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I am a qualified Accountant, with 20 years experience, currently working in the UK Chemical Industry. I have investing in stocks and shares privately for over 10 years, maintaining a number of portfolios. I have an interest in dividend stocks, mid-cap growth and Junior market opportunities. In... More
  • Focus Graphite (V.FMS) Investment Case 07/01/2013 0 comments
    Jan 8, 2013 8:54 AM | about stocks: FCSMF

    Disclosure - I am a FMS stock holder on a long term, fundamental basis. This instablog contains my own opinions and NPV calculations. I am a qualified Accountant, with 20 years experience, currently working within the European Industrial Chemical Industry.

    Focus Metals - Investment Case

    Company website:
    http://www.focusmetals.ca/

    TSX Venture - V.FMS - Mkt Cap $79m CAD, £50m. (also OTCQX & FCSMF Frankfurt)
    Price 08/01/2013 - 77c CAD
    12 month - high 133c, low 44.5c CAD

    Last reported cash position 26/11/2012 $17.6m CAD (NYSE:FRC).

    About Focus Graphite:

    Focus Graphite Inc. is a Canadian graphite mining and exploration company. They are the owner of Lac Knife, one of the highest grade (16%), large natural flake graphite deposits in the world, located in the Côte Nord region of Quebec. Other mineral exploration projects include the Kwyjibo Rare Earth Elements & Copper Project. Focus hold a 40% stake in Grafoid, a company looking to develop scaleable and affordable Graphene production and Graphene IP, internally and through partnerships. The companies principal aim is to develop one of the lowest cost producers of industrial and technology-grade graphite in the world.

    Company Presentation:

    http://www.focusgraphite.com/wp-content/uploads/2012/09/FG_PPT_Sept_opt_2012.pdf

    Analyst View, fair value $1.44:

    http://www.researchfrc.com/research/pdf/fms/FMS%20Update%20-%20Nov%202012.pdf

    PEA published 30/10/2012 by Roscoe Postle Associates Inc.

    http://www.focusgraphite.com/wp-content/uploads/2012/10/RPA-Focus-Lac-Knife-NI-43-101-Tech-Report-FINAL-Oct-30-2012_opt.pdf

    Lac Knife NI43-101 compliant PEA Highlights:

    NPV10 $246m

    NPV8 $316m

    IRR 32%

    Capital Investment €154m, including $33m working capital and $24m contingency (25%)

    Payback Period 2.8 years

    LOM 20 years

    LOM production 928,000 tonnes per year at 92% graphitic carbon

    Finished production 46,600 tonnes per year

    Positive cash flow $880m

    Lac Knife PEA Recommendations:

    RPA recommends that Focus advance the Project to the next phase of development, by collecting further data, and conducting metallurgical testwork and relevant studies that allow

    for licensing process and estimation of Mineral Reserves. Specific recommendations by area are as follows.

    GEOLOGY AND MINERAL RESOURCES

    • Conduct a comprehensive review of graphitic carbon analytical methodology in order to resolve the issue highlighted during the 2010/11 twin hole drilling campaign. The review should include the use of certified reference material in laboratory roundrobins in order to select the most appropriate analytical method and to select the laboratory for future drilling campaigns.

    • Conduct an exploration drilling program to complete the current drilling grid with focus on the mineralized zones currently classified as Inferred.

    • Review the existing exploration targets on the property and test selected targets with a limited drilling program.

    MINING

    • Carry out a geotechnical drill program and initiate geo-mechanical and rock mechanics assessments to confirm appropriate pit wall slopes angle and stability.

    • Carry out specific hydrological/hydrogeological studies to refine dewatering needs in the open pit over the LOM.

    • Improve the understanding of the mining cost base and carry out a preliminary mining plan and develop a detailed estimate of the mining costs.

    PROCESSING AND METALLURGY

    • Conduct grindability tests to confirm results obtained in past studies (2002).

    • Perform tests on tailings to ensure the effectiveness of separation between acid generating tailings and non-acid generating tailings by flotation and the operating conditions to do so.

    • Conduct test program and gather information on polishing grind by ceramic media to evaluate its impact on the process performances.

    • Perform a sensitivity analysis to estimate the impact of ore feed grade variability on the concentrate production.

    • Conduct a test program to optimize grinding/flotation interactions. Improve the detailed process understanding and develop a detailed estimate of the process capital and operation costs.

    • Perform tests of coarse ore upgrading with gravity concentration process to increase graphite concentration before the grinding and flotation process for cost optimization.

    • Investigate automation to improve manpower productivity.

    ENVIRONMENT

    • Develop details of the co-disposal concept for tailings and waste rock.

    • Continue the environmental program which should be comprehensive and includes baseline work, acid generation accounting, TSF stability, dust emission, and water balance and hydrology.

    • Progress permitting activities as well as community and Aboriginal consultations.

    • Initiate geotechnical assessments and detail mapping of overburden and soils at open pit and TSF locations to confirm storage capacities as well as dam volume / characteristic requirements.

    • Test characteristics of the two tailings streams.

    • Initiate consultation/discussions with Hydro-Québec regarding power supply and consumptions

    MARKETS

    • Review marketing options and develop off-take agreements.

    OTHER

    • Carry out condemnation drilling in advance of mining in proposed locations for Project components and infrastructure (process plant, service buildings, accommodation camp, tailings and waste rock storage facility, overburden and topsoil piles, ore storage pad, etc.).

    • Confirm Project components and infrastructure locations.

    • Review the access road route.

    • Test and/or confirm the minimum primary concentrate characteristics required for the thermal purification process to 99.99% Cgr.

    • Continue to develop in-house purification process or negotiate an agreement for purification on a contract basis.

    Process development and mine design is on-going with RPA and Focus has contracted Terrapex to assist with all permitting. The Management team was recently strengthened with Dr. Joseph E. Doninger as Director of Manufacturing and Technology, who served 17 years with Superior Graphite.

    http://www.marketwire.com/press-release/focus-graphite-retains-terrapex-environnement-assist-with-federal-provincial-project-tsx-venture-fms-1720789.htm

    http://www.marketwire.com/press-release/focus-graphite-inc-appoints-dr-joseph-e-doninger-director-manufacturing-technology-tsx-venture-fms-1707801.htm

    http://www.marketwire.com/press-release/focus-metals-contracts-with-rpa-mine-design-engineering-lac-knife-graphite-property-tsx-venture-fms-1511138.htm

    Off-take / partnership negotiations are on-going and supported the production levels and revenue prices used in the PEA. This is a critical next step.

    Proactive investors interview 26/06/2012. GE, "seven companies that we're working with for off-take agreements and/or long term purchase agreements, will allow us to complete our financing."

    PEA Support (RPA) - Pg 19-6

    Focus has initiated contacts with several major graphite consuming groups in North America, Europe, and Asia. To date, Focus has identified the following major product opportunities:

    Focus Graphite Inc. - Lac Knife Project

    Grade Tonnes Product Characteristics

    Battery Grade 16,900 >99.95% Cgr, +100 mesh

    Medium Grade 11,200 >90% Cgr, -100+200 mesh

    Fine Grade 15,500 >80% Cgr, -200 mesh

    Total 43,600

    The projected product mix is based on expressions of interest received from various potential customers in North America, Europe, and Asia. Potential customers have provided Focus with product quality requirements and projected annual demand. RPA has reviewed these expressions of interest. Multiple product enquiries have been received for the various grades, with total potential demand exceeding the available production limits indicated elsewhere in this report. Focus has provided trial quantities of product to potential customers and has received a positive response from them. RPA is satisfied that there are sufficient indications of demand to support the projected production forecast.

    Focus Graphite are also currently undertaking a 5,000 meter drill program to revise and upgrade the company's 4.9 million tons at 15.8% Cgr indicated and 3.0 million tons at 15.6% Cgr inferred NI 43-101 compliant resource estimate published in December 2011. The 2,500 meter exploration drill program will test high priority surface graphite prospects identified from historic information and geophysical EM anomalies in the Southern lateral extension of the deposit. This looks to resolve the RPA twin-hole issue and also has the potential to materially increase the resource.

    http://www.marketwire.com/press-release/focus-graphite-commences-its-2012-lac-knife-drilling-program-tsx-venture-fms-1675346.htm

    Battery Grade Production

    A central tenant of the Focus Graphite PEA, was the inclusion of 16,900tpa sales of battery grade Graphite. In the PEA this production was costed on an outsourced basis. One of the major upsides available over the PEA is for Focus to amend this with their own production costs. Management guidance is such that there would be an expectation of considerable production cost savings from own production vs outsourced 3rd party production of the upgraded product. Focus has entered into an agreement with Hydro-Quebec, to develop its own production plant, utilising HQ's patented technology.

    Focus Metals and Hydro-Quebec's IREQ Sign Graphite Purification Technology Agreement and Anode Production Agreement for Li-Ion Batteries.

    http://www.marketwire.com/press-release/focus-metals-hydro-quebecs-ireq-sign-graphite-purification-technology-agreement-anode-tsx-venture-fms-1653417.htm

    Varennes, on the South Shore and nearer Montreal, may host a graphite purification plant.

    http://graphitestocksblog.agoracom.com/2012/07/17/rare-earth-plant-could-find-home-at-becancour/

    Other Properties & Interests:

    Kwyjibo, Quebec - Rare earth elements (NYSEMKT:REE) and copper advanced exploration project being developed in partnership with Soquem, the Quebec Government's commercial mining corporation. A further 4,000m drilling program commenced 28/08/2012, with the aim of validating grades, thickness and continuity of the REE-Fe-Cu mineralization in the vicinity of the Josette horizon, where the best drilling intersections were obtained in 2011. The Company intends to incorporate the results of the 2012 exploration program into a National Instrument 43-101 compliant resource estimate at the end of the program.

    Lac Tétépisca, Québec - Focus Announces New Graphite Discovery at Lac Tétépisca Québec - 900m Long Graphite Bearing Corridor Hosting 17 Grab Samples Assays of 5.59% to 45.80% Graphitic Carbon. http://www.focusgraphite.com/news/press-releases/2012-2/november152012

    Grafoid Inc. - Focus Graphite have 40% equity ownership. http://grafoid.com/

    Grafoid Inc invest in, manage, and develop markets for processes that produce economically scalable, pristine graphene for polymer and non-polymer, energy storage and other applications. Their leading investment produces high-energy bilayer and trilayer graphene from a safe, non-destructive extraction process leaving the lowest possible ecological footprint. Grafoid has the potential

    You will find an excellent introduction to Grafoid here:

    http://grafoid.com/wp-content/uploads/2012/12/international-resource-journal-Grafoid.pdf

    Grafoid are in partnership with leading industrial and academic partners, in the commercialisation of Graphene:

    Focus Graphite Announces R&D Agreement Between Grafoid Inc. and Hydro-Quebec's IREQ for Next Generation LFP-Graphene Batteries

    http://www.marketwire.com/press-release/grafoid-inc-announces-r-d-agreement-with-hydro-quebecs-ireq-next-generation-lfp-graphene-1730181.htm

    Grafoid Inc. and CVD Equipment Corporation Sign Joint IP Development Agreement

    http://www.marketwire.com/press-release/grafoid-inc-and-cvd-equipment-corporation-sign-joint-ip-development-agreement-1692578.htm

    Grafoid Inc. and Rutgers University Sign MOU to Jointly Develop and Commercialize Polymer and Non-Polymer Technology Graphene Applications.

    http://www.marketwire.com/press-release/grafoid-inc-rutgers-university-sign-mou-jointly-develop-commercialize-polymer-non-polymer-tsx-venture-fms-1593915.htm

    Management

    Focus Graphite Board Members:

    http://investing.businessweek.com/research/stocks/people/board.asp?ticker=FMS:CN

    Insider buying - Jeff York (Chairman) has consistently bought FMS stock. His last buy was 30/12/2012, taking 55,000 share in November. He has bought more than $400k of stock on the open market since August 2010. http://www.canadianinsider.com/node/7?ticker=fms

    Gordon Chiu for Grafoid Inc.

    http://investing.businessweek.com/research/stocks/people/person.asp?personId=82691719&ticker=MTEK&previousCapId=2783749&previousTitle=FOCUS%20GRAPHITE%20INC

    Our recent appointments:

    Mr. Benoit Lafrance - Vice-President, Exploration.

    http://www.focusgraphite.com/news/press-releases/2013-2/january72013

    Dr. Joseph E. Doninger - Director of Manufacturing and Technology.

    http://www.focusgraphite.com/news/press-releases/2012-2/october12012

    Detailed Lac Knife PEA and Blue Sky Scenarios

    Please find below my detailed NPV10 as per recent PEA figures, additional 50m shares issued at $1. Fair Value per share $1.43 diluted, or $2.02 on current share count.

    NPV10 $246m. No value is attributed to Kwyjibo, Grafoid or other properties.

     

    Operating Cashflow & NPV

    PEA

        

    FMS

     

    FMS

    FMS

    >80/90%

    Finished Product

    46,135

     

    >80/90%

    Ore Grade

    15.66%

     

    >80/90%

    Global Recovery

    91.30%

     

    >80/90%

    Ore Processed

    294,604

     

    >80/90%

    Ore Processed per day (365)

    807

     

    >80/90%

    Mill Capacity 2,500tpd

    32%

     
        

    >80/90%

    Concentrate Sold (t)

    26,700

     

    >80/90%

    Concentrate Upgraded (t)

    16,900

     
        

    >80/90%

    Revenue/t ($)

    867

     

    >80/90%

    Revenue ($)

    23,148,900

     

    >80/90%

    Royalty Rate (value t / %)

    0%

     

    >80/90%

    Royality (NGC $20/t, FMS %)

    0

     

    >80/90%

    Net Revenue

    23,148,900

     
        

    99.5%

    Revenue/t ($)

    9,572

     

    99.5%

    Revenue ($)

    161,766,800

     

    99.5%

    Royalty Rate (value t / %)

    0%

     

    99.5%

    Royality (NGC $20/t, FMS %)

    0

     

    99.5%

    Net Revenue

    161,766,800

     
        

    >80/90%

    Operating Costs/t Concentrate ($)

    434

     

    >80/90%

    Operating Costs/t Ore ($)

    68

     

    >80/90%

    Operating Costs ($)

    20,022,590

     
        

    99.5%

    Operating Cost/t Upgrading ($)

    5760

     

    99.5%

    Operating Costs/t Ore ($)

    902

     

    99.5%

    Upgrading Costs ($)

    111,945,600

     
        
     

    Operating Margin ($)

    52,947,510

     
     

    Margin (%)

    29%

     
        

    =

    Sustaining Capital (per annum)

    1,275,000

     

    Yr20

    Closure Costs

    3,588,000

     
        
        
     

    Capex ($)

    153,507,000

     
     

    Payback (yrs)

    2.9

     
     

    IRR

    31.0%

     
        
       

    NPV

     

    Cost of Capital (%)

    10.00%

    246,417,733

     

    Market Capitalisation Premium over NPV (%)

     

    0%

     

    Market Capitalisation ($)

     

    246,417,733

     

    Shares in Issue (m) (both issue 50m @ $1)

     

    172

     

    Projected Share Price ($)

     

    1.43

        
     

    Annual Change in Operating Cashflow (%)

    0.00%

     
        
     

    0

    -39,551,000

    -39,551,000

     

    1

    -113,956,000

    -113,956,000

    START

    2

    51,672,510

    42,704,554

     

    3

    51,672,510

    38,822,322

     

    4

    51,672,510

    35,293,020

     

    5

    51,672,510

    32,084,563

     

    6

    51,672,510

    29,167,785

     

    7

    51,672,510

    26,516,168

     

    8

    51,672,510

    24,105,607

     

    9

    51,672,510

    21,914,188

     

    10

    51,672,510

    19,921,989

     

    11

    51,672,510

    18,110,900

     

    12

    51,672,510

    16,464,454

     

    13

    51,672,510

    14,967,686

     

    14

    51,672,510

    13,606,987

     

    15

    51,672,510

    12,369,988

     

    16

    51,672,510

    11,245,444

     

    17

    51,672,510

    10,223,131

     

    18

    51,672,510

    9,293,755

     

    19

    51,672,510

    8,448,868

     

    20

    51,672,510

    7,680,789

     

    21

    51,672,510

    6,982,536

        

    The PEA above is pretty straight forward and the upside investment case that I will present below, further serves to illustrate the potential here, over an already highly positive, yet prudent PEA. I have referred to this analysis in the past as 'Blue Sky', but really there is not that much blue sky here and for me this may well represent a more accurate future scenario if FMS can achieve what it sets out to, with Lac Knife and Varennes imo.

    Amendments from PEA Based NPV10.

    - 25% contingency removed from base concentrate production cost and capital estimate.

    - Own upgraded production costed at $2,500/t. Mgt guidance, with reference to contract production margins in the UK for industrial chemicals in 2011. Additional $100m capital expenditure for the Varennes plant added.

    - Drilling updates allowing a 40 year LOM.

    - 2% incremental sales revenue growth pa.

    Upside NPV10, additional 50m shares issued at $1. Fair value per share $4.79 diluted, or $6.76 on current share count. NPV10 $824m. IRR 49.7% and payback 1.9 years.

    Production levels are held at PEA volumes for LOM. No value is attributed to Kwyjibo, Grafoid or other properties.

     

    Operating Cashflow & NPV

    UPSIDE PEA

        

    FMS

     

    FMS

    FMS

    >80/90%

    Finished Product

    46,135

     

    >80/90%

    Ore Grade

    15.66%

     

    >80/90%

    Global Recovery

    91.30%

     

    >80/90%

    Ore Processed

    294,604

     

    >80/90%

    Ore Processed per day (365)

    807

     

    >80/90%

    Mill Capacity 2,500tpd

    32%

     
        

    >80/90%

    Concentrate Sold (t)

    26,700

     

    >80/90%

    Concentrate Upgraded (t)

    16,900

     
        

    >80/90%

    Revenue/t ($)

    867

     

    >80/90%

    Revenue ($)

    23,148,900

     

    >80/90%

    Royalty Rate (value t / %)

    0%

     

    >80/90%

    Royality (NGC $20/t, FMS %)

    0

     

    >80/90%

    Net Revenue

    23,148,900

     
        

    99.5%

    Revenue/t ($)

    9,572

     

    99.5%

    Revenue ($)

    161,766,800

     

    99.5%

    Royalty Rate (value t / %)

    0%

     

    99.5%

    Royality (NGC $20/t, FMS %)

    0

     

    99.5%

    Net Revenue

    161,766,800

     
        

    >80/90%

    Operating Costs/t Concentrate ($)

    347.2

     

    >80/90%

    Operating Costs/t Ore ($)

    54

     

    >80/90%

    Operating Costs ($)

    16,018,072

     
        

    99.5%

    Operating Cost/t Upgrading ($)

    2500

     

    99.5%

    Operating Costs/t Ore ($)

    392

     

    99.5%

    Upgrading Costs ($)

    48,587,500

     
        
     

    Operating Margin ($)

    120,310,128

     
     

    Margin (%)

    65%

     
        

    =

    Sustaining Capital (per annum)

    1,275,000

     

    Yr20

    Closure Costs

    3,588,000

     
        
        
     

    Capex ($)

    229,507,000

     
     

    Payback (yrs)

    1.9

     
     

    IRR

    49.7%

     
        
       

    NPV

     

    Cost of Capital (%)

    10.00%

    824,391,321

     

    Market Capitalisation Premium over NPV (%)

     

    0%

     

    Market Capitalisation ($)

     

    824,391,321

     

    Shares in Issue (m) (both issue 50m @ $1)

     

    172

     

    Projected Share Price ($)

     

    4.79

        
     

    Annual Change in Operating Cashflow (%)

    2.00%

     
        
     

    0

    -39,551,000

    -39,551,000

     

    1

    -189,956,000

    -189,956,000

    START

    2

    119,035,128

    98,376,139

     

    3

    121,415,831

    91,221,511

     

    4

    123,844,147

    84,587,219

     

    5

    126,321,030

    78,435,421

     

    6

    128,847,451

    72,731,027

     

    7

    131,424,400

    67,441,498

     

    8

    134,052,888

    62,536,661

     

    9

    136,733,945

    57,988,541

     

    10

    139,468,624

    53,771,192

     

    11

    142,257,997

    49,860,560

     

    12

    145,103,157

    46,234,338

     

    13

    148,005,220

    42,871,840

     

    14

    150,965,324

    39,753,888

     

    15

    153,984,631

    36,862,696

     

    16

    157,064,323

    34,181,773

     

    17

    160,205,610

    31,695,826

     

    18

    163,409,722

    29,390,675

     

    19

    166,677,917

    27,253,171

     

    20

    170,011,475

    25,271,122

     

    21

    173,411,704

    23,433,223

     

    22

    176,879,938

    21,728,988

     

    23

    180,417,537

    20,148,698

     

    24

    184,025,888

    18,683,338

     

    25

    187,706,406

    17,324,550

     

    26

    191,460,534

    16,064,583

     

    27

    195,289,745

    14,896,250

     

    28

    199,195,539

    13,812,886

     

    29

    203,179,450

    12,808,312

     

    30

    207,243,039

    11,876,799

     

    31

    211,387,900

    11,013,032

     

    32

    215,615,658

    10,212,084

     

    33

    219,927,971

    9,469,387

     

    34

    224,326,531

    8,780,704

     

    35

    228,813,061

    8,142,107

     

    36

    233,389,322

    7,549,954

     

    37

    238,057,109

    7,000,867

     

    38

    242,818,251

    6,491,713

     

    39

    247,674,616

    6,019,588

     

    40

    252,628,108

    5,581,800

     

    41

    257,680,671

    5,175,851

        

    Supplemental Information

    Jurisdiction - 1st world Quebec, Canada. South of City of Fermont, fully existing infrastructure and labour. Access to cheap electricity, through Hydro-Quebec. The Quebec Govt is highly supportive of mining activities, this is from their website:

    "In 2009, for the third consecutive year, Québec earned international recognition for the excellence of its mining sector, when Vancouver's Fraser Institute ranked the province first in the world for its favourable mining environment, based mainly on its mining policies and mineral potential. The mining industry, accounts for 15,000 direct and 20,000 indirect jobs in all administrative regions of Québec, With 27 mines in operation in July 2010". Focus are 35km South of Fermont, the town was actually created to house workers/families of Cartier's (Now Mittal) iron ore mine at Mont Wright. Mont Wright is an open pit operation, producing 18m tonnes of iron ore per annum. We would be a miniscule operation in comparison and on the doorstep, very low impact.

    There is considerable historical information related to the Lac Knife deposit and the quality of the Graphite that can be produced from it:
    Bonneau & Raby - Mazarin Report (1990):
    http://www.focusmetals.ca/english/wp-content/uploads/2011/06/FMS_Article_Lac-Knife-Graphite-Deposit_April-9-2011.pdf

    Graftech (1991):
    http://www.thefreelibrary.com/Graftech+Inc.+Announces+Completion+of+Phase+One+Test+of+Canadian...-a071313816

    BGS (1993):
    Further support from the 1993 CJ Mitchell report from the British Geological Survey:
    Appendix 6 states a post screening grade of 17.3% and a 50% recovery factor supporting the reported 1:1 mining yeild (graphite to waste ratio).
    http://www.bgs.ac.uk/research/international/dfid-kar/WG92030_col.pdf

    The Government of Quebec showcases Lac Knife on their mines website:
    http://www.mrnf.gouv.qc.ca/mines/industrie/mineraux/mineraux-potentiel-graphite.jsp

    Various articles/links of Interest:

    Graphite demand is rising and supply is potentially doubtful

    http://www.im-mining.com/2012/01/11/find-more-graphite-demand-is-rising-and-supply-is-potentially-doubtful/

    EU Foresees Shortages of 14 Critical Minerals

    http://www.resourceinvestor.com/2010/06/17/eu-foresees-shortages-of-14-critical-minerals

    Graphite and Rare Earth Metals for the 21st Century: Jack Lifton

    http://www.theaureport.com/pub/na/12484

    Graphite: A Diamond in the Rough for Investors?

    http://www.resourceinvestor.com/2011/01/03/graphite-a-diamond-in-the-rough-for-investors

    Only a Few Graphite Companies Will Win: Mickey Fulp

    http://www.resourceinvestor.com/2012/05/24/only-a-few-graphite-companies-will-win-mickey-fulp

    Industial Minerals - Commercialising Graphene

    http://www.sgtk.ch/rkuendig/dokumente/HS12_recomended_reading_Commercialising_graphen.pdf

    A visit to Lac Knife

    http://onemansfinancial.blogspot.de/2011/08/walk-around-lac-knife-deposit-owned-by.html

    RPA - Mine Design

    http://www.rpacan.com/history.html

    Terrapex - Permitting

    http://www.terrapex.com/about.asp

    Photos

    http://www.focusgraphite.com/photos/lac-knife-updated-drilling-july-2012.html

    http://www.focusgraphite.com/photos/lac-knife-graphite-property-2012.html

    http://www.focusgraphite.com/photos/lac-knife.html

    2012 London Graphite Conference Presentations - Grafoid, FMS & Chris Berry (set).

    http://www.files.com/set/50ec19314cd9f

    (Unsure how long these will be hosted for).

    Critical Next Steps:

    Lac Knife drill results 2012.

    Own plant upgraded production costing RPA.

    Off-takes / partnerships, Focus Graphite & Grafoid.

    Focus has much to offer, but not without risk, we are a junior miner with all the financing and execution risk that comes with it, we still need to make the potential a reality, so the usual caveat of DYOR applies strongly here. That said, I have never seen a junior with such ambition and drive, they listed in May 2010 and have seen capital appreciation of around x7 since then. The news flow has been pretty phenomenal so far with the high potential of even more pivotal news to come. I hold the opinion that Mr Economo is one of the hardest working CEOs around

    IMO, DYOR & GLTA.

    Disclosure: I am long OTCQX:FCSMF.

    Themes: Graphite / Graphene Stocks: FCSMF
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