FGR 8.20% 5.6¢ first graphene limited

Investment Case for First Graphene

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    Here is my brief/basic explanation of First Graphene.

    There are two main types of Graphene,

    Chemical Vapour Deposition - basically it's heating gas at high temperature in low oxygen environment, the carbon in the gas converts into graphene (film on the sub straight). predominantly single-layer graphene .335nm thick. High-value graphene.

    Graphene Nano Platelets (GNP) - typically uses graphite as the feedstock, the methods turn graphite flakes 1 mil graphene layers into graphene 1-10 layers, Methods are shearing forces (liquid or grinding), electrochemical or chemical.

    To make things even more complicated there are 3 main types of GNP,

    The following applied to GNP,

    Graphene - pure carbon with low oxygen levels,

    Graphene Oxide - Around 20-50% oxygen) Chemical process,
    Method to manufacture Go is in the link, the thread is FGR's Green method of producing Graphene Oxide, where they own 67% of the company that holds the IP.
    https://hotcopper.com.au/posts/42553873/single


    Reduced Graphene oxide, (starts with Graphene oxide and uses more chemicals to reduce the oxygen levels)

    Then there is doped graphene, no oxygen graphene ect.

    Size - Just like there are different sizes of Flake Graphite, this also applies to Graphene,
    i.e size matters, there is no point having the thinnest graphene if the lateral size is lost.

    There is plenty more to know about Graphene -defects, impurities, ect.





    First Graphene produces GNP which are used as an additive, it use Sri Lankan Graphite as the feedstock - have 39 500ha of exploration area in Sri Lanka 2 mining license and a supply agreement with the SL Government graphite mine,

    FGR has already built a 100tpa graphene facility in Henderson Western Australia (no debt), The production method is electrochemical exfoliation, the majority of the plant is automated and modular in design.
    Henderson can produce 4 different Lateral sized graphenes,

    5um - Electrically conductive inks and coatings
    10um - Reinforcing of rubber, carbon fibre, and glass fibre.
    20um Rubbers, Fire retardants.
    56um (concrete),

    Thickness is typically 3-15 graphene layers.

    The cost of production is around 50-60k per tonne, with the current sale price US$200k per tonne, depending on the quality and platelet size.

    Research and Customer development

    FGR is a Tier one partner of the Graphene Engineering Innovation Centre GEIC, It is a $60mil GBP facility in Manchester (The home of Graphene) FGR has a supply agreement with the UoM to supply graphene products, which implies the GEIC testing partners will be using FGR's PureGraph Graphene,
    FGR have their own labs at geic and have the access to use all of the equipment and the 300 staff

    The following images are the GEIC's non-confidential clients.


    geic partners.jpg




    Sales - have been below their expectations, the SP was depressed last year when they missed their BE forecast.
    FGR is directly working with over 70 customers, in a range of applications, the applications certainly don't sound very sexy although the results offer significant benefits to the end uses and the applications are low risk.

    Last year they signed an agreement with Spacemat, which uses graphene to help recycle used tyres.

    Newgen - Uses a 20um graphene in a polyurethane bucket liner, it has also been used in pipe spools, conveyor pullies, dry chutes. I believe Rio Tinto has been trialling the bucket liners for over 14 months, which is a world record for bucket liners. The liner was handed back to Newgen in late November, but the principal (Rio) is yet to allow the results to be released.

    Natural Rubber graphene - FGR has been successful with adding graphene with Natural rubber, they installed these G infused rubber liners back in September at one the major iron ore manufactures. This development came about after Newgen's success. When the mines are shut down for maintenance, they have issues with the welding splatter landing on the rubber screens, they catch fire and cause significant loss of production.

    Graphene provides 2 main benefits, it increases durability and reduces the fire risk, I cannot remember the exact figures, but they won't burn under normal oxygen levels and last 30-60% longer

    HDPE plastic - this development has happened very quickly, where they have commercial oyster baskets already in sea trials off the coast of Australia, - Another non-sexy application, although the HDPE market is a multi-billion market.

    Fibreglass - Aquatic Leasure Technology is soon to launch the world's first graphene pool, graphene offers more strength 30%, the number of layers required, increases productivity by 30% and reduces osmosis - reduces water/chemicals from penetrating through the layers. Its a pretty significant development as it will lead to a number of other industries - Marine, Wind turbines ect.

    Concrete - No sales yet but they are seeing significant improvements using PureGraph 56um, that offers 34.3% increase in compressive and  26.9% increase in tensile strength by adding 0.07 % graphene in a cement composite.
    The results are double nearly double of the 25um graphene tests.

    FGR has also announced that is no upto its 4th sample with a multi-billion dollar European Master batch company, Investors have hinted at BASF due to them being linked to the European Graphene flagship (where FGR is also a member) Although I think its another company.

    IP's under development.

    Firestop - University of Adeliade IP - FGR - Globle license, graphene based fire retardant, that can be used timber, metals and plastics. Shareholders were updated in October that they have a USA based company currently evaluating the product to commence production.

    Vortex Fluidic Device - FGR owns 67% / Flinders University.
    This can produce anything from Graphene from flake graphite feed, fullerenes (carbon spheres/cones), biodiesel, cancer treatments, cuts Carbon Nano Tubes, produce Green Graphene oxide.
    Well worth checking out Professor Raston on Google Scholar, nearly all of his recent research papers use the VFD device.
    (Click on year tab, then expand the search (Show more) at the bottom of the page
    https://scholar.google.com.au/citations?user=nP7OBe8AAAAJ&hl=en&oi=ao

    Hydrogen/Graphene production
    This is FGR latest development, looking at the research papers, FGR's CTO Paul and company director (Andy) helped work on this project when they were employed at Thomas Swan (another graphene company) the basic summary of the method. it uses cheap petroleum feedstock (liquid) and is sonicated with activated carbon, during the process the petroleum is converted into hydrogen gas (40kgs) and graphene (960kg),  the company recently received UK government funding to build a larger prototype.

    Metal Oxide Decorated Graphene MoDG - University of Manchester IP - FGR has the global licensed
    This production method uses electrochemical exfoliation, the metal oxides are grown on the graphene flakes, that are suited for next-generation lithium-ion batteries or supercapacitors, Warwick Manufacturing Group, (UK's largest battery testing house) is currently working with FGR on different electrolytes to give greater capacity.
    The ModG can also be used with Electrolysis to produce hydrogen.

    The production method can also be used to produce no oxygen graphene.



    Shareholder's biggest issue has been its disclosure to shareholders. Recently the CEO Craig retired and Mike Bell is so to commence, I hope he can improve the communication and deliver on the companies success of graphene development/production.
 
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