First Graphene Ltd · ASX:FGR
First Graphene — Investor Presentation (February 2017)
40 slides from First Graphene's investor presentation, February 2017
Slide 1: Maximising Leverage to the Entire Graphene Value Chain
MAXIMISING LEVERAGE TO THE ENTIRE GRAPHENE VALUE CHAIN February 2017
Slide 2: The Business Plan: Three Tiered Approach
THREE TIERED APPROACH 2 THE BUSINESS PLAN
Slide 3: The Business Plan – The Strategy
THE BUSINESS PLAN – THE STRATEGY 3 FGR is positioning itself to maximise earnings and growth through capture of the entire graphite and graphene value chains. First, obtain security of raw material supply by… Developing new vein graphite mines Securing off-take agreements from existing mines Sec
Slide 4: The Business Plan – Potential Earnings Profiles
THE BUSINESS PLAN – POTENTIAL EARNINGS PROFILES 4 FGR intends to profit from three earnings profiles; 1. Mine production and trading in the premium vein graphite long term baseline earnings 2. Graphene production and sales from modular, low cost cells (no capex hurdle) potentially an exponenti
Slide 5: Baseline Earnings from Graphite Mining
BASELINE EARNINGS FROM GRAPHITE MINING 5 Mine production and graphite trading earnings will ramp up over several years and then flatten out Assuming selling price of US$2,000 per tonne, AISC US$700 per tonne Graphite Earnings 6 5 4 Dollars (millions) 3 Graphite Earnings 2 1 0 0 1 2 3 4 5 6 Years
Slide 6: Growth from Conversion to Graphene
GROWTH FROM CONVERSION TO GRAPHENE 6 Graphene earnings start from a zero base and rise exponentially at some point. 10 – 20x uplift in selling price on conversion to graphene Conceptual Graphene Earnings 30 ??? 25 Dollars (millions) 20 15 Graphene Earnings 1 Graphene Earnings 2 10 Graphene Earni
Slide 7: Technology Earnings Growth Will Be Variable
TECHNOLOGY EARNINGS GROWTH WILL BE VARIABLE 7 Technology earnings will be a combination of royalty streams and capital gains as the IP is commercialised. Conceptual Technology Earnings 25 ??? 20 Dollars (millions) 15 Technology Earnings 10 5 0 0 1 2 3 4 5 6 Years
Slide 8: Potential Earnings Profiles Combined
POTENTIAL EARNINGS PROFILES COMBINED 8 The three divisions, when combined, provide diversified growth across the entire value chain Combined Conceptual Earnings Curves 30 ??? 25 20 Dollars (millions) 15 Graphite Earnings Graphene Earnings Technology Earnings 10 5 0 0 1 2 3 4 5 6 Years * Based on pos
Slide 9: It Is All About Quality
NO SUBSTITUTE FOR QUALITY 9 IT IS ALL ABOUT QUALITY
Slide 10: There Is Nothing Better Than Vein Graphite
THERE IS NOTHING BETTER THAN VEIN GRAPHITE 10 It starts with …. … the highest grade graphite … and the best quality … in the world. Compound Name Concentration (%) Absolute Error (%) 1 C 99.87 2 Mg 0.01 0.003 3 Al 0.01 0.003 4 Si 0.04 0.006 5 Cl 0.02 0.004 6 Ca 0.00 0.002 7 Fe 0.04 0.006 Results of
Slide 11: The Highest Quality Graphene
THE HIGHEST QUALITY GRAPHENE 11 … which enables the production of the highest quality graphene, confirmed with Raman Spectroscopy and product specs Products Specifications Form: Light Grey Powder Odour: Odourless Carbon Content: >99% Ash Content: <1% Particle Size: Av 40 um Av Thickness: 4 layers (1
Slide 12: Its All About Simplicity
ITS ALL ABOUT SIMPLICITY 12 First Graphite Process…one step, low cost to graphene Exfoliate in Vein Graphite Saleable Graphene Graphene Cell Flake Graphite Process…> 10 steps Flake Regrind and Mine Crush Grind Flotation Flotation Graphite Ore Saleable Graphene Regrind & Purification Concentrates Con
Slide 13: Graphene Production Capability
GRAPHENE PRODUCTION CAPABILITY 13 The Graphene Cell can, at very low capex and opex; Produce graphene on demand On location Just in time With > 80% conversion of graphite to graphene • Modular unit each capable of 5 to 7 tonnes per annum of graphene • Capex US$50,000 installed on location •
Slide 14: The Graphene Cell – 250 Litre Capacity
THE GRAPHENE CELL – 250 LITRE CAPACITY 14
Slide 15: Technology and Applications Offer the Greatest Upside
TECHNOLOGY GROWTH CURVE 15 TECHNOLOGY AND APPLICATIONS OFFER THE GREATEST UPSIDE
Slide 16: Technology and IP Opportunities
TECHNOLOGY AND IP OPPORTUNITIES 16 The BEST Battery (Bolt Electricity Storage Technology) Patent-pending technology developed by Swinburne University of Technology overcomes the energy density limitations with supercapacitors, achieving the following potential advantages; 10x better energy density
Slide 17: Difference Between Batteries & Supercapacitors
DIFFERENCE BETWEEN BATTERIES & SUPERCAPACITORS 17 Rechargable batteries … use old technology Store energy via a reversible chemical reaction Each cycle causes degredation of materials – they wear out They are slow to charge They can short circuit, causing runaway reactions and fire (Li-ion)
Slide 18: Chemical Batteries Have Problems
CHEMICAL BATTERIES HAVE PROBLEMS 18 Chemical batteries are less than perfect One button battery can contaminate more than 60 m litres of water, which equals one person's lifetime consumption Long charging time Environmental Pollution We need • Large storage capacity • Environmentally friendly • Fast
Slide 19: Elements of BEST Battery Transaction
ELEMENTS OF BEST BATTERY TRANSACTION 19 • Elements of the Transaction to Acquire Licence • Stage One Earning 30% - $700,000 commitment • Stage Two Increasing to 60% - Additional $1.3m • Issuing 10 mill. opts (10¢, 21 May 2017) and 2 mill. shares (escrowed) • FGR underwriting expenditure of $2m • Due
Slide 20: The BEST Battery
THE BEST BATTERY 20 Comparison of BEST Battery to Lithium-ion Battery Parameters Supercapacitor (BEST AA Rechargeable battery Battery) Storage mechanism Physical Chemical Charge time 1-10 seconds 1 – 4 hours Cycle life Minimum 10,000 cycles 300 – 1,000 cycles Cell voltage 1.5 to 2.3 V 1.25 – 1.5 V 5
Slide 21: Increasing the Energy Density
INCREASING THE ENERGY DENSITY 21
Slide 22: Energy Density and Power Density Performance
ENERGY DENSITY AND POWER DENSITY 22 PERFORMANCE Performance of our supercapacitors break new ground
Slide 23: Vein Graphite Supplies
MINING AND TRADING OF VEIN GRAPHITE 23 VEIN GRAPHITE SUPPLIES
Slide 24: Essential Access to Premium Vein Graphite
ESSENTIAL ACCESS TO PREMIUM VEIN GRAPHITE 24 • Three sources of product for FGR; 1. Development of own mines Granted the first (and only) new underground graphite mining licence in SL in 25 years Three shafts approaching orebodies now Behind schedule but improving with personnel and procedural
Slide 25: Operational Update
OPERATIONAL UPDATE 25 Aluketiya – Shaft H Now in competent ground First ore zone only 4m from shaft Three ore zones to be access initially, including high grade zone of 1.72m at 99.8% TCG (40m drive) Shaft H site development area
Slide 26: Operational Update
OPERATIONAL UPDATE 26 Other shafts Aluketiya Shaft J – shaft sinking commenced mid-January Expect to be in ore early in Q2 2017 Shaft J 2.5 metres liner showing weathered graphite vein in Aluketiya project site plan with Shafts H and J and shaft exploration drill hole traces and transmitter loop
Slide 27: The Graphene Thematic
OVERVIEW OF GRAPHENE 27 THE GRAPHENE THEMATIC
Slide 28: The Amazing Properties of Graphene
THE AMAZING PROPERTIES OF GRAPHENE 28
Slide 29: Its All About the Surface Area for Reactions
ITS ALL ABOUT THE SURFACE AREA FOR REACTIONS 29 The increase in the surface areas greatly improves bonding
Slide 30: The Timing of the Graphene Revolution
THE TIMING OF THE GRAPHENE REVOLUTION 30
Slide 31: According to the World Graphene Council
ACCORDING TO THE WORLD GRAPHENE COUNCIL 31 Three recognised hurdles to the commercialisation of graphene; 1. Availability of a consistent quantity, Perhaps 60-80 manufacturers Mostly for research CVD & other methods are not scaleable 2. Availability of sufficient quality, No standardized nom
Slide 32: Two Approaches to Making Graphene
TWO APPROACHES TO MAKING GRAPHENE 32
Slide 33: Methods of Making Graphene
METHODS OF MAKING GRAPHENE 33 1. Chemical Vapour Deposition (CVD) Reacting a mixture of hydrogen and methane at 10000C Epitaxial growth of graphene films on substrates e.g. copper 2. Micromechanical exfoliation “Scotch tape” method – physical separation 3. Dispersion/Exfolitation of Graphite
Slide 34: Methods of Making Graphene
METHODS OF MAKING GRAPHENE 34
Slide 35: Measuring Graphene Quality
MEASURING GRAPHENE QUALITY 35 Graphene quality is tested using the following tools Number of Layers: Atomic Force Microscopy (AFM) Crystallite Size: Optical Microscopy Flake Quality: Raman Spectroscopy Morphology: Scanning (SEM) and Transmission (TEM) Electronic Microscopies Chemical Composition: El
Slide 36: Directors and Management
Directors and Management 36 Warwick Grigor- Non-Executive Chairman Respected and experienced mining analyst Mr Grigor's research knowledge and market intelligence gives First Graphite a strong strategic direction. Bachelors of Law and Economics from the Australian National University, Diploma
Slide 37: Corporate Overview
Corporate Overview 37 Capitalisation Share Price History (Source Westpac) Shares On Issue 339,824,589 Options * FROB exp. 21-05-17 $0.10 129,853,100 Price (23/02/17) ($) $0.115 Market Cap ($m) ~$39.1 52 Week High ($) $0.165 52 Week Low ($) $0.050 Cash (28/02/17) ($m) $3.7 Debt ($m) $0.00 Enterprise
Slide 38: Important Notice
Important Notice 38 These presentation materials Presentation Materials) are being issued solely to and directed solely to Sophisticated and Professional Investors, as those terms are defined in the Corporations Act 2001 (Cth), who may have interest in investing in First Graphite Limited (the Compan
Slide 39: Important Notice
Important Notice 39 NO DISCLOSURE DOCUMENT REQUIRED By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer and are a sophisticated or professional investor or a person to whom an offer and issue o
Slide 40: Slide 40
First Graphene — Investor Presentation (February 2017) on 6ix