Monday, January 16, 2012

Compliance Energy - An update on this most promising company

Compliance Energy (TSXV:CEC) is a company I have written about several times now, and it remains a company that I believe will make it to production. The company has performed testing well above and beyond what the prerequisites are for going forward, towards the environmental application process, in regards to their flagship project known as the Raven Underground Coal Project. For anyone who may not have knowledge of who Compliance Energy is, and what it is they are attempting, I will refer you to the company website which can be found at www.complianceenergy.com, and be sure to click on the link to the left side entitled "Corporate Fact Sheet - November 2011". This report has the latest NI43-101 compliant figures.

Compliance Energy has taken steps to ensure that they have left nothing untested in regards to the environmental requirements. They are currently progressing through the Environmental Application Process. This is an arduous task at best, and takes a considerable amount of time, as the government reviews all information concerning the project in its entirety. This includes of course, the environmental impact, as well as the impact it will have on the surrounding communities.  Compliance Energy has submitted the pre-application portion, with the final application being completed and ready for submission over the coming months. This final application portion will potentially be ready by mid-year, with hopes that it may be ready sooner. To allow you to try and visualize just how intensive the paperwork is, for this type of application, I will tell you it is not necessarily uncommon for the papers to stack up to nearly a meter high. For anyone to think that this is not a very in-depth process to undertake, is to be grossly mistaken.

This does tend to be a tedious time of waiting, and a time of little news. There is other news that I find quite encouraging though. North Island College (NIC) has announced that they will be receiving funding from the Employment Skills Access Program, a federal-provincial program developed to provide unemployed workers with general employment or job-specific skills so they can transition to the workforce. This funding will cover many types of employment, varying from carpentry, woodland harvesting, integrated core resource skills training, leadership and capacity building for First Nations Communities. What there is truly a need for is trained mining personnel, and the government has added this to the list. With mining contributing nearly $9B to the BC economy, and the current shortage of people who have the required training for this type of work, this is most welcome news.  http://www2.canada.com/courierislander/news/letters/story.html?id=e307d440-d8d3-4f9b-865e-472a03317fef
The shortage of skilled mining personnel is not something that is a local problem, but rather is much more widespread and its effects are felt virtually worldwide. This training will enrich many lives by allowing individuals to gain possible employment in a high income earning industry. It is reassuring to see that the government is doing their part, and offer people a means to gain the skills needed to better their lives, and the lives of their families.

Another open letter I came across recently is of particular interest. This is an open letter from the Honourable Joe Oliver, Minister of Natural Resources. http://www.nrcan.gc.ca/media-room/news-release/2012/1/3520
In this letter, the Honourable Joe Oliver makes a statement that is extremely accurate in its attempt to hit directly to the root of the problem facing many industries today. Of course it drew massive amounts of protest from virtually all environmental groups. While the environment needs to be watched over, and very carefully I might add, it is becoming increasingly difficult to get any projects approved. This letter is a very blunt statement that I believe touches to the very core of the underlying issues. While the fact is that we need to protect and be conscious stewards of our environment, it is also necessary to harvest wood, minerals, metals, oil, and gas in order for our lives to continue as we know life. Short of expecting everyone to revert back to the days of cave dwelling, how can we drive cars, live in houses, build bridges, and produce the innumerable items that we have come to view as normal living. Environmental stewardship is something that Compliance Energy holds as highly important, which is the reason they have spent millions on the amount of testing they have performed to make every possible attempt to mitigate any environmental impact.

While the Raven Project is Compliance Energy's flagship operation, the company also owns several additional properties on Vancouver Island. http://www.complianceenergy.com/index.php?id=115
Compliance Energy has received permits to drill on 2 of these properties. http://www.complianceenergy.com/index.php?id=107

http://www.complianceenergy.com/all_news/110907_CEC_Press%20Release.pdf
The company has stated that all planned drilling has been completed, with the results expected towards the end of Jan. 2012 - beginning of Feb., 2012. This timeline is approximate, and it is of course ultimately dependent upon the labs schedule. Both of these properties hold excellent potential. While some analysts consider that copper supply may not fall into a major shortfall as was previously thought, it is considered to potentially stay rather stable. Of course the next time the International Copper Study Group meets to discuss any changes to the forecast of copper going forward will be in April, 2012 in Lisbon, Portugal. There are others who have adjusted their forecasts also including Goldman-Sachs. Even with these latest adjustments, I think copper will remain strong through the long-term. http://www.commodityonline.com/news/goldman-sachs-cuts-2012-copper-forecast-by-over-5-45181-3-1.html

Copper is of course one of the products hoped to be found in both the NIC and the Camp Lake properties. However, in the case of the NIC property there is also the hope of proving up gold and silver as well, when looking at what the chip and grab samples were. In the case of the Camp Lake property there is the hope of finding molybdenum as well as copper.

All in all I believe that Compliance Energy will begin to show us that there are many avenues of value to this company as we start into 2012, and as the year progresses I think we can expect more momentum to the news we will receive. Another item of interest is the fact that Compliance Energy holds approximately 2.2 million shares of Copper Mountain Mining Corp. (TSX:CUM).

For those interested in considering Compliance Energy as  a potential investment choice, I urge everyone to do their own due diligence and seek the advice of a professional advisor. A couple of links that will be useful as a starting point in conducting this research are included here, http://www.complianceenergy.com/index.php?id=27

http://www.theravenproject.ca/index.php

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

Acceleware - This is a company with tremendous potential

Acceleware (TSXV:AXE) has a lot to celebrate as we usher in 2012. Over the last year the company has undergone some major changes, and as a result has moved into a cash-flow positive territory. I am certain this feat can be appreciated if we consider the economic environment that all business's have faced over the preceding year. To have taken the company this far in this short amount of time speaks volumes of the dedication and commitment by the entire management team, which is led by CEO, Geoff Clark. What this company can achieve over the coming year is not something I, nor anyone else, can guarantee. I do however, see virtually limitless potential, and feel that the current management team is not only well positioned, but has the vision to take advantage of all possibilities that present themselves, as well as to pursue all viable opportunities they feel would bring added value to this exciting company.

There are several ingredients required for any company to be successful. One of the things I like about Acceleware is their grasp on how important it is to align themselves with partners and customers who will be capable of aiding the management to continue to drive the company forward. The list of companies that Acceleware has, both in terms of partners and for customers, is quite impressive. While there are many examples to pick from, let's look at what the company produced working in conjunction with Paradigm Ltd., and what type of reception this product has seen. http://www.pdgm.com/getattachment/Resources-(2)/Press-Release/Paradigm-to-Highlight-Technological-Breakthroughs-/PR-2011-05-Paradigm-to-Highlight-Technological-Breakthroughs-Offered-in-the-Paradigm-2011-Release-at-EAGE-wpic.pdf.aspx

http://www.pdgm.com/getattachment/Resources-(2)/Press-Release/Fugro-Selects-Paradigm-Reverse-Time-Migration/PR-2011-08-24-Fugro-Selects-Paradigm-Reverse-Time-Migration.pdf.aspx

http://www.pdgm.com/getattachment/Resources-(2)/Press-Release/Paradigm-at-SEG/PR-2011-09-08-Paradigm-to-Feature-Key-Technological-Breakthroughs-Introduced-in-the-Paradigm-2011-Release-at-SEG.pdf.aspx
As you read through these reports I think you will begin to get a much broader understanding of just how powerful this technology is, and of course how it is being chosen by well established companies who are leaders in this sector. With this technology being released only this last year, I fully expect we will see enormous growth in its demand.

As I mentioned there are numerous companies that Acceleware has partnered with over the years. Here are a couple of links that will help to give you an understanding of just how in-depth Acceleware is, based on their business and solutions partners, who include the likes of Nvidia, Microsoft, and AMD, to name a few. http://www.acceleware.com/business-partners
http://www.acceleware.com/solution-partners


On Dec. 14-15, 2011, Acceleware attended the GTC Asia Conference in Beijing, China. This was truly a very valuable conference for Acceleware to have attended. The amount of interest was reported to be exceptionally strong, with many people and companies stopping at the Acceleware booth to express a sincere interest in all that Acceleware had to offer. While there was some interest shown by some companies towards the EM technologies, it was obviously the RTM technology that drew the most interest. Acceleware was not only well received at the conference, but was also the recipient of a very meaningful reference from Nvidia.  http://www.hpcwire.com/hpcwire/2011-12-15/emerging_companies_ride_wave_of_gpu_computing.html
I find it quite compelling when I can read articles such as this, and to see the optimism being given towards Acceleware from a giant such as Nvidia. This in combination with the sincere showing of interest from any number of potential customers carries a lot of weight in my opinion. One point that comes to mind when I try to estimate the potential for Acceleware in the Asian market, and that is they have a very valuable technology which can be brought directly into the market by some of the companies associated with Acceleware. For example, we know that Paradigm Ltd. has a very close working relationship with Acceleware, as does Tsunami. Both of these companies have branch offices in Beijing, and are well respected by the customer base they serve in that area. Aside from the Asian market, both of these companies have excellent global representation. I believe the amount of interest being afforded Acceleware in terms of their RTM technology in the Asian area, is undoubtedly connected to the fact the geologies they are currently facing are becoming increasingly more complex. This seems to hold true for most exploration projects globally, and is due in large part to the necessity of moving into off-shore settings for further oil/gas exploration targets. It is in these complex geological settings that Acceleware's RTM technology can truly show its full value. Here are a couple of links to both Paradigm and Tsunami which I think you will find helpful in getting a sense for what these companies can contribute. http://www.pdgm.com/Home.aspx
http://www.tsunamidev.com/

Acceleware can potentially expect to gain some ground in another area where off-shore exploration seems to be building rapidly, and this would be off the shores of Africa. As with many, if not most off-shore projects, the geology is complex at best. What stood out in my mind was when I learned that a significant percentage of this exploration can be traced back to Asian origins. As China continues to experience massive growth, and the future need for energy continues to grow, we are currently witnessing a surge of Chinese investment into the energy sector. This all points to significant potential for Acceleware looking forward.

I believe that Acceleware stands to profit greatly from their RTM technology, and quite likely we could see a significant rise in the amount of companies who will decide that this technology holds the key to interpreting the data they have to work with from ever-increasingly complex geological settings. There are those who will argue that fossil fuels are going the way of the dinosaur, and while long-term this may hold some degree of truth, there is no realistic way that I can foresee the transformation to a world that is free from both oil and gas in the immediate future. The fact that the Chinese are avidly investing into numerous energy projects around the world helps to substantiate this view. We are being told by virtually all energy companies that any major new discoveries will be predominately from off-shore exploration. With this in mind, it becomes much easier to see the potential for Acceleware going forward. As with any business that realizes success, there are times and events that help to lift that specific company to the next level, and in the case of Acceleware, I believe there could quite possibly be some significant gains made from their RTM technology, beginning this year and continuing.

I feel it only proper that I should add, that although I concentrated mostly on the RTM technology in this post, there was no shortage of interest shown towards Acceleware in Beijing recently, and this would have included several of the technologies Acceleware possesses. I have no knowledge of any deals that may be in the works, but I do know that this much interest from large well established companies in this region, could have a very positive outcome for Acceleware. I think we will definitely be hearing and seeing a lot from Acceleware in 2012. Aside from RTM, Acceleware also continues to enjoy growth at virtually all of their CUDA training classes offered in conjunction with Microsoft. A similar set of training courses based on OpenCL are being offered in conjunction with AMD, and these too are enjoying great success.

The fact that Acceleware has 55.95M shares outstanding (approx. 60M fully diluted), and a market cap just shy of $4M CAD, with a move into cash-flow positive ground, I truly believe this is a company that will begin to be noticed, and quite likely sooner than later. Of the 55.95M shares, Nvidia holds 8M of them, and to me that speaks loudly of their belief in Acceleware.

For anyone who finds Acceleware as a potential investment choice, I recommend that you do your own due diligence. Acceleware has a website which can be found at www.acceleware.com, and I would suggest that as a good starting point, as well as all reports which can be viewed on Sedar. I think you will find many of the press releases quite informative also, http://www.acceleware.com/Press-Releases

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



An Update To The World Of Graphene Research And The Potential It Holds For Focus Metals

As most people, who read the articles concerning graphite and graphene on my blog, you will be well versed on the amount of research currently being conducted on a global basis. This research seems to just keep accelerating both in terms of the amount of research projects being studied, and also the speed at which researchers are attempting to find the answers they so desperately are seeking. I have tried to keep up to date as best I can in my efforts to stay abreast of some of these projects, especially those that I view as having the potential to affect the possible demand for high quality graphite, and even more so, high quality graphene. In order for graphene to be considered for high-tech applications it is apparent that not just any graphene will suffice. High-tech applications are requiring some of the highest grades of graphene they can source. The one company that has a deposit which contains graphite that can produce graphene of this high caliber would be Focus Metals (TSXV:FMS)(OTCQX:FCSMF).

I recently found a few articles that will show just how sudden some possible breakthroughs can come. As the global pace for graphene research seems to recognize no limitations, it is almost overwhelming what these researchers are finding as they consider the results of the nearly endless research projects. The following is one such example and is an excerpt from the following report,Scientists at Rensselaer Polytechnic Institute have used the capabilities of one of the world's most powerful university-based supercomputers, the Rensselaer Center for Nanotechnology Innovations (CCNI), to uncover the properties of a promising form of graphene, known as graphene nanowiggles. What they found was that graphitic nanoribbons can be segmented into several different surface structures called nanowiggles. Each of these structures produces highly different magnetic and conductive properties. The findings provide a blueprint that scientists can use to literally pick and choose a graphene nanostructure that is tuned and customized for a different task or device. The work provides an important base of knowledge on these highly useful nanomaterials. http://www.eurekalert.org/pub_releases/2012-01/rpi-sd010412.php

Rice University is well known for the many graphene research projects they undertake.  The Rice lab of materials scientist Pulickel Ajayan, in collaboration with colleagues in China, India, Japan and the Texas Medical Center, discovered a one-step chemical process that is markedly simpler than established techniques for making graphene quantum dots. The results were published online this month in the American Chemical Society's journal Nano Letters. The impact of this type of research is something that should not be taken lightly. This could potentially save numerous lives by allowing doctors to correctly diagnose some of the many maladies that we currently do not have the technology to diagnose in its earliest stages. The earlier a person can get a diagnosis the sooner treatment can begin, and this has been proven to be paramount in hoping for a successful treatment program. This research could also lead to a possible treatment method as well. http://www.sciencedaily.com/releases/2012/01/120112134357.htm

In recent months we have read of many research projects that are geared towards better understanding how the electrical conductivity of graphene can be useful in any number of applications. In yet another aspect of the current graphene research being conducted, we find that researchers at University of Texas Dallas have been busy studying the potential of graphene in electronics, but this more from the thermal aspect. Much of modern technology is based on silicon's use as a semiconductor material, but research recently published in the journal Nature Materials shows that graphene conducts heat about 20 times faster than silicon. http://www.sciencedaily.com/releases/2012/01/120109211557.htm

While the above information helps to lend a view to where some graphene research is heading, there is lots being pursued at Rutgers University. December 1, 2011, there was a news release issued which announced the signing of a MOU between Grafoid Inc., which is a graphene joint venture that is 40% held by Focus Metals, and Rutgers University. http://www.focusmetals.ca/english/news/press-releases/2011-2/dec12011. As is noted in this news release,
“The graphene research and development activities undertaken to date by Dr. Chiu are heading towards a new phase, leading ultimately, we believe, to industrial applications for our graphene,” Mr. Economo said.
“In time, and through further development in conjunction with Rutgers University we see Grafoid assuming its place as an industry leader not only in industrial and infrastructural applications, but in graphene applications for military and defense, aviation and marine and in other emerging industries where demand exists,” he added. Considering the high regard that Rutgers University commands from the research community, it is not difficult to see how high the potential is for major breakthroughs to be accomplished. http://nanotubes.rutgers.edu/

In yet another research project we find graphene excellently suited as a protective optical limiter. http://www.laserfocusworld.com/articles/2012/01/dispersed-graphene-makes-excellent-protective-optical-limiter.html
Then there is this project from Manchester University and Cambridge University. Graphene, a monolayer form of carbon with properties that will likely mean great things for optics as well as electronics, will be giving high-speed optical communications a boost, if research at the Universities of Manchester and Cambridge pans out. A combination of graphene with metallic nanostructures appears to show a twentyfold enhancement in converting light to electricity when compared to graphene by itself. This could mean dramatically improved photodetectors for fiber optics, for one.
http://www.laserfocusworld.com/articles/2011/09/plasmonic-structures-and-graphene.html

The biggest question seems to be, "Just what is the potential for Focus Metals from all this?" Since Focus Metals owns 100% of the Lac Knife deposit, near Fermont, Quebec, and this deposit is now  NI 43-101 compliant. http://www.focusmetals.ca/english/news/press-releases/2011-2/dec52011
Previous to this report being completed, on Feb. 23, 2011, Focus Metals announced that they had formed a graphene joint venture. http://www.focusmetals.ca/english/news/press-releases/2011-2/feb232011. This was followed by another release in which Focus Metals announced that the joint venture had been incorporated, and was now called Grafoid Inc. http://www.focusmetals.ca/english/news/press-releases/2011-2/sept92011
Then on Dec.1 came the news that Grafoid Inc. had signed a MOU with none other than Rutgers University, a very highly regarded facility. http://www.focusmetals.ca/english/news/press-releases/2011-2/dec12011.

These are only some of the highlights of what management of Focus Metals has accomplished in the past year, but I believe they are indicative about how the potential of Focus Metals just keeps building. With the tens of billions of dollars being spent to fund an almost infinite amount of graphene research globally, and with some researchers, as well as companies applying for numerous patents, it is not that difficult to see that Focus Metals has positioned themselves extremely well for the impending rise in anticipated demand for both graphite and graphene. Does Focus Metals have any competitors? That would depend on what a person wants to use for the definition of competitors. From the aspect of whether there are additional companies who will be attempting to sell graphite and or graphene, yes, there will be competitors. From the aspect of, can any other companies boast of a world class deposit such as Lac Knife, which holds some of the highest grade graphite known at this time, no. It is common knowledge that company CEO, Gary Economo, has been in various talks with a number of companies, and the basis for these talks is to establish one or more off-take agreement(s). I would expect this decision could be made in the near future, but keep in mind that it is an arduous task for companies interested in the graphite to run many complex and sophisticated tests on the graphite, to ensure its suitability. Graphite is very different from most any other mine in this aspect. Gold is gold, and silver is silver, however this holds no bearing on how graphite is sold. Companies who may be interested in buying graphite will need to make certain that the graphite will meet any number of prerequisites. The fact that Lac Knife holds such an unusually high grade of graphite can only be considered a blessing of the largest kind, since this puts Focus Metals well in front of most, if not all other graphite explorers and producers. Not only does the NI43-101 report state how high the quality is, but we have this excerpt from 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.
“This material, formed together in an igneous rock formation millions of years ago, has extreme high electrical conductivity relating to the perfection of the graphite crystals formed there.
“There are many engineering applications for these materials just waiting to be discovered,” Prof. Nosker added.

When I read all that companies like Samsung, Nokia, and IBM, just to name a few, are investing into the research of graphene, it becomes clear in my mind that graphite and graphene are both headed for a much higher demand as we move closer and closer to the breakthroughs that will help graphene live up to the expectations that the world has bestowed upon it. This will most certainly help Focus Metals in my opinion. I believe we will see an increase in the demand of graphite, although I would not expect that immediately. Graphene demand will continue to grow I expect, and I can easily see graphene demand growing many fold as these research projects begin to produce usable ways to incorporate graphene into many of the products we use on a daily basis. I firmly believe graphene will be the next item to revolutionize the world, and Focus Metals is the company I see best positioned to take advantage of this.

For anyone interested in considering Focus Metals as an investment choice, I highly recommend that you do your own due diligence, and seek the advice of a professional advisor. Focus Metals has a website which can be found at www.focusmetals.ca.

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