Seeking Alpha

Craven Morehead

Craven Morehead
Send Message
View as an RSS Feed
View Craven Morehead's Comments BY TICKER:
Latest  |  Highest rated
  • Focus Graphite Is Highly Undervalued And Positioned To Profit From Rising Graphite Demand [View article]
    Absolutely not. No sophisticated investor or anyone with a fundamental understanding of the graphite market, future graphite demand and Tesla's requirements and timelines, would ever mention Lomiko.
    Aug 4 12:20 PM | 1 Like Like |Link to Comment
  • Focus Graphite Is Highly Undervalued And Positioned To Profit From Rising Graphite Demand [View article]
    Excellent article, Mr. Kramer-Miller. Thank you. I agree with your conclusions, however, I believe you may have missed the obvious fit between Focus Graphite and Tesla Motors. Focus Graphite has proven that it can produce the best SPG graphite for Li-ion batteries – hands down. With the robust Feasibility Study in hand and, as critically important, outstanding independent test results for extreme-high-performance coated spherical graphite for Lithium-ion batteries, there is no other graphite development company that is able to provide Tesla with exactly what it requires, when it will need it, and from a North American source (security of supply as well as the assurance of the highest environmental standards being maintained throughout production).

    Readers may recall that earlier this year, Tesla Motors Inc. (NDQ:TSLA) announced plans to build a so-called "gigafactory" for the production of lithium-ion batteries. Targeting enough capacity to build enough batteries for 500,000 electric vehicles (EVs) per pear by 2020, the construction of such a facility would have a significant impact on the demand for graphite, lithium, cobalt and other materials used in battery construction. Tesla indicated that it planned to build the gigafactory somewhere in the southwestern United States. Not long after the initial announcement, Tesla informed the market that it planned to use only North American sources, for the supply of the raw materials for the gigafactory. The company has been sensitive to criticisms of the environmental "footprint" that materials sourced from China, in particular, can have. A Tesla spokeswoman commented that this move “will enable us to establish a supply chain that is local and focused on minimizing environmental impact while significantly reducing battery cost.”

    In late March, Dr. Gareth Hatch wrote an excellent article, entitled ‘Going Natural: The Solution To Tesla's Graphite Problem’ which addressed Tesla’s forthcoming graphite needs. Dr. Hatch concluded that Focus Graphite, “may well stand to gain greater benefit from the opportunity that the Tesla Motors’ Gigafactory presents. Focus Graphite’s lower ROM concentrate operating costs, likely lower battery-grade purification costs and the fact that it has already secured a significant off-take agreement [making it that much easier to finance the eventual construction of the mine] are key factors.”

    In late May, Focus Graphite announced its own independent test results on battery cells. Anodes were produced from Lac Knife material and the battery cells tested. Three Lac Knife SPG grades with proprietary coatings were tested – and the results were exceptional. Astounding, actually. No other graphite – natural or synthetic – has been proven to be such high capacity, but more importantly, so low loss. The irreversible capacity (IRC) losses are extraordinarily low. The lower the battery’s IRC loss, the lower Li-ion battery’s capacity fade – meaning the battery charge cycles last longer for a longer period of time. The lowest possible IRC loss is crucial for Li-ion batteries for electric vehicles.

    Tesla will procure the raw materials required to produce the best Li-ion batteries – and it will source said materials from North America, not China or anywhere else. Canada’s Focus Graphite would afford Tesla – and any other Li-ion battery manufacturer for that matter – with a proven, superior SPG material, resulting in superior Li-ion batteries. In other words, Tesla can achieve maximum performance from its batteries, while still achieving the requisite cost efficiencies from a North American graphite supplier, Focus Graphite. It’s a perfect fit.

    First-mover advantage resulted in FMS progressing into the most advanced-stage graphite play with the proven best graphite material in North America (note: the US imports 100% of its graphite) in the world's best location (geopolitically speaking, you really want to rely on politically unstable Mozambique or Madagascar?) for a mine of a “critical” material with copious future demand, in one of the world's most mining-friendly jurisdictions (Quebec, Canada). It will take years – and tens upon tens of millions of dollars – for the others to attempt to catch up to FMS.

    The investment FMS has graphene leader Grafoid shares (worth USD$39,000,000.00) is another huge benefit – obviously – but if you understand graphite and the graphite market moving forward, you know that no one, but no one can touch FMS. All of FMS’ other accomplishments, strong economics and major milestones completed aside, it’s FMS’ proven Li-ion anode battery material that changes the game. FMS has what Tesla Motors and Li-ion battery manufactures want. No one else can say that.
    Jul 11 03:52 PM | 7 Likes Like |Link to Comment
  • Going Natural: The Solution To Tesla's Graphite Problem [View article]
    What an ill-informed, asinine comment. Focus Graphite (TSX-V:FMS) is incredibly "hot" economically and is the most-advanced mid-tier graphite play advancing to production. Stellar management aside, Lac Knife is one of the world's highest-grade graphite deposits; situated in a safe, stable, mining-friendly jurisdiction (not half a world away in a far less-stable setting than Quebec). The fact is that FMS executed the industry's first off-take agreement - without a FS and with a Chinese powerhouse, no less! - speaks volumes.
    Mar 28 03:59 AM | Likes Like |Link to Comment
  • Going Natural: The Solution To Tesla's Graphite Problem [View article]
    Stellar article, Dr. Hatch. Thank you.
    Mar 28 03:43 AM | Likes Like |Link to Comment