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Lomiko to Present Views on The Graphite Revolution at The Money Expo April 21, 2012

Posted by AGORACOM-JC at 10:54 AM on Thursday, April 19th, 2012

Vancouver BC – LOMIKO METALS INC. (TSX-V:LMR, OTC: LMRMF, Europe: ISIN: CA54163Q1028, WKN: A0Q9W7,) (the “Company”) will attend the Money Expo which will be held April 21, 2012 in Kelowna, B.C. to speak on the phenomena CEO A. Paul Gill has called “The Graphite Revolution”. Investors have scrambled to invest in companies as the companies themselves participate in a staking and acquisition frenzy in Southern Quebec and Ontario in the Grenville Geological Region.

Lomiko optioned the Quebec Quatre Milles Graphite Property January 5, 2012 to search for large flake, crystallite graphite which is sought after for use in creating graphene, a newly discovered, chicken-wire shaped formation of carbon which is one-atom thick and has incredible properties that can make it 200 times stronger than steel, a superconductor at room temperature and heat-resistant. Research scientists world-wide are experimenting with new technology that uses graphene and at least 100 new patents have been filed. Two scientists that made the discovery of graphene won the Nobel Prize for Physics in 2010.

The conference will feature speakers on all aspects of wealth management and investment strategy with David Morgan of Silver Investor speaking on Silver, Keith Schaefer of the Investments Bulletin speaking on Oil and Gas and Danielle Park on Wealth Protection.

Registration for the event is still available at http://moneyexpo.ca/index.php/register/attendee

The Quatre Milles Property is road accessible and is located approximately 175 km northwest of Montreal and 17 km due north of the village of Sainte-Veronique, Quebec. The property consists of 28 contiguous claims totaling approximately 1,600 hectares.

For more information, review the website at www.lomiko.com, contact A. Paul Gill at 604-729-5312 or email: [email protected]

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.

Copyright (c) 2012 Thenewswire.ca – All rights reserved.

Lomiko Metals Jumps Ahead in Graphite Market *Site Sponsor

Posted by AGORACOM-JC at 12:45 PM on Monday, April 2nd, 2012

April 2,2012 (Financial Press) –Lomiko Metals Inc. (TSX Venture:LMR) is a graphite exploration company focused on exploring for high purity, large crystallite graphite on its Quatre Milles project.

Over the last few weeks the company has been making steady strides forward in the development of its high-potential graphite project. Those steps include completing a financing deal, hiring a geological consulting firm, making a new and experienced addition to its board of advisors, and completing a 43-101 Technical Report on its graphite project (full report available at this link)

Each move adds significantly to the unfolding Lomiko storyline. For example, the 43-101 report has been submitted to and accepted by regulators. The report details many key aspects of the historical exploration work on the property.

The report was prepared by geologist Jean-Sébastien Lavallée of Consul-Teck Mineral Exploration Consultants and includes the following highlights:

Graphicor (the past owner of the Quatre Milles property) completed reconnaissance mapping and prospecting as well as ground geophysics and a 26 hole diamond drill program totaling 1,625 metres

Three surface samples were collected and analyzed returning results of 14.16% Cgf, 18.06% Cgf and 20.35% Cgf.

23 of the initial 26 drill holes intersected graphite concentrations with graphite concentration in range of 4.69% in hole Q90-1 to a highlight of 8.07% Cgf over 28.60 metres in hole Q90-7.

The report also defines the proximity of Lomiko’s graphite project to the operational Timcal graphite mine:

The past exploration results from the project, its proximity to other known and economic graphite deposits, and Lomiko’s development plans have attracted a lot of investment capital as well.

On February 3, 2012, the company announced a financing deal to raise an estimated $700,000 of capital to fund advanced exploration work on the project.
Just over a month later Lomiko announced it had completed the financing deal for more than $900,000. That’s more than 28% more than was initially sought and reflects the investment demand for Lomiko and graphite.

Lomiko has also attracted additional management. The company has added Dr. Dietmar Siebholz to its board of advisors.

Siebholz has a Ph.D. in economics and has extensive experience in the graphite market as an investor, analyst, and discovering uses for graphite in advanced technologies.

Furthermore, Siebholz has more than 50 years of public market experience including on the floor of the Dusseldorf (Germany) Stock Exchange and nearly two decades involved in precious metals and commodities investing and markets.

These steps are key to the development of Lomiko’s rapid rise in the graphite market.

Lomiko, as an early mover in the graphite sector, has had its share price more triple since the start of 2012. It currently has a total market cap of under $9 million.

Learn more about Lomiko Metals at www.lomiko.com.

Written By: Andrew Mickey

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author’s only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Source: http://financialpress.com/2012/04/02/lomiko-metals-jumps-ahead-in-graphite-market/

Rare Earth Metals Growth Drivers: Siddharth Rajeev

Posted by AGORACOM-JC at 1:30 PM on Tuesday, March 27th, 2012

With so many moving variables in the rare earth space, how can investors evaluate investment opportunities? Siddharth Rajeev of Fundamental Research Corp. finds his top prospects by zeroing in on a specific material and tracking its growth drivers. Rajeev argues that critical materials used in viable new technologies will see increasing demand. In this exclusive interview with The Critical Metals Report, he explains how lithium-ion battery development and the forthcoming WTO ruling effect his outlook for graphite and niobium.

COMPANIES MENTIONED: COMMERCE RESOURCES CORP. – FLINDERS RESOURCES LTD. - FOCUS METALS INC. – GREAT WESTERN MINERALS GROUP LTD. - LOMIKO METALS INC. – LYNAS CORP. – MOLYCORP INC. - QUANTUM RARE EARTH DEVELOPMENTS CORP.

The Critical Metals Report: China recently announced it is maintaining its rare earth export quotas of 31,130 metric tons (t), but the U.S., the EU and Japan filed a claim at the World Trade Organization (WTO), saying that the restrictions are illegal. What will this controversy mean for rare earth prices?

Siddharth Rajeev: One of the main reasons for the run-up in rare earth prices is the export quotas set by China, which controls 97–98% of the supply. End users started looking for alternatives to rare earths, which is resulting in lower demand. As for the WTO case regarding China’s export quotas, Chinese officials think they are in line with WTO regulations. The WTO had previously ruled against China for restricting exports of bauxite, magnesium, zinc, etc., so it is possible the WTO might go against China here as well, which would negatively impact rare earth prices. In addition, companies outside China are now nearing production, including Molycorp Inc. (MCP:NYSE), Great Western Minerals Group Ltd. (GWG:TSX.V; GWMGF:OTCQX) in South Africa and Australia’s Lynas Corp. (LYC:ASX), may alleviate supply constraints, thus driving prices down. Still more projects are expected to come online in the next two years, which would further add to supply.

TCMR: When do you expect the WTO to decide on a ruling?

SR: It’s going to be a long process, but it’s something that could potentially affect long-term rather than short-term prices.

TCMR: Because rare earth materials are so varied, you use a fair-value metric instead of target prices when you evaluate these stocks. But how do you determine the intrinsic value of a critical metal stock when there is all of this uncertainty?

SR: Every commodity is priced based on expected long-term demand and supply. To forecast commodity prices, we project long-term demand based on the potential growth of the major demand drivers. Supply is projected based on the projects that may come onstream over the next 10 years. But as you mentioned, the forecast demand for critical elements is harder than, say, forecasting demand for copper or zinc. Demand for critical elements can be a moving target. We mitigate this problem by constantly updating our models to capture this variable. For example, major lithium demand drivers are expected to be lithium-ion batteries. Precisely forecasting demand for lithium-ion batteries depends on other growth drivers, such as electric vehicle proliferation. So we constantly update our models as to reflect projected demand in related sectors. That’s how we calculate price forecasts for all the commodities in the rare earth and critical metals space.

TCMR: You recently released a report on graphite and its uses for everything from brake linings to batteries and nuclear power. Graphite prices have jumped as much as $500/t in the last year for certain grades. How high could that price go, and what’s driving that?

SR: Over the long term, we are bullish on graphite. The main reasons are the following: First, we think the main demand growth drivers of graphite could be new applications, such as lithium-ion batteries, fuel cells and nuclear power. Natural graphite might take away a significant market share from the synthetic graphite market, because high-purity, high-grade graphite is required for these technological developments. Synthetic graphite currently trades at four to six times the price of natural graphite.

Second, on the supply side, China accounts for more than 70% of production. The U.S. imports its entire graphite consumption. So, again, we are seeing a highly concentrated supply in one area. Another thing, the blue-sky potential for graphite involves a product called graphene, which is made by chemically processing graphite. Graphene is very unique because it’s highly flexible, like rubber, yet stronger than steel, and it’s a very good conductor of heat, 10 times more effective than copper. It’s a recent technology and there is a lot of research going on in the sector. All things considered, we have a bullish outlook on graphite.

TCMR: What companies outside of China are you watching in this space?

SR: We’ll be initiating coverage on Focus Metals Inc. (FMS:TSX.V) in the next month or so. Its project, which it acquired from IAMGOLD Corp. (IMG:TSX; IAG:NYSE) in 2010, is located in Quebec. I have not seen any other project with such high grades of graphite in the deposit. Focus Metals has a grade of 16%, whereas most of the graphite deposits out there are less than 3%. It has large-flake material, which is highly in demand for applications such as lithium-ion batteries. Focus Metals recently completed a resource estimate. It’s working on a scoping study now. It’s a low-capital expenditure project, less than $75 million (M). The company has an extremely strong cash position, $16M. Market cap is just over $80M.

Another story we like is Flinders Resources Ltd. (FDR:TSX.V), a brand-new company. It started trading on the Toronto Stock Exchange Venture a few weeks ago. Its project is the Kringel project. A lot of historic work has been done on the project. It has a historical resource of 7 million tons (Mt) at 9% graphite, which is a high-grade material. It has a lot of catalysts coming up over the next 12 months, one of the biggest being its plans to convert the historic resource to an NI 43-101-compliant resource. It has a fully permitted mine that can be put into production in the next 18–24 months. It has a strong cash position of $5M, and its market cap is $60M.

Another company is Lomiko Metals Inc. (LMR:TSX.V). It’s a very early-stage project. It just acquired a project in Quebec. Some historic work has been done on the property. As for near-term catalysts, it is working on an NI 43-101 technical report [released 3/27/12], and it is going to commence an exploration program on the property.

TCMR: Lomiko is historically a gold company that just diversified into the graphite space. Is that common? Are a lot of companies following suit?

SR: Because of graphite’s highly attractive fundamentals and growing investor interest, we have been seeing a lot of new companies pop up or switch their focus to graphite, which is normal in the commodities sector. We saw the same pattern a few years ago when the rare earth boom started. The same has been the case with lithium. This is common, but bear in mind that a lot of companies might not survive the boom period.

TCMR: Do you see Lomiko’s stock going up because of the diversification?

SR: Our last report on Lomiko’s graphite came out a few months ago. The stock had doubled since the initial report. It’s dropped since then. As long as the graphite market stays in its current space, where I expect it to stay for a while, and if Lomiko’s exploration program produces positive results, that should reflect in the stock price. In other words, it’s too early to tell.

TCMR: You also focus on niobium, which is used in the technology, aviation and steel industries to make metals lighter and stronger. The price for ferro-niobium has come down from more than $46/kilogram (kg) to about $43. Is that a function of more supply or less demand?

SR: Niobium demand is highly correlated with steel demand, and steel demand is highly correlated with global gross domestic product (GDP) growth. The recent slowdown in global GDP growth, especially from China, has resulted in a softening of prices for commodities that service the steel industry.

TCMR: How does that price action affect your outlook for niobium suppliers, particularly in North America?

SR: The U.S. produces very little niobium. That’s been the case for a long time. Brazil is the number-one producer of niobium, accounting for about 92% of global production. Canada comes in a far second. We cover two North American companies in the space. The first is Quantum Rare Earth Developments Corp. (QRE:TSX.V; BR3:FSE; QREDF:OTCBB). It has the Elk Creek project in Nebraska, of which it owns 100%. In March 2011, it came up with an Inferred resource of 80 Mt at 0.62% niobium oxide, which is a significant deposit. This company has quite a few catalysts expected this year. In Q112, it expects a new NI 43-101 resource report, and in Q212 it expects some results of its metallurgical testing. These two numbers should give it enough information to commence a preliminary economic assessment (PEA) later this year.

TCMR: If those reports come out positive, could that override any niobium price challenges?

SR: Definitely.

TCMR: What other companies do you follow in that space?

SR: Another company is Commerce Resources Corp. (CCE:TSX.V; D7H:FSE; CMRZF:OTCQX). It has the Tantalum niobium project in British Columbia. It recently completed a PEA of the property, but its main asset now is its rare earth project in Quebec, which has produced a lot of positive news for the last 6 to 12 months. It recently came out with a huge increase in its resource estimate, and its initial estimate was one of the largest outside of China. The newer resource has doubled the figures, so that’s a significant development. It identified middle rare earths (MREEs) and heavy rare earths (HREEs), which are more valuable than light rare earths (LREEs),close to the surface of the property.

TCMR: Are the price dynamics different for HREEs and LREEs due to respective export quotas?

SR: Yes, exactly. Prices of light and abundant rare earths dropped much more than other rare earths that are more scarcely available. So there’s been a wide fluctuation, and different commodities in the rare earth sector have reacted differently. But overall, the rare earth market has been hit significantly in the last 6 to 12 months.

TCMR: Commerce has, as you mentioned, both MREEs and HREEs. Do you expect those prices to remain high or perhaps escalate?

SR: Overall, we saw significant price increases in the rare earth market, increasing as much as five- or tenfold in some cases over the last few years. We’ve since seen sort of a correction. But even at these relatively lower prices, a lot of projects are economic. So we wouldn’t need to see an increase in prices to make these companies look favorable.

TCMR: What other factors might impact this sector, particularly in an election year, that investors should take into consideration when considering critical metals companies?

SR: Global economic growth and price levels of critical metals are not directly linked. Critical metals are more influenced by new technologies. Any commodity that can be used for viable and efficient new technologies is going to see good growth and demand. This would include commodities like lithium and graphite, which are used in lithium-ion batteries. We have a strong outlook on lithium-ion batteries for electric cars. Those are the kinds of technologies that can be viable in the long run, and all the associated technologies are likewise going to see a significant increase in demand. Critical materials that figure into these developments will be less affected by shorter-term developments like the U.S. presidential election or a slowdown in the Chinese economy because many of these new technologies have a lot of room for upside, even before demand stabilizes.

Thank you for speaking with us today.

SR: My pleasure.

Siddharth Rajeev is vice president and head of research at Fundamental Research Corp., the largest independent equity research firm in Canada. He holds a bachelor of technology in electronics engineering from the Cochin University of Science & Technology and a Masters of Business Administration in finance from the University of British Columbia. He is also a CFA charter holder. He is ranked as a four-star analyst in the energy and mining sectors by Deutsche Asset Management.

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DISCLOSURE:
1) JT Long of The Critical Metals Report conducted this interview. She personally and/or her family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Critical Metals Report:Focus Metals Inc., Lomiko Metals Inc., Quantum Rare Earth Developments Corp. and Commerce Resources Corp. Streetwise Reports does not accept stock in exchange for services.
3) Siddharth Rajeev: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid to do this interview. FRC has been paid by some companies mentioned in this article to initiate coverage.

Source: http://www.theaureport.com/pub/na/12926