Stormcrow: Lac Knife Graphite Project de-riskedStormcrow used an extremely conservative, "base case" economic model which produced a positive "buy" for Focus at $1.25 ($1.32 with Grafoid equity included).
Bottom line: even if market prices for large flake drop to $800 per ton, Focus remains profitable (de-risked).
When the company provides a revised economic estimate that formally indicates the spread between FMS' cost of production of battery grade (99.95% purity) graphite and what it can reasonably sell it for to battery manufacturers we should anticipate SP spiking by a factor of 5-10.
This company has a reputation of knowing who its customers are and their needs. There appears to be no shortage of future demand. A 98% purity produced from basic milling provides the impetus for the company to move exclusively to technology graphite production.
Why waste a precious, high value resource by selling it into industrial graphite markets?
Plus, Lac Knife may have untapped, undiscovered graphite deposits on its property. With a 15% grade, you don't have to be big to be extremely profitable on a long-term basis.
Time for markets to appreciate this gem of a project.