We got an understanding here...

Author

Wingman
November 29, 2023

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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Is it too early to get our hopes up?

Gold has been having a phenomenal week, but will the junior exploration market be lifted by the tide?

Only time will tell.

Gold has experienced a whip-saw kind of day, but it has most definitely been on an uptrend this week.

So who had the pleasure of sharing drill results?

Wah wah.. not many unfortunately

A little PSA if you haven’t heard of GoldDiscovery.com you should play around on that website sometime. You can filter out news releases quickly and easily there. Among other great features.

All in all, not too much news today, but something did catch our eye.

And it wasn’t a gold stock.

First Phosphate is a company with a market cap of ~C$14.5m and a tight share structure.

Today’s news was a non-binding memorandum of understanding with Sun Chemical Corp. for the development of intermediates used in the manufacture of lithium iron phosphate-based cathode active material (“LFP CAM”).

Now, a non-binding MOU might seem like no big deal. However, what caught Wingman’s eye was the 'About' blurb in the press release.

About Sun Chemical Corporation

Sun Chemical, a member of the DIC Group, is a leading producer of packaging and graphic solutions, color and display technologies, functional products, electronic materials, and products for the automotive and healthcare industries. Together with DIC, Sun Chemical is continuously working to promote and develop sustainable solutions to exceed customer expectations and better the world around us. With combined annual sales of more than $8.5 billion and 22,000+ employees worldwide, the DIC Group companies support a diverse collection of global customers.

Let’s break down what Wingman picked up on:

  • Blah, blah, blah … products for the automotive and healthcare industries

  • Combined annual sales of more than $8.5 billion

  • Support a diverse collection of global customers

Working together, Sun Chemical and First Phosphate may develop a multi-party U.S. Department of Energy (“DOE”) grant application in conjunction with committed offtake that may come from First Phosphate prospective customers.

Utilizing the network of both companies, the agreement will include the investigation of the best source of iron to use in the iron phosphate and lithium iron phosphate synthesis process with preferred consideration for Sun Chemical’s current manufacturing capabilities of iron oxide precursors and First Phosphate’s mining source recovery of magnetite.

According to $PHOS, they are the only publicly listed company fully dedicated to phosphate extraction and purification for the cathode active material in the Lithium Iron Phosphate (LFP) battery industry.

From their November Corporate deck:

First Phosphate plans to employ a prudent partnership model to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source.

Well, it looks like that plan is being implemented.

Now, Wingman didn’t fact-check these statements below from their deck, but they provide the references right there. It seems LFP batteries are no joke, and there's a specific quality of phosphate required for them.

There was a webinar that happened tonight, but unfortunately, Wingman wasn’t able to attend. We are looking forward to hearing the debrief and watching the replay if available shortly.

The market did not react to this news as $PHOS closed with a modest gain of 3.3%.

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