Gerdau, page-135

Mmm, so FGR management, what's happening with Gerdau?

MOU announced on the 9th of March 2021.

Chairman WG says words to the effect in April that FGR in negotiations with Gerdau for a supply/JV agreement. Says it is 'weeks away'.

WG clarifies this prediction a month or so later by stating that he expects and/or is hopeful 'the' agreement will be signed by the end of financial year 2021.

30 June 2021 passes and no announcement.

In corporate presentation on 8 June 2021, only mention made in relation to Gerdau is to March MOU.

23 June 2021 FGR Commercial Update released to the market. No mention whatsoever made regarding either MOU or any other potential agreements with Gerdau SA. This seems peculiar considering that the agreement is apparently imminent. Meanwhile Gerdau announce that they have entered into a formal agreement with a Canadian Graphene Co for the supply of graphene for their (Gerdau's) new graphene business. Whilst others on HC referred to the fact that FGRs graphene is different from the Canadian company and that that may explain the Canadian deal, I was somewhat concerned by this development, especially after all the Gerdau hoopla in March about FGRs graphene being the best and most consistent quality. Anyhow...

Moving right along, FGR then release video of CEO Mike Bell talking to a U.S media outlet (New to the Street) about the company in late June 2021. No mention again regarding Gerdau, not even that they have entered into the MOU. When asked about the commercialization of graphene going forward (an ideal opportunity mind you to discuss the 'imminent' Gerdau supply agreement or j/v) Mr Bell makes no mention at all regarding Gerdau. Surely this raises eyebrows for some holders, especially considering the potential of the Gerdau agreement? He does mention the use of FGR graphene in surfboards though... go figure.

Who knows, I may be just jumping the gun as it were and the deal could drop next week. All I will say fellow holders is that the Gerdau potential supply/JV agreement had/has significant potential attached to it. If it falls through (and I sincerely hope it doesn't) then some people within the organization will have some serious questions to answer.

That'll do for now. I'm interested in other constructive feedback from fellow holders if they have anything to say on the topic.

All the best. DYOR. All in the above IMHO.

Mr B