Lomiko Metals is Hardly a Play on Graphene
Table of contents
In a previous article, we published in August this year called Investing in Graphene, we highlighted the fact that there are not many opportunities for investors to invest in graphene pure-plays just yet. There are a bucket of graphite junior mining companies that are quick to mention the potential of graphene, however, it is the production of graphene that is difficult at this time, not the acquisition of the raw material graphite at present. Some graphite junior mining companies and their respective market caps include Focus Graphite ($59 million), Northern Graphite ($31 million), Graphite One Resources ($17 million), Strike Graphite ($6 million), Galaxy Graphite ($1.6 million), Mason Graphite ($62 million) and the list goes on. One graphite junior mining company that has recently decided to add a 3D Printing twist to their value proposition is Lomiko Metals (CVE:LMR).
About Lomiko
Lomiko Metals Inc. is an 11 million market cap company that trades on both the TSX Venture Exchange (CVE:LMR) and the Over-The-Counter (OTC) Exchange (OTCMKTS:LMRMF). The company owns exploration rights to 2 properties but neither of these properties are producing, and consequently, there are no sales or revenues to report. The company’s financials which go back to 2007 show no revenues have ever been reported and over time Lomiko has gone from 15 million shares outstanding as of 2008 to 80 million common shares outstanding as of 2013. As of April 30, 2013, the Company had cash and cash equivalents of $8,118 to settle accounts payable and accrued liabilities of $251,413. Lomiko has 2 mineral property rights which they list as assets valued at a mere 1.2 million, and as of April 2013, a total of $1 million was recorded for acquisition and exploration expenses on these properties, all of these costs which have been deferred.
The company’s most recent 6-month operating expenses can be seen below:
It is interesting to note that 36% of Lomiko’s expenses were for “advertising and promotion”. It is also interesting to note that the “management and subcontract fees” representing 20% of expenses were payments made of equal amounts to 2 companies; the first to a company controlled by Paul Gill, President and CEO and the second to a company controlled by Jacqueline Michael, CFO.
Conclusion
With all the graphite junior mining companies that exist, many with much more capital available, it is difficult to see what Lomiko’s value proposition is when it comes to investing in graphite, much less graphene. Lomiko’s share price enjoyed a 170% increase over the last few days, no doubt aided by the announcement their intent to supply graphene for “graphite 3D printing” to Graphene 3D Labs. It was also announced that Lomiko will acquire a 15-per-cent interest in Graphene 3D Lab, a newly formed entity created by Lomiko and Graphene Labs, by paying $50 thousand for 250,000 preferred shares in Graphene 3D Labs. This would give Graphene 3D Labs an implied current market valuation of only $333 thousand. In a future article we will take a look at a PowerPoint presentation detailing this partnership so far, along with the company Lomiko has partnered with, Graphene Labs.
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Excellent article, neither Lomiko nor any other graphite mining company will benefit in any significant way from the development of graphene. However, judging by the recent rise in the stock price there are plenty of investors out there who will fall for what is very obviously a pump and dump scheme
jd,
Thank you for your comment. A question graphene investors should ask is if the development of graphene stands to significantly impact the demand for graphite. If the answer to that question is no, then there is no point in even investing in any graphite mining companies, much less Lomiko.
Joe
Interesting article, I have been working and researching in the field of graphite mining and graphene for some three years now, the bubble will most likely burst when realisation that low grade graphite mined by the companies mentioned is not suitable for graphene production…There is far too much hype in the market, to mislead people into investing, I would not invest penny one into any of the above companies…the real companies that will succeed in graphene are the privately owned companies
Sheriozha,
Thank you for the comment. I would not be an investor in any of these companies either as I do not believe these provide exposure to the exciting potential of graphene.
Joe
Looking at past expenses over the last year is no way to determine the future. We have been involved in developing a strategy with Graphene Labs for 6 months and have carved out the best opportunity and rolled in into Graphene3DLab.com – we have made an initial investment and now own shares of this company. How can you look at Revenue? Does any of the companies you mention have revenue? How can you look at past expenses when new expenditures on the new company have not hit the books yet? Please review the latest news releases and do your due diligence. We are not here to fool anyone – this is a speculative risk and you should contact your investment advisor to determine if it is the right play for you. Our primary goal is to attract a high net worth capital partner or investment firm, not to market to retail investors.
Paul,
Thank you very much for taking the time to comment on this article. Note that all research performed for the facts stated in this article on Lomiko were taken from the latest financial filings listed on the Lomiko website. While there may be forward looking statements made by Lomiko concerning opportunities with Graphene Labs we, prefer to focus on where the company stands today first based on the latest available financial filings, then look at what potential the relationship with Graphene Labs may have for Lomiko.
Joe
You can express your own opinion, we all respect First Amendment… On the other hand, you must stick to the facts. Lomiko issued a public News Release regarding Graphene 3D Lab.
http://www.lomiko.com/public/files/news/LMR%20NR%20Investment%20in%20Graphene%203D%20Labs%2011-22-2013.pdf
Thank you for the comment Elena. The facts stated in this article were taken from the latest Lomiko company financials. The formation of a company called Graphene 3D Labs is now highlighted.
Thank you for your fast response!
While it is easy to say a company will do bad or good, a true measure of the company is results over time. Is the company making a good product and actually creating something that is advancing society through technology, education, and in the end making things more efficient? I know it takes more than just believing in a company for it to prosper however I do like where Lomiko Metals is heading. I also like that it is paired with a company that is going to make an innovative use of this commodity. Technological advancement in any specific area can take years and I have confidence that Graphene is going to be a great addition to societies’ progression, especially in energy. I am doing my due diligence and with anything am willing to take a risk to benefit our future.
Justin,
I appreciate the comment and believe as you do that graphene has a great deal of potential. I also believe though that since graphene is in the early stages of commercialization, there are very few opportunities to invest in graphene “pure plays” yet.
Note that around 2004-2006, a similar interest was shown in carbon nanotubes and many companies that claimed to be great investment opportunities for the potential of carbon nanotubes are no longer around today.
Joe
Dear Joe
Your article has numerous factual mistakes. Please visit our website
http://www.graphenelabs.com/Company-News-s/1828.htm
It has up-to-date info on the current status of our collaboration with Lomiko.
Graphene Labs has well-equipped R&D facility, expertise in graphene and more then 6000 customers worldwide.
Graphene Labs was enjoying being in partnership with Lomiko for quite a while already, but Lomiko does not own any stock of Graphene Labs. Your valuation of the Graphene Labs is inaccurate.
Lomiko bought stake in Graphene 3D Lab, the spin-out. For additional information please check the links below
http://www.graphenelabs.com/Graphene-3d-Lab-a/294.htm
The website of a new company
http://graphene3dlab.com/
I would appreciate if you correct the text and make it stays in agreement with actual facts.
If you have any further questions, please contact me at
[email protected]
Best
Elena
Elena Polyakova, Ph.D.
CEO, President
Graphene Laboratories, Inc.
4603 Middle Country Rd. Unit 125
Calverton, NY11933
Visit graphene-supermarket.com today
http://www.graphenelabs.com
Phone (516)-382-8649
Fax (781) 287-1248
Thank you for the comment Elana. The article incorrectly stated that Lomiko had an investment in “Graphene Labs” instead of a newly created company called “Graphene 3D Labs”. This inaccuracy has been corrected.
Just to make sure you are up to date Terrance, I would suggest you watch in our next financials. We closed $ 5.5 million last week.
It appears Nanalyze isn’t really here to provide accurate facts or fair and transparent analysis. No comments from them or updates since we raised $ 5.5 million and now we have $ 6.5 million worth of Graphene 3D Lab Stock. The purpose of this group was to slander Lomiko and Graphene 3D Lab and nothing more – because if they were true analysts, they would provide an update that presented the positive developments.
Thank you for the comment Paul. Please see our recent article on Graphene Labs below:
https://nanalyze.com/2014/08/is-graphene-3d-labs-a-40-million-company/
Grapehene Labs has 2 patent applications and $1.3 million in assets. Nothing justifies the current valuation of $76 million. Lomiko owns exploration rights to 2 properties but neither of these properties are producing, and consequently there are no sales or revenues to report. Nothing has changed from our last article except that Lomiko has raised $5.5 million which hardly seems like enough capital to take a property with exploration rights to full production. We state the facts as we see them, and this is what we will continue to do.
I take issue with the title of this article. We have worked diligently to establish ourselves in graphene space and your title is out of date and must be changed. You are entitled to your opinion but make sure it is factual. Please post your physical address as well. Is this group in Hong Kong or elsewhere? Is it associated with anyone who trades the stock? Are you affiliated with other graphene companies or entities? If I have to, I will go through a legal process to find out the answers to these questions because it seems a little odd that an obscure company based conveniently in a foreign jurisdiction is issuing coverage on a penny junior. I will find out what your motivations are.
We do not “cover” Lomiko and there is just 1 article on our site about Lomiko. There are 284 other articles on our site discussing other companies and topics. We suggest you read these other 284 articles to help understand what our “motivations” are. Our “motivations” are to provide objective information about companies involved in disruptive technologies so that investors can make informed investment decisions. We always have and always will continue to do just that.
As mentioned before, Nanalyze does not short nor is affiliated with anyone or any entity that shorts any of the companies discussed on this site, many of which are private. We are also not affiliated with any graphene companies or entities.
The last article was Dec. 13, 2013. The facts have changed substantially so you are doing a disservice to the investors you purportedly are trying to help.
1) remove the article 2) Or Change the title. Based on your statement, this would be the right thing to do:
“Our “motivations” are to provide objective information about companies involved in disruptive technologies so that investors can make informed investment decisions. “
Hi Paul,
Articles are published based on the facts known at the present time. If we spent all our time updating old articles with new information we would have no time at all to write new articles. Our opinion however has not changed. We believe that no graphite mining company anywhere provides a play on graphene, a statement we substantiate in the below article:
https://nanalyze.com/2015/01/graphite-miners-are-not-a-play-on-graphene/
We also believe that this is the consensus opinion of those investors who have researched graphene as an investment opportunity. While you may cite Lomiko’s ownership in Graphene 3D Labs (GGG) shares as a differentiator, shares of Graphene 3D Labs are available to investors on both U.S. and Canadian exchanges. We also question the current valuation of Graphene 3D Labs and point out some possible conflicts of interest in the below article:
https://nanalyze.com/2014/08/is-graphene-3d-labs-a-40-million-company/
We may continue to highlight this topic in future articles based on reader interest and/or major changes in the environment.
I will ask direct questions: 1) What are the qualifications and backgrounds of your analysts 2) Do your reports comply with SEC and OSC regulations? 3) If they don’t, how are we are to take seriously a company based on Hong Kong (outside the jurisdiction they could be prosecuted easily) 4) Who are your advertising and/or sponsors (a full and complete list)?
A group issuing reports that is lacking transparency leads to suspicion about motives. I have addressed your questions and I am now turning around and pointing the camera on you. Answer the questions.
Thank you for the questions Paul.
1. Please see the “About Us” section. We are a group of individuals who enjoy reading and writing about investing in disruptive technologies.
2. This is a technology investing blog. The writers create their articles with integrity and present the facts as they are. This complies with any regulations in any jurisdiction.
3. You may have noticed we have two addresses. One is in the States. One is in Hong Kong where one of our writers resides.
4. We only use Google Adwords. We have no sponsors and nobody pays us for advertising except Google.
Since you belong to the Graphene Council group on LinkedIn you would have seen the below post:
http://www.expatsblog.com/news/2001145951/new-financial-scam-involves-graphene
It is well merited for investors to be very skeptical about “graphene investment opportunities”.
I still take umbrage with your inaccurate headline. People can decide for themselves by looking at our involvement in Graphene below:
In 2013, Lomiko firmly entered the exciting and vital world of graphene.
• February 12, 2013: Lomiko signed a strategic alliance agreement with Graphene Laboratories Inc. to build vertically integrated graphene business opportunities.
• May 29, 2013: Lomiko announced a Strategic Alliance Agreement with SUNY Research Foundation at Stony Brook University and Graphene Laboratories Inc. to investigate novel, energy-focused applications for grapheme.
• September 17, 2013: Lomiko and Graphene Labs reported that natural graphite flakes were oxidized and successfully converted into Graphene Oxide (GO) by modified Hummer’s method. As the result, a stable aqueous dispersion with concentration of 40 grams per litre was obtained. The GO was converted into Reduced Graphene Oxide (RGO).
• November 22, 2013: Lomiko and Graphene Labs announced the formation of Graphene 3D Lab Inc. to focus on the development of high-performance graphene-enhanced materials for 3D Printing.
• Lomiko will provide further graphite samples to Graphene 3D Lab as the exclusive supplier to Graphene 3D Labs and has invested $ 50,000 in the start-up for 250,000 preferred shares.
• December 4, 2013: Lomiko Metals Inc, Graphene Laboratories Inc., and Stony Brook University produced a graphene supercapacitor prototype.
• The prototype of the supercapacitor was made using graphene composite material prepared using a proprietary technology developed at Graphene Labs.
• The measured specific capacitance of the prototype was found to be around 500 Farad per gram of the material. This value is comparable with the best values reported in the literature for a supercapacitor of this type.
• On January 20, 2014 Graphene 3D Lab announced it reached a significant milestone by filing a provisional patent application for the use of graphene- enhanced material, along with other materials, in 3D Printing (Additive Manufacturing)
• On March 13, 2014 Lomiko closed a public offering of $ 5.5 million for exploration on the mineral properties in Quebec, for development of its technology business and for working capital and general corporate purposes.
• On October 27, 2014, Lomiko announced that it would license, produce and sell power converters in order to create a power pack which includes the graphene supercapacitor under an agreement with MHPS Power Systems.
• On December 3, 2014 Lomiko announced its investment in Graphene ESD which will be developing graphene-based supercapacitors.
Hi all I would like to just say that reading this has been very interesting and Paul please I do see your point but it look’s like you are getting upset with this blog I do own stock in this company and what i see here is nothing more then a investor with no idea of Graphite or Graphene are most likely these are not the investor for you i know everything counts. Most important is for both of you not to lose your perspective. Me personally think it’s time to buy more stock in this company and I will go on record of stating that this product will be widely use in the near future might be one you should have bought
Richard,
Dialouge is important. We are diligent at addressing inaccuracies and what we consider to be flawed analysis and premature judegement. Lomiko now has two investments in graphene. Graphene3dlab.com and Graphene-esd.com. Further, we are licensing, manufacturing, and will soon be selling power converters for the electronics industry. This site is dedicated to exposing pump and dump type investments. When you shine a light on the pump and dump rats they disappear. We are not going anywhere. We are dedicated to devleoping and growing within this industry. Itès not about short term stock prices but the development of a process to convert graphite to graphene, real revenue and profit in technology while establishing a source for the raw material.
A much better and up to date review
http://horizon2020projects.com/es-profile/lomikos-strategy-begins-to-take-shape/
Hello interested peoples, investors alike! Graphene has made news for a few years. Very, very thin layers of graphene are flexible, will take the form of almost any surface area, and plus this ‘graphene’ is a high conductor of electricity. More so than copper! A shortage of this material has made valuable prospects of mining and manufacturing so much so that the future will see limited ‘graphene’ deployment because of cost and the fact there exists very limited supply base anywhere on Earth. Add to this the fact America has an eye on ‘graphene’ for the Space Station activities going forward into 2050, this substance ‘graphene’ may already be a ‘classified material substance’ which will gain a ”protected status” if no other mining sources of ‘graphite’ are located World-Wide.
Bit of conflicting evidence to what we’ve seen Dennis. As we can tell here are no supply problems, in fact most producers took a “build it and they will come” approach and then sat around waiting for revenues that never came.
Last piece we did on graphene stocks was here: https://nanalyze.com/2017/05/graphene-stocks-update/
Maybe it’s time we did an update on this space. Any players we ought to be looking at that are selling loads of graphene as opposed to mailing 250 free samples out and crossing their fingers?