As the lithium battery market grows, it’s created a domino-effect, raising the prospects of the graphite industry along with it. The reason is because each lithium ion battery actually requires 15 times the amount of graphite than it does actual lithium. This is why Benchmark Mineral Intelligence expects the market to increase from 80,000 tpa in 2015 to 250,000 tpa by 2020.
As consumer products, energy storage and electric vehicles continue to depend on lithium ion batteries, demand for the resources to make them is only expected to rise at an exponential rate along with these emerging technology markets.
For Lomiko Metals, Inc. (LMR:CA)(LMRMF), not only is the company positioning itself to benefit from the growth of graphite demand as an exploration and development company, but it’s also creating synergies by investing in the new technologies that are fueling that boom as well. The company’s strong graphite mining properties and strategic investments in burgeoning technology aren’t going unnoticed either.
In March, research firm SeeThruEquity issued an update to its coverage of Lomiko Metals, raising its target price on the company to $0.75 a share. The target price represents significant upward potential based on the $0.27 per share level Lomiko is currently trading at.
“We are updating the target for Lomiko Metals to C$0.75 at this time,” SeeThruEquity wrote in the report. “The target reflects new shares issued since we initiated coverage on the company, as well as a reverse split in December 2016. We see the company as an intriguing, speculative investment in the graphite and graphene markets, with option-like potential from holdings in its wholly-owned Lomiko Technology subsidiary.”
Meanwhile, Lomiko Metals has been executing on a number of fronts this year. One of the most eye-opening updates provided by the company was the high-grade graphite results from the Refractory Zone at its La Loutre Project in Southern Quebec. The results are significant because the drilling program showed flake graphite near the surface, which allows for an easier, low-cost open pit operation and a reduced emission footprint.
Good News out of La Loutre and Vine Lake
Since the start of the year, the company has announced a number of major discoveries from its La Loutre project. On March 7, the company released high-grade graphite results (with a reported best intercept of 110.80 metres of 14.56% flake graphite) and discovered an area of mineralization to be 200 meters wide coupled with a strike length over 400 meters northwest to southeast. The strike is open in both directions.
In February, the company released high-grade results of 7.67% flake graphite (Cg) over 85 meters, including 13.09% graphite over 31.50 meters from hole LL-16-06.
“Lomiko is at an early stage of development and so is the graphite and graphene industry,” Lomiko CEO A. Paul Gill told Equities.com in November. “It’s like investing in oil companies in the 1920’s. This is the material that we all need and it’s going to take the place of oil within our society. We have had big changes in the last 30 years with computers, the internet and mobile phones. This will be the biggest change because these materials will be used everywhere.”
February also saw Lomiko increase its land position at another one of its mining projects, the Vines Lake Zinc project. The land in Cassiar, British Columbia is famous for gold, silver, lead, molybdenum and zinc. Vines Lake showed zinc anomalies to the west and southwest and as zinc prices rebound Lomiko is reviewing the area for further investigation.
Spider Charger Coming Soon
As further evidence of its diverse portfolio, Lomiko signed an agreement with MegaHertz Power Systems Ltd. and SHD Smart Home Devices to speed up the rollout of its USB Spider Charger. In homes and hotels across North America and abroad, there is a direct need for USB chargers due to the rise of smart devices. Smart devices and Internet of Things (IoT) technology represent important aspects of another growing sector that Lomiko can now access thanks to the deal with MegaHertz and its unique charging innovation.
Lomiko continues to prove that it’s a company that understands what drives market trends, and is executing its strategy to stay ahead of the curve. With its strong graphite property in La Loutre, promising zinc property and USB Spider Charger, Lomiko is capitalizing on multiple fronts and positioned well to make moves when the time is right.
“These are exciting times,” Gill told Equities in November. “We have insight into the future and have positioned ourselves accordingly. The path for us is clear. We know where major investors will be in the next year.”
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