Lomiko Reviews Key Reports of Worldwide Flake Graphite Price Jump Due to Supply Crunch in China and Increased Demand from Steel and Battery Industries
Vancouver, October 16, 2017 - Lomiko Metals Inc. ("Lomiko") (TSX-V: LMR) (OTCQB: LMRMF) (FSE: DH8C) has recently reviewed three significant storylines from industrial minerals analysts that forecast increased prices in the coming year as supply of graphite from China is suppressed and demand steadily rises. "When lithium prices tripled in 2015-2016, it brought incredible attention to the junior lithium market. Now that flake graphite prices are increasing, we anticipate it will draw the attention of quick-acting, savvy investors looking for maximum return on investment in the other battery material — graphite," states A. Paul Gill, Lomiko Metals Inc. CEO. "Lomiko Metals provides an interesting combination of advanced development with an established resource and value, based on our small market of $ 4 million Cdn."
Lomiko's current development is perfectly timed for the coming attention on graphite in 2018. Lomiko aims to complete its current financing and start drilling at its La Loutre, Quebec Property, which will allow for an expansion of its current resource and publish a Pre-Economic Assessment in 2018 to meet the anticipated demand for various types of graphite.
Reports during October 2017 on the Industrial Minerals website indicates that European prices for flake graphite with 94% and 97% purity has risen $ 200/tonne.
Roskill Information Services of London, U.K. ("Roskill") recent article on natural flake graphite indicates prices have risen recently with the largest increases seen in grades above 95% Carbon. Processing plant closures have continued in Shandong, which compounded already existing supply [issues], as well as affecting graphite available for batteries. The closures have resulted in higher prices for larger flake graphite used in expandable/expanded graphite and refractories.
Roskill states: "…demand for both natural and synthetic continues to increase from the battery industry with the strengthening EV market. Both General Motors (GM) and Renault have recently released their plans for increased EV output. GM plans to launch 20 EV models by 2023 as part of its journey to an all-electric future. Renault plans to double its EV offerings in the next five years and to strengthen its business in China. Panasonic announced the start of automotive lithium-ion battery production at a plant in Himeji, Japan from 2019; it already has five lithium-ion battery plants in Japan and supplies to Tesla."
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Further, Steel 360 reports, "Steel manufacturers have been perplexed with the sudden rise in prices as well as the unavailability of graphite electrodes which is essential in electric arc furnaces ("EAF"). With the surge in EAF capacity in China following the crackdown on obsolete induction furnaces prices of graphite electrode rods started to skyrocket exponentially. The increase in use of graphite electrodes in the battery industry only made the raw material even dearer as both industries began to compete for the limited material. The rise in production of graphite electrodes has not been able to keep pace with the rise in demand, thus resulting in extreme shortage."
For more information on Lomiko Metals, review the website at www.lomiko.com, contact A. Paul Gill at 604-729-5312 or email: info@lomiko.com.
On Behalf of the Board
"A. Paul Gill"
Chief Executive Officer
We seek safe harbor.
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