27th
Who is NVX? continues to benefit from bullish sentiment in the battery materials sector.
Fundamentals:
Market Cap: $2,695Mill large cap
Fully Paid Ord. Shares 404.65Million
Price $6.66 at close
Operating cashflow /Total Tangible Assets: Under zero & trending up though.
Total Liabilities / Total Tangible Assets: 0.1 ok below bench mark though.
Net Debt / Equity: minus 34.23%
EPS : minus 4.18 cents at June 2021
Total available funding: cash at end $136,663.98Mill at June 2021
Note no Dividend paid,
1yr Share price growth Return: 455%
Sept 2021 Latest PE : -159% = 666 / - 4.18
2022 if Forecast is PE: 222% = 666 / 3 ( over priced at 666 cents! )
Realist Forecast PE: 100% = 300 / 3 ( share price falls to 300 cents )
So speculation here. NVX will need to produce good EPS at circa 6.0 cents in 2022 for sustainable share price of 666cents.
Revenue from Battery materials and Battery Technology Development.
URL: https://www.novonixgroup.com
Who is in charge?
Dr Christopher John Burns
Chief Executive Officer
Bio
Mr Burns is the co-founder and CEO of NOVONIX Battery Testing Services Inc based in Canada and co-developed the breakthrough Ultra-High-Precision-Coulometry (UHPC) technology with Professor Jeff Dahn. He has also been the COO of the NOVONIX group responsible for the PUREgraphite business in the USA and the Battery Technology Solutions (BTS) business in Canada, for the last three years.
Mr Anthony (Tony) George Bellas
Non-Executive Chairman,Non-Executive Director (Since 2015)
Bio
Mr Bellas brings over 30 years of experience in the public and private sectors. Tony was previously CEO of the Seymour Group, one of Queensland's largest private investment and development companies. Prior to joining the Seymour Group, Tony held the position of CEO of Ergon Energy, a Queensland Government-owned corporation involved in electricity distribution and retailing. Before that, he was CEO of CS Energy, also a Queensland Government-owned corporation and the State's largest electricity generation company, operating over 3,500 MW of gas-fired and coal-fired plant at four locations. Tony had a career with Queensland Treasury, achieving the position of Deputy Under Treasurer. Tony is a director of the listed companies shown below and is also a director of Loch Exploration Pty Ltd, Colonial Goldfields Pty Ltd and West Bengal Resources (Australia) Pty Ltd. Other current directorships includes: Chairman of intelliHR Limited and Deputy Chairman of State Gas Limited and Director of the Endeavour Foundation. Former listed directorships in last 3 years includes: Chairman of Corporate Travel Management Ltd (ceased 2019), Chairman of ERM Power Ltd (ceased 2019) and Chairman of Shine Justice Limited (ceased 2020).
Other current directorships
Non-Executive Director GAS State Gas Limited
Non-Executive Chairman,Non-Executive Director IHR intelliHR Limited
Idea WhyThis?
NOVONIX Battery Technology Solutions Inc. is a subsidiary of NOVONIX Limited (ASX:NVX, FRA:GC3, OTCMKTS:NVNXF), an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in more than 14 countries. For more information about the group’s capabilities and focus visit www.novonixgroup.com
Cell design and prototyping,
Outlook at 26the August 2021
The company outlined its “growth strategies” for FY22 in the report. It hopes to “execute on development of synthetic graphite production”, with a plan to expand to 150,000 tonnes per annum.
In fact, the company is targeting a capacity of 10,000 tonnes per annum in “early 2023”. It then intends to expand capacity to 40,000 tonnes in 2025 and 150,000 tonnes in 2030.
In addition, Novonix is also aiming to commercialise its “proprietary pipeline” of advanced battery materials. Here it is seeking to “meet key testing milestones” over the coming year and a half.
The Novonix share price has posted a year to date return of 238%. This far outpaces the S&P/ASX 200 index (ASX: XJO)’s return of about 14% over the same time.
Why Now?
However, anticipated demand in lithium-ion batteries seems to be the catalyst. Furthermore, the spot price for lithium carbonate has roared to 153,000 Chinese yuan per metric tonne (roughly A$32,700).
S&P 300 rebalance: Novonix was also added to the ASX 300 Index on Monday 20th Sept. This means that fund managers are able to invest in the company.
Some Peers:
Australia:
Strategic Elements Ltd (ASX: SOR).
*New IPO – LIS, Li Sulphur battery development lists 28/9/21.
MNS - The company has completed initial works including the internal building clear-out. Now, facility customisation work has commenced with machinery roll-out to start next month. Furthermore, construction material for the facility has continued to arrive at the factory.
QPM - Townsville Energy Chemicals Hub project (TECH Project). TECH Project will produce nickel sulfate, cobalt sulfate, high purity alumina and other by-product. During the year Product marketing of the key battery chemicals to be produced by the TECH Project, nickel sulfate and cobalt sulfate, was a key focus for QPM
USA:
Rechargeable batteries are already being used for new applications. Most famously perhaps is by Tesla Inc (NASDAQ: TSLA). If Strategic Elements is really onto a winner here, it would have virtually limitless applications – including in electric vehicles. Further, companies working in this area, like Tesla and Nio Inc (NYSE: NIO), have recently seen significant investor interest and share price appreciation. I’m sure some of this goodwill and sentiment is flowing into Strategic Elements today.
Why Invest?
EVs Technology.
Enter, Invest share price is steep. I would look for some price support in the up or down direction before trading.
NVX has stepped up production encouraged by USA via Biden Policy.
Second Factory in the USA.
Declare: in the Portfolios RL & SM.
