Thank@HarryKane.Your reference to BASF has taken my interest, as I concede up until now I knew very little about them and they did not feature on my radar (the extent of my knowledge about BASF was perhaps limited to the blank cassette tapes I used to record my favourite songs off theradio in the 1990s!).
While this is not supposed to bea detailed research note like that I prepared in respect of Imerys, I provide the following brief findings and observations (and with the same caveats I provided in my post above of 6 June 2020):
1.BASF is based in Germany and appears to be an absolute titan in the chemicals and industrial space.According to its website, the BASF Group operates in more than 90 different countries and had total sales revenue of circa €16.753 billion (and gross profit of €4.527 billion) for quarter 1 2020 alone (https://www.basf.com/global/en/investors/basf-at-a-glance/key-financial-data/consolidated-statements.html)
2.A quick search of the word “halloysite” on the BASF websiteproduces a link to the following: https://www.basf.com/us/en/media/news-releases/2017/11/P-US-17-119.html
In summary, BASF states that onor about 1 November 2017, BASF and Applied Minerals Inc. (allegedly a “leading global producer of halloysite clayand advanced natural iron oxides”) had entered into a global co-exclusive Purchase and Supply Agreement to commercialize and market halloysite clay-based products within selected global markets.
In respect of that Agreement, thearticle states:
“BASF will market halloysiteclay-based products under a BASF trade name to customers worldwide, with profits to be shared by both companies.
BASF and Applied Mineralshave also entered a Tolling Agreement under which BASF will provide specialized toll manufacturing to complement Applied Minerals’ current halloysite production capabilities.”
Furthermore, the article provides the following information about Applied Minerals:
“About Applied Minerals, Inc.
Applied Minerals, Inc. isthe leading producer of halloysite clay and advanced natural iron oxide solutions from its wholly owned Dragon Mine property in Utah. Halloysite isaluminosilicate clay that forms naturally occurring nanotubes. In addition to serving the traditional halloysite markets for use in technical ceramics and catalytic applications, the Company has developed niche applications that benefit from the tubular morphology of its halloysite. These applications include carriers of active ingredients in paints, coatings and building materials, environmental remediation, agricultural applications and high-performance additives and fillers for plastic composites. Applied Minerals markets its halloysite products under the DRAGONITE™ trade name.”
3.Notwithstanding the above, a quick Google search indicates the following in relation to Applied Minerals:
a.As at 5 June 2020 the share price of Applied Minerals Inc.(AMNL:US) was only USD$0.008.
b.In 2019, Applied Minerals’ total revenue was circa USD$486,000.
c.Report dated 10 July 2019 suggests that since October 2017 the company had been “pursuing the commercialisation of its DRAGONITE halloysite clay for use in lithium-ion battery technology” (https://finance.yahoo.com/news/applied-minerals-inc-provides-dragonite-141000170.html)
d.In January 2019 it was reported that Dr Mathur was appointed asthe Chief Technology Officer of Applied Minerals, having prior to that appointment been the senior R & D Manager for Global Strategic Marketing and Innovation for BASF’s Paper and White Chemicals Global Business Unit and Kaolin Global Business Unit, and is quoted as having stated: “…I look forward to applying my vast experience with kaolin clay-based technologies to the continued commercialization of the Company’s DRAGONITE halloysite products, which enable the development of high performance solutions for an array of applications” (https://www.globenewswire.com/news-release/2019/01/16/1696712/0/en/Applied-Minerals-Inc-Appoints-Sharad-Mathur-Ph-D-its-Chief-Technology-Officer.html)
e.There has since been a key personnel change - in late 2019, then chairman Andre Zeitoun resigned and Mario Concha was appointed in his place as President and CEO.Concha was quoted as having stated: “The otherDirectors and I strongly believe that the current management team is now properly positioned to achieve the Company's commercial goals.” (https://finance.yahoo.com/news/applied-minerals-inc-issues-letter-100000085.html)
My point of referencing thematters above is that it is not immediately clear to me the extent to which thehalloysite Agreement between BASF and Applied Minerals has since in fact resultedin commercial activities in any significant material way and that this maystill be in its infancy (if anyone can shed further light on this, please do).If this is correct, it might also be reasonable to speculate that BASF would also be interested in (and perhaps actively seeking) high quality halloysite from additional sources.
4.We also know that ADN has expanded its marketing efforts throughout Europe, with testing (refer, for exmple, to the PFS release on 1June 2020) for a range of applications underway with potential customers and applications.Likewise the PFS indicated (my emphasis added):
a.“Market pricing for Andromeda’s premium grade halloysite-kaolin has been indicated by end users and commercial contacts in China, Japan and Europe.Production of commercial quantities will be completed in June and distributed to existing and new potential customers for final approval trials.Interest has been high with numerous requests for material being received from potential customers in several countries.”
b.“Because Andromeda offers both superior quality and long life reliable strategic supply, potential customers in Japan, Europe and throughout Asia have expressed strong interest…and because market prices in Japan and Europe are higher than in China, it is intended to service these markets with this additional product.”
c.“At this stage testing and discussions are in progress with agents/distributors covering Australia/NZ,Asia (two large distribution houses), China (four companies), India, the Middle East and Europe. This is in addition to the direct customers who have already signed offtake letters of intent, customers where testing is in progress, and new potential customers that have either requested samples or are being targeted.”
5.Intriguingly, ADN’s PFS also states at page 28 that (my emphasis):“Other applications [for halloysite] are also currently under testing and include: … Medical anti-viral facemasks (Europe)” .BASF reported in the business and financial news section of its website on 14 April 2020 that it had donated over 100 million protective masks to Germany as part of its “Helping Hands” campaign in the fight against the corona pandemic:
(https://www.basf.com/global/en/media/news-releases/2020/04/p-20-180.html).
All of the above does now give me some cause to wonder whether it is possible BASF – seemingly as a “European”organisation - may be amongst the prospective high quality halloysite customers with whom ADN has had contact.Again, this is pure speculation on my part and provided for interests-sake and hopefully a basis on which everyone may undertake their own research on the matter.