Hi wapeti, firstly let me say I share your obvious frustration. The reason why my posting has been less frequent of recent times, is because I usually try to post positive things about companies I invest in. And I am finding that a bit difficult in recent times in the case of FGR.
I am still invested, and I am certainly still a strong believer in the "Graphene Revolution", and the potential for SL crystal vein graphite to be used as the precursor for production of the highest purity large platelet graphene, and the potential for that special graphene to be the catalyst to develop a hugely profitable company that would be a leader in the GR.
You are correct to point out that with access to crystal vein graphite from Sri Lanka, and with the development of the method of bulk, low cost production, as a result of research at the University of Adelaide FGR has the potential to set itself apart from all other (pretty much) producers of graphene.
And there are plenty of those producers coming on stream now - you only have to keep up to date with the Graphene Info Newsletter, or the Graphene Entrepreneur. Some of them are claiming low cost production, and some planning considerable scale. But to date I have not seen any that can match the quality, purity, and especially the large platelet size that FGR can offer.
That is FGR's USP - the unique sales proposition that can potentially place FGR at the very top of the pile - assuming they use the recently appointed graphene specialist to help them seek out those potential commercialisation prospects that match the requirement for large platelets.
If no one else can match that requirement, then FGR can set it's own price - it will certainly be at the top end of the scale. And if the end user is a large organisation with volume requirements, - a Tesla, a Boeing, a Ford, etc etc (you get the picture), then the world is our oyster.
Interesting that the Chairman at the AGM mentioned the anecdote of the moment when Tesla representatives visited the company stand at IDTechEx in November 2016. They were interested, and enquired about the availability of supply - "We will be interested when you can supply 100 tonnes per year"
Now the telling of this story was probably used for a different purpose. You will note that the share price spiked right after, with no announcements or other news, apart from the fact the official opening of the new premises had occured the day before. (which was still a few months from producing graphene.)
But I just wonder why directors, on hearing that from Tesla, didn't rush home to execute a plan to sort out the issues in Sri Lanka, so that they could guarantee secure supply over several years from their own mines. Because that is what Tesla, Ford, Boeing etc etc will require. And any one, or more, of that type of customer will rapidly put FGR into an entirely different league. Can you imagine the sentiment around FGR, and what its SP and MC might be if one of those potential customers declared an interest? If the plans and targets for mining had even been partly met?
The slow progress in mining is more likely the reason why the attention has been switched to the IP area. Now while some of those IP's hold promise, they are all at an early stage, and as far as I have been able to determine, none of them use the high quality large platelet sized graphene that FGR can produce. I think that helps to explain the loss of focus, or change in direction.
There are a wealth of other factors involved here. Some of you know that I spent much of last year involved with the FGR long termers group. There are some wonderful researchers in that group, including an independent researcher who has identified some special characteristics of SL crystal vein - and in a presentation at Leipzig University was able to help demonstrate that in areas of conductivity for example, it has no peer.
So I have collected quite an amount of information on various aspects of graphene, SL graphite, and FGR, including how it built it's resource base in Sri Lanka. I have spent many hours delving into the history of SL graphite, and the more recent interest shown by many parties in getting a share - including the German company that runs the Bogala mine (running low), Chinese companies, and the SL Governments own industry group that has been charged with developing greater value from the government owned mine.
There are many potential coompetitors not only for the output from Kahatangaha, but also the large ground area we hold exploration licences for. The company seems very certain of secure supply, and secure tenure of our exploration ground. If you read recent commentary on the Chinese influence in Sri Lanka currently, and the tension over the very large debt the country owes to China, then there is cause for a plan "B", especially as China has made it clear they intend to be at the front end of the Graphene Revolution (many would say they already are), and the one area they do not have covered is the production of the top quality large platelet sized material. (They already have the exfoliation process sorted, as recently publicised)
I think I have mentioned some time ago that I thought there was a book in this story, and you can probably guess from my posts on last years annual meeting, and the "finding multi baggers" series, the key story line and focus of the book. You can also probably guess that my current thoughts are more along the lines of why the huge potential was not achieved, and a focus on identifying the factors, the "missteps" the company made to veer off course and get sidelined in minor corners that have little potential for the same kind of grand scale initially available to FGR. Mainly because of the failure to get truly professional mining operators involved at an early stage.
This post is already too long (but it might come in useful as the basis for a chapter in that book), so I will end here for now and look at some of the issues around mining problems and delays, and the possible reasons for them, in a further post or two. And of course, outline just why mining bulk quantities of this special material from our own secure resource is the key to FGR reaching it's full potential.
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