Tuesday, December 27, 2011

Focus Metals - The potential just keeps building

As 2011 winds down and we look forward to the ringing in of another year, I would like to look at what could potentially help investors to realize additional value from Focus Metals (TSXV:FMS)(OTCQX:FCSMF). The company has recently released their NI43-101 resource estimate, which outlines a resource very much in-line with what was expected from the historical data. There is of course, the issue of off-take agreements to be determined yet, although there is lots happening in that regard according to CEO, Gary Economo. It is now widely known in the research community, as well as the industrial community, that to utilize graphite/graphene for a specific project, it is of paramount importance that a proper amount of testing be completed in order to ensure the graphite/graphene will be appropriate according to the customers specifications. Obviously this leads to extended wait times, as this testing is completed, and the decisions are then made as to whether the graphite and or graphene meet the prerequisites of any potential off-take partners. With several comments being made in connection to the high quality of the graphite and graphene available from Focus Metals' Lac Knife deposit, we can now see that Focus Metals is definitely poised to reach out and take possession of the position they have striven to reach, that of a globally dominant supplier of the highest quality graphite and graphene. I have made reference to the potential of Focus Metals many times since I first started to cover the company with posts in my blog, and as the company continues to progress, that potential only seems to grow. I have had people ask me what the effect on Focus Metals might be if the price was to drop somewhat, to which my main reply has been, Focus Metals will be in as positive a position as possible. Considering that the cost of producing this graphite and graphene will be amongst the lowest in the world, and with the highest quality product, it is with ease that I see Focus Metals continuing their progress uninterrupted. This is of course, if there is ever any downward pressure on prices. In the event that there are some immediate breakthroughs in research and the supply side of the equation gets outstripped by demand, the potential I will attempt to show here could be dwarfed.

I believe graphene stands to quite possibly dwarf graphite in financial terms for Focus Metals looking forward, but I found the following to be quite interesting, and I thought it would help to show the true depth of the potential uses for graphite as well as graphene.
There seems to be a renewed interest in nuclear power, following the crisis in Japan earlier this year. It is true that nuclear power has competition in some parts of the world, which may be more economically feasible, such as the advent of shale gas in North America, but this cannot be said of the entire world. For instance, both China and India, are in desperate need of a much cleaner method of producing power. There are many other countries that fall into this category, but in the case of these two countries, the growing population coupled with the growing economy will soon leave little to no choice. http://world-nuclear.org/info/inf104.html

 Many concerns of course, still abound over the safety of nuclear power, but there are alternate options which are available now that involve some of the latest state-of-the-art technology.  As these uniquely different technologies continue to be tested, some have shown considerable promise. One such reactor is discussed in this article, under the heading HTR-10, which is approximately 3/4 of the way down the page, although the entire article is quite interesting, http://www.world-nuclear.org/info/default.aspx?id=26187&terms=graphite%20pebble%20bed.
It comes as little surprise that SGL Group, which is arguably one of, if not the, world's largest carbon company, would be firmly rooted into such a technology, concerning the use of graphite.
http://www.sglgroup.com/export/sites/sglcarbon/_common/downloads/industries/energy/Products_Services_for_Nuclear_Power_Plant_Technology_e.pdf
There are a myriad of other uses that graphite is being considered for presently, many of which I will try to cover in the future, however, graphene seems to be at the centre of most every scientist and researcher on the planet, so I would like to switch our view more to this very exciting space.

Graphene research has become a rather dominating factor on a global basis, with virtually every country in the world becoming involved in one way or another. In the EU for instance, there is an organization that has been formed called Graphene Flagship. Here is a link that will explain how this organization works, (there are 2 videos, one is an introduction to graphene, the other is an introduction to the Graphene Flagship), http://www.graphene-flagship.eu/GF/Videos.php.
As we can see this will have a profound effect at enabling graphene research to progress at a much faster pace, as opposed to all research being segregated. One example of this, that I believe brings home just how this can be beneficial, is the case of Nokia and their efforts to bring to life a mobile phone called the "Morph" into our everyday lives.   http://www.independent.co.uk/life-style/gadgets-and-tech/what-is-graphene-and-why-is-nokia-touting-it-as-the-supermaterial-of-the-future-2297476.html
This project is not considered to be just another research project, but is something that Nokia seems to view as a project that must be pursued until completion. It is with ease that we can see just how deep the determination is, and how broad the commitment is from so many sources to bring graphene to the forefront of our technological advances.

In yet another fascinating field of research, we find that there has been considerable progress in the research of single molecule nanomagnets enabling novel graphene spintronics devices. Although there are reportedly some issues that require more research, there are no fundamental problems foreseen. http://www.nanowerk.com/spotlight/spotid=21982.php

Recently we have seen an abundance of research to determine the viability of graphene to replace silicon in the manufacturing of computer chips. IBM announced this summer that they have built a computer chip made entirely with graphene. While this research has not provided us with the technology to say we can replace the silicon chip with a graphene chip today, it is reportedly becoming more certain that this will indeed be the case, and this is expected in the short to mid-term apparently. http://www-03.ibm.com/press/us/en/pressrelease/36135.wss

When we think about graphene it is common for us to think predominately in terms of high-tech electronics. This is no doubt due to the strides being made in this research, but there are so many other potential uses for graphene. Some of these are much less discussed, and yet the potential is almost beyond comprehension if their was to be a breakthrough in some of this research. I am speaking of graphene being researched for medical uses. For instance there are currently about 15 million people suffering from Alzheimer's Disease worldwide, and this figure is expected to grow by 4 fold by 2050. The anguish that comes not only to those who are diagnosed with this most wretched of diseases, but also to those who care for them, is something that most if not all of us can appreciate. I do not wish to try and downplay the seriousness of this, but rather to bring to light just how valuable this type of breakthrough would be. http://www.nanowerk.com/spotlight/spotid=23726.php
In yet another fascinating research project we find that there is considerable potential for graphene to be used in the diagnosis of malaria. Malaria is among the most deadly infectious diseases on the planet, killing untold numbers annually. It goes without saying this is a disease that man needs to conquer, and sooner is much preferred to later. The scientists who are performing this research bring not only hope to this issue, but also afford us a view as to the actual potential. http://www.nanowerk.com/spotlight/spotid=23534.php

Now let's take a look at some research that is currently being done in the field of batteries. For quite some time people have thought that the Lithium-ion battery would potentially be the battery of choice as the entire world begins to look at the possibilities of moving from internal combustion to all-electric vehicles. This did indeed appear to be the case, but researchers kept coming up against the problem of how far a vehicle could run per charge, and the results were not favorable. Now research has found a battery that could potentially hold all the attributes required for the impending revolution towards electric vehicles. Instead of a lithium-ion battery, researchers are now leaning towards a lithium-air battery. The Li/O2 couple is especially attractive because it has the potential for the highest specific energy among all the known electrochemical couples. What does this all mean in plain terms? A lithium-ion battery is capable of reaching distances in excess of 500 km per charge, and this definitely helps researchers see the potential this technology could hold. http://www.nanowerk.com/spotlight/spotid=23258.php

There is obviously an almost infinite amount of research on possible uses for graphene at present. One thing that stands out prominently in my mind, is the need for not just graphene for the research being completed, but the need for high-quality graphene. This will apply to not only the research but also to any actual applications. From an investment viewpoint, this prompts the question of who stands to gain the most from all of this need for high-quality graphene. As one considers all the options for sourcing graphene that meets the requirements, and keeping cost in mind also, I find Focus Metals to be most aptly positioned. Grafoid Inc., which is a graphene joint venture in which Focus Metals holds 40%, has very recently announced a signing of a MOU with Rutgers University. The agreement was signed by Mr. Economo as President of Grafoid Inc., and Professor Thomas Nosker, Principal Investigator for Rutgers University’s Advanced Polymer Materials School of Engineering. http://www.focusmetals.ca/english/news/press-releases/2011-2/dec12011
Not only is Rutgers University one of the most highly regarded advanced materials research center's that works with industry to commercialize new technologies, and commits to providing the research and inter-disciplinary laboratory facilities, but Professor Nosker is quoted as saying, “I am very pleased that we have an opportunity to spearhead the exploration for the applications from the very high quality graphite received from the Lac Knife project in Canada.”

All things considered, I am firmly entrenched in my opinion that Focus Metals will undoubtedly reach their goal of becoming the "go-to" company for graphite and graphene products that are far and above the quality available from virtually all other sources, and this in turn will allow them to realize the value that such a global dominant supplier will display. I also believe that we will continue to see progress, which may or may not be quite as we would think appropriate, that will be the result of a management team that has not only the best interests of Focus Metals at heart, but ultimately, also the shareholders interest. When management tends to keep very quiet on some issues, I have learned this can often be construed as acting in our best interests. For example, in the research I did to follow up on much of what I have written about in this post, I found many companies to be very silent and not that forthcoming. The reasons given are invariably the same, from some of the smallest to some of the largest companies, and the main reason stated is quite simply, "To protect our proprietary knowledge." I will admit, this can be frustrating, but after meeting with several of the management team, and from the experience I have gained thus far as a shareholder, I have come to a point where I trust management to unlock much additional value as we go through this next year, and I hope for many years to come. The potential here is that large in my opinion.

As I always point out to anyone who finds Focus Metals to be a company of interest for an investment choice, please do your own due diligence. There are many places where one can look for information, and I would encourage everyone to go to the company website for starters. This can be found at www.focusmetals.ca.

For disclosure purposes, I have received no compensation of any kind for this post or my opinions. All opinions herein are strictly my own. I own shares of Focus Metals.

Thursday, December 8, 2011

Focus Metals releases 43-101 resource estimate and begins to show its true potential

For some people, Focus Metals (TSXV:FMS)(OTCQX:FCSMF) has been quite a ride so far. The company has had an extremely busy time since they first listed in 2010, first climbing like a rocket, then falling victim to a series of delays that were completely out of the control of the company, and now comes the long-awaited 43-101 compliancy report.There were some who refused to see the potential, others who at first believed and then let fear cloud there judgment, and of course there were those who believed strongly enough in the management and the project that we believe this is only the beginning.

For anyone who is not holding a position, or who has not been following Focus Metals, there was a news release, dated December 5, 2011,  which contained the 43-101 compliant resource estimate. http://www.focusmetals.ca/english/news/press-releases/2011-2/dec52011
Previous to this, all reference to the resource estimate was based on historical data, which was very close to the current resource estimate. Focus Metals management had stated in an earlier news release that the company had been told by Roche that it appeared there would be little change from the historical numbers to the more modern 43-101 standard. Now that we see this is indeed the case, it allows one to begin to realize just how huge the potential for Focus Metals is.

 Prior to this news release,  Gary Economo, Focus Metals CEO, spoke at the Industrial Minerals Roundtable in Amsterdam on December 01, 2011.
http://www.focusmetals.ca/english/news/presentation-and-speeches/dec12011


 There are many points made by Mr. Economo in the presentation, , but one that stands out in my mind, is how quickly he addressed the importance of SGL Carbon SE,  the world's largest graphite technology supplier. This This importance is brought into realistic terms  with Volkswagen's recent move to acquire an 8.1% stake in SGL,  and also with BMWs $100 million venture  in United States. As SGL states, “the carbon age has begun.”  If the carbon age has begun, so to has the graphene technology revolution. This falls in-line with my earlier postings, in which, I stated my expectations that SGL stands out in my opinion as a possible candidate for a potential off-take agreement. While this is only my opinion, it is with relative ease that one can see how they fit the requirements that Mr. Economo stipulated, just a few days later, at the first, Industrial Minerals Graphite Conference. This was held in London, UK on Dec. 6th and 7th. "The off-take partners we seek will have a strong marketing presence, product research and development facilities and a forward-looking vision to provide Focus Metals with a dual link to the vast global market for graphite, and over time, for our graphene." This is an excerpt from Gary's presentation on Dec. 6, 2011, and here is a link to the presentation in it's entirety,  http://www.focusmetals.ca/english/news/presentation-and-speeches/dec62011
This entire presentation clearly presents Focus Metals in a much more dominant role, not only because of the world class graphite deposit it owns at Lac Knife, but equally, if not more importantly because of the cost of production. While some people would view the fact that graphite could possibly face some pricing instability, from a short to mid term basis, as a negative, this is in fact what allows Focus Metals to stand ahead of any competitors. This low cost of production added to the fact that Focus Metals' Lac Knife deposit has now been confirmed to hold the world's best natural flake graphite, which in turn, is capable of producing the highest grade graphene, positions Focus Metals in a very unique position. The fact that Focus Metals has already started its search for strategic properties which hold potentially appropriate graphite deposits, and in fact has recently purchased some 200 claims, only adds to this unique position. In his conclusion to his presentation, Mr Economo stated a very provocative thought,  
"Simon Moores, in a thoughtful and reasoned lead editorial in Industrial Minerals September publication of Critical Materials for Green Energy aptly put it this way: “whoever holds the technology cards will lead the pack.”
Focus Metals is committed to being that leader."

One thing I have long noticed with Focus Metals, is the company's desire to find the ultimate amount of value they possibly can, and their graphene joint venture appears to be an entity that could potentially bring enormous value to the table. This joint venture, known as, Grafoid Inc., has just signed a MOU with Rutgers University AMIPP Advanced Polymer Center to jointly develop graphene technology applications related to both polymer and non-polymer applications. http://www.focusmetals.ca/english/news/press-releases/2011-2/dec12011
Under the terms of the MOU, Rutgers University, an advanced materials research center that works with industry to commercialize new technologies, commits to providing the research and inter-disciplinary laboratory facilities.
Grafoid Inc. commits to providing human resources, graphene materials from Focus Metals' Lac Knife graphite resource, and graphene expertise for research and development purposes.
The agreement was signed by Mr. Economo as President of Grafoid Inc., and Professor Thomas Nosker, Principal Investigator for Rutgers University's Advanced Polymer Materials School of Engineering.
Some people seem to miss just why Grafoid may hold this huge potential capability, to bring enormous value to both, the companies and the shareholders. Well, it is actually quite simplistic in nature. Here is an excerpt from Gary Economo's presentation on Dec. 7, 2011, at the Industrial Minerals Graphite Conference, which helps to shed some light on this topic,
"Dr. Chiu
The first was the quality of our graphite; the second was the ease of extraction of graphene from the ore and the purity of structure of that graphene.
To us, quality is everything and our quality graphite produces quality graphene.
More importantly, the graphene produced in the lab was electrically conductive, unlike vapor chemical deposition.
And those factors contributed in part, to our development of a scalable model for mass producing graphene in single and multiple layers using a simple, environmentally friendly process."
"Our raw graphite ore is superior to the refined lab graphite used by the scientific community for its graphene research."
Here is the link to the entire presentation, http://www.focusmetals.ca/english/news/presentation-and-speeches/dec72011
The above presentation by Mr. Economo will provide the reader with a full understanding of just what has been meant by the Focus Metals vision of reaching their mine-to-market goal, which they have mentioned many times since their inception. The only real change to this vision has been the fact that is has grown more encompassing than was initially viewed.

With all that has transpired, over the last approximately year and a half, and specifically over the last week or so, it is with full expectations that I see Focus Metals and Grafoid Inc. becoming the driving force of graphite/graphene supply outside of China. The value that will be attached to such a position remains to be seen, but it is my opinion it will be very great.

For those who would like to know more about Focus Metals, or those who would like to start some due diligence on this company, the company website can be found at www.focusmetals.ca , and this is an excellent place to start in my opinion.

For disclosure purposes I have received no compensation of any kind for this post. All views aside from quotes are my own. I do own shares in Focus Metals.

Friday, December 2, 2011

Focus Metals announces a strategic move that supports the company's mission statement

Focus Metals (TSXV:FMS)(OTCQX:FCSMF) President and CEO, Gary Economo, who holds the same office in Grafoid Inc., has released news regarding Grafoid Inc. http://www.marketwatch.com/story/grafoid-inc-and-rutgers-university-sign-mou-to-jointly-develop-and-commercialize-polymer-and-non-polymer-technology-graphene-applications-from-focus-metals-lac-knife-graphite-resource-2011-12-01?reflink=MW_news_stmp
This is extremely good news, as Rutgers University is a very respected institution. Rutgers is one of the nations foremost research universities. http://www.rutgers.edu/about-rutgers/who-we-are

For anyone who may be new to Focus Metals or Grafoid, let me  quickly give you a brief outline on both companies.
Focus Metals Inc. is an emerging mid-tier junior mining company, a technology solutions supplier and a business innovator. It is the owner of the highest-grade (approximately 17%) technology graphite resource in the world. The company's goal is to assume a dominant industry leadership position by becoming the lowest-cost producer of technology-grade graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Metals is invested in the development of graphene applications and patents through Grafoid Inc.
Grafoid Inc. is a Canadian, privately-held joint venture created to research and develop commercial applications and patents from graphene, sourced exclusively from Focus Metals' Lac Knife, Quebec technology graphite resource. One of its aims is to set a universal standard for the mass production of graphene for industrial applications.

Grafoid's founders, partners and officers are: Mr. Jeffrey York, Chairman; Mr. Gary Economo, President and CEO, and; Dr. Gordon Chiu, Vice President and Chief Scientist. Ms. Judith Mazvihwa-MacLean is Chief Financial Officer. The company's ownership structure, as set out in its Articles of Incorporation is as follows: Focus Metals, 40%; Mr. Jeffrey York, 20%; Mr. Gary Economo 20%, and; Dr. Gordon Chiu 20%. This structure enables Focus Metals to further explore and eventually profit from opportunities for creating graphene and graphene applications without compromising its primary corporate objective of developing its Lac Knife property.

The fact that Grafoid Inc. has aligned themselves with such a prestigious facility speaks volumes as to the level of research that will performed on the graphite from Focus Metals' 100% owned, Lac Knife graphite deposit. The graphite will provide the source for the graphene that Grafoid and Rutgers will be conducting research on. In order for Grafoid to attract the attention of Rutgers, concerning the quality of the graphite, and obviously the resultant graphene, is a feat that I believe should bring Focus Metals into plain view of the entire world, in terms of graphite/graphene related companies. Rutgers is well known for their ability in researching and developing. http://www.rutgers.edu/research/research-rutgers
http://amipp.rutgers.edu/html/research.html
Professor Thomas Nosker is well respected for, both, his many accomplishments, and the many years of dedication and commitment.  http://amipp.rutgers.edu/html/group_member_nosker_thomas.html

One statement that I particularly liked, was the following statement from the news release, "Grafoid, in cooperation with Rutgers AMIPP will focus its investigations initially on infrastructural, aviation, automotive and other applications." These are all areas which stand to benefit greatly from the type, and caliber of research which we can look forward to Grafoid and Rutgers producing, as a joint effort.

At this point, Focus Metals, stands out from all of its competitors, and this coming week will have Gary in London for the World Graphite Conference, which Focus Metals is sponsoring. This is  a tremendous opportunity for Focus Metals, since the entire world, in terms of graphite/graphene associated companies, will undoubtedly be in attendance. The amount of interest that Focus Metals can garner from these companies will in all likelihood be quite significant following the news release of Dec. 1, 2011. Add to this the fact that the 43-101 is due out before year-end, and need I remind you just how Focus Metals could change from their current status to a company of untold wealth.
I think that one of the things that will continue to make Focus Metals, and its subsidiary Grafoid, stand out from the rest of their competitors is the statement made by Professor Nosker.
On behalf of AMIPP (Advanced Materials via Immiscible Polymer Processing), Professor Nosker said a huge opportunity is waiting to be opened by the cooperative venture.
"I am very pleased that we have an opportunity to spearhead the exploration for the applications from the very high quality graphite received from the Lac Knife project in Canada," he said. When a Professor with the stature of Professor Nosker, and coming from one, if not the, most respected Universities regarding this type of research, refers to the graphite received from Lac Knife as "very high quality", it holds tremendous weight.

The speed at which most companies are capable of progressing a company towards their goals is generally not something that is done with the speed and meaning that the management of Focus Metals, and of course also Grafoid Inc., has shown us. When we consider that Focus Metals became a listed company in 2010, and Grafoid only came into existence just last year, they make it relatively clear that they truly are on a mission. As a start-up company in 2010, Focus Metal’s brief history has been stellar among the 2,400 emerging companies listed on the TSX-Venture Exchange.

I think anyone who has knowledge of how graphite and grapheneGrafoid Inc. and ultimately Focus Metals are positioning themselves true to their desire to be the go-to company regarding all things graphite or graphene. The best part of this whole story as it unfolds is this though, Focus Metals and Grafoid Inc. are just beginning and I believe we will see many more strides which will continually build added value to both the company and the shareholders. For those who have not done any due diligence on Focus Metals as yet, I would suggest you may want to. Obviously it may suit some investors, while it may not be appropriate for others. This is a decision that is best left to each person to make on their own. For those wishing to learn more about Focus Metals, the company website which can be found at www.focusmetals.ca is an excellent place to start.

For disclosure purposes I have not received any compensation of any kind for this post or for my opinions stated herein. All opinions expressed here are my own. I do own shares of Focus Metals.