The Investors Guide to Graphene, page-5

Sure, there's excellent money to be made from graphene sales especially if TLG can ship out jumbo rolls in clingwrap or Alfoil format and good money from graphite sales but I wonder how much research they're collaborating in to do with end use applications.

Digging it out of the ground is the easy bit and making sheets of the stuff either alone or in a JV would be a bit harder but extremely profitable nonetheless. This is what I would call the easy or relatively easy route to making really good money and it is virtually inevitable simply because there will be huge demand for the product and TLG is in the box seat as the lowest cost supplier enabling it to underprice the rest of the market. As market intelligence spreads and it is spreading quickly, a point will soon come where the penny drops for industry and when that happens TLG will have them lining up at the front door to do deals whereby TLG supplies the material and industry "builds it in" to the end product.

But I believe there's the potential for much more than this and that is to not only supply the material but also to share in the development of the technology that will see graphene incorporated into end use products such as steel, batteries and so on. By collaborating now with potential end use manufacturers TLG could share in the profitability of the new graphene based products in the marketplace.

If TLG can work with potential manufacturers and specialised research centres through R&D agreements that see TLG secure royalties or commissions on end use sales it will be in a unique position to build an immensely profitable business in the longer term. Some of the elements of this strategy are already in place as TLG is working with a couple of manufacturers e.g. inks in Germany and universities in the UK.

If we think five, ten, twenty years down the track the potential for graphene is mind blowing.

The key to building a mega-company is to lock in profitability on downstream usage now.

As I see it, sharing in the IP flowing from R&D in end use applications is an important element in building long term profitability and now is the time to start putting these programs in place.