Second time investment looking for help!!! Thinking of graphene.

spankalish

I am currently thinking of investing in graphene. I think it is going to be massive. It's being mined from graphite. My original thought was to invest in Nokia as their stocks are very low. But I then changed my mind to graphene. I'm thinking of a junior exploration and mining company called Focus Metals Inc. Their located in Canada and the owner of the 16% carbon grade Lac Knife crystalline flake graphite deposit located in the Côte Nord region of Quebec. This is the largest grade graphite mine in the world. With graphite sales to double in the next eight years and the supply so low. I think this would be a good long term investment. They can be found on FOCUS METALS INC.(CVE:FMS) what do guys think?

upforit101

spankalish wrote: »

I am currently thinking of investing in graphene. I think it is going to be massive. It's being mined from graphite. My original thought was to invest in Nokia as their stocks are very low. But I then changed my mind to graphene. I'm thinking of a junior exploration and mining company called Focus Metals Inc. Their located in Canada and the owner of the 16% carbon grade Lac Knife crystalline flake graphite deposit located in the Côte Nord region of Quebec. This is the largest grade graphite mine in the world. With graphite sales to double in the next eight years and the supply so low. I think this would be a good long term investment. They can be found on FOCUS METALS INC.(CVE:FMS) what do guys think?

Mining space is very risky.
Usual rules apply - don't put all your eggs in one basket.

Jim2007

As long as you understand that this is speculation rather than investing, then you should not be surprised by any nasty outcome down the line.

Have you take the time to read the accounts? Have you figured out how the company will raise sufficient capital to be able to take advantage of an up swing in the market? Have you reviewed all the warrants and options the company has handed out along the way and how they will crystalize if the company starts making money? What the dilution will be for you when they do???

And why were they able to pick up the ownership of the "Lac Knife crystalline flake graphite deposit", the seller appears to be someone who should know a bit about this industry, so why so cheap????

spankalish

Jim2007 wrote: »

As long as you understand that this is speculation rather than investing, then you should not be surprised by any nasty outcome down the line.

Have you take the time to read the accounts? Have you figured out how the company will raise sufficient capital to be able to take advantage of an up swing in the market? Have you reviewed all the warrants and options the company has handed out along the way and how they will crystalize if the company starts making money? What the dilution will be for you when they do???

And why were they able to pick up the ownership of the "Lac Knife crystalline flake graphite deposit", the seller appears to be someone who should know a bit about this industry, so why so cheap????

IamGold purchased Lac knife from Graftech in 2003. Graftech fell into problems with Ballard Power Systems who were trying to develope “Grafcell”, a new fuel cell application. Ballard had major financial problems and quit on the deal. That with China changing the graphite market left Graftech with very little options but to sell they were also facing some financial and regulatory issues so they walked away from many projects . As Iamgolds main interest is gold and not graphite they sold it of to Focus for a very good price. It was just a matter of focus being in the right place at the right time.

As for Focus having enough money. They look very good. They expect to start production in late 2013. They own 3 other Properties. None graphite. Their main focus is on graphite. They also own a 40% share in grafiod. Who they use for research and development. In my view they look really strong.

I do understand that this is also a very risky investment. But the profit out runs the loss in my view. It's worth the risk. Get in early is all I can say. There is rumors that grafoid has patents for a new process of mass producing graphene at very low cost and safe way. This is yet to be seen. They are staying very quite about their research as are every other graphene research complex around the world.

There is also the prospect of Manchester becoming a graphene hub. A new silicone valley per say. There is massive interest from IBM, Samsung, Fujitsu and a lot of other major companies. As England and Europe are now investing millions into research, it's only a matter of time before a way of cheap mass production is found. That will really kick start the Graphene boom. But this could take up to 10 years. No body knows. They expect a way to be found in the next 2 years. So any investment in graphene would want to be made before then. Also Samsung are releasing a flexible phone made from graphene before the end of the year. Nokia are also releasing a flexible phone next year. Graphene has more and more applications every few months which will drive the need for graphite even more.

Jim2007

This is a company that has not generated a dollar of revenue, needs at least $65M at minimum to bring on line, at last reporting date had about $23M in cash and probably today has less than $20m... it's so small that if it can easily be snapped up by the big guys if it ever does start to turn good, long before you can repeat the full benefit out your investment.....

When I compare that against all the other options out there, it just does not make the cut. Sorry.