Emerging Graphene Technology Company
Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications
Message: A post from Glorieux (must read!)
| ZEN had a pretty good week, up 13% from 90 cents to $1.02. However, when we consider the information that we received this week, both from the presentation and the news release, I believe the market is just starting to understand the implications of the information that was disseminated to us. First, the confirmation of earlier test done, this time on bigger batches demonstrating that both the East and West pipes are consistent and give a desirable PSD. This was always one of the prongs of attacks against the company so having a company like Hosokawa Micron dispel these attacks was very gratifying for us longs. "Micronization, which adds costs and may result in a significant loss of graphite material, is the process of reducing the average particle size of a material in order to meet the end-user specification for a certain application." Since we do not have to do micronization we both reduce our costs and our loss of material resulting in us being able to produce this high purity graphite cheaper than anyone that has to us micronization. As far as I know, this is the only deposit in the world that has such an advantageous PSD. This is a significant advantage for us longs! "Additionally, recent metallurgical testwork at SGS on the flotation pilot-scale testing is demonstrating consistently similar concentrate grades and recoveries from both the east and west pipe graphite material. Zenyatta is currently waiting for assays and mass balance data before it will be in a position to report final results from this testwork." ZEN is telegraphing here to us longs that the work by James Jordan is going well and a NR announcing this critical work is coming relatively soon. This again has been a battle cry for the bashers and having pilot scale floatation results will again demolish this pillar of attack. Another win for the ZEN longs! Now, the real juicy stuff... The presentation that was posted and now has certain pages removed held some real critical information for us longs. The most obvious and exciting is the fact that the cost of the graphene admixture was less than $100 per kg of product and that the current market product sells at $500 per kg. We could come in at $300 per kg and still cut cost for our customers by 40%. Which customer would not like to save 40% and get what is likely to be a better product? So NewCo could then make over $200 margin per kilogram of product which would yield ZEN over $100 per kg. That is around... $100,000 per ton margin for our graphene. Let that sink in for a minute, $100,000 per ton margin on our graphene. We are no longer talking $5-7k margin here but a mind blowing $100k per ton. The presentation also indicated that the HPC market was so large that even if NewCo captured only 10% of that market, it would require ZEN to produce 100k tons per year. Add these numbers together and ZEN could have Earnings of $10B USD per year. $10B USD per year...After Corp taxes with 150M shares out would still give us over $50 USD in potential dividend. What do we need to make this a reality? First, the metallurgical pilot scale floatation must be completed and show a successful scale up. I believe based on this last news release that we are close to this critical information. If successful as I expect, our share price should easily double, maybe even triple in a few days. The next barrier will be the graphene admixture pilot plant in Israel. Once this is announced as positive I cannot see how this stock does not rocket up. We as longs here have suffered for a long time waiting for the science to prove what the early test showed. The advent of graphene as a viable large, very high profit market came as a possibility 18-24 months ago. This resulted in the company changing focus and created delays. However, looking at the new margins, this delay was very worth while. Choo Choo, GlorieuxA |
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