Most important part of news release
posted on
May 16, 2016 11:33AM
Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications
Ok - this is not the most exciting or sexy application that we are hoping for. Concrete is just your run of the mill foundation here in Canada. But, in the middle east if it is the choice between life and death then this admixture could be worth billions in unstable countries. Googling cement in Israel states that it is so important that there is actually cement smuggling. Outside of labour costs, it is the most expensive part of buildling a house in israel already.
The cost of cement is about $200 CDN per ton, so developing a mixture with graphene would not be common use, but an exotic product for high value assets. (How much do you think the US would pay to build embassies from explosion proof products?)
The most important part of the press release were the words:
Zenyatta is responsible for the manufacturing of nano-graphite and any related treatment from its Albany graphite deposit. The Company will create nano-graphite in several levels of purity with certain specifications.
This states that through the varioius levels of partnership and current research that Zenyatta will control the production of graphene and that they are seeing this production as part of their business plan.
As I have been inwardly chuckling at Musky's huge prices for graphene and then for the ZEN operation, my main criticism against his valuations was the actual production of graphene itself. I imagined our raw graphite be shipped to a company that developed a prioprietary way to produce graphene which then in turn would be marketed.
I estimate that the breakdown could possibly be 1/3, 1/3, 1/3. One third for raw product. One third for graphene production. One third for graphene marketing.
Therefore, if grpahene could be sold for $60K/ton I assumed, ZEN would receive maybe $20k.
With this release, Zen is stating that they are taking responsibility from raw product through marketing of graphene.
I don't think that $60k/ton will be a long term sustainable price for commercial applications for graphene. However, if the final cost drops to $30K/ton and we get the whole pie because we own and produce the graphene ourselves then I will be ecstatic.