President’s 2014 New Year Message
On December 20, 2013, Focus Graphite made graphite mining history by securing a 10-year offtake agreement with a Chinese industrial conglomerate for the purchase of up to 40,000 tonnes per year of Lac Knife’s concentrate production.
Markets will understand this agreement introduces a new level of stability to our Lac Knife Project just as China announces a halt to graphite production in Shandong Province effectively putting 20% of China’s flake graphite production on hold
That stability is founded on two key elements, namely: our goal of becoming one of the lowest cost producers of high purity flake graphite in the world, and; our mine-to-technology markets business strategy for value-added products.
The agreement propels Focus into a potentially advantageous position – both commercially and operationally.
Commercially, our toehold in the Chinese market endorses Focus Graphite’s ability to compete in any market. It bodes well for the company’s future global market positioning but especially for our shareholders who supported us during this long commodities market downturn.
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March 06, 2014: Offtake agreement update: Minimum purchase of 200,000 tonnes over 10 years with a Chinese industrial conglomerate Click here for full release.
January 31, 2014: Focus Graphite’s Board of Directors Approves a Grafoid Loan-to-Shares Conversion on Behalf of Focus Shareholders Click here for full release.
January 28, 2014: Focus Graphite Reports a 92% Increase in the Measured and Indicated Mineral Resource Categories at its Lac Knife Flake Graphite Project – to 9.6 million tonnes grading 14.77% Cg Click here for full release.
January 14, 2014: High-grade flake graphite outlined in trenching at Caninde, Brazil
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December 19, 2013: Focus Graphite signs offtake agreement for Lac Knife’s future graphite production Click here for full release.
December 04, 2013: Focus Graphite Announces Successful 2013 Infill Drilling Program at the Lac Knife Graphite Project 67.8 m Grading 21.10% Cgr in Hole LK-13-187
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November 22, 2013: President’s Message: Gearing up to take on the world. Click here for full text
November 07, 2013: Focus Graphite Inc. Annouces updated economic results of its 2012 preliminary economic assessment. Click here for full release.
November 04, 2013: Focus Graphite Inc. Retains Met-Chem to complete a feasibility study and mine closure plan for Lac Knife Graphite project. Click here for full release.
November 01, 2013: Focus Graphite Inc. Announces the adoption of the advance notice by-law and other corporate development. Click here for full release.
September 27, 2013: Focus Graphite Inc. Announces the Sale of the Romer Property to Mincom Capital Inc. Click here for full release.
September 13, 2013: Focus Graphite Appoints Donald K. D Baxter, P.Eng., President & Chief Operating Officer. Click here for full release.
August 21, 2013: Message from CEO on Lac Knife Pilot Plant Tests. Click here for full text.
August 21, 2013: Focus Graphite Reports Lac Knife Pilot Plant Tests Yield Large Flake Graphite Concentrate (+ 80 mesh) Grading 98.3% Carbon. Click here for full release.
July 9, 2013: Focus Graphite Reports Final Locked Cycle Test Results From Lac Knife: Global Concentrate Grade of 96.4% C; 92.5% Flake Recovery and 35% to 58% Yield of Large High-Purity Flakes (+80 mesh). Click here for full release.
May 22, 2013: Focus Reports High-Grade Graphite Mineralization at the Lac Guinécourt Property, Quebec: Best Grab Sample Assays Ranging From 6.36% to 45.90% Graphitic Carbon. Click here for full release.
May 3, 2013; Focus Graphite Appointment: Mr. Jeff Hussey as VP Project Development, Lac-Knife High-Grade Graphite Project. Click here for full release.
Apr 25, 2013: Focus Graphite Settles Legal Recourse. Click here for full release.
Apr 17, 2013: Focus Graphite Reports Commissioning and Start Up of Lac Knife Project Pilot Plant. Click here for full release.
Apr 16, 2013: Grafoid Inc. and the University of Waterloo Announce a JV Agreement to Develop High Performance Graphene Electrochemical Energy Systems. Click here for full release.
TechNavio report identifies Focus Graphite as a “key vendor dominating the graphite space.”
London-based TechNavio is a leading global technology research and advisory company, focusing on emerging technology trends that can shape the market. On July 12th, TechNavio published the above-referenced “Global Graphite Market 2012-2016” report, in which the company’s analysts forecast the global graphite market to grow at a compound annual growth rate (CAGR) of 5.52% (2012 to 2016). A key factor contributing to this ongoing market growth is the increasing use of graphite in lithium ion batteries; however, there are a plethora of critical and necessary applications for both graphite and graphene, making them much-needed commodities. The TechNavio report identified Focus Graphite Inc. (TSXV: FMS | OTCQX: FCSMF) as a “key vendor dominating the graphite space.” Click here for full monthly review.
The Global Graphene Race
ProEdgeWire article written by President & CEO Gary Economo. Click here to access article.
Focus Graphite in International Resource Journal
Focus Announces New Graphite Discovery
Focus Graphite Inc. announces the discovery of a new graphite bearing corridor on the Company’s 100%-owned Lac Tétépisca property located to the southwest of the Manicouagan reservoir, 234 km north-northwest of Baie-Comeau, Québec.
- Bedrock sampling has resulted in the identification of a 900 m long by up to 100 m wide graphite bearing corridor on the Property
- 25 grab samples define the graphitic corridor
- 17 of which host graphitic carbon* (Cgr) grades in a range or 5.59% – 45.80% Cgr.
- 8 grab samples which delineate the graphitic trend show Cgr grades below 5.00%.
Focus Releases Positive Preliminary Economic Assesment
Focus released its NI 43-101 compliant Preliminary Economic Assessment on October 31, 2012 on its Lac Knife Graphite Project. The PEA demonstrates that the Project has robust economics and excellent potential to become a profitable producer of graphite.
- Proposed Life of Mine production of 6.0 million tonnes of mill feed at a grade of 15.66% graphitic carbon
- Mine Life of 20 years, open pit operation at 300,000 tonnes per year
- Average graphite recovery of 91.3% at Lac Knife process plant
- Life of Mine production of 928,000 tonnes of concentrate at 92% Cgr on average, or approximately 46,600 tonnes of concentrate per annum
- Thermal purification upgrade of approximately 40% of the primary concentrate to 99.99% Cgr by an existing producer with inherent purification losses of 15%
- Life of Mine Project production of 868,000 tonnes of concentrate at 93.5% Cgr on average, including 338,000 tonnes of high purity 99.95% Cgr product
- $246 million pre-tax Net Present Value (NPV) (at a 10% discount rate)
- 32% pre-tax Internal Rate of Return (IRR)
- $926 million pre-tax undiscounted cash flow
- $3.7 billion total net revenue
- Pre-tax payback period of 2.8 years
- $154 million initial capital cost, inclusive of $33 million and $24 million in working capital and contingency (25%), respectively
- $68 per tonne average unit operating cost at Lac Knife
- $435 per tonne average unit operating cost, assuming thermal purification on a contract basis
PEA economics for the Project calculated based on graphite market prices of $10,000, $1,300, and $800 per tonne of battery grade (>99.95% Cgr, +100 mesh), medium grade (>90% Cgr, -100+200 mesh) and fine grade (>80% Cgr, -200 mesh) respectively, on a FOB mine basis
About Focus Graphite
Focus Graphite Inc. is a Canadian junior explorer and owner of the 15.99% graphitic carbon Lac Knife crystalline flake graphite deposit located in the Côte Nord region of Quebec.
Focus Graphite is fast-tracking the exploration program at Lac Knife with the aim of developing one of the lowest cost producers of industrial and technology-grade graphite in the world. A NI 43-101 compliant resource estimate on the project was completed in December 2011 and PEA in October 2012.
As a junior explorer with significant cash holdings, our company is poised to assume a leading position for graphite supply on a global scale and plans an aggressive program of acquisition, mergers and joint-venturing.
Focus Graphite management has a history of success in commercial and technology development and innovation. Our board of directors is engaged, active and focused on shaping a result-driven business course that applies a core principle of building shareholder value in all activities.
We are committed to attaining the highest levels of corporate, financial, technical, environmental and socially-responsible standards.