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Does anyone know the soil type on site? I've been thinking a little on any potential difficulties with strip mining. I'm not saying we have any...I'm just asking the question. Cohesionless soil, while making separation easier, could present some difficulties during excavation.
Congrats! Take a drive in that maseraticoupe!!!!!!!!!!!!!!
Spartex,
I'm aware of the 41 or 42 million warrants set to expire. I have been hoping that those warrants expire worthless. It would be good for the share structure if they did.
Do you believe that after the February release of the PEA that shares will be trading above 50 cents, thus making it worthwhile to exercise the warrants? If you do, then that's why the existence of these warrants still bothers me, and yet another reason that I've been a bit vocal about the 5.5 million options. If we're still down below 50 cents in May, then I would be very pleased that the warrants expire, but really aggravated that the share price still isn't reflecting the supposed value of the resource assets.
This has all also made me wonder about the huge percentage drop in the share price lately. Thinking like an honest and straightforward man, things aren't making sense to me.
What were the results of the vote, by the way. I'll look around for them, but I was just wondering if anyone knew.
I'm nervous about this price drop. We should not be down this low. That's all I can say. I've spoken with management, I voted my mind, there really isn't anything else that I can do now but wait. As I've said before, with the share proposals on the proxy, I lost a lot of confidence. I was confident prior. I think management is at a crossroads right now where they need to come through for us.
It's not like I'm trading or ever expected the share price to be a 10-bagger overnight. I've speculated and held. I planned to hold at least until production. I expected a gradual share price appreciation over the last 3 years which has not happened. That has me gravely concerned. With the PEA coming out, I expect, once again, that we should have a gradual share price appreciation. We don't belong here below 50 cents. And still, I have intended to hold the majority of my shares through production.
I've said it before: I'm waiting for management to come through on their word to market the company hard after release of the PEA. I anticipate other companies becoming very interested in us after release of the bankable. But the share price should appreciate for the rest of the year. If it doesn't, I think management will have failed the shareholders. If they do actually read this board, I hope they're paying attention.
Of course, this latest apparent/probable fraud with Poseidon Concepts doesn't do the TSX or any companies on it any favors.
http://ca.finance.yahoo.com/news/poseidon-concepts-restate-three-quarterly-results-shares-dive-163851363--finance.html
If I may, Maser's issue is the continual issue of options and warrants. The 5.5 million options presented for shareholder vote is entirely unwarranted and way above anything that I consider normal for an explorer like this. I've had a lot of explorers diluting shares lately, but none like this.
So while Maser should probably calm down a bit, I am on board with his frustrations. At this point, shares are becoming more of a Ponzi scheme. Management is creating them on the assumption that the share price is headed way up and shareholders won't mind the dilution. It's putting the cart ahead of the horse.
What to do about it? Complain to management. Get other people to complain to management. Vote against it. In the end, if management has majority control over the shares, that's all we can do short of selling.
As for the marketing, I agree for the time being with their approach. It's too late for anything else, anyway. Get the PEA out, and then market this thing to the ends of the earth. But again, we may be victims of bad timing because the market seems to be entering correction mode. It's been overbought for a while and due for correction.
Hope you're right. I appreciate the confidence. Mine has been shaken a bit lately. I have no intention of selling my shares right now.
Bingo.
What I'm trying to figure out is if this is standard language for a 10-Q that had to be filed by the end of last year, or if they really don't know if they have to do additional drilling.
Let's put it this way: management knows. Insiders know. Retail investors do not. This is not something that we can call and get from management as it is considered insider information.
Grudgingly, I'm holding. I've come to hate this company. I can't wait to get out of it and be rid of this management team. The skin on the back of my neck tells me that that PEA will indicate more drilling is required. It isn't that I think there actually is. I think that management wants to continue to load up on free options for another 12 months. The share structure in this company is turning out to look like a Ponzi scheme with management at the top. When they finally decide to let this stock fly, they'll have millions of dollars in free shares, and shareholders will be stuck with dilution.
I hope I'm wrong. Nothing management has ever said to me clued me in that this is the case and that more drilling is required. In fact, my intuition (based on my conversations) tells me the exact opposite. But now I'm questioning everything given the voting items in the latest proxy. There's just a really bad taste in my mouth and I've soured on the company. Sorry. It's what I think at this point.
This is pathetic. It's not accumulation, it's all distribution on big volume. There is forthcoming news that was supposed to be outstanding. In my opinion, this isn't somebody trying to drop the share price to get in cheaper. This is somebody dropping shares ahead of the news to simply get out. This isn't good.
Retail shareholders are always the last to know the reasons.
I've been holding for several years and had intended to hold until production (back when the major resource was vanadium). Now that it's graphite, I still intend to hold until production. Depending upon how things go and management's intentions (assuming dilution isn't severe), I may even wait for vanadium production. If there is a buyout, I will evaluate the offer then and decide whether I sell my shares or take the shares of the purchasing company. Who knows what the terms could be?
I believe that the reserve report is going to be released somewhere around the 3rd quarter.
What you say makes sense. Have you contacted management with it to share your views?
If the deleted post was in response to mine, I would like to have seen it. I missed it.
Look: ENZR has two outstanding valuable resources. There's no question about that. Management has accomplished an awful lot with respect to getting resource evaluation completed. The fruits of that labor should be made public within the next few weeks. That's all great, and kudos to management for getting things this far.
Everybody is sick to death of hearing about what they've done with the shares and the lack of marketing. The lack of US marketing will change. But management has to be put to the fire for what they have done to the share structure for their own benefit ahead of providing any real return to the shareholders. Management will get their reward...but it's getting to be a bit much right now. And that has people (potential investors) worried. It's a rookie management team that has made certain good decisions by relying on the expertise of others, but they're taking advantage of a great resource before the chickens have hatched.
I'm not going to post about this anymore unless they do something else really stupid. We don't like it. There has been plenty enough said.
Doesn't seem like it should be a 2-cent stock and falling...
I wonder what the market saw that was so terrible in the recent news. What were they expecting?
My opinion at this point is that not much is going to happen with the share price until they are approaching production (assuming there isn't a buyout or something like that). Management has called too much attention to themselves with how they have managed the share structure. People are afraid to invest here because of it; I don't blame them. Management is going to have to do something to show good faith to the shareholders, or the share price will continue to languish.
This was a big gamble for me. Management was not well known. I took a chance. This just goes to show that it doesn't matter how awesome the resource: without good management, the shareholders are going to get screwed. I think it's the size and grade of the resource that's going to pull us through without losses (or with a fair gain). But we're going to have to wait...longer.
There may be some hope for a boost in share price when they complete the bankable after the 2nd or 3rd quarter. As such, I think management should just keep their mouths shut and not say (or do) anything stupid.
I voted to withhold some of them to send a message. So did a number of other people. Maybe they'll get it.
If you haven't received your paper proxy yet, then call your broker. You can vote online if you have the code number specific to you.
Harrs was picked up by Lundin Mining Corporation in November, 2011. It's clear to me that McKinnon should have been the one to go.
Well, what they've just done to their long-term shareholders is unforgivable. The share price is in free fall from here...and right before release of the PEA. I wonder if it was intended. We'll be lucky to get back up to 35 cents after they release the PEA and start their US marketing. Now everybody just expects a 30 cent share price with this company. They've done us long term shareholders a terrible disservice.
I should have voted to "Withhold" more than two people on the management team. This group of people is going to carry their actions with them wherever they go from here. I'm going to make sure of it.
And there we are with the lowest volume of the day, tons more in high grade resources (plural), and at the bottom tier with share price.
This is a direct result of the stupidity involved with the ballot. Management may have moved forward well enough with the paperwork and planning for the project, but they've been foolish at best regarding their shareholders. I hope this changes in short order.
I hope everyone is voting. I did; and I voted to withhold two individuals in management.
Spartex,
I believe that it is still management's intention to bring the mine to production without creating more than ~200 million shares. I think that the 450 million share proposal is to cover themselves in the event of an emergency, and said proposal was probably poorly worded.
Regarding the options, I am hopeful that millions of warrants will expire to more than offset.
It (the negativity) is getting a bit overblown, isn't it? I've been in it for over 3 years now. It's my own fault for putting money in too soon. That's probably why me and some of the others are upset about the options about to be voted upon. I do agree that management is due their compensation. No arguments. And I do think that they want the share price higher. It's just that long term shareholders have no or negative return on investment at this point while management is lining their pockets. The share price really hasn't moved in 3 years. It's been dead money.
Maybe things will change now with the PEA release in a couple of weeks. And they had better come through and pound the US markets with the PR news. And they way management spoke to me, they have every intention of beginning production no later than Q1 2015...unless they change their minds and sell out.
To change the subject a little; I don't know about you, but I wouldn't want to get on a battery-powered commercial airplane...
http://manganeseinvestingnews.com/2828/lithium-ion-american-manganese-batteries-boeing-dreamliner/?utm_source=Resource+Investing+News&utm_campaign=e9054b5440-RSS_EMAIL_CAMPAIGN&utm_medium=email
Spartex, I simply don't know anymore. There is a mix of pluses and minuses here, and I find it very difficult to determine how it will play out.
Just because a company raises its share authorization doesn't mean that they will actually do it (and we've heard that crap before from a certain national leader who shall remain nameless). But one problem that I have is...why now? Is it because they need a higher market cap for financing? If so, then maseraticoupe has a point...why weren't they doing major publicity in the US a month or two ago rather than waiting for the PEA? If they wanted to make sure they had the money in case bank loans didn't line up, then they have the option to do this later. Why now? Adding 5.5 million options is also aggravating. But I have to read through the proxy yet to see what their explanations might be.
Management has done a lot of good things in regard to getting compliant reports completed and hiring knowledgeable entities. I cannot find fault in any of that. As much as the vanadium folks complain, I think it is beyond refute that they found a strategic, more plentiful and easier extractable resource on their site and it makes more sense to pursue the graphite and then use the proceeds to add the vanadium to their production. To look at it otherwise is silly.
However, I am getting the impression that management does not know how to manage shareholder expectations in regard to return on investment. You have a lot of people here who have not only been patient, but enthusiastic about the company for at least 3 years...some for 5 years. Now, from at least what we can see, our investment will be diluted. It is clear to me that the recent sell off is a result of some shareholder's ire. It seems like a serious misjudgment based upon emotion to be selling now before the PEA is released and before they start publicizing aggressively in the US.
I'm still 'guessing' at this point that, subsequent to dilution (if it ends here), we may see a share price on the order of $2-$3, both resources included. I don't think that's near where it could have been. But it's still better than what we have now. Let's put it this way: as a shareholder, I would not have waited 3 years for this. I'm not happy, but there isn't much I can do about it now besides vote.
For reference, the only miner that I own that has +400 million shares outstanding is Endeavor (I got the shares after they bought Avion). Their share price is depressed just above $2, but they are a gold and silver producer. Point: they are currently producing in addition to their other explorations.
I recall this article, and I was relatively pleased that McKinnon made that statement.
I have not seen the proxy vote statement yet (I'm waiting for it to arrive in the mail). If what you say is true (and I don't doubt that it is), then things have changed.
This is yet one more example: it doesn't matter how outstanding the resource is. If management doesn't have a good reputation, you will lose money as a shareholder. I would rather invest in a smaller resource with a better management team.
Hopefully the PEA is outstanding and can make up for this. Hopefully ENZR follows through on aggressive publicity in the US subsequent to release of the PEA.
I believe that the majority of "salary" increases are in the form of options. While I am upset with the dilution of my shares, I would think that management would want to exercise their options at the highest share price they can. At least in that regard, one hopes they will act soon to move the share price up. I'm still not thrilled about it, but I hope you are correct and the problem is temporary.
Fortunately, a lot of warrants are set to expire. Hopefully they do so.
As I understand it, ENZR will pursue more aggressive PR in the US with the release of the PEA.
Alright, forget my previous message as a load of crap. The day after news and ~3 weeks before the PEA release...somebody is messing with the share price. We haven't been this low since August.
:)
Ah...schizophrenia.
Canadian and Aussie dollars have been getting pummeled...good for fixed income investments in the US. Bond yields are moving up (price down). Equity markets are moving up. Stocks and bonds priced outside of the Australian and Canadian markets seem attractive. People are selling the miners.
Who cares about gold, silver and other commodities? Right?
Not sure if I buy into any explanation suggesting that someone is trying to get the share price down to load up before the PEA and the BFS.
No arguments with either of your points. This was a major concern of mine, and I outlined the companies response to me in that long post from last week. I'm simply being patient at this time until I see how the company responds with their promotion after release of the PEA. I am also looking at future options awards.
If that is how you truly feel about it, then perhaps this is not the company for you to speculate on. I'm not trying to be rude. I'm just looking at all of the things that you have said lately. If you really think it's that bad, then if you have a gain, the best thing is probably for you to sell your shares and look for the next opportunity. I know that I have a few in mind...
I don't know how the others are marketing. All I can say is that it appears that Brent is angling the end use of the product while allowing the technical releases (NI43-101) to angle the material end of it. I think the approach is going to change with the PEA.
I'm frustrated as all get out with the share price, too. But things seem to be culminating into some results. If they've done as I've been told, and they're waiting to market the US hard after the PEA, then I would suspect they will be doing similar campaigns as the other companies that you've noted. However, with ENZR, there will be bonafide results and a plan for mine implementation. We will no longer be looking at merely an explorer. We will be looking at a company building a mine to bring into production. That will put ENZR ahead of Northern, Focus, and most others.
The NI43-101 report was released when the market was correcting again nearing tax loss selling season and all of the fiscal cliff nonsense. If Focus or Northern had released compliant reports around that time, they would not have had much success. What you aren't accounting for is that their share prices ran up and then crashed 75%...this was at the same time that ENZR released the NI43-101 and the share price barely moved. It's the markets
I'm giving them a little more time to follow through. After a wait this long and for something as important as this PEA, I cannot see doing anything less unless somebody can prove something is seriously wrong.
This is from the Focus website:
"As a junior explorer with significant cash holdings, our company is poised to assume a leading position for graphite supply on a global scale and plans an aggressive program of acquisition, mergers and joint-venturing."
That says it all. All they're doing is exploring, acquiring, merging and joint venturing. They're an empty suit right now. Tell me, with all of the intended M&A and JV's, that this isn't going to cost Focus shareholders a boatload in the long run. These poor suckers investing in the long term in Focus are going to get burned. Traders will make a killing. One of these days, I'll probably short it after it's made a big PR run.
Everything that ENZR management has been saying indicates that they are proceeding with the intent to develop a mine. When they start their PR campaign in the US after release of the PEA, people will have to look and see that ENZR means business. They aren't just pumping up the share price. The others out there are not nearing production and don't even have plans drawn up for a mine. They're still exploring. ENZR has DRA moving forward with plans, and DRA is even an investor.
The one thing that I will give you is the low market cap due to the share price. If management does what they say they will do, then it won't be a concern for much longer.
Have patience. We've been waiting for years. If I am to believe what management has told me (per my long post), we're weeks away.
Look, if you think that there is some wrong-doing, then say so. If you have questions, then ask. If you have concerns, call the company. I don't need an inquisition from you. If you have questions, call the company. It's just that simple.
This is really a simple matter. I posted something that I thought would be beneficial to the board. I've posted here before under a similar name. I had some serious concerns about the company; I called management. What I got was what I posted.
At this point, I would suggest that the moderator delete the post in question as it has obviously caused an individual enough hardship. I can't fathom why. The post was mostly positive.
This was why I stopped posting in the first place.
Call the company yourself.
I think that essentially calling me a liar is unwarranted. It took me a lot of time to write all of that out for the board's benefit. If you take exception to anything that I wrote that you would like to dispute, then please post it. Otherwise, please call management; and I will most likely instruct you to do that regardless.
"Management." I don't think specific names are supposed to be stated on a message board in a comprehensive post like mine after a long conversation. You can confirm anything I've said by giving ENZR a call. I'm sure they'll go through it with you.
January 2013?Letter to Shareholders:
We are very pleased to report and outline significant accomplishments in 2012 and our initiatives for the 2013 year.
The hallmark event was the delivery of a NI 43-101 compliant mineral resource estimate outlining Energizer’s Molo graphite deposit. This mineral resource estimate exceeded Company expectations and consisted of the following:
• Indicated resources totaling 84.04 Million tonnes (Mt) grading 6.36% C, above a 2% C cut-off grade.
• Inferred resources totaling 40.34Mt grading 6.29% C, above a 2% C cut-off grade.
• Mineralized zones in the resource estimation start from the surface and continue to a maximum ?depth of 385 metres and remain open along strike and at depth.
• Two ‘High Grade’ zones occur on the western and eastern flanks of the Molo deposit, with a ?combined total Indicated Resource of 60.17Mt, grading 8.1% C, above a 4% C cut-off grade.
Energizer concluded its acquisition of the Joint Venture (“JV”) property, which included the Molo deposit ?claims, from Malagasy Minerals Limited in late 2011. Energizer has a 75% ownership interest in the JV property and is the sole operator of the project. ?
After executing the Definitive JV arrangement, the Company moved quickly to solidify its relationship with DRA Mineral Projects, Africa’s leading mine builder and operator. The primary objective for this activity was the delivery of a Preliminary Economic Assessment (PEA) Study.
The PEA Study is on track for release in February 2013, and will outline the economic parameters (capital and operating expenses) for the development of the Molo graphite mine. This PEA Study provides the platform for Energizer to move forward and establish the necessary strategic business alliances for project financing, graphite off- take arrangements and marketing of the Company. ?
Given the size and quality of the Molo project in Madagascar, we believe we can be a global leader in the supply of graphite for all types of end users in the marketplace. Madagascar is uniquely situated for the Asian, European and North American markets and this would certainly lend itself for the opportunity to have a distinct cost and logistical advantage versus our competitors. ?
On the geopolitical side, Energizer’s management has had a strong interface with the Madagascar government. The Company management has met with the Prime Minister on numerous occasions and has ongoing dialogue with different ministries, primarily with the Minister of Mines. A very significant interface occurred in the fall 2012 when President Craig Scherba and Director Peter Harder met with the Prime Minister and the Minister of Mines. Director Harder was previously Canada’s Deputy Foreign Minister and provides invaluable insight to the Company. The Company continues this interface as it moves through its exploration stage to the exploitation stage, which is where mine development and construction will occur. This interface is focused to ensure government updates on the project and to facilitate the necessary permitting as the Company moves through these milestones.
We have witnessed the dramatic growth of lithium and the lithium-ion battery, and we emphasize again, that these batteries require at least 11 times more graphite than lithium. Beyond the rapid growth in the power market (batteries), we are now seeing significant growth in batteries for power storage solutions witnessed through recent announcements by major consumer companies. Examples of this would be:
• Panasonic’s commitment to begin mass-production of lithium-ion battery home energy storage systems for the European market, with particular focus on Germany.
• Siemens launch of ‘Siestorage’ – a modular based, lithium-ion battery storage system for the power grid. ?
Finally there is graphene, “the wonder product of graphite”. There has been an explosion of activity and patents for graphene-based products, and tens of millions of dollars is being diverted into their development. Energizer has already started exploring opportunities in the burgeoning graphene industry and this activity will be accelerated in 2013. ?
In 2012, under the leadership of Brent Nykoliation, Senior Vice President of Corporate Development, the Company gave numerous presentations in both Canada and Europe, which were very well received. The Company is pleased to report that the response has been extremely positive and large institutions and funds have us on the radar and have stated that they are waiting for two key milestones.
First is the delivery of an NI 43-101 (which has now been achieved) and the second, a PEA study (which will be delivered February 2013). Institutions and funds require these reports for the necessary assessment of the Company’s deposit and the requisite pro forma for capital costs and operating expenses.
In order to position Energizer as a ‘supplier of choice’ for the graphite industry, the Company will focus on expediting mine development planning and engineering. Following the release of the PEA study, DRA Mineral Projects will immediately begin work on a Bankable Feasibility Study (“BFS”) for the project. In conjunction with the BFS, additional pilot plant test work as well as Environmental Impact Assessment (EIA) analyses will be initiated. This work is anticipated to be completed by October 2013, and will subsequently facilitate Energizer’s ability to acquire both a mining permit and project financing. ?
We are firmly committed to see the initiatives we have outlined for 2013 completed and trust that accomplishing these key milestones will ultimately be reflected in our stock price. When dealing with the market, we are always careful to live by the axiom of “under promise and over deliver”. As these initiatives continue to be advanced, we should then have all the key ingredients in place to enable the Company to achieve its proper valuation, and to finally see Energizer being deservedly recognized in the marketplace as a benchmark for world-class graphite projects. ?
We thank-you for your support over the past year and look forward to an exciting and rewarding 2013 for both Energizer and our shareholders. ?
J.A. Kirk McKinnon, Chairman & CEO
Craig Scherba, President & COO
Brent Nykoliation
Senior Vice President, Corporate Development
Energizer Resources Inc.
520-141 Adelaide St. W, Toronto, M5H 3L5
w 416.364.4911
f 416.364.2753
bnykoliation@energizerresources.com www.energizerresources.com
I spoke with Energizer management. It was a good discussion. In response to some of my questions, management discussed the following information with me:
Regarding compensation, on the 10-K, salaries will fluctuate as a function of the fact one must account for stock options that have been granted as compensation. Therefore salaries will fluctuate up and down every year based on when financings occur - which is the only time that options can be granted. Rules allow a rolling 10% (maximum) of the total fully diluted shares, issued and outstanding. Options granted do not account for a cash payment of any kind (as stated on the 10-K). So the stock options appear as income at first glance only, but must be counted as income if granted as compensation under under TSX rules. These of course have no value unless they are a) "in the money" and b) are exercised.
None of Management has not sold any of their options ever, nor any shares since the Company changed its name to Energizer over 2 years ago. Management has also purchased shares themselves at prices much higher than the stock is today. Options are only granted under the approved stock option plan as stipulated and approved by the TSX stock option grants plan, which is set out as a resolution each and every AGM and is voted on by shareholders. Option plans are a legitimate and an essential part of the compensation plan of virtually every junior mining exploration company on the TSX-V, TSX, OTCBB, etc. For example, on Dec 20, 2012, Northern Graphite just granted options to insiders http://ca.finance.yahoo.com/news/northern-graphite-announces-grant-options-210000654.html.
Yes, exercised options dilute the number of outstanding shares. However, their incentive with options is for the share price to appreciate and it will only do that if they run the company properly. If the share price depreciates, then they will lose like the rest of us.
Regarding the new timeline for the PEA to be completed, this was a result of 2 things. 1. The majority of junior mining exploration company's PEAs are done as 'desktop' studies. Energizer's was not. DRA, being a full EPCM engineering firm actually put out to tender 3 RFPs to price components of the future mine based on the assumption the resource would be around 100 million tonnes with an average grade of 6% carbon. When the resource came back much higher in both tonnage and grade, DRA advised that this new info would have a positive effect on CAPEX, etc. and had to 'reprice' the components (put back out to tender) again. SO it was almost a start from scratch approach on certain cost elements. As well, being located in South Africa, and they take close to a month off around Christmas. That's the reason for the longer-than-usual delay. So the PEA will be out around mid-February. Many shareholders failed to realize that the delay was a result of good news and the reasons, as stated in the recent NI43-101 news release, were that the material grades were much better and will reduce mining costs significantly. I think investors have missed the importance of that.
I was a bit upset about the timing of the recent financing (because I thought they could get better terms after releasing the PEA), but I didn't know the reasons for it until speaking with management. The reason that the recent financing was done at the time was so that they could obtain the cash to initiate parts of the PEA and certain elements that are actually part of a BFS (such as the initiation of a pilot plant). The pilot plant must be built in order for Energizer to produce finished samples of graphite flake to give potential off take partners samples for evaluation. This would imply that, having been pleased with smaller samples, potential off-take partners now need to see if they would get the same quality of graphite with a larger sample. I consider this extremely bullish. Also, timing is key…Energizer reminded me that in these tough markets, good news is no guarantee that the stock will rise. In fact, the very positive 43-101 resource which confirmed the Molo is the largest known graphite deposit in the world had no appreciation on the share price. Mgmt said first mover advantage is key, and waiting until mid Feb to start financing would delay things by 2 months.
Energizer plans to have a completed mine up and running by the first quarter of 2015. completion of the BFS... I don't know of any junior graphite company of any significance that can make that estimation at this point. Given the purity and economics of the resource, they can potentially use profits from graphite to construct a vanadium mine for when worldwide vanadium demand eventually increases. Those things being said, even though there has been concern about the experience levels of the management team, that has been well addressed with the partnering with DRA as their mine builder . Most people do not realize how important it was to land DRA. They are huge. They've built over 200 mines and operate 23 for tier 1 (Anglo, Xstrata, Vale); and they have prominent industry people appointed to their board.
On public relations. Mgmt. made it very clear that they are not a 'hype' company and never will be. Case in point - They waited to even announce they had graphite until after they drilled 17 holes, had the metallurgy tested by 3 separate labs and had assays back. Based on feedback from bankers in Canada, it was deemed a waste of time to go out and promote the Molo without a resource statement and preferably a PEA. Now that the PEA is right around the corner, Energizer will be ramping up PR significantly but in the right way. Because they are TSX listed, the rules and scrutiny on them is far higher than on any other graphite play. They can not say or do anything that would be deemed promotional and are not allowed like others to assume or estimate additional grade or tonnage. Very handcuffed in dissemination of news and even email updates to shareholders that many of us get direct from Energizer.
What they will not do is employ the U.S. PR firms that are classic pump firms or utilize highly promotional and boiler-room type tactics to drive the stock. (like you see Graphite Corp and USA Graphite doing). Yes, they may be getting a lift on their stock price but at big costs and drains to the treasury and it is artificial - not sustainable. Articles have said they are spending with these pump houses $50-$75,000 per month for min. of 3 months, in some cases 6 month contracts. These companies have not even started exploration in some cases and never will and once the spending stops and it has to, shares will rocket down.
When I heard this and then compared these type of plays to what Energizer has done, I begin to understand that Energizer may just be the tortoise that will win the race.
There are certain things that cannot be ignored:
1) In less than one year of discovering the graphite, Energizer has produced an NI43-101 compliant report for the graphite and it is world class. It has leaped frogged and or caught up to companies that had a 3 year head start. The year prior, they produced an NI43-101 compliant report on the vanadium pentoxide and began a PEA on the vanadium. In slightly over a year, they will have completed the PEA on the graphite (due mid-February, 2013).
2) They plan to initiate a bankable feasibility this Spring and and complete it by the fall.
3) Management is underpinning the company with the necessary people and expertise to bring a mine into production. They have hired some impressive people (DRA), and put them into board positions that will enable them to move the company into production. It seems to me that that is what any intelligent person would do.
4) They have obviously been working to secure off-take partners for the resource(s).
5) They made a very intelligent move in securing all graphite properties around Molo. This reduces the possibility of potential competitors taking advantage of the geology in the area.
6) Energizer is the only graphite/industrial mineral company on the TSX big board. Everyone else is either TSX-Venture, Bulletin Board, or ASX listed company (where outstanding shares are mostly north of 500,000)
Another piece of information that I did not know is that DRA, over their 30 years in business, has only invested in 4 mining companies throughout the world and never at the pre-BFS stage. ENZR is one of them. DRA typically stays out of investing and sticks to the design, construction and sometimes running of the mines. As you know, DRA is world renowned. Also, as you know, DRA made an US$850,000 investment into Energizer. They joined their board. The are the authors of the PEA and will be for the BFS. Read between the lines on this one.
It seems to me, given all of the information above, that we in essence do have a professional and competent team with plenty of incentive working on the shareholder's behalf. They emphasized that the US market will be a high priority for promoting the project right after the PEA results. Perhaps that is worth some of the share dilution that many have been complaining about.
I would also note that there are small companies on the TSX with tried and true management teams that have share prices suffering right now (Matamec of note). The TSX has been a blood bath for well over a year, and there is no money out there to be had because of the current risk appetites. That ENZR has essentially been able to maintain a stable share price while other companies have plummeted is, in my opinion, quite bullish.
From what I gleaned from my chat, 2013 will be a significant year for them. Many milestones coming to bear that should manifest in the stock price.