battery-ready natural graphite - focus … · 2015-03-23 · battery-ready natural graphite march...
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BATTERY-READY NATURAL GRAPHITE
March 2015
DISCLAIMERThis 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 identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi)the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the resulting issuer; (xii) the risks associated with the various environmental regulations the resulting issuer is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; (xvii) the risk of potential dilution through the issue of common shares; (xviii) the Company does not anticipate declaring dividends in the near term; (xix) the risk of litigation; and (xx) risk management.
Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company’s business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
ELECTROCHEMICAL PERFORMANCE TESTS
Highlights
• LacKnifeSPGbatterytestsevaluatethreeproprietaryformulationsthatrespondedverywell to CR2016 coin cell performance testing
• Large,mediumandfinemicronsizeproducedoutstandingperformancemetrics
• Testingresultsonthepremiummediumandfinegradesexceedtheperformanceofbenchmark commercially available grades by significant percentages
TestsconfirmFocusGraphite’scapabilitytotailorLi-ionbatteryanodegradegraphiteand value-added products to meet the most stringent customer specifications
“Focus Graphite Succeeds in Producing Extremely High-Performing Coated Spherical Graphite for Lithium Ion Batteries”Independent Test Results announced May 27, 2014
of Lac Knife Flake Spherical Graphite in Lithium-ion Batteries
LAC KNIFE PROJECT LOCATION
WLac Knife
WLac Knife
Québec
Lac Knife, Québec, Canada
• LocatedinnorthernQuébec,27kmsouthwest of Fermont
• Large,establishediron-oreminingcamp and home to billion-dollar mining projects — ArcelorMittal, RioTinto’s IOC, Cliffs Natural Resources’BloomLakeandWabushMines
• Consistsof57claimscovering3,000ha/7,500acres
• ~60kmtotheWabushAirport(YWK)
• Near2railwaylinesconnectedtoPort-CartierandthePortofSept-Iles
LAC KNIFE PROJECT LOCATIONLac Knife, Québec, Canada
WHAT IS NATURAL GRAPHITE?
• Oneofthemostversatile non-metallic minerals
• Oneoftwonaturalformsofcarbon; the other is diamond
• Superiorelectrical and thermal conductivity
• Highestnaturalstrength and stiffness of any material
• Oneofthelightest of all reinforcing agents
• Chemicallyinertwithahighresistance to corrosion
• Highnaturallubricity
• Meltingpoint: 3,650ºC
• Graphiteisacritical mineral in continual demand
Graphite Occurs in 3 Natural Forms
Amorphous: 60 -85%C(Lowpurity,lowprice,lowgrowth)
Flake: > 85% C (Most desirable, greatest demand)
Vein: > 90%C(Verynicheapplications,smallmarket,flatgrowth)
Graphite is predominantly used in refractory applications when refining steel; also used in automotive brakes, clutches, gaskets, and lubricant
GLOBAL GRAPHITE CONSUMPTION
• Flakegraphiteisthemostsought-afterformofgraphite;vitaltotopdemandmarketstodayand tomorrow
• FuturedemandisbeingdrivenbygreentechnologiesincludingLi-ion Batteries, Fuel Cells, Electronics, Construction Materials, Nuclear and the Graphene Revolution
• Traditionalindustrialdemanddriversarerefractories,foilsandbatteries
• Thereis11 timesmoregraphitethanLithiuminatypicalLi-ionbattery
• 20% annual growthintheLi-ionBatteryIndustry
• 10%-30% annual growth in the Electric Vehicle Market
2020 Annual Demand
• +1 million tonnes of additional graphite needed or 25 New 40,000t Mines
Source: Industrial Minerals Data (2014)
Flake Graphite Demand in Tonnes (2013)
Total: 375,000 tpa
Other 10,000
Industrials 80,000
Batteries 82,000
Refractories, Foundries, Crucibles 185,000
6,500+ tonnes of graphite was used by these 5 companies in 2013ELECTRIC VEHICLE GRAPHITE CONSUMPTION
Brand Battery Graphite Used 16.5 Volt kWh 18kg
19 i3 kWh 21kg
24 Leaf kWh 27kg
4.4 Prius kWh 5kg
41.8 RAV4 kWh 48kg
85 ModelS kWh 96kg
Gigafactory 96 kg Launch perunit 2017
70,000 CARS SOLD
11,000 CARS SOLD
94,500 CARS SOLD
48,600 CARS SOLD
1,107 CARS SOLD
25,000 CARS SOLD
500,000 UNITS ESTIMATED
40,000 ORDERS (2014)
1,260 TONNES
231 TONNES
2,552 TONNES
243 TONNES
2,600 ORDERS (2014)53 TONNES 125 TONNES
48,000 TONNES PROJECTED
2,400 TONNES 3,800 TONNES (PROJECTED 2014)
Source: Industrial Minerals Data (2014)
Lithium-ion is the leading technology in the battery spaceUTILITY STORAGE BATTERIES
• Largerbatteriesforresidentialandutilityapplications,makingsolar/windeconomical
• Reducingthestressofpeakload
• Moresupplyiscomingonline—e.g.residential,commercialandgrid/utilityapplications,megafactories,etc.—andsignificantquantitiesofhigh-puritySPGgraphitewillberequiredtomeet future demand
• Annualrevenueofcellsalesforadvancedbatteriesforutility-scaleapplicationswillgrowfrom$221.8millionin2014to$17.8billionin2023
Source:A123Energy,LLC
A123 Energy Solutions’ Grid Battery System (GBS)
Source: Navigant Research (2014)
TESLA MOTORS’ ENERGY STORAGE PRODUCT OVERVIEW
Source: Tesla Motors (2014)
“The long term demand for stationary energy storage is extraordinary.”JB Straubel, CTOTesla Motors
200
180
160
140
120
100
80
60
40
20
02014 2015 2016 2017 2018 2019 2020 2021 2022 2023
by Application — World Markets: 2014-2023 ADVANCED BATTERIES REVENUE
$ Bi
llion
s
GWh
$60
$50
$40
$30
$20
$10
0
EVs Stationary Consumer Electronics Power Tools Other Applications Total GWh Source: Navigant Research (2014)
SPHERICAL GRAPHITE (SPG)Battery-Ready Product
Battery-Ready Product SPHERICAL GRAPHITE (SPG)
• Decreasesthesurfacearea
• Allowsmore graphite into a smaller volume
• Createsasmaller, more efficient anode product for the battery
The three key categories of anode material:
Reversible Capacity (RC)
Energystorageinthebattery(rangesfrom345to355Ah/kg)
Irreversible Capacity Loss (ICL)
Amount of lithium permanently stuck in the graphite, the objective is to getICL%aslowaspossible(standardis6-10%loss)
Surface Area
Minimalsurfacearea(Lessthan2m2/g)
Synthetic Graphite Facts
GraphitizinganOilbyproduct
• USD$20,000pertonne
• Devolatilization:VacuumGasOil480ºC
• NeedleCoke(GreenCokeUn-Calcined)
• Calcined:Removetracesofoil1,350ºC
• Micronized&Coated
• Graphitization@2,800ºCforweeks
• Oil-BasedFeedstock&EnergyIntensive
BATTERY-READY GRAPHITE
Natural Graphite SPG Facts
Performs10-20%betterthanSynthetic
• USD$8,000 per tonne
• MiningFlakeGraphiteOre–LacKnife
• Typicalprocessing(crush,grind,flotation)
• Micronized&Spheronized(onestep)
• Purificationatlowheatforminutes
• CarbonCoating
• Hydro-QuébecElectricityforwholeprocess
• Minimaltonilcarbonfootprint Synthetic Graphite Conclusion
1. LargerCarbonFootprint
2. ProductionCostsDouble
3. EnergyIntensive
4. Time Consuming
5. NotalignedwithGreenEnergyapplications
Synthetic vs. Natural
Synthetic Spherical Graphite processes are very time consuming, energy intensive and require costly furnaces.
$2 million: the cost of a furnace to graphitize 1 tonne of synthetic graphite
GENERAL FLAKE PURIFICATION PROCESS
Flotation Concentrate 96% Cg Crystalline Flake Graphite
ConcentrateafterPolishing 98.3% Cg
ContinuousThermalPurification 99.98%+ Cg
98% Cg Graphite ConcentrateSCANNING ELECTRON MICROGRAPH (SEM)
• Althoughthe+65meshgraphiteconcentrateisveryhighincarbon content, there are still some impurities present, which can be seen as white specs on the graphite flake surfaces and edges
SEMof98%Cg(+65mesh)LacKnifegraphiteconcetrate
99.98% Cg Purif ied Graphite SCANNING ELECTRON MICROGRAPH (SEM)
• ThisSEMshowsthatessentiallyallofthewhitespecs (impurities) were removed by thermal purification — low carbon footprint process — environmentally sustainable
SEMof99.98%CgpurifiedLacKnifegraphite
99.98% Cg Uncoated Medium-Grade Purif ied Spherical GraphiteSCANNING ELECTRON MICROGRAPH (SEM)
• SEMshowsflakegraphitehasbeensuccessfullyprocessedtoproducesphericalparticles(SPG)
• SPGwascoatedwithcarbontoreducetheSpecificSurface Area (SSA) to make it suitable for use in Lithium-ionBatteries
• Coatingalsohastheeffectofreducingreactivity with the electrolyte further reducing the irreversible capacity loss
SEMof99.98%Cgmedium-gradeuncoatedsphericalLacKnifegraphite
All electrochemical tests were run on CR2016 coin cellsCROSS SECTION OF CR2016 COIN CELL
• Valuesofreversiblecapacity(RC)andirreversiblecapacities(ICL)at C/20 cycling were determined and the first cycle irreversible capacity loss was calculated by dividing the reversible capacity by the irreversible capacity
• Theelectrolyteis1.0MLiPF6inFEC/EMC(30:70vol%)for8mmthickelectrodeswithacompositionof90wt%graphiteand10wt%supportingadditives,includingaPVDF-basedbinders
+
–
ANODE CAP
LI FOIL
SEPARATOR
BOTTOM CAN
GRAPHITE
20mm
1.6mm
Electrochemical Tests on Lac Knife Lithium-ion-Grade GraphiteSPG TEST RESULTS FROM CR2016 COIN CELLS
• SPGbatterytestresultshaveexcellentperformancemetricswhencomparedtocurrentbenchmarkcommercialSPGgrades
• StandardCarbonCoatedMediumandFineGradesofLithium-ion-GradeSphericalGraphiteareidentifiedbelow
• NotetheveryhighReversibleCapacitiesof363.7and365.1Ah/kgandverylowIrreversibleCapacityLosses(ICL)of1.44and1.01%
• BenchmarkmaterialhasanICLrangeof6-10%,using8%asanaverage,thesetwotestsshowa82-87%decreaseinICL
Focus Graphite Coin Cell Test Samples Reversible Capacity (Ah/kg) Irreversible Capacity Loss (%) Surface Area (m2/g)
MediumCarbonCoatedSPGGrade(D50=24um) 363.7 1.44 0.48
FineCarbonCoatedSPGGrade(D50=17um) 365.1 1.01 1.14
Comparing Focus Graphite’s Natural SPG vs. commercial ly available synthetic graphite
FOCUS GRAPHITE’S SPHERICAL GRAPHITEVS. SPHERICAL SYNTHETIC GRAPHITE
Focus Graphite’s Natural SPG vs. Synthetic SPG Reversible Capacity (Ah/kg) Irreversible Capacity Loss (%) Surface Area (m2/g)
StandardCarbonCoatedSPGGrade(D50=24μm) 363.7 1.44 0.48
SyntheticCarbonCoatedSPGGrade(D50=22μm) 330 9.00 1.00
Focus Graphite’s Natural SPG vs. Synthetic SPG Reversible Capacity (Ah/kg) Irreversible Capacity Loss (%) Surface Area (m2/g)
FineCarbonCoatedSPG(D50=17μm) 365.1 1.01 1.14
FineSyntheticCarbonCoatedSPG(D50=16.5μm) 320 9.00 1.50
1.8
1.5
1.2
0.9
0.6
0.3
00 100 200 300 400 500
Fine Grade (D50 = 17μm)INITIAL GALVANOSTATIC CHARGE – DISCHARGE CURVES
365.08
368.79
1stCycleLoss–1.01%
Cell #705. CR2016, counter: Li; Graphite: Fine Grade Surface Coated SPG; Rate: C/20; Elotrolyte 1M LiPF6 in FEC/EMC (30:70 vol%)
Volta
ge, V
Specific Capacity, Ah/kg
98.99% Efficient
ADDRESSING OEM SUPPLIERS’ NEEDS Focus Graphite Competitive Advantages
• Low carbon footprint:LacKnifenaturalflakegraphiteconcentrateandsphericalgraphitewillhaveaverylowcarbonfootprintbecausebothuselow-costhydro-electricpowerfromHydro-Québec
• Low-costbenefitsalsoaresultofH-Qgridpower
• CR2016coin-cellperformancetests:2of3testsshowan85% reduction in Irreversible Capacity Loss vs.existingcommercialSPGbenchmarks
• 1tonneofLacKnifesphericalgraphite@~$8,000/tonnevs.syntheticgraphite@~$20,000/tonne
• Costsavings:$12,000/tX48,000t=$576M per yearfor500,000unitsor$1,152 per unit
• SyntheticGraphiteisproducedfrompetroleumcokeandgraphitizedinanenergy-intensiveprocess;notatall aligned with ‘Green Energy’ initiatives
• FocusGraphiteproductionplantswillbeISO 9000 Certified
MANAGEMENT & TECHNICAL TEAM
• Donald Baxter,P.Eng.,PresidentandChiefOperatingOfficer—Morethan20yearsofmining experience including, operational experience in graphite mining and metallurgical flowsheetoptimization
• Judith Mazvihwa-MacLean, CMA, MBA, MSc, BSc, Chief Financial Officer — Nearly two decades of experience in mineral exploration, mining, management, and corporate finance
• Jeff Hussey,P.Geo.,BSc,VicePresident,ProjectDevelopment—30yearsminingoperation experience in open pit and underground mine operations, and more recently, as a mining project developer
• Dr. Ann Lamontagne,P.Eng.,EnvironmentalDirector—Morethan25yearsexperiencein the environmental aspects of the mining industry including, mine closures
• Dr. Benoit Lafrance,P.Geo.,MSc,BSc,Vice-President,ExplorationandQP—Morethan12 years of experience in mineral exploration, scientific research and geological survey
• Dr. Joseph Doninger, MSc, BSc, Director of Manufacturing and Technology — Developer and co-developer of a number of U.S., European and Canadian patents related to carbon processing methodologies and processing equipment
• George C. Hawley, BSc (Chemisty), Senior Technical Advisor — International graphite expert,specializinginthedevelopmentandmarketingofgraphiteandvalue-addedgraphite products
More than 100 years of combined Graphite Mining , Processing and Value-Added Product Experience
BOARD OF DIRECTORSJeffrey York Chairman of the Board
ChiefExecutiveOfficerofFarmBoyInc.AgraduateofPrincetonUniversity,Mr.YorkistheformerPresidentandChiefExecutiveOfficerofGiantTigerStoresLimited.
Gary Economo Chief Executive Officer and Director
Distinguished business leadership career, serving as Chief Executive Officer for a number of public and private hightechnologycompaniesduringthelast30years.
Chester Burtt Director
PresidentofChesterBurtt&AssociatesLtd.(CBAL),acorporateandpublicaffairsadvisoryfirm,specializinginconnecting private and public companies with domestic and international opportunities.
Francis Pomerleau Director
ServesasSeniorVicePresidentofOntario&WesternCanadaatPomerleauInc.aswellasPresidentofPomerleauOntario.HeservedasVicePresidentofConstructionofPomerleauInc.
Marc-André Bernier Director
Mr.Bernierspecializesinexplorationgeochemistryinsupportofregionalandinternationalmineraldevelopment initiatives. Mr. Bernier has directed or managed mining development projects in Canada, the Caribbean, Africa, and South America.
THANK YOU
Donald Baxter, P.Eng.
PresidentandChiefOperatingOfficer
T +1705-787-5942
Focus Graphite Inc.
130AlbertStreet
Suite 912
Ottawa,OntarioK1P5G4
CANADA
T +1613-241-4040
W focusgraphite.com
THE MOST ADVANCED BATTERY-GRADE GRAPHITE PROJECT IN NORTH AMERICA
focusgraphite.com