New York, NY / ACCESSWIRE / November 3, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage on Lomiko Metals Inc. (TSXV: LMR; OTCQX: LMRMF) with a price target of C$0.19. Lomiko is a Canada-based, exploration-stage company that is engaged in the acquisition, exploration and development of resource properties that contain minerals for the new green economy, specifically graphite.
Ajay Tandon, CEO of SeeThruEquity commented, "Lomiko's current focus is the La Loutre and Quatre Milles Graphite Properties in Quebec. With exposure to the fast growing lithium-ion battery and 3D printing markets, Lomiko is well positioned for future growth opportunities. Additionally, there is tremendous excitement around potential applications of graphene, a graphite derivative. We are initiating coverage with a target price of C$0.19 per share."
Additional investment highlights are as follows:
Graphite is a critical component of lithium-ion batteries
Graphite has numerous commercial applications, but its utility in lithium-ion batteries is very attractive given the growing electric vehicle market. This opportunity became more attractive when Tesla Motors, Inc. announced plans to construct a "Gigafactory" in Nevada. Graphite is a critical component of lithium-ion batteries and cannot be economically substituted. The current battery of a Tesla Model S sedan contains 110kg of graphite, compared with 58kg and 28kg used in the Nissan Leaf and Chevy Volt, respectively. In relation to the approximate 375,000 tons of flake graphite produced globally in 2013, the Gigafactory would increase battery-grade graphite demand by 126,000 tons, a 34% increase over total graphite demand and a 154% increase over battery-grade graphite demand.
Growing 3D printing market is ideal for graphene
3D printing is one application where the utilization of graphene offers tremendous potential. Although the technology has been around for decades, it has proliferated in recent years as the reduced cost has made usage more feasible. Rapid prototyping, rapid manufacturing and personal 3D printing have become more cost effective, and research from Wohlers Associates, Inc., valued the global 3D printing market at $3.07bn in 2013. The compound annual growth rate (CAGR) of 34.9% is the highest in 17 years. The growth of worldwide revenues over the past 26 years has averaged 27%. The CAGR for the past three years (2011–2013) was 32.3%. Wohlers Associates believes the industry will continue strong growth over the next several years and investment bank Credit Suisse predicts that the global 3D printing market will reach nearly $12bn by 2020E. Embedded in these estimates are over $2bn in materials sales in 2020E.
Promising La Loutre property currently being developed
On September 23, 2014, Lomiko announced that it had optioned a 40% interest in the La Loutre Crystalline Flake Graphite Property located in Quebec near the operating Timcal Graphite Mine. Of particular interest to Lomiko was an area of the property which reported grab samples up to 22.04% carbon flake graphite (“CFG”) and Carbon Purity Test results reporting up to 100.00% Carbon Purity in the large and extra-large flake graphite. On October 29, 2014, Lomiko announced that drilling had commenced targeting a known surface occurrence. The goal of the exploration program is to identify high-grade, near-surface graphite mineralization suitable for conversion to battery-grade graphite.
The report is available here: LMR Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.
Please review important disclosures on our website at http://www.seethruequity.com/.
About Lomiko Metals Inc.
Lomiko Metals Inc., an exploration stage company, is engaged in the acquisition, exploration, and development of mineral resource properties in Canada. The company primarily explores for graphite deposits. Its principal properties include the Vines Lake property located in British Columbia and the La Loutre and Quatre Milles property located in Quebec.
For more information, please visit: http://www.lomiko.com/.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit http://www.seethruequity.com/.
Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939
Source: SeeThruEquity