Wednesday, August 31, 2011

Hathor Exploration vs Cameco - good deal or bad deal

Hathor Exploration (TSX:HAT) is a company that is currently exploring for uranium in one of the finest uranium areas on earth. This would be the Athabasca Basin in northern Saskatchewan, Canada. Known as an area where political stability is definitely not an issue, and the grade of most uranium from this area reaching unusually high grades, including some of the highest grades known, it is viewed as a premiere address for all company's involved in uranium.

I wrote about Hathor Exploration, back on May 20, 2011, and questioned whether Hathor Exploration would become a mine or a take-over target. On Friday Aug. 26, 2011, news broke of a hostile bid by one of the world's larger uranium producers, namely Cameco. This acted as a driver to the Hathor shareprice, causing it to reach new 52 week highs Friday, and continuing on Monday and Tuesday. The closing price on Tuesday was $4.10 per share.

It would seem that shareholders are making a statement about the offer at this point, since $4.10 is a respectable premium over and above the $3.75 offer from Cameco. Hathor management has requested that shareholders not respond to Cameco's offer at the present time, in a news release dated August 29, 2011. In this news release Hathor also stated that they were unable to comment at this time since they had not received any official papers concerning this hostile bid. http://www.hathor.ca/i/pdf/NR_29aug2011_CCOresponse_V6-2.pdf


It would be my opinion that this price could conceivably appreciate from this level. Cameco may need to sweeten the offer at this point, and that is assuming that no other offers come to light. Some analysts are saying they see little chance of an alternate offer. The main argument for this view is the foreign takeover rules. However, in my opinion, while this may be somewhat of a problem, there are companies that could either present an offer since they are Canadian, or a Canadian company could JV with one of the foreign company's. This would leave several scenarios open which could include names like Areva, Denison Mines, not to mention a few others, although these would definitely standout. Of course there is the possibility of even BHP Billiton, but I'm not certain where they might stand on this. All of the company's mentioned have been unavailable for comment so far.

I do expect that Hathor will quite likely continue to gain ground with their shareprice. In any event, the one thing that Cameco has done through all this, is bring global attention to Hathor Exploration, and in so doing, it is extremely difficult to say with any certainty just where this shareprice may end up.

I do like the fact that I was able to call Hathor back in late May, and now to watch the company appreciate as I had first envisioned it. From the time I called Hathor, in May to now, represents a 59.5% ROI. If this plays out the way I expect it may, there could still be some profit to be made yet.
If anyone would like more information on Hathor, I would suggest going to their website which can be found at http://www.hathor.ca/s/Home.asp

For disclosure purposes I have received no compensation for my views or this post. I do not own any shares of Hathor Exploration.

Monday, August 29, 2011

Acceleware steps up a level with the latest news release

Acceleware (TSXV:AXE) is a Canadian based company headquartered in Calgary, Alberta. Acceleware develops and markets software acceleration products that bring unparalleled performance and speed to today's most strenuous and challenging compute and/or data-intensive demands. With Acceleware solutions installed, computer processing for data processing and simulation applications can benefit from speed-ups of 10x to 50x. Acceleware also uses its unique expertise for providing consulting services for companies, and research institutions involved with High Performance Computing. These services include architecting multi-core processing solutions, code porting and training.

In a news release of Aug. 24, 2011, Paradigm states that Fugro has chosen the Paradigm Reverse Time Migration to meet its challenging depth imaging objectives. http://www.acceleware.com/press_release/fugro-selects-paradigm-and-acceleware%E2%80%99s-reverse-time-migration
The fact that Fugro is the first to choose the RTM approach is, in my opinion, of significance. The fact that Acceleware was able to work in collaboration with Paradigm to produce a product, such as Reverse Time Migration, and then to have a company of the stature of Fugro choose this as a product of value in their operations speaks volumes. Fugro is afterall a world leader in their industry, and as they say on their website, "Fugro’s mission is to be the world’s leading service provider for the collection and interpretation of data relating to the earth’s surface and sub-surface and for associated services and advice in support of infrastructure development on land, along the coast and on the seabed." http://www.fugro.com/index.asp
This is excellent news for everyone involved, but especially for Acceleware, since this is something that Acceleware has been working on for some time. Now that a company with the size and stature of Paradigm has successfully brought this into the mainstream, it definitely holds the potential for more work that is similar. Paradigm reportedly has more customers in the pipeline that could potentially use  this type of service. In my opinion, this could well be the first step, of many to come, that will take Acceleware upwards in this sector of technology. As this newest technology begins to prove itself, I would expect we can look for the possibility of Paradigm and Acceleware to continue to work together on future projects. The two company's have a constructive relationship, with the RTM product bearing witness of the same.

The entire industry is preparing for the largest gathering of geophysicists, geologists, earth scientists, energy industry executives, researchers and software developers. Yes, it is time for SEG once again. In 2011, the SEG will return to San Antonio for its Eighty-first Annual Meeting. Do not miss this opportunity to share your latest case histories, technological advancements, and research discoveries with the world's greatest assembly of applied geophysicists at the Henry B. Gonzalez Convention Center. Acceleware is not only going to be present, but will also be presenting two papers. http://www.acceleware.com/events/seg-2011
For those of you who may be planning to attend SEG, I would encourage you to stop by the Acceleware booth at 3600 Hall B, I am quite confident you won't be disappointed. The dates of the SEG are Sept. 18th - 23rd, 2011, and it will be held in San Antonio, Texas.
For shareholders of AXE, the presentation of two papers by Acceleware is of particular importance. There is, however, another presentation that holds significance, and that is the presentation by Paradigm, of Paradigm 2011. http://www.pdgm.com/ This has been a long awaited presentation, and I believe this could in turn be a positive for Acceleware, since the RTM technology is an integral part of the whole Paradigm 2011 package. This years SEG definitely looks poised to be one of the best yet.

My focus, looking forward, will be to watch for the anticipated benefits that Fugro should experience with the implementation of the Paradigm RTM product. The more benefit they recognize, will only continue to build value from this technology, for Acceleware. I am very pleased that this product will be anchored by Fugro, and anticipate that this will be only the beginning of a steady trend in continuous demand. The other driver that will influence the continuing growth of Acceleware is the presentation of their training classes. These classes are being met with positive results, and I anticipate this will continue to grow, both on the CUDA level and on the OpenCL level.

Overall Acceleware has progressed quite impressively up to this point, considering that the restructuring arrangement was completed only months ago. In my opinion we will quite likely see a continued gaining in momentum. For those who may be unaware of how these training programs are affecting Acceleware, here is a link to the schedule, http://www.acceleware.com/events.
As you can see the schedule is busy, and in talking with management, subscriptions are very good.

If I am correct in my assumptions that Acceleware will continue to gain momentum, then it goes without saying just how undervalued this company is. I see a management team that is extremely dedicated and committed to building this company and keeping the shareholder in mind as they progress. I also see the successful steps they have taken thusfar and I truly expect we should start to see some appreciation in the share price in the near-term.

For those who find Acceleware a compelling investment consideration, I strongly suggest you do your own due diligence. An excellent place to start is at the Acceleware website, which is located at, http://www.acceleware.com/.


For disclosure purposes I have recieved no compensation of any kind for my views or this post. I own shares of Acceleware.


A walk around the Lac Knife deposit owned by Focus Metals

Recently I was invited to attend a trip, by the management of Focus Metals, for the purpose of going to the Lac Knife property and seeing first-hand what the property looked like and as a factual information opportunity. This of course offers a chance to really get a feel for what the property holds from a resource standpoint, as well as offering some insight into just how large the potential is for this project. Our tour guide was CEO Gary Economo, who was very open on most topics, but of course some questions could not be answered due to the need for confidentiality at this time, which I might add will be revealed as quickly as is practical.

The flight from Ottawa to Wabush, Labrador, which is the closest airport to Lac Knife where we could land, offers a stunning view of the several operating iron-ore mines in the area. Once we landed in Wabush, we then were driven approximately an hour and a half to the Lac Knife property.

As we entered the property, there were several outcrops, which were clearly visible at surface, that are graphite boulders. Some of them had the appearance of being just another boulder, but with little effort it was possible to chip off a sample and easily see that it was graphite. Gary explained that as we first enter the resource area, the deposit is approximately 20 meters wide and reaches widths of approximately 100 meters or more midway through the property, and then narrowing down to approximately 30 meters wide. Thus, it leaves the actual deposit with a similar shape to a North American football. The drilling to date has only accomplished reaching depths of approximately 120 meters. This leaves Lac Knife not only open at depth, but also to the south. The potential for an expansion of resources to the south are exceptional, since, while standing at the south end of the current resource area, and looking to the south, there are several large outcrop boulders of graphite visible. These outcrops to the south are approximately 250 -300 meters past the south end of the resource area. It was with relative ease that one could start to sense the actual potential of this property.

There has been a considerable amount of excavation done in the mineralized zones. Much of this work was completed by the previous owners, such as Mazarin, while they were in a JV with the town of Fermont, QC, and also Graftech who was working with Ballard Power Systems. This work has left the deposit with an overburden of 3 to 6 meters in most areas. The following are some images showing what I am attempting to describe.


This is one of several outcrops visible as we entered the mineralized zone of the property. Although it may appear to look like just another rock, it takes very little effort to chip off a sample, and it is clearly graphite.


This is an image of another of the outcrops visible as we entered the Lac Knife deposit. These two outcrops are approximately 20 meters apart. While handling some of the material shown here it is quite apparent that this is an extremely high grade sample of graphite.


In this image I am holding a small piece I found on the roadway between the first and second mineralized zones. It would appear that all the graphite that is visible at surface seems to be of an unusually high grade. CEO Gary Economo, stated in his address to the Cambridge House Critical Materials Symposium, in June, 2011, " Early indications from our consultant preparing our 43-101 resource calculation are that we shall see no inconsistencies or variations from previous non-43-101 estimates that our property contains a 17% pure carbon content." I found that in walking the Lac Knife deposit these statements become more valid.

After experiencing Lac Knife in person, I look forward to just where this company is headed looking forward. The fact that the resource size is open at depth and to the south, and shows viable signs that this will undoubtedly become reality, is something that only helps one to view this in a positive light. The fact that the grade and quality of the graphite are so noticeable, tends to inspire questions of just what industries this grade of graphite may become useful to. The possible answer to these questions will be something for another article, but it has become clear that this graphite will undoubtedly attract the attention of some of the world's most prominent buyers. Further to the study of who may be interested in purchasing this graphite, comes the speculation of what, graphite of this grade, will be capable of in the graphene arena. This will also be something covered in an upcoming post.

The one thing that stood out prominently in my mind, was the fact that, not only does Focus Metals hold ownership of a world-class graphite deposit, but they also see the importance of finding the right customers who may potentially become off-take partners. This is a very important aspect, and as such it is being addressed by management as vigorously as possible. As I pointed out in an earlier post, there are several company's that seem well suited to potentially fill this need for an off-take partner. While I was not told who these company's are, I remain optimistic that my predictions have a good potential to become a reality. The much anticipated 43-101 is expected to come very close to the historical data, but it is also causing some waves, as some investors seem reluctant to believe the historical data. While I can appreciate the fact that the 43-101 is obviously necessary by todaysde-risk the project somewhat, but after visiting the site, I truly came away with a belief that the potential for Focus Metals and their 100% owned Lac Knife deposit is large at the least. With the feasibility of a resource expansion, pending further drilling, Lac Knife will, in my opinion, stand an excellent chance of achieving the goal of management, to become a dominant factor in the world of graphite, and eventually graphene supply.

On our return trip to the airport in Wabush, Labrador we stopped off in Fermont, QC briefly, where it is expected that the processing plant will be built, and following that, the upgrader plant that will bring the graphite to the 99% - 99.99% purity level, which is what the high-tech industries will require. According to Gary, there have been meetings with the town council, which have resulted in the town expressing their interest in welcoming this plant to their town.

Overall, I found this to be an inspiring property viewing, which by the time we left, had me appreciating this company and the management more than ever. I feel justified in my opinion that Focus Metals has what it takes to become the worlds premiere graphite supplier. In the coming days I will explore some of the topics that were omitted from this post.

I strongly encourage anyone who finds this company attractive as an investment choice, to do your own due diligence. An excellent place to start would be the Focus Metals website which is located at www.focusmetals.ca,

For disclosure purposes I have not received any compensation for my point of view or for this post. My travel expenses were covered by Focus Metals. I own shares in Focus Metals.


















Monday, August 15, 2011

Focus Metals will be supported by the pace of research and demand for graphite and graphene

It is quite amazing when one looks at the incredible pace that researchers seem to be progressing with the research being done on graphene and its many potential uses. Some of these potential uses have progressed to the point that reportedly we should see graphene start to enter devices, that are commonly used in our day to day lives, by early next year. Nokia is virtually depending on graphene to put their company back into a leading spot in their sector of the mobile industry. There are many company's clamouring for graphene technology and the patents race seems nearly insatiable. Thompson-Reuters has an article that illustrates this quite well, http://www.ipsolutionsblog.com/?p=427.

I believe that for Focus Metals, the graphene research will undoubtedly bring the company to a level that will be at the forefront of global recognition. Although the research into potential uses of graphene has reached an incredible pace, this is something that will in all probability take time to perfect. There are some products that are destined to use graphene and should be hitting the market possibly as early as next year. I truly believe that as this research continues there will be more and more breakthroughs, which in turn will lead to more patented uses. With the joint venture that Focus Metals is involved with, this could potentially lead to an enormous area of growth within the company.

We can also expect many exciting things from Focus Metals looking forward, in regards to graphite. Graphite is a product that has been around for quite some time, but recently has started to enjoy an ever-increasing demand. This will continue in my opinion as scientists find ever more uses for graphite, and with the superiority of graphite in comparison to many of the products we traditionally used, this is not that difficult to expect. The demand for graphite has risen dramatically over the last few years, which in turn has driven prices up considerably compared to prices a decade ago.

Graphite is being implemented into many sectors currently, some of which include, steel, aluminum, automotive, chemical and glass/ceramics industries. However, manufacturers in the semiconductor, battery, solar/wind energy, environmental protection, aerospace and defense industries as well as in the nuclear energy industry also figure among the varied sectors developing an appetite for graphite.

There are a large number of company's that are avidly pursuing the evolution of graphite use, as well as constantly researching more potential uses, one company that is note-worthy is the SGL Group. This is a company that has a clear vision of just where carbon and graphite products are leading the entire globe. SGL Group - The Carbon Company - is one of the world's leading manufactures of carbon-based products. As this company continues to grow along with the increased demand for their products, it would be my opinion that Focus Metals will look towards this type of company in regards to a market for the high quality of graphite that can be supplied from the Lac Knife deposit. I will provide a link to the home page of SGL Group, and I would encourage you to view the 2 short video presentations as well as the interactive tour. I believe this will help everyone to see just how realistic it is to view graphite and graphene as the next wonder material that will change the world as we now know it, and how graphite can improve upon our quality of life.  http://www.sglgroup.com/cms/international/home/index.html?__locale=en. An example of how one industry is making a significant change towards the future of carbon useage is the joint venture between SGL Group and the automotive manufacturer BMW. http://www.bmwblog.com/2010/07/07/sgl-automotive-carbon-fibers-breaks-ground-in-moses-lake/
These are the types of advancement that will lead to an increase in demand for quality graphite, which is exactly what Focus Metals possesses, and is continuing in their efforts to bring their Lac Knife deposit into production. In my opinion this is precisely the type of demand that will equate into Focus Metals progressing towards a significant supplier of graphite on a global standing.

Another company that is equally committed to the overall use and research of carbon and graphite use is Superior Graphite. I have previously expressed that in my opinion there is the possibility of Superior Graphite becoming a source for Focus Metals to sell graphite. I continue to view this as entirely possible. Superior Graphite is also experiencing an increase in demand for carbon and graphite products, which of course in turn leads to an increase in their need for more graphite. Superior Graphite also has a team that is devoted to researching further uses of carbon and graphitic applications at each of 3 R&D facilities.  Each facility, located at a specific manufacturing site is designed to support various processing technologies and to develop new products and processes.  Superior Graphite also attended GIFA, which is basically a quartet of trade fairs, comprised of GIFA, METEC, THERMPROCESS, and NEWCAST, held once every four years in Dusseldorf, Germany, and at closing they came away quite impressed with the amount of international visitors they received at their booth. Dr. Eric Salmon from Superior Graphite,“This has been my third GIFA and this year we had more stand area than ever before", says Dr Eric Salmon of Superior Graphite from Sweden. "And that was well worth it since we experienced good approaches with our clients that may result in future business. Great!”.
It was reported that the trade fairs posted new records both in terms of exhibitors and visitors. 1,958 exhibitors from throughout the world met with 79,000 visitors from 83 countries.
graphene are only just beginning on a journey that will truly bring these products to front and center of the global stage of innovative  design and implementation. To view just how many industries are using products that Superior Graphite produce from graphite you can go to their website, http://www.superiorgraphite.com/index.php.

Boeing and Airbus are two of the main airplane manufacturers. Both have found themselves utilizing carbon and graphite in the production of their latest efforts. You might not normally think of making things out of carbon, but lately the material of the future is carbon fiber reinforced polymer (CFRP) as used in the new Boeing 787 airliner. In a whole different approach to commercial aircraft design, body sections of composites act as both skin and structure.
Meanwhile HITCO has supplied Airbus with  the delivery of the first operational ship set of the carbon fiber tail structure parts for the vertical tail plane of the Airbus A380. http://composite.about.com/cs/aerospacenews/a/bpr_hitco.htm

These are only a couple of a multitude of company's that are directly involved with graphite research and the manufacture of products that require graphite. The list of company's on a global scale would be staggering, then add to that the research being focused on graphene, and I think it should start to become much clearer just how large the graphite industry is set to become.

After examining the company's I have touched on here, this brings me to the question of, what will this do for Focus Metals. In my opinion the Lac Knife deposit, holds an enormous value for Focus Metals. Focus Metals has a slogan found directly below the company insignia on the home page of their website, this slogan speaks volumes in my opinion, "Think Graphite Today, Think Graphene Tomorrow". With plans for 25,000 tons per year over a mine life of 40 years, which has the potential to be extended considerably pending further drilling which is currently on-going, one can easily see how Focus Metals could come to be known as a world-class supplier of graphite. However, what really sets this company apart from most other graphite deposits globally, is the fact that the Lac Knife  property is unique in the world because of its cost-mitigating, high concentration (some 17% in pre-NI 43-101 terms) of large, medium and small flake graphite destined to meet rising global demand from both industrial and high technology end users. The  Lac Knife graphite property has a proven history. Nearly developed in the early 2000’s in a joint venture between Graftech International and Ballard Power Systems, previous studies are being recast to NI 43-101 standards.

When one takes into account all the reports of  present day usage of graphite, and with the upcoming utilization of graphene, it leads to yet another question of just how much will demand grow for graphite looking forward. According to a new report issued by Global Industry Analysts, Inc., the global carbon and graphite market is set to reach $7.5 Billion dollars by 2015. That is just over 3 years from now. http://www.prweb.com/releases/carbon/graphite/prweb4545674.htm

All of these facts and forecasts have caused me to consider whether graphite and graphene will actually become the worlds next wonder material. At this time it would seem nearly inevitable, however, just how big this will really become remains to be seen. Historically we have seen what steel and plastic have done for our lives. Looking into the future is not easily done but I would have to say I have little difficulty recognizing the immense potential with a company like Focus Metals. They possess a world class deposit (which will be 43-101 compliant soon), are working diligently on off-take agreements, and they have a management team that is very committed and focused on advancing Focus Metals to the top of the list of global graphite supply companies.

For those who find Focus Metals to be of interest as a possible investment choice, I will advise you to do your own due diligence. The website for Focus Metals is a very good starting point and can be found at www.focusmetals.ca.

For disclosure purposes I have received no compensation of any kind for this post. I do own shares of Focus Metals.