Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-4

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31/10/23

19:09

Post #: 70650199
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Originally posted by nkat2007: ↑

Most of what's covered in the quarterly today is well known so will post a few brief observations:

1) Cash

$1.129m at quarter end with approx $1.6m incoming from capital raise = ~$2.7m.

Expenses
Significant reduction in ZG spend, at $89,000 for the quarter, suggesting maybe ZG starting to stand on it's own feet.
$905k on exploration + evaluation + additional Bunyu Graphite samples being produced. This comes across as a large volume of samples requested.
$780k on Admin + corporate, down $50k from last year's quarterly at same time.

Revenues/Funding opportunities
Non dilutive funding pipeline of A$100m targeted, USD 50m submission for US Graphite anode plant in progress
ZG garnet stockpile estimated at $100m revenue opportunity. Near term opportunity with large garnet customer completing 5kg evaluation and now increasing to 500kg sample.
ZG production 400t produced, targeting 1000t for current campaign. Estimated USD$800/t sale price = ~ USD$800k revenue potential for current campaign
European Commission / Horizon additional grant funding opportunity early 2023

Significant improvement to balance sheet required and this will need a combination of increasing revenue, cost reductions, grant funding &/or strategic investment. Need to have > $10m in bank.

2) Customer Development - Offtake with a NASDAQ listed battery producer expected in upcoming quarter.

Needless to say this is could be material.

3) Bunyu financing. Due diligence is ongoing with a large global customer, it appears that this process has been going for a few months. Do the recent graphite restrictions from China accelerate these plans? Does financing get done in upcoming quarter?

4) Product Development
The patent application for the IP on graphite purification process is interesting. It also seems like the Feasibility studies for downstream anode plant might be completing soon.

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Nasdaq listed company is interesting, wonder who it is, I'm guessing any offtake agreement would be for Stage 2 as Stage 1 is already sold out no?
VRC Price at posting: 0.7¢ Sentiment: Buy Disclosure: Held
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