Alpha Deal Group: Lomiko Metals Inc. Initiation of Coverage Report
01 Oktober 2014 - 1:00PM
InvestorsHub NewsWire
Breaking
News UPTICK Newswire
Ready to benefit from the commercialization of
Graphene
New York, NY - October 01, 2014 - InvestorsHub
NewsWire - Alpha Deal Group considers Lomiko Metals Inc. (TSXV:
LMR) (OTCQX:
LMRMF) as a uniquely positioned junior graphite resource
company and graphene technology incubator company with a current
equity market price inefficiency at a significant discount to its
intrinsic value. Lomiko Metals holds the Quatre Milles Graphite
property and the Vines Lake property. The company holds 11.23%
interest in Graphene 3D Lab (TSXV:
GGG). In the September 17, 2013 press release to the market,
Lomiko Metals announced confirmation of their ability to turn
graphite into graphene which represents tangible value creation and
market sustainability. The company has a Strategic Alliance
Agreement with Graphene 3D Lab (Graphene 3D) to access technology.
This will give access to over 7,000 customers of Graphene 3D, and a
potential to increase production from the company’s Quatre Milles
property. We think the intrinsic value of the company is C$0.200
per share; this is an upside of 166% from the current market price
of C$0.075 per share.
Valuation: Notable disparity between current price and intrinsic
value
Lomiko Metals (TSXV:
LMR) is currently trading at C$0.075 per share, with a market
capitalization of C$9.56 million. The company holds 4.4 million
shares of Graphene 3D (TSXV:
GGG). The closing price of Graphene 3D (TSXV:
GGG) on September 18, 2014 was C$ 1.33 per share. Lomiko Metals
shares are worth C$5.85 million. As of April 30, 2014 the company
had cash and liquid investments of C$ 4.86 million. Based on the
current market capitalization of the company, there is a penalty of
C$ 0.47 million on the company for holding mine
properties.
We have valued the company at C$0.200 per share
based on the potential to exploit the lithium-ion batteries, 3D
printing solutions, and natural graphite market. We consider Lomiko
Metals at current pricing and current timing a high Alpha
opportunity.
Key drivers
The key drivers that could positively influence the share price are
the results of Preliminary Economic Assessment for the resource
estimation for Quatre-Milles, and commercialization of 3D print
solutions. These events will help the street get a clear view on
the business and can see the stock re-rated.
Contacts:
Sreedhar NN
Senior Analyst
+1 (212) 332-3290
Analysts@alphadealgroup.com
Prashanth Vempa, CFA
Senior Analyst
+1 (212) 332-3290
Analysts@alphadealgroup.com
Uptick Newswire
480-207-2760
www.upticknewswire.com
Forward-Looking Statements
Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act
of 1933, and are subject to Rule 3B-6 under the Securities Exchange
Act of 1934, and are subject to the safe harbor created by those
rules. All statements, other than statements of fact, included in
this release, including, without limitation, statements regarding
potential future plans and objectives of the company, are
forward-looking statements that involve risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and other results and further events could differ
materially from those anticipated in such statements. Future events
and actual results could differ materially from those set forth in,
contemplated by, or underlying the forward-looking
statements.
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