PPK Value

Here is arun down of why I think PPK is one of the most highly oversold and undervaluedstock on the ASX today. The markets are all about revenue currently and anycompany not making it has been nailed to the wall. So how do we value a companythat is not making any revenue, well book value is likely the best way pluspatents, goodwill and unfortunately, we need to leave out forward thinking, asthe markets are disgusting to say the least. Unless of course you dig a wholein the ground and say, look we have some lithium! I know we’re a gold producer/explorerbut we found lithium here as well. We are never going to mine it, but looklithium!!!LITHIUM!!! (I think we get the picture).

LI-S Energy– Starting with the most obvious, PPK holds directly or through BNNT 50.23% ofthe company. Current MC is $144 Million (PPK - $72 million). With the stage 3nearly completed (on schedule for November, so now) LI-S have 2 months ofinstallation and commissioning which suggests that they’ll need larger amountson BNNT by the end of January 2024. How much will they need, that we don’t know.So how important are BNNT’s to the LI-S batteries? Well again listen to theexperts. https://www.youtube.com/watch?v=R9HmF99gaQ4&t=4shttps://www.youtube.com/shorts/0eHhJaPiLpo BNNT. PPK an LI-S are all inter-connected and will be all benefiting from their progress.

BNNT – Withthe company coming out and saying they have reduced the price on BNNT to $150/g,this could well be a game changer for the compound. Always considered tooexpense to use on a commercial scale these guys are putting other BNNTproducers on notice and dare I say bankrupt in time? If NASA or any other researchcompany need to grab a kilo of BNNT’s then they have 2 choices, stump up $440k elsewhere(poorer quality at that price) or $150k with BNNT Tech. That is really someprice difference. Currently PPK holds 51% of BNNT.

White Graphene(WGL) – PPK holds 81 Million shares in the company. The last CR done at 50cvalues the shares at $40 million. They will be able to produce at scale from FY2024 2^nd Qtr. In the mean time they are the only company able toproduce commercial quantities of White Graphene in the world. IPO will come,when the world stops being a pain in the arse!

Craigballistics, AMAG, PPE plus the other smaller companies, goodwill and intangiblesroughly $40 million in value.

Cash $3-5Million (Loans repaid, management fees paid from subs etc)

WGL $40million

LI-S energy$$72 Million

Other Companies$40 Million

BNNT – Thisone I think is hard to value. If sales happen then anywhere from $100-300million in it’s own right. But to be conservative $50 million?

PPK in cash,shares owned, goodwill and intangibles in all companies at face value;

Minimum –with 0 revenue MC $207-307 Million. Current MC $85 Million. Currently PPK isundervalued by the market by 150-260%. That is not consideringany further growth in any of the 10 or more companies they are part owner oraligned with. Repeat, no forward thinking in this price!

I’m mostlyinterested in PPK as I am from the Geelong region and I have contacts/friendsworking for and at Deakin in the frontier dept. I live close to the Avalon Airportand am aware of all the works going on in that area. The ground has been brokenfor the battery Giga factory being build close to the Airport. I drive pastregularly to look at the progress. Recharge Energy is now focusing on the lithium-Ionproduction in Britain as they purchased British Volt that went under. So whatwill they use the Geelong ground for? Well LI-S Energy may have a greatopportunity to get on board to partner up on the development of the Gig factoryfor their Lithium Sulphur batteries. Same area, same people all wanting theproject to go ahead. After Recharge Energy pivoted to the British Volt site inEngland then what to do with the Geelong site, as work had already beenstarted. Watch this closely as I have a pretty good feeling that we may seesome news next year about this. The whole Avalon Corridor has some very bigindustrial plans coming.

So tofinish lets look at BNNT. When we started this process, the cost for BNNT wasover $1 million per kg. this was reduced to $850k and then down to $440k in arelatively short time 2-3 years we have now lowered the price down to $150k perkg. Remembering research companies had to pay all of these prices in theprocess. Not many could afford it. With this current pricing, the market willsuddenly be broadened by 100’s of manufacturers/companies that can now affordto test/research using BNNT. TenCate was interested in BNNT at a much higher pricelikely $400k or more per kg. So the sales team now have the hard task to say tothem, well we’re glad you like it, we can sell you some more at 65% discount ifyou like? (lol). Carbon graphite was similar, too expensive for a long periodof time, as prices dropped more and more uses became possible.

As postedearlier, the Mars missions, while they seem a long way off, the research done statesclearly that BNNT or better still hydrogenated BNNT is the clear winner forspace craft, space suits, and also the Mars vehicles. Then we can talk aboutspace X and Elon's ideas. What would they need for any habitable structure onMars? Radiation will be on his mind I’m sure, hydrogenated BNNT maybe? Why? Well,the people at NASA actually came up with the mixed compound and here’s whatthey had to say about their research. I’ll leave this post with their quote.

Concluding Remarks (one of)

Since BNNT materials are vastly superior with respect to mechanical and thermal properties, our HBN materials have the potential to be disruptive, multifunctional, structural radiation shielding materials. This is a RevolutionaryBreakthrough! (I didn’t add the ! it was already there!)