RE:RE:Lac Knife is a technology graphite play and always has beenJCash5: My recollection is the FMS arrangement with HQ was for purification and anode manufacturing. Not aware of any cancellation of the anode plant.
My understanding is that FMS is developing a more efficient, less costly purification process.
Was It the reason high-value ($8,000 to $10,000 per ton) purified products were dropped from the updated PEA? Perhaps HQ's purification for LK graphite doesn't work. I don't know.
If FMS can create a process that leads to greater margins, it makes the business case for pursuing an in-house process for battery graphite.
Recall several years ago Gary Economo gave a speech where he said the battery industry needed -150 mesh or even finer mesh for anode materials. Less wastage from fine flake than large flake which can be assigned to other technology uses.
Fine flakes are generally a burden for producers to sell at $750 per ton or less.
Competitors cannot compete with LK's fine flake grade of 98%. Mason, for example, has a whack of fines around 91%. The purification costs to bring their fine distribution to 99.95% makes it uneconomical.
I also recall reading a comment from Simon Moores of Industrial Minerals where he said if Focus Graphite can purify its fine flake to battery grade they would create a unique, new market for themselves from a low-value, low-cost to produce product.
Lac Knife is special.
The 10-year, 200,000 MT minimum offtake between FMS and China is based on prevailing market prices at the time of production. It hasn't been revealed if a portion of that sale includes battery grade products.
If it does include battery grade, our stock is going to skyrocket and we shall all become very, very happy.