Well, yesterdays announcement from FGR certainly set out the basis for those wanting to understand just where they are placed. Looks like there could be a substantial re-rate coming, with other milestone announcements expected.
Remember the four key indicators when searching for those 100-baggers;
1) It must be small
2) It must be relatively unknown
3) It must have a unique product
4) It must have strong management.
Time for more detail on:
It must be small.
In late 2013 the new team at FGR (it was MRL at that time), first landed in Sri Lanka to scope out the potential for mining the crystal vein graphite that is found nowhere else. There was a new government just starting to put the pieces together after the long and bitter civil war. The exploration and mining authorities were trying to establish updated standards for environmental protection and for the safety of underground mining.
Just two men, Craig McGuckin and Peter Youd, were the operational part of the new venture. There were other directors who helped oversee and make decisions, but starting at the beginning of 2014 (yes, just three years ago), these two set out in determined fashion to put in place the foundation of FGR. In that time they:
1. Gained exploration rights to 39,500 ha over some of the most prospective ground
2. Worked with the fledgling SL mining authorities to establish their credentials
3. Identified and forged partnerships with key local landholders and graphite mining people
4. With the help of local personnel, signed access agreements with local landholders to enable exploration
5. Identified over 220 potential mining sites on their tenements.
6. Prioritised the locations of their first three mines.
7. Arranged the application for the first new Environmental Licence under the new regulations
8. Applied for, and were granted, the first new Mining Licence in 25 years
9. Purchased and imported their own drill rig to speed up the confirmation of vein location
10. Located the historic 1.7m wide vein at Aluketiya , as well as several other commercial veins.
11. Started assembling and training to new safety standards the local mining teams (about 70 men so far)
12. Constructed head frames at each of the three mines, and started sinking new shafts designed to operate safely for decades.
13. Built a new, centrally located warehouse to serve the current, and future new mines.
Meanwhile, back home, they:
14. Worked with Adelaide University on methods of producing graphene from SL vein graphite.
15. Built a small pilot module that successfully transformed about 80% of the graphite to high purity graphene.
16. Had the product tested to confirm the very high quality.
17. Travelled and attended conferences and presentations to show their wares.
18. Decided to step up to a full sized production module, capable of 5 tonne per annum. Installed unit at Nagrom, Perth.
19. Arranged IP agreements with other Universities - Flinders and Swinburne.
20. Agreed funding for BEST Battery development with Swinburne.
21. Along the way they raised all the funds they needed to remain debt-free.
22. Started marketing through trade shows, sending trial samples and introductory sales.
And I know, I've missed a few of the steps along the way, but you get the picture.
Until 2015, when Warwick Grigor became involved, the two founders were the main operatives. Warwick quickly built a stake, accepted a position as director, and became the Chair. He has developed the vertical business model for the company, and pushed into the Tech area. Chris Banasik (geo) joined the board, and started projects like the DHTEM - first time used in Sri Lanka.
Such a small team to achieve so much in only three years.
The company is still a micro cap. Market cap of just $33 million as of today.
On the threshold of production in the first of it's three current mine developments. Able to produce in bulk, the lowest cost high purity single or few layer grapheme available, just as the G revolution is primed for take-off. All the potential in the world, But;
Yes, definitely a small company. It certainly ticks that box.
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