Focus Graphite Inc. · TSXV:FMS
Focus Graphite — Investor Presentation (November 2013)
21 slides from Focus Graphite's investor presentation, November 2013
Slide 1: It's All About The Numbers
FOCUS —GRAPHIT E— It’s All About The Numbers ee
Slide 2: Disclaimer
Disclaimer • This presentation contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identi
Slide 3: Our Next Phase
Our Next Phase • We are entering a new phase - • Transitioning from a development company to a production company • Financing our plans, building facilities • Assembling mine management and finalizing off-take agreements • Today, I want to review some Fast Facts on: • Focus Graphite • The graphite s
Slide 4: Fast Facts on Focus Graphite
Fast Facts on Focus Graphite • Trades: TSX – V:FMS; OTCQX: FCSMF; FSE:FKC • 100% owner of the Lac Knife graphite deposit in Quebec • In mine friendly Quebec, excellent infrastructure (other large mining companies nearby – ArcelorMittal, Cliffs) • One of the Highest grade, large flake, natural graphi
Slide 5: Fast Facts on Graphite Sector
Fast Facts on Graphite Sector • Graphite market has evolved and is a “geo-political” game, why? • Graphite needed for burgeoning green technology market - the Carbon Era, and the • Global race between the U.S., Europe and Asia on green energy development • Department of Homeland Security and Europea
Slide 6: Where are we going – next phase
Where are we going – next phase Going to the next steps after the PEA . . . and position ourselves for the to solidify our position. . . future • Finalize our funding • Complete an updated resource calculation • Complete our off-take agreements at Lac Knife – underway now • Attract key people- Minin
Slide 7: Preliminary Economic Assessment
Preliminary Economic Assessment Revenue Estimates Operating Cost Estimate Operating Unit Cost Estimate per ton milled • Mining / Re-handling $15 Annual Milling Capacity (tpy) 300,000 • Processing (Tailings & Water Treatment) $41 Concentrate Production (tpy) 44,200 • General & Administration $12 Sub
Slide 8: Preliminary Economic Assessment
Preliminary Economic Assessment Capital Cost Estimates Financial Results ($ million) Surface Infrastructure $18.7 Gross Revenue 1,644 Mining $11.2 Marketing and CIF 204 (incl. pre-stripping overburden/waste) Net Revenue 1,440 Processing $36.4 Total Operating Cost 404 Tailings / Waste Rock & Water Tr
Slide 9: Capitalization
Capitalization Capital Structure Tickers: TSX-V:FMS; OTCQX:FCSMF; FSE: FKC Basic Shares Outstanding: 106 MM Options Outstanding: 9.5 MM 0.7 MM Warrants Outstanding: ($0.91 - $1.30, 2015 Expiry) Market Capitalization: ~C$46 MM Cash & Equivalents: ~C$11 MM Debt: $0 Enterprise Value: ~C$36 MM Insider O
Slide 10: Key Management & Board
Key Management & Board • Key Management: • Don Baxter, P.Eng., President and COO-Over 20 years of mining experience including graphite, • Judith Mazvihwa-MacLean, CFO, CMA and geologist with eight years accounting experience in the mining sector • Jeff Hussey, P.Geo. Vice-President Project Developme
Slide 11: Graphite Production
Graphite Production 2010 (USGS – United States Geological Service) 2013 • China continues to control the market India 12% • Largest China producer is calling for the state to impose Brazil same controls as REEs – restrict supply, consolidate 7% production, impose export controls- better management o
Slide 12: Graphite Consumption
Graphite Consumption Refractory 24% • Graphite is largely used in steel refining, foundries, and lubricants • Future demand will be driven by green technologies in the Foundry 8% carbon age – lithium batteries, electronics, construction Other 58% materials, nuclear & others – and the graphene revolu
Slide 13: Cost and Pricing
Cost and Pricing Low Production Costs • Our mining and milling cost estimated at $458/tonne of concentrate • Competition can range from $800 - $1,200 + (2% grade) • We are developing technology to further lower our cost • Will be able to set market price and weather any downturn “The days of cheap,
Slide 14: Lac Knife Location
Lac Knife Location • Located in northern Quebec, Canada, south-west of Fermont • 500 km north of Baie-Comeau along the all season Highway 389 • About 60 km to the Wabush commercial airport • Near 2 railways lines connected to ports of Port-Cartier and Sept-Iles
Slide 15: Lac Knife Property Map
| LAC KNIFE PROJECT / PROJET LAC KNIFE | cecal - ' FOCUS | MELAL.
Slide 16: Diamond Drilling Summary
Focus Graphite Diamond Drilling Summary •
Slide 17: Mineral Resource Estimate
Mineral Resource Estimate RPA, Lac Knife PEA, 2012 – *Mineral resources are not mineral reserves and do not have demonstrated economic viability
Slide 18: What makes a good graphite deposit in 2013?
What makes a good graphite deposit in 2013? Lac Knife flake size and purity Pilot Plant Tests, SGS, 2013 SIZE DISTRIBUTION Total Carbon grade 11.1% large flake +48 at 98.8% Cg. The larger the Coarse (+ 80 mesh) 33.5 % 98.3 % flake and higher the purity Medium and fine (- 80 the more it is worth. t
Slide 19: Mine Infrastructure-Layout
Focus Graphite Mine Infrastructure-Layout
Slide 20: Lac Knife Development Plan
Lac Knife Development Plan 2011 Mineral Resource Estimate Contracts RPA Mine Design & Engineering 2012 Infill drilling and exploratory summer drilling program Release of PEA - October Retains Terrapex Environment – Federal and Provincial permitting begins- ESIA 2013 Reports Phase II Lock
Slide 21: Financing Plan
Financing Plan • $126 m initial CAPEX requirement (including $24M contingency) • Timing- ongoing discussions – not dependent on outcome of FS • Equity and Debt combination • May include off take
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