Published On: February 7th, 2022
Lomiko Metals Inc, is a Canadian high-grade flake graphite and lithium mining company that acquires, explores, and develops resource properties in Canada. It was founded in 1987 and is currently headquartered in Montreal, Canada.
Lomiko Metals is a reputed company with a new vision and a new strategy in Green Energy. Due to this huge transcendence, they were able to raise millions in 2021. Even during Covid 19 Pandemic, Lomiko Metals stocks reported a surge, owing to increasing graphite demands. They are manifesting a world of abundant renewable energy with Canadian and Quebec critical minerals for a solution in North America. Lomiko aims at creating a new energy future in Canada by growing a secure, critical and abundant minerals workforce and becoming a valued partner and neighbor for other communities.
When it delivered its Preliminary Economic Assessment in 2021, Lomiko was well on the way to a banner year with a price target of $ 0.31. However, due to delays in financing and community consultations, it has dropped to a low level despite being fully financed for drilling with over $ 4 million in the bank.
Table of Contents
Lomiko Metals Mining Projects
The company has a complete 100% interest in La Loutre graphite property and nearly 70% interest in the Bourier project, located in Quebec. La Loutre is a reserve for graphite whereas Bourier is for lithium. Bourier is on trend with other major discoveries such as Nemaska and Canada Lithium.
Unless you have been hiding under a rock, you know that lithium prices have gone through the roof with the explosion of demand for electric vehicles.
The La Loutre Graphite Project
The most fascinating thing about La Loutre is that it is located 53 kilometers away from the Imerys graphite mine near Lac de Iles, the primary graphite mining site of North America.
The La Loutre project is reported to have a 15-year mine life as per Preliminary Economic Assessment (“PEA”), published by Lomiko Metals on September 10, 2021. Both these projects jointly supply North America’s electric battery and green energy industries.
“The development of Canada-USA and Canada-EU critical minerals collaboration agreements gives access for graphite products in these markets. There is a focus on projects with environmental, social, and governance (ESG) acceptability which Lomiko has also adopted. The strict criteria for the report should result in competitively-priced graphite for customers in the North American and European markets. These recent agreements between Canada and the USA and Canada and Europe have identified graphite as a critical element that will be part of a new supply chain. Lomiko is ready to maximize La Loutre’s value by advancing the studies to further refine and de-risk the project,” said A. PaulGill, Chair.
Graphite the new Gold
Yes, you read it right, Graphite is the new Gold that countries would be fighting for. It is only because of the world’s growing demand for lithium-ion batteries. As the demand for electric cars grows and more automotive manufacturers offer them, they are becoming more affordable, which is having a profound effect on the consumer vehicle industry. To manufacture the large, complex batteries required to power electric vehicles, four metals are required: lithium, cobalt, nickel, and graphite. There is 15x more graphite in electric car batteries than lithium, making it a key component of the movement.
With fuel prices surging and the need for eco-friendly alternatives becoming a necessity, graphite will play a pivotal role in the electric vehicle industry in years to come.
Up until now, China and Mozambique have been the predominant sources for graphite across the world. With deposits coming from so far away, the North American markets have struggled to justify the import prices. However, with Lomiko Metals’ La Loutre deposit in Quebec, Canada, North American-sourced graphite has now become a viable option for prominent consumer vehicle companies.
Whether it’s Tesla Cars or Smartphones, all are dependent on these batteries. And graphite is the key element that forms the anode of lithium batteries. Without this, there will be no energy revolution, no Green Economy, and the trillion-dollar Electric Vehicle (EV) market might not exist. As much as countries are adopting clean energy initiatives and moving away from using traditional combustion engines, graphite demand is surging.
Each EV battery contains 20-30% graphite, which means with the increase in EV demand, graphite demand will also multiply. And the world might reach a stage of graphite squeeze. The global graphite market was valued at $14.9 billion in 2019 and is expected to grow by over $22 billion by 2027.
70% of the world’s graphite comes from China and the market has seen five percent growth in the past decade. They have even penetrated US and European markets. Hence a graphite reservoir in the American-European belt will give a viable and cheaper option to tech giants here. This is the reason why Lomiko Metals is a stock to look at.
The Accelerate Alliance
Lomiko Metals Inc, has become the newest member of The Accelerate Alliance. Belinda Labatte, the CEO, mentioned that it’s an important step and will provide momentum towards the company’s future activities. The company recently closed $2.1M flow-through financing and looks forward to working with Kim Darlington and her team at Refined Substance. It will boost investor relations and corporate communications efforts in 2022 as the Company strengthens the La Loutre graphite project.
Brand New Management Team and Directors
Lomiko appoints a new leadership team and an independent director to the board effective October 25, 2021. Belinda Labatte will be Chief Executive Officer and Director of Board, Vince Osbourne will be Chief Financial Officer and Gordana Slepcev will be Chief Operating Officer. A. Paul Gill, will continue as Executive Chair of the Board and oversee the final stages of the ECOLOGO third-party certification process and advance the current portfolio of assets along with the new directors who are to be appointed at the annual general meeting of shareholders.
Positive PEA Moving to a PFS
With the positive results from the latest Preliminary Economic Assessment (“PEA”) on its La Loutre Project in south-eastern Quebec, Lomiko Metals is charged with new energy and greater determination to surpass everyone’s expectations as it moves to PFS. Chairperson A Paul Gill spilled the beans on their future avenues in a recent interview. He mentioned, “Graphite is the Future and Lomiko Metals has all the potential to emerge as North America’s largest graphite mining company.
This is now completely evident from PEA 2021. The positive after-tax Internal Rate of Return (“IRR”) of 21.5% and after-tax Net Present Value (“NPV”) of C$186M is just massive. We are now aiming at Preliminary Feasibility Study (PFS) to advance our La Loutre Project towards production as part of a staged development strategy. We will continue our aggressive drilling and maximize value creation for the community across the globe.”
It’s important to understand that PEA was completed by an experienced and reputed team of engineers and professionals from Ausenco Engineering Canada Inc. (“Ausenco”) in accordance with National Instrument 43-101 (“NI 43-101”) – One of the most experienced and reputable engineering firms working on mining projects in Canada. The PEA supports an open-pit project with production spanning 14.7 years with robust economics at a US$916/tonne Cg sale price, with very attractive cash costs and AISC, low CAPEX, and low capital intensity.
When asked about the new Management Team, Mr. Gill stated, the company will progress with a wider scope and long-term vision from now on. He said, “We are a people’s company and are extremely grateful to our shareholders. Each day we work towards achieving perfection in benefitting our contributors. We are here to develop new business in Quebec, create more jobs, and foster prosperity. And in this regard, we are equally concerned and committed to our environment and societal responsibilities. Lomiko values sustainable development. Lomiko Metals Inc, bright future lies in the bright future of its people – people of Canada.”
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Colitco LLP strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Colitco hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some of the images/music that may be used on this website are copyright to their respective owner(s). Colitco LLP does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in the public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.