FGR - Synthetic Graphite Producer?, page-7

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10/03/22

18:27

Post #: 60121757
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Originally posted by spid81 ↑

I sent Mike an email yesterday, to suggest FGR uses the Cavitation method to produce synthetic graphite.

We know the production method uses cheap petroleum feed stock and can produce graphene and synthetic graphite, along with the ability to produce coated materials - Silicon.

Am I the only one who think FGR should focus on getting the pilot plant built to produce synthetic graphite as its the product which is predominantly used in lithium ion batteries and the most likely material to secure an offtake?
The graphene and coated silicon can be developed concurrently, although these are slightly risker developments and will take longer to be commercially adopted.

Shown in the image above is Europe's planned giga factories. the 1000Gwh will require 1 million tonnes of graphite each year (assuming no silicon is used) the demand is there to warrant FGR pushing forward the caviation method and to focus on the low hang fruit of producing synthetic graphite.

Feedstock should not be an issue when there is 88.4 million barrels of oil produced each day.

Current synthetic graphite production can produce upto 14 tonnes of co2 for each tonne of graphite, I was slightly off with my email calculation of 5t of Co2 for each tonne of graphite.

Synthetic Graphite price

Synthetic graphite sells for US$12-20k per tonne, with a longer term forecast that prices will hit US$8000 per tonne.

The following is from NVX research report.

"Our real price deck lies towards the low end of published guidance and industry research. Although the spot price is presently
around US$11/kg, we recognise that market balance could be restored by year end and that China is also adding significant
synthetic anode capacity and continues to set the marginal price We also consider that prices might decline from 2030, as solid state batteries or other new battery technologies begin to scale more rapidly. Offsetting this, we do recognise that the purity
and superior performance of the NOVONIX Anode Material could justify a significant price premium. So, to balance these forces,
we model a flat real price to 2030 before falling to US$8/kg (refer sensitivities p29)."

We have 3.5 months left in the 2022 financial year, It is highly unlikely FGR management will achieve their bonus for its graphene sales target for the year, My view - I would much prefer to see FGR use the $8mil they have in their bank accounts to push the development of the cavitation method and continue its graphene sales, rather than spending the next 18 months hoping we are going to see graphene sales that will achieve our BE forecast. you only need to look at NVX who are developing its synthetic graphite production facilities, they have a MC of $2.4 Billion

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Hi @spid81,

Of course, this is very exciting and interesting. And yes, the world will use more batteries. But for me, this idea is too risky for FGR. With a partner, ok. Without an industry partner, no. I think FGR should strengthen its path to cement and its multiple applications. It is already clear that Puregraph works there. The improvements will be many, and so will the applications. The market is huge and improvements are desired not just for cashtrains roads. If FGR should invest itself, then for example in the Mayur project. If this is seriously worked on, climate-neutral cement, plus patents on applications.... Here is my L2 point for FGR

L

FGR Price at posting: 16.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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