TORONTO, ONTARIO, Aug. 25, 2014 (Uptick Newswire) — Energizer Resources, Inc. (OTCQX: ENZR, TSX: EGZ), has received a “BUY” recommendation from two prominent Canadian investment institutions. The first was on June 9, 2014, from the investment bank. The second “BUY” recommendation issued on August 25, 2014. Both reports can be accessed
The importance of graphite and how essential the commodity is to the industry outlined in the coverage released by UPTICK Newswire on August 18, 2014. In summary, graphite has over 200 essential applications, “flake” is the most coveted form of graphite that buyers and producers look for to produce lithium-ion batteries for mobile applications and electric cars, fuel cells, flat-panel televisions, solar panels, and consumer electronic components to name a few uses.
Moreover, Graphite is not only a critical resource but is also vital in manufacturing steel. Currently, the manufacturing of steel consumes approximately 50% of the global production of graphite. The importance of this critical commodity, coupled with surging worldwide demand and constrained supplies is still not sufficiently evident to the general public. As mentioned earlier, steel alone will increase annual graphite demand from 1.1 million to 1.5 million metric tons by the year 2020; this reflects a growth potential of almost 50%.
The analyst equity reports issued by GMP Securities and Stomcrow Capital represent the lucrative market position Energizer has gained in its flagship “Molo Flake Graphite Project.” In addition to it ranked as one of the largest all-flake graphite deposits in the world, verified using the highest mining standards under the Canadian government, the “National Instrument 43-101”, this undervalued project located in southern Madagascar, retains more than 200 miles of continuous graphite mineralization.
The sheer size of the project ensures that Energizer can quickly expand its graphite resource as market demand requires and be a significant barrier to entry to other competing plans. Predicted that by 2020, six brand new flake graphite mines will be needed just to meet the demand for electric vehicles alone, and Energizer’s Molo deposit is capable of fulfilling that entire demand.
Energizer has wholly de-risked the project from a metallurgy standpoint by already having its graphite tested by leading battery and consumer electronics manufacturers. The Company is now engaged in securing long-term off-take contracts and securing mine financing with global purchasers and manufacturers of graphite based products.
In February of 2013 Energizer Resources released a Preliminary Economic Assessment Study of the Molo Project, verifying market it has the potential to be a very profitable and low-cost producer. Based on the Study’s robust results, Energizer initiated a Full Feasibility Study, which is the last stage required in respect to qualifying the Molo project for mine financing by chartered banks. The feasibility study is slated to be completed and released by the fourth quarter of 2014.
One of the unique advantages of the Molo Flake Graphite Project is its geographical location. Located in Southern Madagascar, the Molo Graphite Project situated within the hub of the top purchasing and processing markets for graphite – Japan, South Korea, China, and India.
The U.S and Canada Identify Madagascar as ‘Priority Growth Market Keen to Establish Trade
On June 26, U.S. President Obama reinstated Madagascar to the African Growth and Opportunity Act, or AGOA. This Act provides free-trade status and other tangible incentives to Madagascar. The benefits of the AGOA are of critical importance to Madagascar’s economy, predicted that the reinstatement could increase exports to the United States by as much as 70 percent and create thousands of local jobs.
The United States’ decision to reinstate Madagascar’s eligibility as a preferred trading partner is in recognition of the nation’s return to democratic rule and of the potential importance of the country’s vast mineral wealth.
Meanwhile, the Government of Canada has officially engaged Madagascar’s new government to rebuild economic and strategic resource ties. Madagascar identified as a priority market in the Canadian government’s Global Markets Action Plan, with the two countries are eagerly working towards an agreement to prevent double taxation of corporations operating in both regions in the mining, textile and agricultural industries.
Thank you,
Glenda, Charlie and David Cates
