Lomiko Metals: ushering in a new age for graphite and bolstering Canada’s leadership in the renewable energy and battery sectors

With a local graphite project in Québec, can you explain the importance of policies that support the development of such deposits in the province?
 

The role of government is very important for several reasons, and I would say they have established a strategy. Québec was the first province to do so for the battery and critical minerals sectors. And that's a key reason why I came to work here.

But communicating the strategy to people — not just to other countries, but to other Canadians — is important. Second, when we talk about accessibility for projects like ours in Québec, there is a need to educate people on the importance of projects like these for the future economy, for jobs. Once in production, our project can inject more than $100 million in wages in the province according to the PEA. Such harmonious development needs to be better understood — among the community, our organization, the government. Doing so helps support our participation in the United States and allows us to advance new projects in development.
 

In addition to what Québec is doing for the critical minerals industry, could you elaborate on your interactions at the federal level and any recent investments?
 

Right now, it's super important for the federal government. Mining and natural resources have always been core to our economy. And now clean technologies and renewable energy are the future, which makes our program stand out.

The $4.9 million investment supports metallurgical studies for graphite piloting with both Québéc and other Canadian laboratories. This is important because it increases our capacity for innovation. We need to communicate the importance of the mining industry and the transformation of critical minerals here in Canada. The country has been voted number one, according to Bloomberg, in the renewable energy and battery sector in the world, so we have to promote that through our public communications.
 

As number one in renewable energy and the low-carbon economy, did you experience challenges in raising money for your project? And what about your peers in the critical minerals industry – is funding an ongoing issue?
 

I like to look at timelines, taking a look back and a look forward. To use a hockey analogy, where is the puck going? We reverse-engineered our business strategy to determine where we need to be five years from now, but the investment community reflects back on what they have done over the last 10 years when making risk-adjusted returns on capital invested.
 

This is an industry that can take 10 to 15 years to move from exploration to mining. Management teams can change three or four times during this period. And while there are catalysts of value creation along the way, critical minerals — especially graphite — are not exactly shovel ready, so we cannot draw from earlier models. We have to consider new models to raise money, break through to investors that we’ll be shovel ready in five years and it’s this management team that’s going to do it. How do we access the venture or “patience” capital needed to be deployed now?

That will require new tools. Pension funds, for example, have significant resources that can play in this space extremely well by developing R&D funds matched by government. It doesn't exist today, and I think it needs to be developed as soon as possible — this sort of agility with capital.
 

Recently, there was a manifesto developed by industry heavyweights to push the federal government to force Canadian pension funds to invest in the mineral sector as part of our identity as a country. Any thoughts on how they may change the industry to rely more on pension or other funds outside of Canada?
 

It's a valid point. We’ve approached pension funds ourselves, but because of the way they're structured — interested only in tremendously large transactions — they're not set up to invest in and very few qualify. Also, our industry will grow through smaller businesses that become large, and they’re not set up to invest in the junior industry.
 

While we respect they have a duty to create good returns for pensioners and the people they represent, it's shortsighted because the future of this country is going to be built by Canadians so we have to invest in Canadians. Invest across the spectrum of companies that have made a concerted effort to develop responsibly in critical minerals, and match grants with funding. It’s a fantastic opportunity for an investor and particularly for a pension fund to not only invest, but also contribute to the Canadian economy and increase productivity here.
 

Productivity has been a big debate in recent months. We need more innovation. I understand Lomiko, under your leadership, is contemplating ideas that will change the industry. Can you talk to us about innovative directions you may be taking?
 

I believe innovation is very much a mindset, about not being afraid to talk to communities about their questions and challenges and incorporating those questions into the studies we're going to do. So I'm very proud of the grants we’ve received — it's all R&D.
 

The US$8 million is half of what we need. So with US$16 million worth of R&D to do things in an innovative way and to apply best practices into the studies. Same with the Canadian National Resources grant, using Canadian scientists and labs to develop the best way to purify our graphite and have it become [coated spherical purified graphite]. There are methodologies that China uses but we want to figure out the best way for us here. And with that mindset of innovation, when we put together the list of studies, we considered questions around water management, Indigenous knowledge, traditional uses and community engagement, and incorporated them into our strategy and the way this grant has been structured.
 

We also need to be thinking about innovation within the community context — how you present to the community — and then decarbonization and becoming net zero can be something we all own and understand. That's what innovation is to me.
 

You've set up Lomiko with a certain vision and type of leadership. Many people in the sector, including myself, view your leadership as unique. Can you share some thoughts on leadership, how it inspires you and how you inspire others?
 

I think it's important to remember that everything is possible. The ability to get to the point where — in your mind — you can see yourself following your dreams rather than a goal is so crucial, It was poignant to me coming to Lomiko, because I think we have a dream — a dream that we can be self-sustaining in North America with our own energy supply chain, our people and having the community believe in this project and be a part of it and contribute to it.
 

That mindset fuels me to make the right decisions day to day. And that kind of leadership is about being positive. Over the past few years, we've experienced a lot more cynicism around leadership and the art of the possible. But its so important.
 

I also believe that great things happen when groups of people come together with not just a common vision, but also common values. When you all choose to be excellent at your job and choose to lead with integrity and respect for others, regardless of whether they agree or disagree with you. And so we’re all — Gordana Slepcev, Vince Osbourne, myself and now Cindy — business partners. We don't have decades to make change, but we have years, so we need to make every day count. If I can't do something today, but Gordana can, we don't wait around. Thats the kind of leadership I want to bring to the table and one that I hope others see.
 

This has been a very insightful conversation. Thanks so much for being here.
 

Thank you, Theo, It’s been a pleasure to be here. I've enjoyed it very much.