Energizer on how graphite flake size does matter for high end market
September 10, 2014 — Tracy Weslosky, Editor-in-Chief and Publisher of InvestorIntel, speaks to Craig Scherba, President and COO for Energizer Resources (‘Energizer’, TSX: EGZ | TSX: EGZ | OTCQX: ENZR), one of the top emerging graphite companies in the world, about its Molo Project in Madagascar. The Project can count on a 140 million ton resource, of which 100 million tons is measured and indicated “so this is one of the largest graphite deposits in the world”. But the size of the resource is but one factor, nor is the graphitic carbon content itself, says Craig, it’s also about the size of the flakes: “graphite is priced based on the size of the flakes and the carbon content. The graphite flake that we have in Madagascar is about 44% large flake graphite, so this is the graphite is used in the high end technological applications such as lithium-ion batteries, the high end market product.” Energizer’s project is also at an advanced stage of development and heading toward the production phase. Craig said that “we are just about three months away from releasing a bankable feasibility study (BFS) so by Q4 of this year, November or December, we will have completed the BFS and then after that it’s about 12-16 months for production.”
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Tracy asks about the reasons behind a number of senior managers having relocated to Asia, hinting at the possibility of end-user agreements. Craig confirms, noting that Energizer is definitely targeting the Asian market, stressing that Europe and North America are also essential markets for the Company’s growth. Energizer sent a team of managers to Japan, South Korea and China, “basically solidifying agreements with individuals over there because, obviously, we have to have a home for the graphite once we reach production.” As for market potential, Tracy wonders how Tesla’s plans for a Li-ion battery “Gigafactory” will affect Energizer’s plans. Craig observes that if and when Tesla’s Gigafactory comes into play, “they will produce more than twice as many batteries as are in production right now, so it will have a huge impact on the graphite market place.” The batteries need very high purity graphite. So this is a very high technology type of material that goes into an advanced technology vehicle like the Tesla “and it is a very exciting time because we are really looking at a paradigm shift not only in the graphite market but into the automobile market as well.”
Craig also talks about some of the challenges of working and developing the project in Madagascar, which while not always optimal, have improved considerably over the past few months to the point that the USA has restored the island nation’s preferred trade status, so “Madagascar is open for business.”
Disclaimer: Energizer is an advertorial member of InvestorIntel.
Adrian Nixon is a Senior Editor at InvestorIntel. He began his career as a scientist and is a Chartered Chemist and Member of the Royal ... <Read more about Adrian Nixon>