Focus Graphite Inc. · TSXV:FMS
Focus Graphite — Investor Presentation (January 2019)
40 slides from Focus Graphite's investor presentation, January 2019
Slide 1: The Essential Material for Low Carbon Economies
THE ESSENTIAL MATERIAL FOR LOW CARBON ECONOMIES Corporate Presentation — January 2019
Slide 2: Disclaimer
DISCLAIME Forward Looking Information: This presentation contains “forward-looking information” within the meaning of Canadian securities legislation. All information contained herein R that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looki
Slide 3: Fast Facts on Focus Graphite
FASTFACTS | ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC Objective: Develop the Lac Knife Mineral Project • Focus Graphite is an advanced mining development company with the goal of becoming a low-cost producer of technology-grade graphite concentrate from its Lac Knife mineral projec
Slide 4: Fast Facts on Focus Graphite: Lac Knife Deposit
FASTFACTS | ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC Lac Knife Graphite Deposit • 100% ownership • One of the highest-grade natural flake graphite mineral deposits • Mineral Reserve* of 7.9Mt @ 15% Cg(429 kt @ 23.61% Cgof Proven Mineral Reserve and 7,428 kt @ 14.64% Cgof Probable
Slide 5: Fast Facts on Focus Graphite
FASTFACTS | ON FOCUS | GRAPHITE Trades: TSX.V: FMS OTCQX: FCSMF FSE:FKC FOCUSis a leader in the graphite space and has reached an advanced level of development at its LacKnife mine project • Project acquired (100 %) in 2010 • Maiden Mineral Resource Estimate published in 2011 • Preliminary Economic
Slide 6: What Is Natural Graphite
WHAT IS NATURAL GRAPHITE • • One of two natural forms of natural carbon; the other is diamonds One of the most versatile non-metallic minerals • Superior electrical and thermal conductivity • Highest natural strength and stiffness of any material • One of the lightest of all reinforcing agents • Che
Slide 7: Global Graphite Consumption
GLOBALGRAPHITE CONSUMPTION Graphite is predominantly used in traditional refractory applications when refining steel and in industrial applications as automotive brakes, clutches, gaskets, and lubricants…; but green technologies will drive future demand for battery energy storage…) • Future demand i
Slide 8: Future Demand for Natural Flake Graphite
Future Demand For Natural Flake Graphite In 2018, Focus Graphite commissioned an independent study of the global market for natural flake graphite for electric vehicles and energy storage systems. The study is to support the pre-feasibility work being undertaken to develop Focus’ specialty products
Slide 9: Global Graphite Production
GLOBALGRAPHITE PRODUCTION US and EU Government s classified Graphite as a “Crit ical Material” for industrial and national security purposes • China is the largest graphite producer and exporter (~50% of global output) • China is beginning to import natural flake graphite to meet demand • China has
Slide 10: Lac Knife Graphite Project
LAC KNIFE GRAPHITE PROJECT Lac Knife, Québec, Canada
Slide 11: Lac Knife Project Location
LACKNIFE PROJECTLOCATION Lac Knife, Québec, Canada Lac Knife Lac Knife Québe c
Slide 12: Lac Knife Project Location
LACKNIFE PROJECTLOCATION • Located in northern Québec, 27 km southwest of Fermont • Large, established iron-ore mining camp and home to billion-dollar mining projects Québec is a mining including ArcelorMittal, RioTinto/IOC, Cliffs friendly jurisdiction and the city of • All infrastructure capacity
Slide 13: Lac Knife Mineral Project Feasibility
LACKNIFE MINERAL PROJECT FEASIBILITY
Slide 14: Updated Mineral Resource Model – Jan 24th, 2017
UPDATED MINERAL RESOURCEMODEL – Jan 24th, 2017 Total 231 drill holes = 22,505 metres Lac Knife Open Pit Mine 700 metres Long 400 metres Wide 100 metres Deep Mineral resources are not mineral reserves and have not demonstrated economic viability
Slide 15: Mineral Resource Estimate & Open Pit Mineral Reserves Update
MINERAL RESOURCE ESTIMATE & OPEN PIT MINERALRESERVES UPDATE • 2014 drilling located south of the pit is now included in MRE update • 26% Increase in Measured and Indicated Categories LacKnife Mineral Resource Estimate – Update Jan. 24th, 2017 @ 3% Graphitic Carbon (Cg) Cut-offGrade Categories Tonnag
Slide 16: Feasibility Study
FEASIBILTY STUDY Filed August 8, 2014 Revenue Estimates Financial Results Annual Milling Capacity 323,670 tpy Initial Capital Cost $166M* Concentrate Production 44,300 tpy *Includes $17M contingency Cost Per Tonne of Concentrate $441/tonne Annual Operating Costs $20M Net Present Value (Pre-Tax) Annu
Slide 17: High-Purity Graphite Concentrate
HIGH-PURITY GRAPHITE CONCENTRATE Flake Size & Purity SGSLakefield Pilot Plant Tests* • 11.1% jumbo flake +48 @ 98.8% Ct • The larger the flake and the higher the purity, the greater the value • High-grade carbon graphite concentrate produced by flotation translates into higher-growth markets and hig
Slide 18: Revised General Mine Site Layout
REVISEDGENERALMINE SITELAYOUT Waste Rock -Tailings Co-Placement Stockpile “This new design has addresses stakeholder concerns”
Slide 19: Waste Rock-Tailings Co-Placement Stockpile
Waste Rock -Tailings Co-Placement Stockpile • Preliminary Engineering completed and construction method illustrated • Ready for detailed engineering • This new design addresses stakeholder concerns The liberation or grinding size is 400 microns (0.4mm) Relatively easy to de-water and filter making t
Slide 20: Lac Knife ESIA Analysis
LacKnife ESIA Analysis • ESIAunder review by MDDELCCas part of permitting process • 1st series of answers submitted to the government in October 2016 • Includes preliminary design of the Co-Placement Waste Rock -Tailings stockpile, reducing mine site footprint • Baseline sampling and assaying of Lac
Slide 21: Lac Knife Project Financing
LACKNIFE PROJECTFINANCING • $166M CAPEXrequirement, including $17M contingency • Combination of equity and debt may be tied to strategic partnerships based on an offtake agreement • Discussions with a 6-party consortium ongoing • Vendor Financing: Concentrator & Mine Equipment • Discussions underway
Slide 22: Lac Knife Development Plan
LACKNIFE DEVELOPMENTPLAN 2011 2013 2015-2017 Q2 Closed $15m Bought Deal Q2 Infill Drilling Program at Lac Knife • Project Financing Negotiations Commission Pilot Purification Plant • Offtake Agreement Negotiations Closed $20m Bought Deal Q3 Infill Drilling Program at Lac Knife • Next steps Detailed
Slide 23: Graphite Concentrate Transformation Plant – Sept-Îles Industrial Project
GRAPHITECONCENTRATE TRANSFORMATION PLANT – SEPT-ÎLESINDUSTRIALPROJECT Purified graphite Expanded graphite Spherical graphite
Slide 24: Transformation Plant Project
TRANSFORMATION PLANT PROJECT Ongoing DEVELOPMENT PLAN • Value-added graphite products plant planned for Sept-Iles • Concentrate will be shipped from the Lac Knife mine project to Sept-Iles for transformation • Easy transportation routes to Asia and Europe • Global scoping and market study underway f
Slide 25: Transformation Plant Industrial Project
TRANSFORMATION PLANTINDUSTRIAL PROJECT Processing flake graphite concentrate into value-added products can give access to higher value markets • Exceptional battery coin cell tests of high quality coated SPGused in Li-ion batteries was In May 2014, produced using Lac Knife graphite concentrate (May
Slide 26: Lac Knife Flake Purification Process
LACKNIFE FLAKEPURIFICATIONPROCESS Concentrating Lac Knife Ore grading 15% graphitic carbon Concentrate from Lac Knife into a Graphite Concentrate grading 98% carbon is purified to produce value-added graphite products Flotation Concentrate Concentrate after polishing Continuous Thermal Purification
Slide 27: Battery-Grade Graphite
BATTERY-GRADE GRAPHITE Why use « Natural Flake Graphite » rather than « Synthetic Graphite » for lithium-ion batteries? Natural Graphite SPGFacts Synthetic Graphite Facts USD$5,000 per tonne (cost benefit) USD$20,000 per tonne Battery Purification and shaping of flake graphite concentrate Graphitizi
Slide 28: Coated Spherical Graphite (SPG) from Lac Knife Concentrate
COATEDSPHERICALGRAPHITE (SPG) FROM LACKNIFE CONCENTRATE The coated (Battery-Grade Product) SPG produced Focus Graphite's Coated Spherical Graphite shows superior electrochemical performance from Lac Knife metrics when compared with commercial grades of synthetic graphite for lithium ion batteries* c
Slide 29: Coated Spherical Graphite (SPG) from Lac Knife Concentrate
COATEDSPHERICALGRAPHITE (SPG) FROM LACKNIFE CONCENTRATE (Battery-Grade Product) Focus Graphite has successfully produced and tested coated Spherical Graphite for lithium ion batteries* • Process involves purification , sizing, shaping and coating the Lac Knife flake graphite concentrate • Test resul
Slide 30: Extended Long Term Cycling Performance of Lac Knife Graphite
Fig. 4 EXTENDEDLONGTERMCYCLINGPERFORMANCEOFLACKNIFEGRAPHITECOMPARED WITH TWOCOMMERCIALGRADESOFCOATEDSPHERICALGRAPHITE Lac Knife Charge Capacity Lac Knife Discharge Capacity Supplier Discharge Capacity #1 Reversible Capacity mAh/g Supplier Discharge Capacity #2 4.5 Coin cells were % cycled between 0.
Slide 31: Resistivities of Lac Knife and Commercial Graphites
Fig. 5 RESISTIVITIESOFLACKNIFEANDCOMMERCIALGRAPHITESIN Li IONCATHODEMATRIX LiNiMnCoO2 Premium Quality Synthe)c Graphite, D50 = 3.5 µ Commercial Flake Graphite, D50 = 6 µ Lac Knife Expanded Graphite, D50 = 15.8 µ Lac Knife Expanded Graphite, D50 = 3.5 µ Lowest Resis)vity/Highest Conduc)vity
Slide 32: Advantages of Using Lac Knife Graphite in Batteries
ADVANTAGES OFUSING LACKNIFE GRAPHITE IN BATTERIES Key Properties: End UserAdvantages: • Near Theoretical • Higher Capacity Reversible Capacity • Low Irreversible • Increased Power Capacity Loss • Reduced Capacity Fade • Longer Battery Life during Long-term Cycling • High Electrical Conductivity • In
Slide 33: Other Projects
OTHER
Slide 34: Lac Tetepisca Deposit
2014,2016 & 2017 Drill LacTetepiscaDeposi Programs tTotal 34 drill holes = 4,298 metres Best intersection: • LT-16-32: 102.1 m @ 10.7% Cg • Drill Tested MAG-EM Anomaly 1000m • length X85 m avg. width Down to 100 • m depth Lac • See Jan 20th News Release Tetepisca • Nov 2017 drill program included 38
Slide 35: Kwyjibo Heavy REE Project
Kwyjibo Heavy REEProject • Relatively easy metallurgy (See news release Nov 21st 2016) • Focus Graphite and SOQUEM announced Preliminary Economic Assessment (see June 28, 2018 news release) 50-50 Partnershi p with SOQUEM Relatively simple REEMetallurgy
Slide 36: Capital Structure
CAPITAL STRUCTURE Tickers: TSX-V:FMS OTCQX:FCSMF FSE: FKC Asof January 7 2019 Recent Share Price $0.035 Market Capitalization $13.09M Shares (Issued & Outstanding) 373,936,342 Options 30,380,000 173,683,756 Warrants *Currency is Canadian dollars (CAD$)
Slide 37: Management & Technical Team
MANAGEMENT & TECHNICAL TEAM • Gary Economo, Chief Executive Officer, President and Director — Distinguished business leadership career, serving as Chief Executive Officer for a number of public and private high technology companies during the last 30 years. • Judith Mazvihwa-MacLean, CMA, MBA, MSc,
Slide 38: Board of Directors
BOARDOFDIRECTORS Jeffrey York Chairman of the Board Chief Executive Officer of Farm Boy Inc. A graduate of Princeton University, Mr. York is the former President and Chief Executive Officer of Giant Tiger Stores Limited. Gary Economo Chief Executive Officer, President and Director Distinguished busi
Slide 39: Lac Knife Production Costs
LACKNIFE PRODUCTIONCOSTS “The days of cheap, Low Production Costs abundant graphite • Mining and milling costs are estimated at $441/tonne of concentrate from China • Hydro-Québec electric power < 5¢/kWh are over” • Peer production costs range from $390 – $1,300+ / tonne • Potential to weather econo
Slide 40: Thank You!
THANK YOU! Gary Economo President and Chief Executive Officer geconomo@focusgraphite.com Focus Graphite Inc. 945 Princess Street, Kingston, Ontario K7L0E9CANADA T +1 613-241-4040 E info@focusgraphite.com W focusgraphite.com
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