FGR announces an agreement with Halocell who received quite a bit of press this month for its indoor tuned perovskites solar cells as a potential replacement for batteries in small devices. Unlikely to be significant revenue but an interesting application.

"Halocell's perovskite cells operate at 27 per cent efficiency in low indoor light (50 lux) and 22 per cent in bright indoor light (1000 lux), according to the company's product specifications.

The modules are less than a millimetre thick, can be printed for low-cost on long continuous rolls of plastic, operate from -10 to 60 degrees Celsius, and come with a five-year warranty for indoor use. Durability has been improved (to the standard for indoor use) with the addition of a protective coating.

According to Mr Moonie, a single module produces enough power to replace the batteries in a TV remote or power a set of headphones, and had an acceptable lead content based on guidance from the US Environmental Protection Agency.

"We're starting out at 8,000 a year and will be constantly increasing that output," he said. 

"Eventually we want to be around 70 million units a year."

Two-year commercial agreement secured with Australian perovskite solar cell manufacturer Halocell Energy to supply PureGRAPH® • Graphene utilised as a high-performing coating for solar cells, improving durability and efficiency while reducing costs • Multi-year deal provides strong pipeline of commercial opportunities for First Graphene in growing renewable energy sector 

Halocell Energy will release its first commercially available indoor perovskite solar cell module this month, which can be used to charge small electronic goods, replacing disposable batteries. These graphene enhanced modules are up to five times more efficient than conventional silicon solar cells. They are also more cost-effective, with Halocell Energy demonstrating graphene can reduce manufacturing and materials costs by over 80% as the need for high-cost conductor materials such as gold and silver are eliminated.

Investor presentation for the New World Metals Investment Series in Melbourne and Sydney, including a more detailed breakdown by region and volume of projected market. I assume that this is separate to the concrete market. Claiming >500 of inbound interest for samples and trials.

Forward-looking order book of circa A$500,000 for FY24 so CR coming in the next 6 months? SP near all time lows will make this difficult.

Questions that this graphic raises. Why are product launches all FY25? Is this supposed to be that launch of the product containing graphene? Total volume of 11.5 tonnes is well short of the old figure of 20 tonnes for breakeven so is this a capitulation that concrete has to happen to be viable? Earlier statements said that the 100tpa plant at Henderson could be scaled to 1000tpa.

First mention of Indonesia and biggest volume is interesting.

Unfortunately we have seen many trials in the past disappear and these graphics show that apart from Aquatic Leisure (swimming pools) and Newgen (mining wear liners) the rest are not significant. It also shows a number of NDAs which is always difficult to determine whether they are likely to lead to anything.

Positives: First time projecting significant volumes in new markets (although past projections have been well wide of the mark)

Negatives: Still looking to be a loss making research company in FY25 unless cement surprises to the upside.

Disc: Held in RL 5.5%

There had been no mention of the Kainos process (producing graphene, graphite and hydrogen from fuel feedstock) for a while but another research project funded by Innovate UK for further investigation by Swansea University keeps it alive.

Progressing commercialisation of graphite-producing cavitation technology with a grant of ~A$192,000

Objective is to develop a manufacturing process for making synthetic graphite and pristine graphene

Kainos Technology could deliver a preferred synthetic battery grade graphite source compared to conventional mining and processing

Still no significant revenue ($125K). Starting to doubt the potential of cement when there are competitors pouring cement free concrete trials (C-Crete) which are zero emission.

"C-Crete’s basalt-based concrete boasts compressive strength exceeding 5,000 psi. It demonstrates pumpability, workability, setting time and surface finish akin to conventional concrete while meeting ASTM International standards for mechanical and durability properties, a fact verified by independent third parties. Crucially, it achieves these feats while maintaining cost-parity with conventional concrete."

Third trial is still to be completed.

This trial will test First Graphene’s PureGRAPH-CEM® product, which has an optimised formulation designed for use in cement grinding mills. More than three tonnes of this new grade of graphene will be tested under full-scale cement production conditions at Breedon’s Hope Cement Works facility. First Graphene’s Henderson facility commenced manufacturing of the PureGRAPH-CEM® quantity required for the trial, which has been scheduled for September with results due by the end of 2024. The new grade of graphene will also help meet emission reduction targets, with the product containing up to 50% less embodied CO2 compared to other grades used in previous trials.

Outflows reducing but not nearly fast enough

Moving out of the GEIC, maybe due to conflict of interest with a Tier 1 partner Concretene

Relocation to dedicated Manchester facility During the quarter, First Graphene’s UK-based team started relocating to a new research and commercialisation facility located in the Manchester Innovation District. The space occupies 251m2 and contains a dedicated cement laboratory, general laboratory, meeting room and office space. The new building has been designed for commercial chemistry development and customer support work as First Graphene increasingly shifts focus from research to commercial opportunity. The relocation follows the Company’s departure from the Graphene Engineering Innovation Centre at the University of Manchester, as First Graphene focuses on growth with commercial clients. The Company’s UK-based team will fully relocate into the new premise by October 2024. This will lead to the Company working closely with clients’ research and development teams and associated facilities. 

Another research project, this time liquid hydrogen containers. Cost to FGR $115K. Interesting project but hard to get enthused after so many previously announced that never get updated. Still waiting on possible cement revenue.

First Graphene will impart knowledge and expertise of graphene nanoplatelets to manufacture an array of materials tailored for optimal performance in composite pressure vessel (“CPV”) to minimise hydrogen permeation, whilst seeking to introduce other application benefits such as enhanced fire retardancy and inherent strength. The developed CPV storage solution will be integrated, tested and validated by HASL’s hydrogenfueled, unmanned High-Altitude Platform System, used to provide greater broadband and cellular network connectivity from the stratosphere. 

HyPStore is designed to facilitate a disruptive solution for the production and storage of liquid hydrogen, enabling a new generation of mechanically robust impermeable tanks with enhanced safety through integration of leak-before-break (“LBB”) and a range of other innovative features. The project will explore hydrogen gas production through a novel plastic recycling process developed by ASL known as Flash Joule Heating (“FJH”), before the hydrogen is purified and compressed into liquid.

HyPStore brings together Australian and UK expertise to develop and commercialise novel lightweight impermeable cryogenic all-composite (Type-V) tanks for the safe storage of liquid hydrogen.

Grant supplements project delivery The project cost of approximately $3.72 million is supported to the tune of $1.73 million through Innovate UK’s UK - Australia Renewable Hydrogen Innovation Partnership Programme (“RHIPP”) and commences in July 2024 for a duration of approximately 21 months.

First Graphene is one of nine entities involved in the consortia and will contribute approximately $382,000 towards the project, of which $267,000 will be directly received by FGR through RHIPP. This funding will support the Company’s pivotal project role focused on developing graphene enhanced resins to reduce hydrogen permeability and increase strength in composite systems.

Driven by growing demand for safe production, storage and transportation of hydrogen as a highly sustainable source of clean energy in transportation sectors, HyPStore is led by Manchester-based Graphene Innovations Manchester (“GIM”). Other industry players include Australian Sunlight Group (“ASL”) (small QLD based ag pipe recycler) , aerospace industrial partners Slingsby Advanced Composites (Our state-of-the-art advanced composites facility in North Yorkshire has consistently been awarded top supplier status by long-standing customers, including BAE Systems, Rolls-Royce and Lockheed Martin, for our ability to deliver on time and to the highest quality and safety standards.) and Hydrogen Aircraft Services Ltd. (“HASL”)(small UK consultancy). Universities involved include Queen Mary University of London (“QMUL”), Brunel University London (“BUL”), University of Melbourne (“UoM”), and University of Southern Queensland (“UniSQ”).

Investor presentation gives the first indication of possible revenues from cement and concrete. Back in 2018/19 we were told that 20 tonnes of graphene would give break even. The calculations are a bit smoke and mirrors.

Total global cement production in 2020 was 4.4 billion tonnes, and is forecast to grow at a rate of 5.1% per annum

UK, USA, and EU combined represented 302 million tonnes of cement

This equates to a potential graphene demand of circa 211,000 tonnes, based on industrial scale proven dosing rates

1% of this graphene demand is equivalent to ~AUD$90m in annual graphene sales , based on existing cost structure

Based on current clients FGR is working with, there is opportunity to provide 5-6% of global graphene demand

This represents circa 12,000 tonnes of PureGRAPH®

Tier 1 production facilities produce 1 million tonnes of cement, equating to ~300 tonnes of potential graphene demand

So bearing in mind that the current facility can only produce 100tpa. 1% of 211kt = 2110 tonnes = $90M so 1 tonne = $42650.

So revenue with current capacity = $4.2M

Loss for the last half was $3.7M and current margin is 57% so there is going to need to be capex for at least tripling the production capacity to hit break even at this price and according to the presentation that would be the $300 tonnes required by Tier 1 producers.

So back in 2019 when break even was proposed by WG at 20 tonnes must have been at more like $450K / tonne.

Thought that the cement industry might be a company saver but if my sums are right it still has a long way to go.

Another announcement but today's has sparked a bit of interest with the SP up 40% at time of writing (admittedly off a low base). Efficiency improvements could help wider adoption if the graphene can be supplied at lower cost. Still waiting on a decent sized order.

Significant efficiency improvements achieved at Henderson graphene manufacturing facility

Highlights

New German-made Retsch mill enables 60% improvement in downstream process efficiency and makes milling process 67% more cost effective

A faster, more efficient drying facility with Micrea microwave due to be commissioned in mid-2024 to further improve the production process and save labour and energy costs

Optimisation trials and equipment supported through Federal Government Manufacturing Modernisation Fund Grant

Overall improvements in plant efficiency over the past 12 months include 32% improvement in the production rate, 25% reduction in power costs and greater ability to provide a wider range of graphene products to meet customer requirements.

"Increased interest and demand for PureGRAPH® 5 means the Company is taking commensurate steps to ensure capacity to supply what has been historically an expensive product to make and requires a long processing time."

Held in RL

As predicted SPP for $5M at 19% discount to 5 day VWAP 3% of raise to broker, not underwritten.

Funds raised to be used to accelerate the commercialisation of FGR’s highly successful graphene-enhanced cement and concrete solutions

No details on how it is being spent.

Issue of up to approximately 78,125,000 Shares at an issue price of A$0.064 per Share. ~13% dilution

Last gasp, will be interesting to see what the take up is.

Disc Held in RL

Black swan graphene a UK/Canadian producer aiming for a selling price of $8-10 per kg which is substantially less than FGR. Also targeting the concrete market. Looks like FGR is rapidly losing is first mover advantage.

FGR Held in RL

FGR gets a mention on Matt Ferrell's Youtube channel 990K subscribers and 172K views for this video. Explaining the use in concrete, cement and silicon anode research from 6mins-9mins.

Good to raise the companies profile.

Disclosure: I hold FGR (largest holding outside of Strawman and a near 100% return) and still believe in my thesis despite being frustrated with the pace of progress. It is a product with benefits across a wide range of applications and therefore a large addressable market, the production method is scalable, the company has a degree of first mover advantage but the management have been unable to meet projected progress.

First Graphene has promised much but not delivered expected sales in the last 2 years despite predicting positive cash flow by the end of 2019 and working with a reported 50+ possible customers.

They have a process that is scalable and produces consistent graphene (https://app.sharelinktechnologies.com/announcement/asx/e4a9f3377f8f8d89fb6f63ea6a592a31) of varying platelet size that can suit different applications. 

“??PureGRAPH® is consistently high quality graphene platelets. Previous work by Professor Losic’s group has shown these can be “tailored” for end users by functionalising the platelets with specific chemicals. This demonstrates the versatility and unique nature of PureGRAPH® products.”

They recently developed an easily dispersible mix.

(https://app.sharelinktechnologies.com/announcement/asx/6696ca9653bc9d62ad1f56246bff0cff)

“Pre-dispersed graphene additive in a water solution allows easier mixing and dispersion into water and solvent-based formulations.”

They were the first Australian company to register for bulk sales in Australia and are also registered for Europe bulk sales.

The benefits of using small amounts of graphene are significant in improving strength, abrasion and fire resistance in a range of applications.

Current products using FGR graphene include swimming pools, work boots, mining bucket liners “62-week trial showed a 6x longer life for liners due to significantly reduced abrasion wear rates” (https://app.sharelinktechnologies.com/announcement/asx/f634b7c2ef606499d38e84e2af94758f) and concrete

“The compressive and flexural strength of cement-based mortars improves by 34.3% and 26.9% respectively  Benefits extend into Recycled Aggregate Concrete (RAC) with an increased compressive and tensile strengths by 43.9% and 24.1%  Significant sustainability benefits with an approximate 40% reduction in water permeability (https://app.sharelinktechnologies.com/announcement/asx/3551cd573b16aeaa287aabe950787338 ).

They have a strong research base with a couple of universities (Manchester, Adelaide) and an interesting spin off VFD to produce graphene oxide and another for possibly blue hydrogen.

“The results provide the potential of being able to provide bespoke graphene oxide for varying applications.” (https://app.sharelinktechnologies.com/announcement/asx/bc74e957ee0ccf639f5a028ac88af4d6 )

“Metal oxide coated graphene is shown to be an effective catalyst for next-generation hydrogen fuel cells  Graphene materials could replace high-cost platinum catalysts”

(https://app.sharelinktechnologies.com/announcement/asx/8d85c4fda578b964de73cbbfafa30439 )

“Dr. Richard Price (Kainos Innovation Ltd), the inventor of the technology, which directly converts low-cost hydrocarbon feedstocks to graphene materials and hydrogen gas is actively engaged with the First Graphene team. “

UK Patent Office have confirmed that an exclusively licensed, process patent will be granted in the United Kingdom 

(https://app.sharelinktechnologies.com/announcement/asx/70aa7406fbe5574504edaa7fd7db28eb )

They have a significant amount of high quality graphene already produced and this is theoretically their big advantage over other producers. Theoretically plants could be built on site to provide large scale production where needed as the uptake grows.

A significant number of Options are about to expire and many holders are angry over a recent placement which makes the options not worth taking up at current share price.

An imminent agreement with a large South American steel producer Gerdau has missed the deadline suggested by a director.

“Gerdau S.A. to be the exclusive distributor for FGR’s range of products in defined territories and end applications in the Americas.  Distribution territories will include Brazil, South America and potentially the USA  NYSE-listed Gerdau (NYSE:GGB) is Brazil's largest steel producer and one of the leading producers of long steel in the Americas and of special steel in the world, “ (https://app.sharelinktechnologies.com/announcement/asx/a2e655e8d1829d95cd725bec09806e5c )

So what is the problem? Various possibilities have been raised.

Need for long term testing before being acceptable for use in large scale applications.

Unclear cost benefits when items last much longer.

Cheaper, lower quality graphene being chosen for point of difference marketing use in products eg. clothing.

Poor marketing ability from the company.

Certainly there has been real frustration from shareholders over the lack of explanation behind missing proposed deadlines and the lack of updates positive or negative.

“Firestop™ product offers a new approach to fire retardant coatings which facilitates fire protection using thinner coatings – reducing both coating material consumption and labour costs during application • Test work continues to demonstrate that First Graphene FireStop™ outperforms existing fire-retardant coatings.” (https://app.sharelinktechnologies.com/announcement/asx/0f181e7253fc54146fa84c1becc6679f )

Last update was 10/2020 

“First Graphene and TPR2 have entered into an NDA to complete due diligence with the view to commercialisation of PureGRAPH® enhanced fire retardant coatings.”

(https://app.sharelinktechnologies.com/announcement/asx/2202bff80e9903fa19669386714a0e90 )

As a Chemist all the science adds up and I believe that the commercialisation of graphene will happen. I strongly hope that a Perth based, Australian company will be at the forefront and not lose its lead in this exciting technology.

I am not sure about a valuation as current sales could multiply many times with 1 or 2 substantial deals but no idea of a timeline. 

Arrowhead valuation and detailed report Feb 2021 in a broad range 0.25 -0.52

https://firstgraphene.net/wp-content/uploads/2021/03/First-Graphene-ABID-Report-26-February-2021.pdf