- Published on Monday, 10 January 2011 16:10
CEO, Focus Metals Inc.
Perhaps the best way to introduce a listed junior Canadian REE exploration and mining company to investors is to look at our financial results for the two quarters ending December 31.
Focus Metals’ share price has quadrupled since June 2010 and moving into this year, we see no obstacles to continued upward growth in value for our shareholders as we move towards production.
Focus Metals Inc., (FMS TSX-V) is a mid-tier, junior exploration and mining company with extensive flake graphite, rare earth element (REE), and precious and base metals properties in Quebec.
Our underlying asset strengths are neodymium concentrations at our Kwyjibo, Quebec poly-metallic Cu-REE property and our flagship, Lac Knife, Quebec flake graphite property.
But more, we’ve got a business model that supports growth in that we’re both explorers AND producers and we’re marketers and sellers of our own resources.
Global demand for both rare earth oxides and graphite are strong and international prices continue to rise as the world comes to realize the current and future strategic industrial importance of these two key minerals.
I see little or no immediate, or even medium-term indications China is prepared to consider easing its export restrictions on its own strategic industrial resources, knowing full well that the future of China’s industrial growth will come from a shrinking pool of elemental resources.
This highly competitive search for new resources bodes well for Focus Metals, its shareholders and our partners. And our core interest is in growing shareholder value.
Growing shareholder value is central to our business philosophy. We see and recognize our investors and shareholders as our partners. We understand the risks associated with investing in a junior explorer and producer. We’ve been there ourselves and know the meaning of “investor expectations”.
For a company which hasn’t been listed yet for 200 days, we’ve had a remarkable start.
Our private placements were oversubscribed; we have sufficient cash to meet our coming exploration objectives and we’re about to move into pre-production activities, starting with the completion of our NI 43-101 Lac Knife resource study and a scoping study.
Someone told me just before Christmas Focus Metals Inc. is now the “go to” North American source for natural flake graphite. With 8.1 million tons of flake graphite bearing 16.7%, we have one of the richest concentrations in the world.
And as we expand our exploration activities at Kwyjibo - we already know we have sufficient REE concentrations that exceed production viability levels - drilling results this year and next will confirm our total resource assets.
Our summer drilling program leads us to believe there is a significant copper opportunity on our Kwyjibo property. This new find will be explored further this year and we’ve allocated a drilling budget to verify it.
With global copper prices rising 33% last year, outpacing gold’s price rise, a confirmed, significant copper resource implies even greater potential value to FMS stockholders and our backers.
All things considered, from a cost-management and financing perspective, production from a multi-REE oxide source through surface mining plus the potential of an in-demand industrial metal leads us to believe we shall have little difficulty meeting our shareholders’ performance expectations over the coming years.
Global investment trends and markets have changed dramatically during the last two years.
At this point in our company history, Focus Metals Inc. finds itself squarely in investor crosshairs for all the right reasons: market liquidity, burgeoning demand for key, concentrated resource fields of strategic industrial minerals; easy access to markets, low-cost production factors, and; management with a highly successful track record of building and protecting shareholder value.
Just as significant however, is the location of our operations and the quality and reputation of our venture partners.
SOQUEM, our partner in Kwyjibo is easily recognized as one of the most progressive, socially responsible and developmentally-aggressive operators in the province of Quebec.
The value of this relationship – through new discoveries, infrastructural and administrative support and tax benefits – flow through to our domestic and international shareholders. Focus Metals has the option after two years, of acquiring 50% of SOQUEM’s interest in Kwyjibo.
Additionally, external factors such as Chinese export restrictions; national security obligations; government mandated production targets for electric vehicles and the discovery of new manufacturing applications for carbon tube nanotechnologies from graphene bode well for our investors for the foreseeable future.
On a personal note, and as someone with an international marketing and sales background with a history of cold-calling, door knocking and brick pounding, it was personally gratifying that commodity buyers and investment bankers saw the Focus Metals opportunity and came knocking on my door when we listed on the TSX Venture Exchange.
In the short time since listing, FMS has attracted ample funds to support and expand our Quebec drilling activities and has permitted us to take our first steps towards graphite production at Lac Knife.
Our Kwyjibo Cu-REE property is considered one of the best iron oxide, copper and gold (IOCG) prospects in Quebec.
And at the beginning of 2011, as one of only a handful of publicly-traded graphite and rare earth element miners, we find ourselves perfectly positioned to meet our core objective of building and increasing shareholder value as we expand and grow.
You can find more information on our website.