A$1B Market Cap, page-9

When the price sailed by $14.50 today, the PPK market cap passed the US$1b mark.
(Based on 89.1m shares and $A at US$0.773).

Some strong buying around $13.60 and then $14 and again at $15 saw some rapid price movement.
The close was solid and tomorrow might see some consolidation.

The recent price rise has been driven by the two major milestones:
1. Production capacity increase to the equivalent of 50kg of >95% purity BNNT per module
2. Breakthrough in proving and verifying the science of the BNNT-infused Li-S battery; at least three times better than Li-ion batteries.

To follow are:
1. The installation and commissioning of a second BNNT production module by the end of June; and
2. IPO of Li-S Energy to support the continued development of the battery (in particular cycling stability); the engagement with end users to trial the battery in applications where Li-ion batteries are typically used; and seeking out opportunities to licence the technology to these end users.

The IPO process from lodging of the prospectus to listing should take around 6-8 weeks so mid-to-late July is looking likely. The Li-S Energy shareholding for PPK is currently valued at around $144m (48% of $300m at the pre-IPO price) or $1.60 per PPK share.

Some simple figures for the IPO, assuming 1 billion shares on issue and PPK maintains its current number of shares (288m), then
1. At $1 for Li-S shares, this is worth ~$3.20 per PPK share; and
2. At $2 for Li-S shares, this is worth ~$6.40 per PPK share.

In addition, it is likely that in the short to medium term:
1: The PPKME division will be demerged as a separate listed entity;
2. The White Graphene JV (BN Nanosheets) will report on the development of their production facility (led by Dr Luhua Li no less)
3. The Strategic Alloys JV with Amaero will report on their 3D printing of BNNT-infused alloys
4. These and other JVs will be heading towards the end of their initial R&D phases over the next 6-12 months.
5. There will be increasing sales of BNNT to research and commercial entities.