Thursday, October 6, 2011

Focus Metals continues push forward to realize its goal of being the global go-to company for gaphite and graphene

Focus Metals (TSXV:FMS)(OTCQX:FCSMF) has had one goal since the beginning of the company, and that has been, to become not just a graphite producer, but to become "the" graphite producer. The company's CEO, Gary Economo, has remained busier than the average CEO, with a constant desire to bring Focus Metals to the point, that it can fully realize this goal. Although Gary is extremely dedicated and committed to this progression of Focus Metals, it should be noted that the entire management team is, above all, exactly that, a team. They share a visionary approach to the production of graphite from the company's Lac Knife deposit. What they also had, and still have, was the ability to seize upon the moment and realize as fully as was possible at the time, just how much value this deposit presented in terms of a product that has swept the world. This product is none other than graphene. For the benefit of those who may not fully understand just how advantageously positioned Focus Metals is, please click on this link, http://www.focusmetals.ca/technology/graphene, as I feel this helps to bring clarity to  this topic.

Not only has Focus Metals taken full advantage of the opportunity to buy the Lac Knife graphite deposit, with all the potential there-in, but they have completely seized the moment, in that they envisioned just how graphene seemed to be destined to change the world as we know it. The result of this is what is now known as Grafoid Inc., and is what stands to set Focus Metals apart from virtually all other graphite companies. The added value, that potentially could come to Focus Metals, as a result of this graphene joint venture called Grafoid is phenomenal to say the least. The graphite from Lac Knife has been verified by the Chief Scientist, Dr. Gordon Chiu, as being of unusually high grade. This in turn has a significant impact on the graphene produced from graphite. The following is an excerpt of what Dr. Chiu reported to Gary, " Dr. Chiu reported to us that our raw, unprocessed graphite was much better in quality than the best processed laboratory graphite on the market today."
What I find even more compelling, is the fact that Dr. Chiu has been working on a processing and purification technology, whereby it will allow Focus Metals to produce graphene directly from the ore produced at Lac Knife. This is obviously a stellar accomplishment which will in my opinion bring Focus Metals onto a playing field shared with few if any competitors. This in my opinion speaks volumes of the future of this company and the value they are striving to bring to shareholders. One of the major issues that can significantly impact a company's bottom-line, is of course, the cost of producing the product initially. Since Dr. Chiu has reached a point where the graphene can be produced directly from the graphite ore, this has the over-all effect of lowering the cost of production dramatically.

 Focus Metals Inc., through its New York-based joint venture headed by Dr. Chiu, its Chief Scientist, surprised the scientific community in early 2011 when it announced its entrance into the graphene development arena – a domain dominated by industrial heavyweights IBM, Intel and Samsung. When I recently inquired of Gary as to what Dr. Chiu might be working on, I was told "The proprietary nature of some 25 specific projects at this time preclude the company from identifying its commercial development targets." With the reported spending of tens of billions of dollars currently being spent on graphene research globally, at university laboratories and in corporate research and development facilities, in three principal sectors, namely: consumer electronics; computing devices and, industrial materials, it comes as no surprise that secrecy is over-abundant. The fact that we are given the knowledge of some 2 dozen specific projects, which of course will undoubtedly upon successful completion, become large cash cows in the form of patents and licensing agreements, reinforces just how the management team is working diligently to bring more value to this company, and in so doing, also to the shareholders of Focus Metals.

I find all of this quite compelling as an indication of the direction Focus Metals is headed, but there is even more reason to expect great things to come, besides those points I've covered so far. Gary had stated previously that acquisitions were something Focus Metals would continue to consider. In this NR dated September 9, 2011, we find that Focus Metals has not only bought slightly more than 200 additional claims, but have also brought another person on board in the form of, Mr. Tony Brisson, P.Geo., as Vice-President, Exploration. The following is what Gary had to say as he introduces Mr. Brisson,
“Mr. Brisson’s addition to Focus Metals’ management, particularly his strong mining and mine development background in Quebec and abroad, brings additional strength to our core management team as we begin to implement our longer-term corporate agenda,” Mr. Economo said.
“Mr. Brisson’s exploration and mine development skills and experience dovetail with our current mission to expand and enhance our understanding of our Lac Knife, Quebec graphite property and our future domestic and international acquisitions,” Mr. Economo said.
A former recipient of the Quebec Exploration Mining Association’s Prospector of the Year award, Mr. Brisson assumes his responsibilities with Focus Metal after serving seven years as VP Exploration, Cogitore Resources Inc. Mr. Brisson holds a B.Sc. Geology degree from the University Du Quebec a Chicoutimi. His previous experience includes nine years with Cambior Inc., as an exploration and mining geologist and he has held various senior mining management positions with Breakwater Resources Ltd., and Campbell Resources Inc.
Mr. Brisson lives in Rouyn-Noranda. I believe that the addition of Mr. Brisson will be a positive one as we watch Focus Metals continue their push forward to their ultimate goal.

In this same NR, it is reported that Focus Metals has purchased more claims, which Mr. Economo has stated, are known to contain graphite. As we can see from this announcement, this acquisition clearly lends credence to the company's goal of increasing value both for the company and their shareholders.
   http://www.focusmetals.ca/news/press-releases/2011-2/sept92011
The following are some maps that were provided, courtesy of Focus Metals, which show the general area in which these claims are located, as well as some other maps that detail the claims. I should add that these maps show the claim application numbers not the actual claim numbers.
















The dedication and commitment of the management team just seems to keep getting clearer as we watch the acquisitions begin, the push to expand our drilling, the very busy schedule of meetings and confrences in order to bring Focus Metals before the entire world, and of course the enormous effort of getting Grafoid Inc. incorporated and still maintaining the enormous workload that comes with all the research prsently being conducted.

 There is obviously much to be anticipated from Grafoid Inc. as we look forward. The fact that their every move is not being kept as transparent as possible is, in my opinion, not only quite normal but is a prerequisite. Historically, this has been proven, to be the only strategy that a company can use when there are so many competitors competing fr the same technology. Imagine where Apple, Microsoft, and Google would be if they had made their every move completely transparent. We know that Grafoid is currently working on some 25 or more specific projects, and with this in mind, it is with ease that I would expect to hear some astounding news that has the potential to move Focus Metals into a completely new global position. With the global graphene research tab reaching well into the billions of dollars, it should be starting to become more clear that graphene is not going away, but rather will truly continue to undoubtedly become the product that will start us into a new age. In my opinion, to under-estimate just how huge the potential for Focus Metals is, considering all that graphite and graphene have to offer the world, would be a mistake.
If we consider the fact that Focus Metals had the lowest projected cost for production when the company first started, it should be easy enough to appreciate the fact that Dr. Chiu has effectively lowered this cost considerably. The fact that Dr. Chiu has provided the company with a processing and purification technology, whereby Focus Metals can produce graphene directly from the ore at Lac Knife, should be accepted as a very monumental step. I would venture to say that this will add untold value to not only the company, but also to the shareholders.

If this has prompted anyone to consider Focus Metals as an investment choice, I would urge everyone to do their own due diligence. An extremely good starting point would be the Focus Metals website which can be found at www.focusmetals.ca.

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

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