March 6 news release DRA's financial model does not include potential value-added, purified, spheronized, and coated battery-grade graphite in its financial and operational calculations.
My opinion to sell to let's say the new VW battery planting Ontario FMS will have to take the above steps.
Purified, how are they going to do it. Acid or heat or some other method?
Spheronized, some of the graphite will be lost in this process. Probably count on 30% but to know for sure studies on Lac Knife graphite will need to be done.
Coated once again studies will have to be done to determine costs.
If FMS is going to provide mine to market (say VW) they will need to get a source for synthetic carbon. Different car companies are using a blend and one company may use 50% synthetic carbon and 50% natural another company may use 55% to 45% synthetic to natural.
Ideally 100% natural would bring down the price of batteries as synthetic carbon is very expense to produce and takes a lot of energy. It is also derived from fossil fuels.
I look forward to seeing FMS plans and costing to have a complete product to provide to end users.
one thing for sure the demand for graphite will increase rapidly in the next decade requiring many new mines worldwide.