Lomiko Metals Neighbour, Multinational Conglomerate Imerys Carbon & Graphite, Adds New Graphite Battery Product and Increase ...
December 05 2019 - 9:00AM
Lomiko Metals Inc. (TSX-V: LMR, OTC: LMRMF, FSE:
DH8C) (Lomiko or the “Company”) has identified
spherical graphite production as a key goal in plans to supply
graphite anodes for Electric Vehicles (EV) Li-ion battery
mega-factories in the North American market as highlighted
in Lomiko’s July 16th, 2019 release. Testing for
spherical graphite is to be included in the upcoming Lomiko
Preliminary Economic Assessment (PEA) which is planned for the La
Loutre graphite project located in Quebec, Canada.
The development of a strategy that identifies a way to create
value-added products is necessary to establish a long-term,
profitable business model prior to extensive capital outlay and is
crucial to the success of the company. A large multinational
conglomerate, Imerys Carbon and Graphite has also been working on
new developments in the graphite space with innovative products for
the EV Industry.
Imerys Graphite & Carbon has a strong history in the
production of high-quality natural and synthetic graphite powders,
conductive carbon blacks and water-based graphite dispersions with
the parent company posting €4.6 billion in revenue and
approximately 17,000 employees worldwide.
Imerys Graphite & Carbon’s fully owned natural graphite mine
is located about 250 km north-west of Montréal, Canada, in the
small town of Lac-des-Îles [53 km north of Lomiko’s La Loutre
Graphite Property]. Operations started in 1989. There, graphite ore
is mined and refined into high-quality graphite products of various
sizes and purities. These graphite concentrates are directly sold
to various applications or further processed in its Terrebonne,
Quebec plant [near Montreal]. In a news release dated
November 18, 2019, Imerys stated:
“New developments in automotive and in the consumer electronics
markets are driving a need for improved performance of lithium-ion
batteries in diverse operating conditions. QX products [graphite
additive tradename] enable fast kinetics during charging and can
significantly improve the performance of active materials.”
“We are at the beginning of the battery materials bull market
with 100+ Lithium-ion, mega-factories built or scheduled to be
built worldwide,” said Lomiko’s CEO A. Paul Gill.
“Lomiko sees a tremendous opportunity in creating a
stable and integrated North American value supply chain for North
American EV manufacturers. This opportunity represents a
significant increase of confidence to the Quebec government,
Lomiko, and other companies to see Imerys step into the EV field
despite being close to closing their twenty-year operation at the
Lac-des-Îles facility.”
Graphite Sector Analysis
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.
On November 4, 2019, Imerys announced: [Natural and synthetic
graphite] subject to general inflationary pressures and will,
therefore, be subject to some price increases to reflect those
inflation effects.
On October 18, 2019, A recently opened mine in Mozambique owned
by Syrah Resources, which primarily produces 94% C, -100 mesh
material since 2017, significantly reduced their workforce and cut
production targets for 2020.
The production cut will likely curtail the supply of natural
flake graphite supporting a general conclusion that an uptrend in
graphite prices may be imminent after a multi-year low in demand
and price.
For more information on Lomiko Metals, review the website at
www.lomiko.com, contact A. Paul Gill at 604-729-5312 or
email: info@lomiko.com.
On Behalf of the Board,
“A. Paul Gill”
Chief Executive Officer
We seek safe harbor. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release
A. Paul Gill
Lomiko Metals Inc. (TSX-V: LMR)
6047295312
apaulgill@lomiko.com
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