Mason Graphite Making Case for Being World's Lowest Cost Graphite Producer
SOURCE:
VantageWire.com — Since the recent shutdown of last producing graphite
mine in Canada (the TIMCAL graphite mine), the country's mining sector
is gearing up to see who the next producer will be. With a direct
capital cost requirement of only $89.9 million, Mason Graphite's [TSX.V:
LLG] Lac Gueret Graphite Project is looking to be not only Canada's
next producer, but one of the world's lowest cost producers as well.
Rated highest in resource grade (including 22 years of production
at 27.4% Cgr), Mason has a distinct advantage over its peers when it
comes to production costs. Lac Gueret is slated for an annual production
rate of 50,000 tons per year, but those tons are going to be the lowest
cost in Canada, and possibly the world.
Thanks to the highest ultra-high overall grade in the world of
20.40% Cg (compared to Canada's current 2nd highest grade held by Focus
Graphite [TSX.V: FMS], Mason is given the benefit of a very low startup
cost as well as a decently high internal rate of return (33.7%).
Given the graphite market's unique demands, beyond just the grade
buyers are looking for high-purity values as well. Synthetic graphite
is known to have the highest purity in the world, but the costs to
produce it are sky high. Mason has already proven in testing that they
can run their flake graphite through a purification process that will
bring their supply up to 99.9% purity (synthetic levels) for a quarter
of the cost.
Unlike most other mineable commodities, graphite is not an openly
traded mineral. Because of this, producers must foster special
relationships with direct buyers. Not every buyer will look for the same
product, hence the producer must find a specific fit for each buyer's
tastes. Mason Graphite's management team brings over five decades of
experience, complete with many years of valuable client relationships.
Going forward there is a market for 100% of mined graphite
material in all forms. Mason, like many of its peers, is currently in
the process of conducting a market study to identify all potential
end-users in every potential marketplace.
GRAPHITE'S GROWING DEMAND AND THE GRAPHENE EFFECT
Being next in line is more important than ever, given global
leader China's dwindling production numbers—China currently produces 70%
of the world's supply. Now, the world's increasing appetite for
graphite-based end products is growing at a steady rate with no real end
in sight.
Thanks to graphite's integral role in the making of rechargeable
batteries used in consumer electronics and the growing market for
electric and hybrid cars, demand for the commodity is set to continue
growing. A surge in the use of lithium batteries translates to an even
larger increase in graphite demand, as each li-ion battery uses between
20-30 times more graphite than lithium.
Global demand for the flake form of graphite already doubled
between 2000-2010. Within the battery market alone, demand for graphite
is expected to rise from 125,000 tons in 2010 to 320,000-640,000 tons in
2020 (for an astounding growth rate of 10-18%).
On top of this growth is the progress regarding a new form of
graphite called graphene, which is a derivative only one atom thick and
is drawing interest across the globe for its unique characteristics.
Discovered only a few years ago, graphene's lighter-than-plastic and
200-times-stronger-than-steel nature made it the darling of the
scientific community, netting its discoverers with a Nobel Prize in
2010.
Now graphene's application is being developed all over the globe,
including for the Pentagon and Lockheed Martin which used it for a
filter that can distill ocean water to be drinkable with limited power.
It's believed to be 1000 times more conductive than copper, giving it
the possible capability of delivering an electric car over 1000kms on
one battery charge. And a graphene-based battery not only lasts longer,
but can recharge faster and many more times over.
As miraculous as it sounds, there's still a large learning curve
to go for graphene. Despite having over 9000 patents filed for its use,
graphene is still not commercially in the market. However, looking at
its rise in interest, one could liken graphene's current status to the
impact silicon's development made in ushering in the technology
revolution.
We're still many years away from graphene being in the hands of
the common man, but with a projected mine life for Mason ahead with 22
years at 27.4% Cg there could absolutely be some significant overlap
when the graphene revolution takes hold.
But even without graphene on the market, Mason's operations still
look to be highly profitable. According to a calculation done by TD
Securities, a 20% grade of graphite in the ground is worth the
equivalent of 9g/t gold—using the conservative $1,750/ton price, which
is likely to be more with the rate that China is waning. Mason will be
far above that grade for its first 22 years and will remain above it for
the life of the mine. It's one of the main reasons that Mason is able
to shuffle past pre-feasibility, as any price over $1,100 pretty much
removes the need.
In comparison, the recently shutdown TimCal mine had an average
grade of 6% Cg. As well, Mason's deposit is an outcrop at surface that
runs constant, requiring far less waste. TimCal's strip ratio was 3-4
times that at Mason's Lac Gueret. If TimCal could produce for as long as
it did under those conditions, than the time is right for Lac Gueret.
TRUE GRAPHITE EXPERIENCE AT THE HELM
At the helm for Mason Graphite is CEO Benoit Gascon, who spent 20
years with the outfit that is now TimCal (formerly "StratMin"). During
the last 6 years of his tenure, Gascon was put in charge as CEO to turn
the operation around. Prior to that it wasn't doing well, mostly because
graphite prices weren't as healthy as they are today.
Under his charge, the operation was turned around. Gascon removed
the middle man (ie. the reseller of graphite). Though the resellers
were doing a fine job, the move was to establish better communication
with the buyers themselves to find out what they required to be
produced.
This shifted Gascon around the world and back to meet with the
company's hundreds of buyers. The result was a change in the company's
methods of production from four to 50 distinct types of graphite. This
increase in diversity significantly helped ramp up the company's
revenue. Through the process he developed personal rapport with many of
the world's graphite buyers, many of whom are still in business today.
Gascon was also instrumental in orchestrating the deal that saw
Imerys SA fully acquire StratMin to form TimCal Graphite & Carbon.
Mason represents Gascon's official return to the graphite world, along
with a team that includes his former CFO from StratMin and a series of
metal and mining powerhouses that flanks him. But more importantly,
Gascon comes with a Rolodex stacked with graphite contacts primed for
when Mason starts producing.
THE BOTTOM LINE
Mason's Lac Gueret has about as good a chance as any company
looking to become Canada's next graphite producer. It's led by a team of
experienced graphite and mining men, and requires probably the least
amount of capital to get into production.
The operation resides in the friendly mining district of Quebec,
and the property contains much of the needed infrastructure to get
things really rolling. Construction is set to take place throughout
2015, with production coming in the fourth quarter of that year.
On first glance, its 50,000 tons per year don't appear to be that
large. However, given the production costs, once in production it will
be an extremely profitable mine. Given its low capex, short turnaround
time, and ultra-high grade deposits, Lac Gueret is one of the lowest
risk graphite projects on the scene.
In the near future, look for the company to announce the filing
of its environmental base line study. This news will pretty much launch
the permitting process for Lac Gueret. Permitting is almost always the
most serious aspect of a mine's development, and it's never easy.
However, the property comes without nearby residents, and resides in a
very friendly jurisdiction.
Raising the money for the mine shouldn't be a problem given the
company's backing. Mason Graphite has the support of high profile
individuals such as Jim Rogers and Larry King, and more importantly the
support of the Forbes Manhattan Group.
Next on deck for the group should be the release of a resource
publication expected for later this month. Should the result be good
news, look to the resource announcement to be the next catalyst for this
group as they start the drum beat towards graphite production.
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Showing posts with label Graphite mines. Show all posts
Showing posts with label Graphite mines. Show all posts
Tuesday, December 3, 2013
Monday, July 15, 2013
Graphene Will Change The World And Fortunes Will Be Made!
In their paper, "The rise of Graphene"
A.K. Geim and K.S. Novoselov, of the Manchester Centre for Mesoscience
and Nanotechnology, University of Manchester point out, in understated
terms, that "Graphene is a rapidly rising star on the horizon of materials science and condensed matter physics"!
I say this is an understatement because it does not adequately describe the profound changes in modern society that graphene development promises to deliver.
At this writing, hundreds of companies and labs around the world are in a frenzy of testing and development to bring the amazing properties of Graphene into the production of nanoscale computer chips, super strength (and super light weight) materials for Aeronautic, military and space applications, electronics, medicine, energy storage and so many other areas too numerous to mention here. Lux Research, in their report on advanced materials, lists the following:
Large companies at the forefront of graphene engineering include a who's who of the tech world. To date there has been a virtual space race to patent all of the properties of this "wonder material".
Princeton University's Quentin Tannock, in an article entitled "Exploiting carbon flatland" points out how many of today's Universities now value the patent landscape as a scientific "sharing" of information for experimentation, and in particular, in the area of Graphene and Nano Engineering. He also laments how many researchers are unable to capitalize on their discoveries in the marketplace, without a partnership of some sort with private companies. Although Rice University and the University of Manchester have been at the forefront of Graphene experimentation, it is private industry that owns most of the patents in graphene development.
Three Tech giants, IBM, Samsung and Sandisk, already have filed hundreds of patents for graphene discoveries. These three in fact hold the most patents in that order, and are at the forefront of graphene development in electronics and Semiconductors. For instance IBM holds graphene patents for such diverse applications as DNA Sequencing, graphene transistors, 3D, and graphene solar cells, just to name a few. Samsung's include: flexible screens, graphene/lithium batteries, moisture resistant electronics, and antidot spin valves.
Other patent holders include (but are not limited to) : The U.S. Navy (high resolution films), Apple (AAPL) (batteries), Head (tennis rackets), Kia and Hyundai (fuel cells), Saab (de-icing airplanes) Kimberly Clark (KMB), Toyota (TM) (lithium air batteries), Sony (SNE) (drug delivery), Honda (HMC) (gas sensors), Xerox (XRX) (printing), Angston (lubricants), Polimeri (Thermal insulation), Foxconn (loudspeakers), AMD (AMD) (3D), DOE (Tesla coils), and Bayer (Obtaining graphene from graphite by chemical means)
There is also a global race for patents in the nanomedicine field. At Lake Forest Medical Research Centre, Dr. Ravi Singh is currently researching the use of Graphene nanotubes to target and destroy cancer tumors. This is only one of many possible medical uses for this wonder material.
There is not enough room here to list all of the companies,the patent applications, or potential uses for graphene based materials, but you get the point. That is, the world is about to change and fortunes will be made!
In January of this year, the European Commission made graphene research a priority, pledging $1 Billion Euros to research and development of graphene initiatives. A "graphene Flagship Consortium" headed by Nokia (NOK) recently received a $1.35 Billion graphene research grant from the EU.
From an investors perspective, many companies stand to benefit from their graphene patents and research. Because of their front runner positions on the patent landscape, I believe the best bets are: International Business Machines Nokia Sandisk (SNDK) and Samsung. Both IBM and Samsung each hold over 100 patents in the graphene space and Nokia has been at the forefront of research since 2006.
There are also many private companies racing to capitalize on the many qualities of the "wonder material". I suspect the IPO space will start filling up with these as early as next year. While we wait for that to happen I like companies positioned to supply top quality graphite which is most prized in the production of graphene. These would be akin to acquiring the "picks and shovels" suppliers of the Klondike gold rush.
My top pick is Graftech International (GTI) a Global graphite player based in the USA with over 125 years in the business. Graftech is a leading supplier of carbon and graphite products for industry and is well positioned to take advantage of it's economy of scale as it enters the graphene market. Since 2011, Graftech Stock, as shown in the chart, has been in decline, but not the company itself as it is poised to benefit most from the infant graphene market.
Graftech is a leader in the field of graphite production, and will continue to be. The double bottom shown in the chart indicates a turn around in the stock price. We bought this stock last month.
Grafoid, a privately held research and development company is quietly positioning itself as a liaison between the graphite mines, the scientific research groups, and graphene user companies. Although it is a private company at present, it is 40% owned by a small Canadian graphite miner, Focus Graphite, which trades on the Canadian Venture Exchange and recently announced the first "trade-marked" graphene called "MesoGraf". Although it is only (for now) a penny stock traded on the Canadian Venture Exchange (FMS), Focus Graphite also owns three (3) of the top "high grade" graphite properties on the planet most suitable for graphene production.
Privately held Angstron Materials (owned by Nanotek Instruments and based in Ohio, USA) is developing and producing nano graphene platelets (NGPs), and also provide pristine graphite and single layer graphene. (Look for an IPO as this company grows up)
There are also many small labs and companies such as Anderlab Technologies of Mumbai India, which manufactures graphene and carbon nanotubes for research.
Flinders Resources which is positioned to supply Europe with top quality graphite from its proven Woxna mine in Sweden, just made it's first shipment of raw material to Germany last week. It is also listed on the Canadian Venture Exchange, along with Northern Graphite, Zenyatta Ventures and Lomiko Metals, all of which show promise in the field.
Remember that, investing in penny stocks is not for the faint of heart. Having said that, some of these companies are sure to be big winners as the graphene boom takes hold!
I say this is an understatement because it does not adequately describe the profound changes in modern society that graphene development promises to deliver.
At this writing, hundreds of companies and labs around the world are in a frenzy of testing and development to bring the amazing properties of Graphene into the production of nanoscale computer chips, super strength (and super light weight) materials for Aeronautic, military and space applications, electronics, medicine, energy storage and so many other areas too numerous to mention here. Lux Research, in their report on advanced materials, lists the following:
Technologies:
| Applications:
| Companies:
|
Large companies at the forefront of graphene engineering include a who's who of the tech world. To date there has been a virtual space race to patent all of the properties of this "wonder material".
Princeton University's Quentin Tannock, in an article entitled "Exploiting carbon flatland" points out how many of today's Universities now value the patent landscape as a scientific "sharing" of information for experimentation, and in particular, in the area of Graphene and Nano Engineering. He also laments how many researchers are unable to capitalize on their discoveries in the marketplace, without a partnership of some sort with private companies. Although Rice University and the University of Manchester have been at the forefront of Graphene experimentation, it is private industry that owns most of the patents in graphene development.
Three Tech giants, IBM, Samsung and Sandisk, already have filed hundreds of patents for graphene discoveries. These three in fact hold the most patents in that order, and are at the forefront of graphene development in electronics and Semiconductors. For instance IBM holds graphene patents for such diverse applications as DNA Sequencing, graphene transistors, 3D, and graphene solar cells, just to name a few. Samsung's include: flexible screens, graphene/lithium batteries, moisture resistant electronics, and antidot spin valves.
Other patent holders include (but are not limited to) : The U.S. Navy (high resolution films), Apple (AAPL) (batteries), Head (tennis rackets), Kia and Hyundai (fuel cells), Saab (de-icing airplanes) Kimberly Clark (KMB), Toyota (TM) (lithium air batteries), Sony (SNE) (drug delivery), Honda (HMC) (gas sensors), Xerox (XRX) (printing), Angston (lubricants), Polimeri (Thermal insulation), Foxconn (loudspeakers), AMD (AMD) (3D), DOE (Tesla coils), and Bayer (Obtaining graphene from graphite by chemical means)
There is also a global race for patents in the nanomedicine field. At Lake Forest Medical Research Centre, Dr. Ravi Singh is currently researching the use of Graphene nanotubes to target and destroy cancer tumors. This is only one of many possible medical uses for this wonder material.
There is not enough room here to list all of the companies,the patent applications, or potential uses for graphene based materials, but you get the point. That is, the world is about to change and fortunes will be made!
In January of this year, the European Commission made graphene research a priority, pledging $1 Billion Euros to research and development of graphene initiatives. A "graphene Flagship Consortium" headed by Nokia (NOK) recently received a $1.35 Billion graphene research grant from the EU.
From an investors perspective, many companies stand to benefit from their graphene patents and research. Because of their front runner positions on the patent landscape, I believe the best bets are: International Business Machines Nokia Sandisk (SNDK) and Samsung. Both IBM and Samsung each hold over 100 patents in the graphene space and Nokia has been at the forefront of research since 2006.
There are also many private companies racing to capitalize on the many qualities of the "wonder material". I suspect the IPO space will start filling up with these as early as next year. While we wait for that to happen I like companies positioned to supply top quality graphite which is most prized in the production of graphene. These would be akin to acquiring the "picks and shovels" suppliers of the Klondike gold rush.
My top pick is Graftech International (GTI) a Global graphite player based in the USA with over 125 years in the business. Graftech is a leading supplier of carbon and graphite products for industry and is well positioned to take advantage of it's economy of scale as it enters the graphene market. Since 2011, Graftech Stock, as shown in the chart, has been in decline, but not the company itself as it is poised to benefit most from the infant graphene market.
Graftech is a leader in the field of graphite production, and will continue to be. The double bottom shown in the chart indicates a turn around in the stock price. We bought this stock last month.
Grafoid, a privately held research and development company is quietly positioning itself as a liaison between the graphite mines, the scientific research groups, and graphene user companies. Although it is a private company at present, it is 40% owned by a small Canadian graphite miner, Focus Graphite, which trades on the Canadian Venture Exchange and recently announced the first "trade-marked" graphene called "MesoGraf". Although it is only (for now) a penny stock traded on the Canadian Venture Exchange (FMS), Focus Graphite also owns three (3) of the top "high grade" graphite properties on the planet most suitable for graphene production.
Privately held Angstron Materials (owned by Nanotek Instruments and based in Ohio, USA) is developing and producing nano graphene platelets (NGPs), and also provide pristine graphite and single layer graphene. (Look for an IPO as this company grows up)
There are also many small labs and companies such as Anderlab Technologies of Mumbai India, which manufactures graphene and carbon nanotubes for research.
Flinders Resources which is positioned to supply Europe with top quality graphite from its proven Woxna mine in Sweden, just made it's first shipment of raw material to Germany last week. It is also listed on the Canadian Venture Exchange, along with Northern Graphite, Zenyatta Ventures and Lomiko Metals, all of which show promise in the field.
Remember that, investing in penny stocks is not for the faint of heart. Having said that, some of these companies are sure to be big winners as the graphene boom takes hold!
Wednesday, March 20, 2013
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