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Mason Graphite Inc.

Mason Graphite Inc. is a Canadian mining company focused on the exploration and development of its 100%-owned Lac Guéret graphite project, located in northeastern Québec. The graphite grade on this property is among the highest in the world and the company intends to transition the project to production by the end of 2015. The Lac Guéret property currently hosts an NI-43-101-compliant mineral resource based only on 17% of the known mineralized zone. Excellent potential exists for mineral growth. A preliminary economic assessment study features 22 years of production at 27.4% Cg and a pre-tax internal rate of return of 33.7% (see June 6, 2013, news release). The Mason Graphite management team possesses over five decades of experience in graphite production, sales and R&D and is well suited to deliver value to all its stakeholders.

Expert Comments:

David Talbot, Dundee Capital Markets (5/21/15)
"Two agreements were signed with 31%-owned NanoXplore Inc., a private firm focused on graphene and derivative product production, to enhance Mason Graphite Inc.'s purification process and ultimately help improve its product offering from its Lac Gueret graphite project in northeastern Quebec. . .we definitely see this agreement as important—it opens up the potential to create a wide variety of value-added products, goods that we'd expect could net much wider margins than simple mid-90%–purity graphite would garnet on its own."

Ben Kramer-Miller, Seeking Alpha (5/21/15)
"Mason Graphite Inc.'s Lac Gueret is the largest project in northeastern Quebec by resources, and it has an incredibly high grade. This means opex will be extremely low. . .the strategy that the company will be carrying out is that CEO Benoit Gascon and his sales team will negotiate short-term sales contracts with several end users, and by doing so Mason hopes to be able to sell 50 Ktpa and realize prices above 'market' prices."

"We track Mason Graphite Inc., which has the lowest capital and operating costs of any graphite mine that we have seen. Mason Graphite has an experienced management team and has financial backers that could provide some of the equity and debt capital for building out Mason's production facility. . .when we model Mason Graphite, we assume that it will sell graphite into the global commodity markets. However, the company will focus on meeting the needs of specific customers. It will build a facility to process graphite within a range of purity attributes and flake size distribution attributes. It will meet very specific customer goals in the very high-purity markets for batteries or electronics. The number one strength of Mason Graphite is its executive team. Its CEO, Benoit Gascon, has spent the majority of his career building graphite operations, specifically the Timcal deposit in Quebec that was bought by Imerys. Benoit went on to run Imerys' graphite operations. He's a world-class expert.

In our view, Mason Graphite's Lac Guéret deposit is the best in the world. It is located in a low-cost area in Quebec, a safe, mining friendly, low-risk jurisdiction. If Mason's deposit has any negatives, it is that, as the Street points out, Mason's average flake size is smaller than a lot of the other deposits that are looking to be developed. We took a hard look at the flake size distribution and at the various prices for graphite depending on flake size, and Mason's deposit is very economical. The Lac Guéret deposit seems to have a short payback period—not only in the current market but, also if graphite prices go down. And, naturally, the economics for every deposit look better as the prices go up. . .the company does not have enough cash to finish building the mine and processing facility at this point, but it has enough cash to complete its permitting and its feasibility studies to get to the point of construction. Mason will then find the debt financing and revenue stream to build the mine and the processing facility. . .we have a Buy rating on the stock now and we typically look out 12 months on our investment recommendations. The company will be more attractive when the bankable feasibility study is completed in the next four months. The feasibility study should confirm the low operating cost and low capital cost of the deposit and underpin the economic feasibility of the project. It already has financing from a couple of institutions in Quebec—Sodémex, which is a division of the Caisse de dépôt, a big pension fund, and Resource Quebec, which is part of Investissement Québec, a government-backed fund. We believe that with those two organizations behind it and an attractive bankable feasibility study, Mason Graphite will find the capital partners it needs to push forward." read more >

"Mason Graphite Inc. is nicely funded. It has an extensive following and investments in three well-known Québec-based institutions. It owns 100% of the Lac Guéret project in Québec, which is among the highest-grade projects in the world. Early metallurgical work demonstrates about 90% of recovery there. The deposit is 100% flake, which is the required product for end users looking to use graphite for lithium-ion batteries and other high-tech applications. The project is about 80 km from an all-weather road, and 290 km north of Baie-Comeau, a port city in Québec. Mason's management has extensive knowledge of the market and numerous relationships with buyers. While Mason's is not the most advanced project in the graphite space, of the three companies that we cover, we view it as having the best chance of being financed." read more >

"From a fundraising perspective, Mason Graphite Inc., with its Lac Gueret project in Quebec, has been active in a very tough market. I was in Vancouver in February, and the consensus was that we could be in the worst slump of all time, certainly if it continues for another 18 months. To raise money for a niche mineral in this environment is an achievement." read more >

"One name that I keep track of is Mason Graphite Inc., with the Lac Guéret graphite project in Quebec." read more >

More Expert Comments

Experts Commenting on This Company

Daniel Greenspan – Macquarie Capital Markets
Gareth Hatch, Founding Principal – Technology Metals Research
Rupert Merer – National Bank Financial
Simon Moores, Manager – Benchmark Mineral Intelligence
Ron Struthers, Editor Struthers Resource Stock Report, Elcora Resources Corp.
David Talbot, Vice President, Senior Analyst – Dundee Capital Markets

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Mason Graphite Inc. Content