RE: FMS vs. NGC...which one to buy or both Espagnol, how many aliases do you have?
75,000 shares of selling from a NGC director is the only criteria you use for DD when comparing the two companies? Why isn't there an analyst report available on FMS?
FMS (soon to be split into three, two CPC's with the same ownership structure waiting):
Graphoid: https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=30912383&l=0&r=0&s=FMS&t=LIST
Focus Metals: https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=FMS&t=LIST&m=30912383&l=0&pd=2&r=0
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=FMS&t=LIST&m=30912399&l=0&pd=2&r=0
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=FMS&t=LIST&m=30912530&l=0&pd=2&r=0
NGC: Lifting Target to $4.40 on Spherical Graphite News
EVENT – Spherical Graphite Produced and Tested in Batteries
Yesterday, Northern Graphite announced that the Company has successfully
manufactured test quantities of spherical graphite from graphite concentrate
produced from the Company’s 100% owned Bissett Creek deposit. The spherical
graphite has been evaluated in Lithium/graphite battery test cells and the
performance of these cells demonstrated that it meets or exceeds current commercial
performance requirements and that Bissett Creek graphite does not contain any
impurities that negatively affect cell performance. The cells were made and testing
carried out in a highly qualified, independent laboratory.
IMPACT – Increasing Target Price to $4.40; Leader in the Space
Spherical graphite work confirms NGC is the leading, advanced graphite play in
the group: Spherical graphite is used to make the anodes in Li ion batteries and is
manufactured from the flake concentrate produced by graphite mining operations.
Almost all the world’s spherical graphite is produced in China. Our research
indicates current processes to produce spherical are inefficient and highly polluting.
NGC’s efforts to expand into this fast growing market are promising as the
Company may achieve a first mover advantage by developing an improved
spherical process, and by offering a non-China located source of supply to lithium
ion battery manufacturers.
Increasing target to $4.40: A main reason for our target price increase arises because
of the spherical test results announced. We now include a spherical graphite
production plant in our base case financial estimates, and production from this plant
will ramp higher over time. We have also reduced the discount rate to 10% from 12%
on the NPV of the graphite concentrate facility. Due to NGC’s strong share price
appreciation, less dilution has also been incorporated into our model. Lastly, we
have decided to apply a 1.1x multiple to our $4.00 NAV calculation, to reflect NGC’s
leading position in the hot graphite space.
A LOOK AHEAD – BFS in Next 2 Months; Construction Afterwards
Based on the positive spherical test results, the Company will commence
engineering and design work to define the capital and operating costs of a facility to
upgrade Bissett Creek graphite concentrate into spherical graphite. The objective is
to provide Li ion battery manufacturers with a stable, secure source of supply that is
produced in an environmentally acceptable manner. Filing of the mine closure plan
and completion of the BFS are the next catalysts. Both items are expected within the
next couple of months.