Tuesday, September 27, 2011

Huge potential for Focus Metals is evident with the addition of graphite and graphene to our lives

I have just returned from vacation, which is something I am not prone to take regularly. However, as much as I absolutely love my work in connection to following the different companies I have chosen to cover, I also realized that it was time for a vacation. I must say it was an excellent vacation with many quality days spent with my wife and our children and grandchildren.

Once again I will be writing about Focus Metals (TSXV:FMS)(OTCQX:FCSMF), and what I view as a company that is well on its path to meet its goals, and a company that has an exceptional management team to continue this progress.
Having been gone for the past few weeks I see that Focus Metals has had some very exciting and interesting news. I might add that, in my opinion, this will be only the beginning of much more news to come. While I was talking to CEO Gary Economo, during my recent tour of the Lac Knife property, he stated that there is alot of news to come in the near future. I see that some people have decided that they cannot wait for this news, which is a decision that is completely in the hands of each and every investor. Having seen Lac Knife and talking at length with Gary, I am the more convinced that Focus Metals will, in my opinion, surpass most if not all competitors in the graphite and graphene space. This company has the potential to make investors a serious return on investment, but as with anything worth possessing, it will come to those who approach it from a realistic and patient stand.

Gary has said that an expanded drilling program would be implemented immediately, http://www.focusmetals.ca/news/press-releases/2011-2/june302011. Unfortunately, some people do not seem to understand the logistics of how this will all come about. The management of Focus Metals made the decision to expand the drilling and released this news immediately, but this should not have been interpreted to mean that the drilling would commence within days or even a couple of weeks. As most investors should be aware, there is the need for a drilling application to be completed, and this can take 30 to 90 days. Further, there is nothing binding the government to issue said permits within this time-frame, but it does give us the general time-frame which we would expect to receive the permit. Since the news release is dated June 30, 2011, I would hope that we may hear news soon, but again this is something completely out of the company's control.

For those who have read my blog consistently, you will be well aware that I have written at length about the importance of graphene, in regards to the future of Focus Metals. On Sept. 21, 2011, I see that Gary has commented on just how important graphene really is from the company's viewpoint. In my opinion, Gary has always demonstrated an inordinate amount of dedication and commitment to Focus Metals, and this excerpt speaks volumes, "Once our graphene research, development and testing activities are completed, I’ll be in a position to provide additional details. Until then, one of my immediate goals is raise graphene’s profile in the global marketplace.
I’ll have more to say about graphene this fall, culminating in London, on the 6th and 7th of December as Focus Metals is the prime sponsor of Industrial Minerals’ Graphite Conference. I’ll be delivering two presentations: one on graphite, the second on graphene.
My three speaking engagements in Europe this fall – two in London, one in Munich – provide opportunities to grow our profile internationally.
Ultimately, my immediate goal is to increase awareness of our unique and highly-focused company and the benefits that come with an investment in Focus Metals." http://www.focusmetals.ca/ceo-connect
I have attempted to bring this topic to light in the past and I will continue to do so as I too feel this is one of the main aspects that sets Focus Metals apart from those other companies which desire to be in the graphite and graphene arena. In one of my conversations with Gary, he had mentioned they were currently studying how they could reduce the production cost even further. As most of you are aware Focus Metals has what appears to be, by far, the lowest production costs associated with graphite production, and now it would appear quite likely the same may be true for graphene. Given the price of graphene currently, this could truly propel Focus Metals into the top seat globally for graphite and graphene production, and thus bring the company and its shareholders into a unique financial situation.

We currently see the entire globe in what can only be likened to, "the great race", to determine what new applications graphene might be capable of. The amount of R&D being conducted globally can easily be likened to the amount of research that burst forth from such discoveries as bronze, steel, and plastic. As this research continues to gain momentum it is literally anyone's guess just how many applications will become viable. I will interject that at the pace the research is progressing it will undoubtedly reach the same proportions as these other life-changing ages that have presented themselves to us in past times. I believe that as soon as it is practical we will hear news from our own research team at Grafoid Inc. There is an obvious need for a cloak of secrecy surrounding any patent applications that may result from the research being done. Without this, Focus Metals stands to possibly lose control of proprietary information, procedures, or products. If this were to become the case, we as shareholders would ultimately feel the resulting loss. Historically we will notice that research being conducted on any new product or procedure takes time to reach its full effect, and I would expect nothing less from graphene. With the reports that are being made available to us from many sources, it is quite easy to see the potential become reality before our eyes. Companies such as Nokia and Samsung have already admitted that graphite and graphene are being incorporated into the products that they are currently working on for near-future release. One of the biggest players in the electronic world is Apple, and they have also made remarks that graphene is currently being considered as a large part of their future device offerings. This is just from the communications device sector. With the amount of research being conducted for and by the military, and the many other numerous  industries we can only wait to see just what this may bring to Focus Metals in terms of financial gain. Some investors may consider this to be more risk than they are willing to deal with, however, I truly believe this will become one of my better investment choices, given the time needed to mature.

If we want to see proof that graphite and graphene are already entering our lives and just what type of impact they will have initally, let us look at the car maker BMW, who has gone to great expense to let everyone know that many panels for their automobiles will be constructed with carbon fiber technology. As are the Dreamliner jets that Boeing is currently building, which has seen many setbacks since the beginning, and yet this jet is still warmly welcomed by all the companies that have ordered this jet. http://news.ca.msn.com/top-stories/8-ways-boeings-dreamliner-will-change-flying-25

I think you will find that these articles from CBC and The Economic Times (respectively) address just what can be expected from carbon fiber technology, and this my friends is only the very beginning.
Now to take a look at the automotive industry, I think this article by Bloomberg speaks volumes as to what carbon fiber technology, and the graphite and graphene producers of the world can expect looking forward. http://www.bloomberg.com/news/2011-06-14/bmw-carbon-lets-vehicles-follow-bicycle-road-to-lightness-cars.html
Not only has BMW aligned themselves with none other than SGL, who were respected as one of the premier carbon companies globally, but have now reached the status of the world's most expensive carbon company. Why have they reached this platform? It is the result of BMW realizing the tremendous value of using carbon fiber technology in producing the various panels and parts for their line of autos, which did not go unnoticed by the likes of Audi and Volkswagen. Volkswagen became so convinced of this technology that they went to the lengths of buying 9.9% of SGL. From this point I must say the future of carbon fiber technology should be starting to become clearer. As anyone who follows my blog, you will undoubtedly be familiar with SGL, who I cannot make claims of Focus Metals being deeply involved with, but in my opinion it would amaze me if this is not one of the secretive potential off-take customers. If I am correct in my thinking of this it will in all likelihood mean that Focus Metals is destined to become one of the world's largest graphite and graphene producers. As a shareholder this would result in a dream come true since to pick a company that will rise this significantly is not something that can be accomplished with any regularity, and although I cannot advise anyone to buy or sell any stocks, I personally believe strongly in the huge potential of Focus Metals and the future of graphite and graphene globally. This belief is bolstered largely by the actions of such global companies as Boeing, BMW, Volkswagen, and SGL. These companies have not shown the typical "dipping of the toes" into this market, but rather have invested heavily, and have made public statements that concretely state what the expect to see looking forward from this technology, not to mention that these companies are basing their futures on this type of technology. If one were to believe that such Titans were to have this all wrong and that the large investments each has made will be the beginning of their end, then and only then could I agree Focus Metals would lose appeal. On the contrary though, I expect these behemoths have more than done their homework, and that the graphite/graphene space is only at its earliest stages.

Another company that I continue to feel is quite likely to play an important part in the progress of Focus Metals is Superior Graphite. Here is a link to a pdf from Superior Graphite, http://www.superiorgraphite.com/pdfs/SG-Capabilities.pdf. I think this is quite informative about who Superior Graphite is, and I especially like this excerpt from page 11 of this pdf. "

We have pioneered some of the most-advanced coating technologies for
high-tech industries by applying our dispersion expertise, blending capabilities,
granular processing, and wet chemistry.
Dedicated manufacturing and research facilities disperse and surface treat a wide
variety of substrates using water, solvents, or oil-based diluents. Carbon loadings and
viscosities can be formulated to meet critical customer requirements."
Remember Gary has stated that high-tech useage is something Focus Metals will target as they progress towards production and in their search for off-take customers. Superior Graphite would make a good choice in my opinion, and to try and align oneself with them would undoubtedly hold great value, for both Superior Graphite and Focus Metals.

I will be writing more about my Lac Knife trip in the very near future. My apologies for being somewhat tardy on this issue, but it really was a necessary break for vacation. One every couple to three years is definitely needed. I will do my best to expedite my writing efforts and coverage, and I thank the many readers who have continued to read my blog in my absence.

For those who would like to consider Focus Metals as a potential investment choice, I urge everyone to do your own due diligence. All the views expressed here are only my views. As always I suggest the Focus Metals website as a very good starting point to begin doing due diligence. Their website can be located at www.focusmetals.ca.

For disclosure purposes I have received no compensation for this post or my views. I own shares in Focus Metals.

1 comment:

  1. Hi Brujacman,

    Thank you for the informative and excellent posts on your blog. However you are linking Carbon Fiber to graphite which is incorrect to my knowledge. For the production of CF no graphite is required.