmark forecasts that natural and synthetic graphite will continue to account for 90% of anode materials (please note that this figure includes silicon additives) in what will be, by then, a much more mature lithium ion battery landscape.
The discovery they've just made at the refractory zone is similar or of better quality than the material or the grades that are being mined at IMERYS.
This is very significant because everyone has an understanding that the IMERYS Carbon Graphite Mine is shortly going to run out of mineable ore and needs replacement. But Lomiko is in a Goldilocks zone, located just north of the Port of Montreal and just south of the IMERYS Carbon Graphite Mines. Lomiko has a very distinct advantage because there is now a North American strategy being put in place for battery materials, which includes lithium, graphite and cobalt.
A highlight for Lomiko was finding one strike length was 110 metres, with grades of 14.5%, which are about double of what they are mining at the Imerys Carbon Mine.
There may be a larger area of mineralization.
With the trend being green energy and fuel efficiency, the demand for graphite and lithium are poised to increase. Companies supplying these critical minerals/elements should be in a good position and Lomiko Metals is one that I am keeping my eye on.