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

FGR moves in to graphene oxide production. Overlaps with a couple of ASX companies that I own/follow. DEM/ CNQ are both pursuing the GO water filtration market. FGR successfully produced multi-kilogram quantities of graphene oxide.

Graphene oxide is similar to graphene but has a high oxygen content which makes it readily dispersible in water. The material is strong, flexible and porous with a high surface area, which is suitable for filtration and supercapacitor applications.

Graphene oxide successfully produced at Henderson facility using a modified version of existing graphene production process

• Sustainable and cost-effective process conducted with minimal waste streams

• High-quality graphene oxide opens up extensive new opportunities not previously considered, including water filtration 

The graphene oxide product was manufactured in a cost-effective, scalable, and repeatable process that produces a consistent product with minimal waste streams.

First Graphene’s product will meet the needs of various industries, with strong demand already identified in water purification and desalination processes. The Company is currently in discussions with customers in these markets. Graphene oxide’s characteristics make it suitable for use in polar thermoplastic polymers, such as PVC, polyesters and nylon, as well as aqueous coatings. The graphene oxide market presents a significant opportunity for the Company, poised to reach USD$2.7 billion by 20331 . Graphene oxide can also be deployed in concrete applications, diversifying and enhancing First Graphene’s product offerings to cement and concrete clients around the world. 

If FGR could have sold its announcements of where graphene could be used it would have generated more revenue than from selling graphene!

Half year results still a long way off making a profit.

Concrete/ cement still the best hope and then a new announcement which gives us another spray of potential applications.

Lubricants has potential:

"Improved durability and wear resistance demonstrated for lubricants market Laboratory and commercial scale trials with a new multinational client looking at the enhancing capabilities of adding PureGRAPH® into lubricants has been successfully completed. Results from the external trials demonstrate an increase in wear resistance and improved durability when graphene enhanced lubricants are applied to bearings. These results have provided confidence to progress to full production use of PureGRAPH® enhanced lubricants this year. This development creates a new application for PureGRAPH® and opens the door to the variety of segments who require lubricants, including automotive and industrial."

Shareholders thought the bucket liners were going to be a big thing in mining but it has gone nowhere. At the time conveyor belts and rollers were also proposed.

"First Graphene has received positive results from lab testing of graphene enhanced conveyor belts, by a leading Australian conveyer belt company, for use in the mining industry. The addition of the Company’s PureGRAPH® product in the manufacture of the rubber conveyor belts has shown to enhance mechanical properties of the rubber belts, increasing durability and longevity. This has now progressed towards commercial trials using prototype graphene enhanced belts, with results from this second stage expected by early 2024. "

3D Printing: First Graphene has also progressed its activity in the 3D printing market, with the ability to produce commercial scale quantities of 3D printing filament recently demonstrated. Company to bring graphene enhanced 3D printing filaments to market,

Other applications

Floor Coatings. External production scale trials are now being conducted to measure the effectiveness of dispersing graphene into ESD floor coatings to prevent static charge build-up.

Protective clothing. This has now moved into production trials, which has the potential to pave the way for widespread use of graphene enhanced textile coatings for improved durability and longevity of clothing.

Graphene enhanced sustainable construction material Two concept homes have already been constructed with additional PureGRAPH® enhanced sustainable construction material applications,This project reinforces graphene’s ability as a thermoplastic additive for fire retardant construction applications, which will become vital to enhancing durability of homes for the future.

Continue to hold in RL

Not a great take up of SPP. 2 of 4 on board took part.I chose not to add to my holding. Keeps the lights on for a little while.

$5K from Mike Bell$20K from Michael Quinert .Nothing from Warwick Grigor!

45M shares for $2.9M $200K from sophisticated investors.

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

Must be a cap raise coming. SP got a big bump from the last announcement. Further no revenue announcement (marked as price sensitive) about JV with Breedon who will receive discounted product.

Joint Development and Commercialisation Agreement with the UK’s largest cement manufacturer, Breedon Group

Both companies have agreed to focus on enhancing the mechanical performance of Breedon’s CEM II Cement, which has a lower clinker factor than CEM I, such that its compressive strength matches that of its CEM I product.

Under the initial two-year Agreement, FGR will conduct wide ranging research, provide specialist advice and technical support on graphene and graphene-based formulations.

Breedon will supply FGR with access to cement market data, as well as support and access to its Hope Cement Works processing facility and personnel support, enabling it to conduct trials in a controlled environment.

Should results of research and development work undertaken through the Agreement deliver commercial opportunities, First Graphene retains the right to own the intellectual property for any product being delivered to the open market.

As a key partner, Breedon will receive a preferential price on any future commercial product developed under the Agreement.

This announcement is the first stage of the possible company saver. Positive early results from the 600 tonne concrete trial. Further trials later this year. No indication of duration until commercial orders could be received.

Initial early-stage compressive strength gain data indicates up to 10% increase which meets performance expectations

• First stage results demonstrate route to a 15% reduction in carbon emissions, providing the cement and concrete industry a solution to meet environmental sustainability targets

• Viability of producing industrial-scale graphene enhanced quantities confirmed, further validating PureGRAPH® benefits to the cement and concrete industry

• Further trials (Phase 2) planned, aiming at optimising dosage rates and addition methodology

During the production trials, the PureGRAPH® enhanced during the dispersion of graphene, and the cement produced conformed with Breedon’s strict quality control parameters.

The trial also demonstrates graphene enhanced cement can be supplied using existing infrastructure and facilities and, when used in construction settings, no additional equipment or training is required for the applicators.

The graphene enhanced cement was used to create a temporary wheel washing facility at a major infrastructure project. This provides an optimal and challenging environment to test the strength and permeability of the graphene-enhanced concrete slab, as it will be subject to constant heavy vehicle traffic, high water loadings from washed wheels and high dust loadings from incoming vehicles.

The graphene-enhanced concrete was successfully poured on site and the initial results indicate a good level of strength gain and a high level of consistency between the concrete batches. The concrete slab has met its performance targets and, through careful selection of the cement used, it has delivered a 15% reduction in CO2 emissions over ordinary Portland Cement, providing a route to the construction industry meeting their Environmental Sustainability Targets. The graphene- enhanced concrete was batched using “industry-standard” processes and equipment.

Morgan Sindall will continue to monitor the performance of the installation, providing Breedon with valuable real-world data in a harsh off network environment.

It’s that time of year again! FGR with 2 announcements prior to AGM. It has been very quiet on the Kainos cavitation technology (turns petroleum in to graphite, graphene and hydrogen) now a MOU to seek funds to develop a pilot plant in UAE and a 5 year exclusive distribution deal of PureGRAPH for Europe excluding concrete and cement (no details of arrangement ).

Attempt to pump before a CR? I expect to see more of these sort of announcements from a number of my loss making investments ????

Although sales are increasing and costs reducing they do not have enough cash ($3.2M) to keep going so will be looking to raise soon. $1.8M in finished goods on inventory. All revenue from Australia so all the concrete / cement trials are not producing revenue yet.

For the period ended 30 June 2023 the entity recorded a loss of $5,422,321 (2022:$5,033,108) and had net cash outflows from operating activities of $3,402,301 (2022:$4,399,409). The ability of the entity to continue as a going concern is dependent on securing additional funding through the sale of equity securities to either existing or new shareholders to continue to fund its operational and marketing activities.

Another research project with associated costs in an interesting area of thin film perovskite solar cells. One of the concerns for solar panel uptake has been the availability of sufficient silver for the electrodes. Sundrive solar are using copper instead but this project aims to use graphene. "“Thin Film Solar technology is the future of ultra low-cost manufacturing in Australia"

Halocell Energy has already had success utilising carbon electrode materials such as graphene in its perovskite cells, increasing efficiency by up to 38% and reducing production cost by over 83%.

Ultra-low-cost perovskite solar cell project awarded A$2 million from Cooperative Research Centre Project (CRC-P)

First Graphene participating in R&D activity to scale up cost effective manufacturing of emerging photovoltaic (PV) technology

Collaboration includes Halocell Energy (Lead Partner), First Graphene Limited and Queensland University of Technology

The project aims to commercialise ultra-low-cost, flexible perovskite solar cell fabrication using Halocell’s roll-to-roll (R2R) production process at its Wagga Wagga plant. 

Among key project outcomes will be FGR’s development of cost-effective graphene-based electrode replacements for high-cost conductor materials, such as gold and silver, used in cell production. Producing graphene formulations to produce the material ink used in perovskite solar cell manufacturing with suitable dispersion, low toxicity and high conductivity characteristics.

Graphene cement trial starts. SP has been battered in recent months and understandably so with the lack of revenue. The announcement today of full industrial scale trials and real world use of 1.2 tonnes of the Puregraph50 in cement and concrete trials should finally prove or disprove the business case for graphene in this market. Strong environmental benefit in CO2 reduction but it is a competitive market. Involvement of the UK's largest cement plant lends weight to a belief in the positive outcomes. No detail on time line to results.

First Graphene led consortium commences graphene enhanced cement and concrete trials, aimed at validating industrial scale manufacturing

1.2 tonnes of PureGRAPH® to be used through varying dispersion methods and loadings

Approximately 2,000 tonnes of graphene enhanced cement will be produced for demonstration in construction applications

Trial creates further potential to support commercial scale solutions to reduce CO2 emissions in the construction sector

The graphene enhanced cement produced through the trial will be supplied to leading British construction and regeneration group Morgan Sindall Construction, which will use it in real world construction demonstrations. The company is renowned for its cutting-edge approach to carbon reduction, sustainable material use and building methods in the construction sector. 

First Graphene CEO Michael Bell said: “To our knowledge the volume of graphene-enhanced cement being produced is among the biggest ever trialed globally. “We’re aiming to determine a simple, low-cost method of introducing graphene to industrial scale cement production to drive the sustainability and decarbonisation of one of the highest emitting industries on the planet. 

Held in RL

Some updates on the concrete/cement trials but an admission that the admixture does not have a long enough shelf life to be fully commercial. SP has been dropping away and this won’t give it much of a lift. No significant revenue in the near future.

The emerging green cement and concrete market is estimated to be worth US$56bn by 2027. We have experienced a surge in demand for our “PureGRAPH® enhanced products at a time commercial scale trials are dialing up.

Trial dates with Breedon under the UK Government’s Transforming Foundation Industries Program confirmed

A First Graphene led consortium, which includes Breedon Cement Ltd (Breedon), Morgan Sindall Construction and The University of Manchester, is tracking towards conducting one of the world’s largest scale trials, supported by the UK Government’s Transforming Foundation Industries (TFI) program.

Receiving significant funding from Innovate UK through a £190,034 grant, graphene will be added to the cement production line using a range of additions methods with minimal changes to the existing plant. A key aim of the trial is to find a simple, low-cost method of introducing graphene to industrial scale cement production processes.

One tonne PureGRAPH® order secured

FGR has secured a one tonne order for a further trial in graphene enhanced concrete, anticipated to be executed within Q4 2023. This one-off order, although not material from a profitability point of view, is an important step in scaling up to meet the increased requirements of the cement and concrete segment, and continues to help build the Company’s pipeline of revenue opportunities.

Microstructural analysis will be used on graphene-enhanced cement produced at Breedon trials in June. It will place First Graphene at the leading edge of scientific understanding of how graphene improves cement systems, giving their R&D teams an obvious competitive advantage.

MTC recycled aggregate trials complete

FGR has been working with a subsidiary of Mexican multi-national building materials company CEMEX at the Manufacturing Technology Centre (MTC) to trial graphene in railway sleepers cast using recycled aggregates.

The experimental portion of this project has been completed and results are due to be shared internally with project partners in late April, coinciding with a meeting of project collaborators including FGR.

Graphene admixture development continues

First Graphene is continuing work with commercial partners to design a liquid admixture suitable for downstream concrete users in precast and batching admixtures. A functional mixture has been developed, with positive results, but work continues on shelf-life improvements which are required to deliver the product to our global client base.

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

You have to give FGR credit for making quarterly reports that get you excited if you believe the story. I just wish they would sell enough graphene to pay the bills! Cash burn of $1M vs $170K sales, 4.5 Q of cash left, sales "predominantly from new clients and applications, with a shift into revenue sourced from the cement and concrete segment." But still pursuing the shot gun approach to other uses. Spray on abrasion and corrosion resistance, solar roof tiles, graphene enhanced HDPE structural beams, electrostatic discharge flooring, cold cure ceramics, conductive inks!

Now for all the exiting stuff!

New Zealand based GtM Action’s graphene enhanced shotcrete product continues to be promoted to the local market as HexMortarTM, which has been used in a variety of end products including dangerous goods storage sheds, water reservoirs and septic storage tanks. The combination of HexMortarTM and appropriate spray application methods has reduced labour overheads by as much as 70% for one manufacturer of prefabricated products. GtM Action also reported that HexMortarTM users are experiencing less rebound, better gap penetration, less waste, earlier strength and overall ease of use. GtM Action’s latest trials have shown significant improvement at 3, 7 and 28 days, including a 20% improvement in flexural strength and 27% improvement in compressive strength at the 28- day mark. In addition, GtM Action released photos of a trial of standard and PureGRAPH® enhanced concrete slabs that were subjected to a year of heavy wear. The difference in pitting and exposure of aggregate was visibly evident, with the PureGRAPH® enhanced slab proving to be considerably more wear resistant.

UK-based energy technology company Senergy progressed manufacturing trials for its graphene enhanced solar roof tiles. First Graphene’s UK compounding partner Hubron has manufactured optimised compounded materials that will be used in extrusion trials to manufacture demonstration parts.

Early adopter client NewGen Group continued to expand its range of products and projects, developing a graphene enhanced spray-on polyurea for enhanced abrasion and corrosion resistance. The product increases the application range for PureGRAPH® enhanced elastomers within the Western Australian (WA) mining sector. Numerous applications are currently complete and in the field with a growing pipeline of opportunities through top tier mining companies operating in WA’s North West region. 

Vector Homes, a UK-based residential home developer, worked with First Graphene to develop a HDPE masterbatch for use in structural beams. The graphene-enhanced material is showing highly beneficial fire retardancy, increased strength, durability, thermal and acoustic performance properties. Vector Homes is now moving to larger scale trials within the third quarter, as the organisation aims to mass manufacturer sustainable and affordable housing flat-packs from graphene enhanced recycled materials.

A letter of intent (LOI) was signed with Europe’s Keyser & MacKay, a distributor of chemical raw materials with a strong focus on chemical specialties for the formulating industries. First Graphene provided training on its graphene and graphitic materials to a salesforce of more than 30 people focused on CASE, foam and construction chemicals across Europe and the UK.

Additionally, an LOI has been signed with India-based Sarvan Carbochem LLP, an established materials additive distributor with strong penetration into elastomer and rubber markets. Sarvan Carbochem already has commitments from a national association to evaluate the use of graphene in a range of applications while continuing to explore a broad range of additional prospects.

First Graphene signed another LOI with specialist carbon materials company SP2 Carbon Technology. The Los Angeles-based producer is focused on developing applications for conductivity across a range of industry platforms. First Graphene and SP2 are working collaboratively to develop markets for graphene hybrid materials starting with optimising the performance of additives for Electrostatic Discharge flooring.

Other opportunities developed throughout the quarter include the completion of First Graphene’s PureGRAPH® 70 Aqua trials by ceramic design company Art of Eco, which specialises in eco-friendly cold cure ceramic products. The successful trials have led to Art of Eco moving into production status and placing its first purchase order. 

In the coatings and inks space, various projects continue to evolve. A repeat customer is actively developing business for conductive inks in the aerospace, defence, medical and energy sectors. Focused on the large surface area offered by PureGRAPH® material formats, the customer has moved into small-scale production status with its second production order being placed within the quarter. 

Ian Martin joined First Graphene as Research and Development Manager in November 2022, Ian joins First Graphene from the Sika group of companies and brings extensive scientific knowledge and rigour to the Company, with over 20 years’ experience delivering material science and development projects. A key aspect of First Graphene’s revised strategy when it comes to R&D work has been to monetise its inhouse intellectual property and scientific expertise. This has come in the form of both paid client developments and government grants to fund early-stage technologies. A critical piece of this is to ensure these align to commercial client applications and ultimate graphene production revenue.

Under the Sellafield Game Changers program, First Graphene secured circa A$18,000 to commission and complete a report on the potential application of graphene-based strain sensors for monitoring deformation in nuclear waste packages. This program dovetails into the development of a prototype sensor utilising the Company’s existing knowhow in conductive printing inks to demonstrate the potential application of graphene for sensor technologies in challenging environments. The prototype sensor is expected to be completed within Q3 2023.

Wow! worn out from reading and still blindly keeping my fingers crossed that we sell some graphene. Disc: Held despite logic saying I shouldn't!

I really must get over my attachment to the potential of this company. I keep getting sucked in by the next offering each quarter. Sales will need to expand massively to cover costs and several previous customers of potential are no longer mentioned. 1 tonne of finished product shipped in last year and we were told back in 2019 that 20 tonne was break even!

Sales of $195K product manufacturing and operating costs of $188K cash outflow of $1.1M. Forward looking orders of $200K

Commercial-scale trial was agreed during the quarter with a major European specialty chemicals company. The trial builds on successful laboratory results and aims to replicate the demonstrated improvements in strength and carbon savings on an industrial scale. The trial will require 600kg of PureGRAPH® enhanced grinding aid and will produce over 160 tonnes of cement. 

One of the beneficial side effects of incorporating PureGRAPH® into plastics and composites is that for certain manufacturing processes, it reduces energy input requirements. This not only presents an opportunity for organisations to reduce carbon emissions generated from the use of high-temperature processing techniques, but also offers a path to significantly reducing energy costs. The opportunity is generating considerable interest among bulk manufacturers, with a USbased packaging company undertaking revenue generating, large-scale trials.

Advanced trials in graphene enhanced applications for consumer sports apparel have moved to the next stages of production validation. The Company expects to realise commercial sales in coming months.

Development is also underway in automotive coating applications across several areas including thermal management, with one product being rushed through the development stage and launched into the market. Non-disclosure conditions prevent the Company providing details on the product.

Existing customers are working to enhance elastomer polyurethane systems for use in mining and shoe sole applications, while new projects are underway to harness the benefits of PureGRAPH® for high-performance athletic and branded footwear.

First Graphene is working with a branded golf shoe partner on a range of next-generation shoe designs, with the launch of laboratory and real-life applications planned in Q2.

Rubber compounders are showing continued interest in graphene’s properties to enhance thermal management, anti-oxidant and sustainability outcomes. German machinery manufacturer DESMA has completed trials to investigate several applications for PureGRAPH® enhanced foams across the footwear, automotive, noise vibration dampening and a wide range of further applications. 

Work has been undertaken throughout the quarter to further optimise processing technology. This includes process refinements to greatly reduce energy consumption. The Company carried out multiple design and material changes to its electrochemical cell resulting in significant improvements (51%)in electricity usage.

 Inventory management is one area of focus, with more than a metric tonne (16%) reduction in finished goods held in stock compared to Q1 last year. This feeds into a strategic initiative to better align safety stock levels, manufacture to order principle, whilst still maintaining the ability to cater for upside orders without negatively affecting cashflow.

Held in RL

Positive announcement regarding use in concrete and cement. Multiple trials progressing and some revenue going forward although it looks like it is already spent on the new hire. Held in RL

First Graphene and partners launch new range of mortars, admixtures and grinding aid products with focus on reducing CO2 emissions and improving durability

• Launches are the culmination of extensive research, development, and trials with industry partners

• New industry partnership leads to additional commercial scale grinding aid trial

• Company enlists new industry commercial manager to spearhead growth

• Cement and Concrete segment forward orders strengthens to circa A$175,000

New product introductions

1. The Company confirms the release of PureGRAPH CEM®, a variation of the Company’s renowned PureGRAPH® graphene product range designed for use in cement grinding aids and admixtures. It is targeted at construction chemical manufacturers, providing an easy to incorporate graphene formulation that overcomes some of the known issues in evenly dispersing graphene into products.

2. The Company also confirms the release of an admixture developed in conjunction with South Africa based Nanoproof/Glade Chemicals. The admixture has shown excellent improvements in recent commercial trials, with significant improvements demonstrated in compressive and flexural strength if used in accordance with recommended loadings. The admixture is now being marketed by the Company as PureGRAPH® AM and is suitable for use by downstream concrete and construction material manufacturers to provide superior strength and durability properties.

3. The Company’s distribution agreement with New Zealand based GtM Action, announced in July 2021, has come to fruition with the release of GtM’s HexMortarTM, a graphene enhanced dry mix mortar for shotcrete and pumping applications. HexMortarTM is formulated to quickly and permanently increase the flexural and compressive strength of dry mortars. Latest trials have shown significant improvement at 3, 7 and 28 days, including a 20% improvement in flexural strength and 27% improvement in compressive strength at the 28-day mark. Additionally, the benefits of graphene are delivering a product that is easy to work with while its minimal rebound reduces waste. The product is the first of a range of solutions being developed by GtM Action for the New Zealand and broader global cement and concrete markets that are in search of innovative products with reduced environmental impact.

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.

Good to see slowly increasing revenue but still a long way off +ve FCF (-$4.4M). Further joint venture announcement and a number of vague updates. Promise of further updates . Production process improvements. Commercial director starting in October. Claiming no effect from Sri Lankan chaos as WA based stockpile of graphite. Shotgun approach may work but can't help thinking a more targeted revenue focus in the short term would be preferable.

Still hold in RL although now hovering around break even.

4C Record Q4 revenue of circa A$359,000, closing FY22 with circa A$723,000 total revenue, which is 111% revenue growth against FY21 " It also signifies a shift in market sentiment as recognition and understanding increases in key industrial segments to the benefits offered by graphene solutions."

Q4 revenue breakdown consists of 46% from Composites and Plastics, 31% from Cement/Concrete, 12% across Coatings, Adhesives, Sealants and Elastomers (CASE), and 11% in Energy Storage and other revenue streams

Forward-looking orders received for fulfilment within FY23 totalling circa A$160,000

First Graphene has successfully concluded the search for a global Commercial Director to focus on driving growth in the cement and concrete segment. The Company has appointed a highly experienced candidate who comes from a construction chemicals company, with a focus on cement grinding aids and concrete admixtures. The Commercial Director will commence in mid-October, with a brief to help drive further adoption of First Graphene’s products and services with the world’s leading cement and concrete additive formulators. The Company has also appointed additional research resources based in the UK, to drive our battery and supercapacitor materials research in order to achieving commercial adoption.

Joint Development Agreement signed with Greatcell Australia for development of perovskite solar cells.

Under the agreement, First Graphene and Greatcell intend to jointly develop graphene composites and formulations to be used to manufacture more efficient and even lower cost PSCs. The graphene-based solutions remove the need for a gold layer, which could reduce the material input cost of the cell by circa 80%, and also enable a roll-to-roll type manufacturing process, which is a continuous flow manufacturing method that is significantly more efficient both in terms of speed and cost to produce PSCs.

Composites and Plastics Orders from both early adopter clients and new opportunities in Q4 accounted for circa A$166,000 in revenue.

Progress continues in collaboration with UK-based Senergy Innovations on the development of PureGRAPH® enhanced polymer solar thermal cells. Commercial-scale compounding trials have been successful, with injection moulding and extrusion trials currently in progress to confirm material properties and finalise processing conditions.

While global events led to significant delays in commercial extrusion trials with Malaysianbased DSP to test the Hubron-developed HDPE masterbatch, full-scale trials have recently concluded, and material properties are being evaluated. First graphene expects to provide an update within the next quarter.

A custom fibre-grade polypropylene masterbatch has been developed using PureGRAPH® 5 for nonwoven applications. This is currently under evaluation with several industry partners.

Cement and Concrete

Revenue over the quarter was circa A$112,000, largely due to advanced commercial-scale trials with upstream additive manufacturers.

As part of the Innovate UK Project, announced in February 2022, a full-scale trial in a cement plant at Breedon Hope Works is on track to commence in November 2022. This will be one of the largest programs for graphene-enhanced cement/concrete undertaken globally to date. The graphene grinding-aid addition method has been selected for use at the Breedon program and lab-scale trials at Fosroc International and Morgan Sindall Construction have been key to assessing the addition method. Further laboratory-trials are underway to define the precise graphene loading level. Development of graphene-enhanced cement grinding aids continues with Fosroc for use in the production of reduced CO2 dry-cement products. Fosroc’s experience with grinding aids has led to new ideas for graphene-based grinding-aid formulations and verification of PureGRAPH® performance is being substantiated by trials with multiple large clients.

Coatings, Adhesives, Sealants and Elastomers (CASE)

The segment delivered circa A$41,000 in Q4 revenue, made up of orders from both early adopter clients and new opportunities.

Work continues with a textiles client to develop a conductive textile coating. Formulation is in progress with samples submitted to the client for trials and approval, with an expected release to market in the coming months.

Graphene enhanced applications for consumer sports apparel and luggage are advancing to production scale trials with plans to realise commercial sales in coming months.

Partners are also looking at the advantages of graphene technology in Electrostatic Dissipative (ED) coatings to enhance product features and benefits. First graphene has been working on elastomer polyurethane system enhancements for use in mining applications and shoe sole manufacturing for high-performance athletic and branded footwear. First Graphene have partnered with one of the largest producers of footwear manufacturing machinery based out of Achim in Germany, DESMA2, to trial and prove the compatibility of PureGRAPH® in current production processes. The combination of current research, development and commercial trial work is expected to yield significant results within the foreseeable future. This will provide valuable data to validate the key properties of PureGRAPH®, including light weighting, fire retardancy and electrical dissipative behaviour. 

In addition, the work will align further to the foams segment, with development of fireretardant foam products already underway for a variety of uses in construction including insulation. Results from much of this work are pending and the Company anticipates advancing several commercial opportunities within the next quarter.

Operations Update

First Graphene’s contract with the Graphene Engineering Innovation Centre in Manchester has been extended by an additional 12 months beyond the end of the initial lease period. This enables the Company to continue its focus on R&D support for commercial teams and development of energy storage applications. The new lease period runs until 31 March 2023.

Electro-chemical cell optimisation trials continue at the Company’s manufacturing facility in Henderson, Western Australia to investigate a potential increase the yield of graphene. The trials involve modifications to both the cell and electrode design and initial results are promising, with both an increase in the rate of graphene production observed and a corresponding reduction in electricity usage per kg of graphene produced.

Supply Chain

While many organisations have been impacted by supply chain issues, First Graphene has been fortunate through the COVID pandemic and other global disruptions to maintain good reserves of feedstock and uninterrupted shipping. First Graphene currently sources high-grade graphite from mines and partners in Sri Lanka, with ongoing shipments scheduled and no disruptions anticipated resulting from the current unrest in the country. Nevertheless, the Company has always ensured they have a significant buffer of feedstock stored locally to cater for production requirements. At current output rates, and with a local stockpile of more than 600 tonnes of graphite, the Company is well-placed for several years of uninterrupted production of PureGRAPH® from our Western Australian facility and have ample supplies for ongoing research, development and manufacturing of specific, custom graphene formulations.

Lots of fluff about % increase but sales of $226K and loss of $647K after $443K government grants. $7.7M cash. $90M MC recent dilution~10%. Probable loss for the year $5.5M on $565K sales. SP down with the rest of small loss making companies and these financials won't help. Still holding in RL

Sales are at least starting but still a long way off breakeven projected originally in 2019. On the upside lots of development that might still lead to sales volumes. Rubber, plastics, foams, textiles, steel coating, cement and concrete and supercapacitors. Surely there is an ESG interest here if the company promotes it.

Sellafields project aimed at developing PureGRAPH®-enhanced rubber gloves is now complete, with further work at the discretion of the client. The resulting PureGRAPH®-enhanced rubber compounds developed during the 12-week project showed mechanical improvements in UTS, strain at break and tear resistance, although challenges remain in reducing the propensity for needlestick and puncture issues caused by sharp objects.

Large Japanese OEM in the EPDM (rubber) industry testing PureGRAPH® products for high and low temperature, water and chemical resistance applications, with a view to link graphene to the conveyor, automotive and aerospace industries.

Within the Foams segment the development of fire-retardant foam is underway for a variety of uses in construction including insulation

Work in conductive textiles applications led to a significant order from a geotextile’s specialist for 300kg of PureGRAPH® at a customised platelet size. The order, valued at A$45,000, has now been fulfilled.

Additional work is underway for a textile client to develop a conductive textile coating. Formulation is in progress with samples submitted to the client for trials and approval, with an expected release to market in the coming months.

Advanced trials in graphene-enhanced applications for consumer sports apparel are also now in the final stages of production validation with a view to realising commercial sales in coming months.

Initial results from testing have shown strong potential for the development of a PureGRAPH®-enhanced fire-retardant steel coating. The aim is to develop a coating that prolongs the time taken for steel to deform and collapse when exposed to fire, allowing more time for evacuation of buildings. PureGRAPH® was found to deliver significantly better results compared to an incumbent coating.

Proof of concept and trials have been completed with Senergy Innovations Ltd for thermally conductive plastic used in solar thermal applications. Scaling up is now in progress to move to commercial production. 

Lucid Colour Australia has developed the first PureGRAPH® liquid dispersions suitable for composite thermoset resin applications. This development aims to remove the need to handle fine powders in the manufacturing process and simplifies the path to improved graphene dispersion in the resin products.

Cement and Concrete. A dedicated team has been established, which included the appointment of a cement materials scientist, and experimental work has led to selection of materials and an optimised mortar mix design. Data collection is now progressing for lifecycle analysis, economic viability, and health and safety work packages. The consortium is also exploring dispersion methods as an alternative to powder mixing, with development work carried out by other industry partners including Fosroc.

Good to see another agreement with actual numbers in it. 2 tonnes in Y1 for between AU$305,000 and AU$375,000. For a more established company in the US.

First Graphene signs exclusive technology partnership deal with established US graphite materials company NeoGraf Solutions

Targeted to reach and exceed minimum annual uptake of 10 tonnes of PureGRAPH® within five years with performance measures in place. (Achieving the increased anticipated minimum in year 4 of 10 tonnes would result in revenues of between AU$1.5m and AU$1.8m annually,)

NeoGraf is an established leader in graphite material science, developing a range of environmentally sustainable, innovative graphite solutions targeted to a broad range of industrial applications. The agreement with First Graphene provides NeoGraf with graphene products and solutions to enhance its range and industry reach within the US market.

Held in RL

Distribution agreement signed for South African concrete and construction materials market.

An agreement with a reasonable value in Year 1 but no website for Glade Chemical Manufaccturers and the Nanoproof website looks like a one man band whose linked in profile seems to show experience in Computer consumables and hardware.

4-year term and includes a minimum commitment of five tonnes of PureGRAPH® AQUA and powder products within year one to maintain exclusivity for the South African ready-mix mortar and concrete market segment. The estimated value of sales is AUD 250,000 to 285,000 in Year 1, which is to be reviewed and mutually agreed upon in the following years of the agreement. 

Follows previous collaboration agreement with Nanoproof Glade Chemicals JV for development of a concrete admixture

Nanoproof and Glade Chemical Manufacturers, which both specialise in the development of high-performance solutions for the construction and related industries, formed the joint venture for the purposes of developing the enhanced admixture. A range of PureGRAPH® enhanced concrete admixtures developed by the Nanoproof Glade Chemicals JV are now available for early-stage sampling and trials through the Nanoproof Glade JV for the South African market

Nanoproof Glade Chemicals JV specialises in nanotechnology solutions for concrete, grouts, and mortars for the construction materials industry

The Headline: "The first half of the period ending 31 December 2021 saw a 101% increase in revenue, closing the best first half sales performance in the company’s history."

The true story, sold at a loss and revenue about 1/3 of sales and marketing costs. No sales in to Europe

A Deed of Variation was executed with newGen, ensuring a minimum phased commitment to First Graphene of of 4,800kg of PureGRAPH® over three years. The Deed of Variation terms are worth between AU$1.2m and $1.44m in additional revenue for the Company. So 1.2M / 3years / 2 for half year = $200K. All revenue from newGen?

Agreement to cover Asia Pacific cement production with carbon neutral aims but with a project stage entity where cement is stage 2 of an unspecified dated project. Meanwhile FGR pays for research costs but hopefully doubling up with the other cement producers. Another announcement with no revenue in the near term.

Mayur Resources agreement paves way for low-carbon cement products

Collaboration agreement signed with Mayur Resources on graphene technology for manufacture of low carbon cement

Mayur Resources is developing Asia Pacific’s first carbon-neutral quicklime, clinker and cement project for supply to Papua New Guinea, Australia and the South Pacific at much lower cost than Asian exporters

Agreement strengthens FGR’s position to assist cement companies in reducing carbon emissions

Central Cement & Lime Project

The proposed Central Cement and Lime (CCL) Project is a vertically integrated manufacturing facility with the ability to meet 100% of PNG’s cement, clinker and quicklime requirements, displacing imports into PNG, and to penetrate nearby export markets in Australia and the South Pacific. The co-located quarry, plant site and deep draft wharf will enable very low operating costs. CCL is also seeking to become Asia Pacific's first carbon-neutral Cement and Lime producer.

Offtake support has continued for Phase 1 and 2 of the fully approved CCL project. Further backing received from Independent Cement consumers in Australasia with letters of support now totalling 1,167,000 tonnes per annum for Clinker and Cement, including blue chip end users and traders of quicklime and hydrated lime products.

More research to support the push in to graphene cement. Details the revenue to FGR (225k) but not the cost of the 12 month project. I want to believe that these grants are scientifically reviewed and hence the company is moving towards revenue generating products but in the era of modern greenwashing I am not certain. Income obviously at least 18months out which doesn’t help long term investors who have been waiting a long time for meaningful sales. If all of Breedon cement’s production moved to 0.1% graphene that would require 2000 tonnes or 100x breakeven production. Blue sky numbers but large TAM.

First Graphene-led consortium secures GBP190,000 UK Government grant to develop graphene enhanced, low-carbon cement

Industry and research partners include Breedon Cement Ltd, Breedon operates two cement plants with a total capacity in excess of 2 million tonnes. Our Hope cement plant in Derbyshire is recognised as the UK's largest and has been in operation for more than 80 years. Our plant at Kinnegad near Dublin commenced production in 2002 and is one of the most modern in Europe.

Morgan Sindall Construction & Infrastructure Ltd (part of a 3bn pound UK construction group) and the University of Manchester

Project aims to help cement and concrete industry achieve 25% CO2 emission reduction goals

The GPB190,034 (AUD360,206) grant was awarded by the Government’s innovation agency, Innovate UK, and was secured by the consortium which is led by First Graphene.

First Graphene’s PureGRAPH® products have previously been shown in external testing, to international standards, to enhance the performance of cement composites, increasing compressive strength by 34% and tensile strength of cement mortar by 27%.

The project will develop a new graphene-enhanced cement (GR-CEM) product utilising PureGRAPH® additives. GR-CEM will represent a step change in performance, enabling a reduction in the clinker factor and the use of alternative, lower carbon supplementary materials such as limestone and calcined clay to reduce the overall CO2 burden.

In addition, the project involves optimising graphene dispersion and injection technologies, as well as validating the economic viability, safety and specific CO2 reduction impacts of GR-CEM.

Disc: still held in RL!

This might give the SP a boost through the reference to battery tech and hydrogen but a $270M market by 2027 does not seem worth the research costs compared to other markets. I feel like the company is still taking a shotgun approach to progressing graphene use hoping that something will work out.

Next generation battery technology patent granted to coat anode particles with graphene

Company secures UK patent for coating anode particles with graphene

Process is a simplified, green process to enable the use of silicon as battery anodes

Silicon anodes have the theoretical potential to increase the energy density levels up to 10x those of conventional graphite anodes

Further research work is required to optimise improvement levels

Patent strengthens Intellectual Property portfolio in the rapidly growing battery materials market

The patent describes how the Hydrodynamic Cavitation Process Technology can be used to coat particles with a surface coating of graphene platelets. It is a potential enabling technology for producing graphene coated silicon particles for use as anode materials in energy storage devices.

A key challenge in the development of the next generation of batteries is how to increase their energy storage capacity. Existing carbon anodes typically have an energy density of about 400mAhg-1 whereas the equivalent theoretical value for silicon is an order of magnitude higher, at 4200 mAhg-1. This makes silicon a very attractive material for energy storage devices.

Currently there are multiple issues associated with using silicon particles, including their low intrinsic electrical conductivity and the slow diffusion rate of lithium within the electrode. Another major issue is the significant volume change as lithium ions, which are used to transfer electrical charge, enter and leave the electrode. This causes the degradation of the silicon electrode, causing an irreversible loss in performance of the storage device. The challenge is to maintain the capacity of the battery after a given number of cycles: this should ideally be greater than 90% after 200 or more cycles.

Coating silicon particles with a conductive layer, that is also porous to lithium ions, whilst also providing “reinforcement” to mitigate against structural degradation, is a potential method that could overcome the above challenges. As a mechanically strong, conductive and thin material, a graphene coating on the surface of silicon particles readily lends itself as a solution.

This patent covers the use of First Graphene’s cavitation process technology to directly grow conductive graphene nanoplatelets on to the surface of suitable particles, including silicon. The benefit is that the process is simple, scalable and uses readily available feedstocks that are processed under bulk ambient conditions, as opposed to standard industry practices that require temperatures in excess of 900°C. Another benefit is that the process is clean – hydrogen gas is produced as a byproduct.

Another disappointing 4c. 77k in sales and 175k spent on sales and marketing! 1.4M outflow plenty if cash in the bank for now. Asking myself why I am still holding.

Trying to spin it with “Close to 100 per cent revenue growth compared to first half of FY21”

Lots of trials still ongoing. Not much new. Covid disruptions.

AICIS variation

The Company successfully applied to the Australian Industrial Chemicals Introduction Scheme (AICIS) to vary the terms of the current assessment certificate (CERT8864) enabling several new products in the PureGRAPH® range to be covered under the existing assessment certificate. In addition, First Graphene applied to have additional end uses of products for textile coating and concrete assessed and included as part of the variation.

Aquatic Leisure Technologies, The company reports that its laminating process results in pools that are 30 per cent lighter and 30 per cent stronger, as well as highly resistant to water and chemicals. ALT reports it has produced more than 1500 PureGRAPH® - enhanced pools since the launch of the Graphene Nano-Tech range.

COVID disruptions

The pandemic continues to impede customer activity, particularly in Europe, which is slowing several anticipated commercial and advanced trial developments. Travel constraints and supply chain disruptions have hindered several commercial opportunities that may have otherwise progressed faster in normal circumstances.

More research results but with an interesting move towards concrete in water infrastructure a sizeable market.

While there are no immediate commercial opportunities or an assessment of economic impact, this research opens the door for First Graphene to another new global market segment.

University of Wollongong study confirms improvements in concrete and repair mortar durability

University of Wollongong research program indicates major improvement in sulphate resistance using PureGRAPH® in structural concrete and repair-mortar systems

Results combined with improvement in compressive strength demonstrate PureGRAPH® to be superior multi-functional additive for concrete and mortar in critical infrastructure applications

Provides potential opportunity to participate in global market for mega-infrastructure water projects

First Graphene engaging utility and infrastructure providers to develop advanced mortar and concrete applications with view to improve asset longevity

The issue with sulphates and corrosive water environments

Deterioration of concrete products used in water-related infrastructure projects is an ever- present issue that results in high maintenance and repair costs for the responsible authorities. Achieving better resistance to sulphates and other corrosive chemicals that damage concrete infrastructure is seen as a high priority by the industry.

Company initiated an A$6,600 paid research program, being conducted by the UoW, using First Graphene’s PureGRAPH® graphene products to show it can enhance the properties of mortar and concrete. Conducted by the University’s School of Civil, Mining and Environmental Engineering, the research aims to understand how the addition of graphene platelets to mortar and concrete systems can enhance a range of physical, chemical and physio-chemical properties.

The project’s initial test results have confirmed the addition of PureGRAPH® reduces the apparent volume of permeable voids (permeability) of repair mortar and concrete systems by 19% and 12% respectively, while also reducing sulphate expansion in concrete by 64%, and 56% in the repair mortar.

The research has been underway since August 2021 and is now in peer review phase. It is expected to be published in a peer reviewed journal in the second half of 2022.

Extensive studies by the University of Wollongong, which is partnering with an Australian domestic water, sewerage and drainage statutory authority, confirm the addition of small amounts of graphene enhances the 28-day compressive strength of both concrete and mortar systems by 10% and 20% respectively. Better improvements are expected to be achieved in longer time trials.

Commercial potential

Significant reductions in permeability and sulphate expansion are consistent with higher levels of concrete durability due to reduced degradation from harmful acid sulphates. This is expected to give a materially significant, longer service life to concrete assets and reduced need for concrete repairs.

The research shows promising signs for application in concrete infrastructure in environments requiring high levels of durability, such as wastewater collection and treatment plants, and coastal ports. This is especially relevant because the degradation of concrete wastewater systems results in multi-million-dollar concrete repair and replacement challenges for water treatment providers.

First Graphene is now engaging large utility providers and infrastructure developers to further develop these advanced mortar and concrete applications that can have a significant impact on the longevity of major infrastructure development projects.

FGR progressing the move in to greener concrete graphene additives through an agreement with Fosroc. Company with global reach involved in building the Burj AlArab hotel in Dubai. More research with more costs. Some speculation that these research announcements are trying to push the sp to the new MD’s kpi levels.

Fosroc agreement cements carbon reduction strategy. Fosroc part of the Dubai based privately owned JMH group.

Fosroc, a construction chemicals and solutions business, acquired from BP in 2002. Chairman worked for BP for 27 years.

Fosroc is a global manufacturer of specialised construction chemicals with a particular focus on concrete and cement. Fosroc has offices and manufacturing locations across Europe, Africa, the Middle East, India, North, South and East Asia, with distributor representation across many other regions.

http://www.jmhfzco.com

JMH International is a privately-owned business with a turnover in excess of $500m. It comprises two distinct entities, the largest of which is The other part of the business is the Private Office which looks after other investments and business interests of the Group

Collaboration agreement signed with Fosroc on graphene technology for cement additive systems

Fosroc is a global manufacturer of high-performance chemicals and materials for the construction industry

Agreement strengthens position to assist cement companies in reducing carbon emissions

First Graphene Limited (ASX:FGR; “First Graphene” or “the Company”) is pleased to advise it has entered into a collaboration agreement with global construction chemicals manufacturer Fosroc International Limited (Fosroc) for the development of PureGRAPH® graphene-enhanced cement additives, or grinding aids.

The agreement is a key step in First Graphene’s strategy to help the cement and concrete industries, which are responsible for up to 8 per cent of global carbon dioxide emissions, to achieve 25 per cent emissions reduction by 2030.

As part of its commitment to reducing emissions, the global cement segment is exploring methods to produce cements with lower clinker factor to produce greener cements. Under current production methods, for every tonne of clinker produced, between 0.8 and 0.9 tonnes of CO2 is emitted.

By adding low dosages of PureGRAPH®-enhanced cement additives to the final grinding phase of cement production, up to 20% lower clinker factor cement production is made possible while maintaining or improving cement performance. The PureGRAPH®-enhanced cement additives will assist cement manufacturers to gain superior strength and improved physical properties, while improving grinding efficiency in the grinding phase of cement production.

The purpose of the five-year collaboration agreement is to facilitate the exchange of knowledge through research and development work. Each party will contribute scientific and industry knowledge at its own cost, with First Graphene providing access to its PureGRAPH® product range, formulation and dispersion process technologies, while Fosroc will take responsibility for additive raw material supplies and formulations, mixing and dispersion, and extensive laboratory trials. There are no other material terms of the agreement or an assessment of economic impact at this stage.

Ultimately, the objective of the collaboration is to jointly develop a range of PureGRAPH®- enhanced cement additives that Fosroc will add to its portfolio of specialty products. These would provide the cement industry with a global solution to reducing carbon dioxide emissions.

First Graphene Managing Director and CEO Michael Bell said: “The agreement with Fosroc is a significant further step for First Graphene as we implement our go-to-market plan to become the world’s leading supplier of graphene-enhanced cement and concrete solutions. Fosroc has significant penetration into multiple global markets that will be highly beneficial in helping expand our reach and educating the market on the significant benefits, including emission reductions, that graphene-enhanced products provide."

             Fosroc Head of Technology and Product Management Dr. Martyn Whitehead said:

“Fosroc are excited to be working together with First Graphene to develop the next generation of Cement Additives using Graphene technology with a focus on enhancing the performance characteristics of low clinker factor cements.”

Good to have some news indicating that the supercapacitor research is still progressing with a 12-18 month proof of concept timeline. Just a £15k grant so not material and actually costing the company.

Funding secured from Innovate UK EDGE to develop proof-of- concept pouch cell supercapacitors.

The £15,000 funding from Innovate UK will be matched with approximately AU$100,000 in-kind funding from First Graphene’s internal resources to advance the technology, which is an important milestone towards the commercialisation of the Company’s supercapacitor technology.

The funding will be used to progress the development of novel supercapacitors using First Graphene’s unique hybrid-graphene materials and optimised protic ionic liquid electrolytes. These high performing cells will have high capacitance and the ability to operate at high voltages - a key milestone towards achieving the “10-plus-10” target of power density above 10kW/L and energy density above 10Wh/L. Proof-of-concept pouch cell supercapacitors will be produced to validate performance in a commercially relevant cell format.

Pouch cells are a specific battery format that do not have a rigid enclosure, instead using a sealed flexible foil. This reduces the weight compared to other battery formats and allows greater flexibility to fit them into various products.

The supercapacitor device market is projected to grow from US$409 million in 2020 to US$720 million by 2025 at an expected CAGR of 12.0 per cent. The growth of the market is driven by increasing demand in energy harvesting applications and rising use of supercapacitors in trains and aircraft. Moreover, the increasing global demand for electric vehicles is likely to fuel the growth of the market.1

The project will run over January and February 2022, and it is well aligned with plans to release a proof-of-concept cell within the next 12 to 18 months.

Is this just more fluff or a precursor to some significant sales? Still holding in RL

Patent filing strengthens pathway to reducing CO2 emissions in cement production

Patent filed in the UK to protect Company’s intellectual property in the scale up of graphene-enhanced cement admixtures

This strengthens Company’s position in dealing with cement companies for the purpose of reducing industry carbon emission levels

Patent specification to assist the Company and its development partners in the commercialisation of admixtures

“FGR signs collaboration agreement for HDPE product enhancement.” They are certainly growing the scope of applications but when is it going to lead to revenue?

Collaboration agreement signed with Malaysian HDPE manufacturer to develop new line of PureGRAPH® enhanced HDPE sheets and welding rods

New HDPE PureGRAPH® masterbatch product developed in collaboration with Hubron International Ltd specific to extruded sheet

Client driven project with applications lined up in HDPE marine craft and mining applications

Bitumen masterbatch formulation added to PureGRAPH® product range

Third masterbatch product formulation released for use in road and asphalt applications

Designed to fit into existing production lines for ease of use and faster industry adoption of graphene solutions

Not a volume order but an interesting development for graphene enhanced rubber. 12 week project and at least it is funded.

Funded program investigates graphene-enhanced gloves for the nuclear decommissioning industry

First Graphene secures a funded development project with Sellafield’s Game Changers Programme

Project will assess the use of graphene in long rubber gloves (gauntlets) fitted in gloveboxes and used by operators in the nuclear decommissioning industry

Pending a successful outcome, gauntlets are expected to go into mass production within 12 months

Following a competitive tendering process, First Graphene’s proposal to investigate the feasibility of using the Company’s PureGRAPH® graphene technology was selected.

Initial development work conducted by First Graphene’s Research and Development team has shown that the addition of PureGRAPH® in certain rubber systems can increase tear strength and puncture resistance. During the 12-week project, the Company’s R&D team will focus on rubber systems and relevant test methods to prove the concept. The company will utilise its know-how in dispersing graphene into rubber to improve the mechanical strength of the gauntlets, allowing their thickness to be reduced. This has the potential to enhance operator dexterity without compromising on safety.

First Graphene also sees potential to expand applications for improved mechanical performance into the broader protective glove market, which had a global value of US$12.37 billion in 2019 and is projected to reach $35.20b by 2027.

Disc: still hold some in RL but exited in SM

Nothing new in latest quarterly despite trying to spin it up. Still no news on why there was a 10M CR at a low share price.

Record quarterly revenue
“First Graphene achieved record PureGRAPH® revenue in Q1, the Company’s best PureGRAPH® sales quarter. This equates to almost 40% of last financial year’s total revenue, delivered in the first quarter alone and a growth of 138% in comparison to the same period last financial year.”

This would be awesome except that $95k does not make much of a dent in the 1.6M outgoings. Government grants were $224k!

The only positive note seems to suggest that they are still getting early stage interest from a range of applications.

“PureGRAPH® demand came from existing early adopters and was further supplemented by developer client purchases in solar thermal and thermally conductive thermoplastics, anti- static coatings, electrically conductive/sensory fabric coatings, rubber and tyres, and audiophile noise suppression applications.”

HIGHLIGHTS (their term not mine)
Record quarterly PureGRAPH® sales builds on sales momentum created in Q4 2020-21
Acquisition of hydrodynamic cavitation process patents from Kainos Innovation positions FGR to provide green energy alternatives, including green hydrogen, to oil and gas sector
Managing Director Michael Bell appointed in July and commercial team expands
PureGRAPH® product range increases including second masterbatch formulation that extends potential applications
 

Financials strengthened with the lack of any update this suggests they are not expecting significant revenue anytime soon.

I need to follow through on my earlier thoughts and look for an exit to explore better opportunities.

fgr acquires green hydrogen patent

Pros

low cost acquisition

broadens potential revenue stream

leverages interest in green hydrogen and battery materials

should  be of interest to oil ang gas industry as it uses petroleum feedstock  to produce battery materials 

Cons

will be capital intensive before producing revenue 

sounds like the hydrogen product is more of a byproduct than large scale production 

HIGHLIGHTS

?First Graphene acquires patents to hydrocarbon conversion technology from Kainos Innovation

?One-step hydrodynamic cavitation process converts petroleum feedstock to battery grade graphite, graphene and green hydrogen

?Sets pathway to provide oil and gas sector with diversified green energy options to help meet demand of growing EV market

The part cash, part stock acquisition includes an initial cash payment of £25,000 and a share allotment of 200,000 shares with a voluntary trading escrow for 12 months, and finally a milestone cash payment of £25,000 linked to the completion of Patent grants.

The acquired patents consist of two patent families filed in multiple global regions. Patents have already been fully granted by the US Patent Office for both families.

Hydrodynamic Cavitation Technology can efficiently produce graphite materials and green hydrogen in a single step process. In a recent white paper, the Company detailed how the technology produces hydrogen in an exothermic process which is thermodynamically favourable versus any known competitive route. The technology can be used at oil refineries where feedstocks and petroleum engineering capabilities are readily available, and products can be captured for downstream use.

As well as generating green hydrogen, which can be used as clean energy to feed back into refining, the researchers found high quality graphene and graphite is produced.

Demand for battery grade graphite materials – made from natural and synthetic graphite – are on the rise for their use in battery anodes and coated cathodes.      

        ASX ANNOUNCEMENT

The largest market for lithium-ion battery anode is anticipated to be Asia Pacific, where demand is growing strongly due to increased industrial application of lithium-ion batteries along with innovation and technology advances in anode materials.

First Graphene Managing Director and CEO Michael Bell said the Company’s acquisition sent a signal to the global oil and gas sector that material technology can help diversify energy sources.

“We see this technology as a potential win for petroleum companies looking towards energy transition, including alternative forms of energy to power their own operations.”

“As a market maker, First Graphene is now in a strong position to pursue joint venture arrangements to produce graphite battery anodes or battery grade materials for downstream use, aligned with our Energy Storage market segment.”

newGen  increases PureGRAPH® commitment to 4,800 kgs

newGen have recently launched its ArmourGRAPH® protective mining wear liners and elastomeric coatings, based on successful trials whereby a six-fold extension of wear protection was documented. Following successful trials, newGen have now moved to a production phase.

The Deed of Variation has been executed. It ensures a minimum phased commitment to FGR of 4,800 kgs of PureGRAPH® over 3 years. The Deed of Variation terms are worth between $1,200,000 to $1,440,000 in revenue for FGR.

Good to see some numbers but if we dig deeper it is still small news.

newGen’s original commitment was over 2 years at 1t pa so an increase of 0.8t pa. Still a projection rather than cash in the bank. 

If it happens just under 1/3 of volume needed for break even and a very small slice of the 100t pa capacity.

Company sitting on 10M from recent raise but no news on what it plans to do with it.

Shareholders keen for information on developments across other tech such as VFD and cavitation process.

Still hoping that this is the start of more good news and not just fluff pre AGM which has happened in the past.

No real progress, an additional 52K in sales and 900K greater loss

1.2M in one off costs

“The One-off costs incurred in FY 2021 are primarily as result of a business restructure, which (amongst others) includes contractual payments to retiring directors (AUD 0.9m), recruitment costs for new leadership and commercial team (AUD 0.1m) and non-cash writeoff of redundant intangible assets (AUD 0.25m).”

I think calling it a restructure is a bit of a stretch!

“1. Improved sales in Q4 of FY 2021, setting a sound base for FY 2022 "

2. Cost reduction initiatives: a. Change in ERP system, reducing cost by 50% b. Reduced spend on consultants c. Headcount reduction”

Considering they were supposed to be breakeven end 2019 it does not look good.

Had hoped the new MD CEO would make a difference

“Directors have reasonable grounds to believe the nascent nature of the graphene market makes it impractical to forecast future profitability and other material financial events.”

So at least they have cut the BS!

Selling and marketing costs greater than sales revenue

Revenue was all in Australia

Gross profit margin on sales improved to 22%

1.15M in inventory vs 1.6M in 2020

7M cash so 12months if no increase in sales

550M shares

Disc held in RL (keep hoping) but unless FY22 sees a substantial change I think it is time to move funds elsewhere.

FGR has often been criticised for the lack of information from management.

As I have stated before they run the risk of losing first mover advantage.

https://graphenemg.com/wp-content/uploads/2021/05/GMG-MDA-9mths-ended-31-Mar-21-for-release.pdf

Graphenemg make graphene from petroleum (working with university of queensland)rather than graphite and are currently only licensed to sell 100kg pa but have applied to increase this amount.

Targetting heat transfer coatings and lubricants with a view to energy storage.

This financial statement gives a brilliant clear picture of their costs and margins etc. FGR could really learn a thing or two about communication with investors.

Agreement with Gerdau announced today but very vague.

2 years non exclusive with no comment on economic impact.

Mentions exploring applications, composites and rubber.

Hopefully it will drive some sales in the Americas

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