Vancouver, B.C. and Montreal, Quebec, Dec. 05, 2019 (GLOBE NEWSWIRE) -- Lomiko Metals Inc. (TSX-V: LMR, OTC: LMRMF, FSE: DH8C) (Lomiko or the “Company”) has identified spherical graphite production as a key goal in plans to supply graphite anodes for Electric Vehicles (EV) Li-ion battery mega-factories in the North American market as highlighted in Lomiko’s July 16th, 2019 release. Testing for spherical graphite is to be included in the upcoming Lomiko Preliminary Economic Assessment (PEA) which is planned for the La Loutre graphite project located in Quebec, Canada.
The development of a strategy that identifies a way to create value-added products is necessary to establish a long-term, profitable business model prior to extensive capital outlay and is crucial to the success of the company. A large multinational conglomerate, Imerys Carbon and Graphite has also been working on new developments in the graphite space with innovative products for the EV Industry.
Imerys Graphite & Carbon has a strong history in the production of high-quality natural and synthetic graphite powders, conductive carbon blacks and water-based graphite dispersions with the parent company posting €4.6 billion in revenue and approximately 17,000 employees worldwide.
Imerys Graphite & Carbon’s fully owned natural graphite mine is located about 250 km north-west of Montréal, Canada, in the small town of Lac-des-Îles [53 km north of Lomiko’s La Loutre Graphite Property]. Operations started in 1989. There, graphite ore is mined and refined into high-quality graphite products of various sizes and purities. These graphite concentrates are directly sold to various applications or further processed in its Terrebonne, Quebec plant [near Montreal]. In a news release dated November 18, 2019, Imerys stated:
“New developments in automotive and in the consumer electronics markets are driving a need for improved performance of lithium-ion batteries in diverse operating conditions. QX products [graphite additive tradename] enable fast kinetics during charging and can significantly improve the performance of active materials.”
“We are at the beginning of the battery materials bull market with 100+ Lithium-ion, mega-factories built or scheduled to be built worldwide,” said Lomiko’s CEO A. Paul Gill. “Lomiko sees a tremendous opportunity in creating a stable and integrated North American value supply chain for North American EV manufacturers. This opportunity represents a significant increase of confidence to the Quebec government, Lomiko, and other companies to see Imerys step into the EV field despite being close to closing their twenty-year operation at the Lac-des-Îles facility.”
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The price for 95% C (purity), 15 microns Spherical Graphite is $2,700-2,800 USD/tonne, far above the price of other forms of graphite as indicated by the Industrial Minerals. Lomiko’s Preliminary Economic Assessment (PEA) will include costs and the potential market for this key product. In order to start the PEA, Lomiko must first deliver its second resource prepared in compliance with NI 43-101 Regulations from La Loutre.
On November 4, 2019, Imerys announced: [Natural and synthetic graphite] subject to general inflationary pressures and will, therefore, be subject to some price increases to reflect those inflation effects.
On October 18, 2019, A recently opened mine in Mozambique owned by Syrah Resources, which primarily produces 94% C, -100 mesh material since 2017, significantly reduced their workforce and cut production targets for 2020.
The production cut will likely curtail the supply of natural flake graphite supporting a general conclusion that an uptrend in graphite prices may be imminent after a multi-year low in demand and price.
For more information on Lomiko Metals, review the website at www.lomiko.com, contact A. Paul Gill at 604-729-5312 or email: info@lomiko.com.
On Behalf of the Board,
“A. Paul Gill”
Chief Executive Officer
We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
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