Many of you may have heard the AGM tape, before it was removed....

Many of you may have heard the AGM tape, before it was removed. I have taken the time to make some more AGM notes in addition to the ones I provided earlier.

• Jcurve on power output - The higher the temperature the higher the cost, exponentially. Energy is expensive. Given PPK only need to heat to 1,600 degrees, rather than 6,000 degrees means the cost of production is much cheaper.
• Long term view is to bring the price down to make it commercially affordable. But not in the immediate future.
• Demand outstrips supply. Price will based on demand. This will come down over the next few years
• Biggest challenge for BNNT JV is how do we build machines quick enough to meet demand.
• Market for BNNT will grow very quickly. CNNT (Carbon nano) market went from standing start to 10 billion dollars in 5 years. View is BNNT will dwarf CNNT and is not moving from a standing start.
• How do we protect IP - We build and own factories and the staff within. Barriers to entry through knowing how to create BNNT with over 2 million variables.
• Dividends forecast - PPK is debt free with 8.5 million in the bank. The minute we make money where PPK does not need the cash, we will pay out. Make no bones we will be selling it early next year.
• Will we get more technical releases to market - No. This is to ensure we protect confidentiality and IP.
• We have already got licences to be able to ship around the world..
• PPK job is to commercialise it and sell it, Deakin’s job is to produce it.
• BNNT production process overview - Heat machine for 4 hours to 1,600 degrees, produce up to 30 grams (note this is 6 times what NASA can produce), then let it cool down. Men in protective suits then remove it. This is one pass (manual process). Next level will be automation.
• Automation aim is to suck it out in a vacuum process, then we can run the machine over 24 hrs and have 3 runs resulting in around 90 - 100 grams.
• Sell this at 1 million USD a KG is a lot of money.
• Federal gov’t has been throwing money through grants at them to develop.
• No need for more CR. No debt. The only exception is the possibility where we have the opportunity to do another acquisition like Craig Ballistics, to take advantage of selling products with BNNT incorporated into them.
• Can turn Craig Ballistics into a 200 million dollar business. Aim is to initially put 10 machines (capacity in factory is 30) in a factory next door to them in Qld.
• Will do the same thing with other companies by locating factories near them.
• We will possibly make more acquisitions in the military field down the track.
• BNNT Properties - BNNT is infectious in that it passes on its properties to other materials by only providing small percentage (1% at a molecular level). Polymers, glass, metals etc
• Couple of billion dollar market value aim for PPK in the next couple of years.
• Want to build down the line business and have a finger in every pie. That will make everyone on the share registry very wealthy.

Think about it!!!

Rough calcs - based on info provided / inferred at the AGM
1 machine + automation = 100 grams per day (to make the calc simple).
By 10 machines 1 kg per day x 255 days = 255 KGs
By $1 mil = $255 Million per year - $7.5m cost to setup = $247.5 mil
Minus Cost of production (unknown but let's make an assumption $100 per gram) $25.5 mil = $222 million profit
(obviously there are other costs to consider like wages etc)

That is serious coin off 10 machines, raw material only.
If automation is not ready then this equates to around 70mil from manual process (1 run per day)

Someone wants to suggest appropriate share price with that number?? (remember this is just rough)

And then what happens when it goes to 20 machines, 50 machines, 100 machines over the coming years.

I wouldn't want to get caught selling this stock. Haven't seen anything like it, may not see anything like it again for a long time.

Of Course DYOR and make your own decisions based on your own analysis.