Looking back I think this announcement is huge. FGR have the world rights to the Kainos technology and are developing it. This seems to lead to a new way to produce graphene away from any limitations associated with the SL vein graphite, which I have seen as a potentially limiting factor in guaranteeing future supply in volume. Kainos is also a high cap UK tech coy on about 100 p/e - a great party to collaborate with.
The connections with battery cathodes and hydrogen are also new energy related and help steer FGR more toward the Talga trajectory and must be behind what seems like rising institutional interest. This announcement seems like a turning point in terms of future capability. We have both Talga and PPK (BNNT - boron nitrate nano tubes) at $0.5 billion mkt cap - both in a similar zone commercially yet FGR is lagging.
To me, this announcement is the rubber hitting the road, garnering institutional support as graphene has a huge future and FGR now steering toward greater technology, certainty of supply and most likely (and importantly) greater product diversity (and needs that diversity - nano scale etc). The applications for graphene are increasingly seeming endless. The broker data is showing Nomura Inst & UBS picking up scrip from stale retail hands. The instos always have more info than retail and realistically FGR should be rising to complement TLG & PPK. I wonder if the insto interest is coming from the UK. (Disclosure: I am also in PPK).
