Great Lakes Graphite Inc GLKIF

Realistic POV

[Floridas2000]

I love the optimism on this board the last few weeks.  It's good to read.  I do want to be a little more realistic for potential investors so they don't get too rosy a picture.

Near tearm (Next few weeks / months)

DoD

The fact that they are a strong candidate and have given a strong proposal is great news.  However this is one proposal.  For other projects they would have to do multiple proposals.  We do not know what the quantity of graphite is for this project.  Even if they get the contract tomorrow, they will not actually ship the graphite for at least a few weeks, if not more.  So don't expect immediate revenue.  The good is that it will get them known and they will partner up with other companies who want to get in on this.  It won't bring in revenue until next year at the earliest.

CHASM

CHASM is doing great things and their wearable products and products for the phone is starting to get commercially noticed.  Plus this is new technology with a great future ahead.  However the amount of graphite is still undetermined for their products and they need to get traction.

Graphene

Graphene is still in it's acceptance phase.  The company they are supplying seems to have found a way to produce large amounts at affordable prices.  Like CHASM we don't know how much graphite they will need but it is a new technology with great potential.

Mid term (few months from now)

Batteries

In their presentation they've indicated how much is needed.  It's a few hundred tons but not a huge amount.  Still, the margin would be fairly high and they can make money.  I doubt it will be a primary feed for a company but a solid secondary feed would be great.  Battery companies need to be picky and once they have agreement then other larger companies will pay attention.  

Long term (few years from now)

DoD

They can win multiple contracts and become a key supplier.  Graphite / graphene has many military applications include use in Space X.  This is a pie in the sky dream but this will be 1000s of tonnes

New technologies

Greater adopttion of CNT and graphene can be big.  It will depend on the success of the companies they supply to but it's a great opportunity to participare in explosive growth.

Batteries

All it takes is one or two big customers and they will operate at capacity.  Especially with the growth lithium batteries.


Overall, it means expect news but no meaningful revenue until sometime next year.  At that point it would be up to management to leverage their partnerships for really strong growth in the next few years.  If the expectation is for near term strong revenue that won't happen.  Do not expect large contracts until they've proven themselves with smaller one.  However execution from their learning pains can lead to strong growth in the next few years.  If they can achieve cash flow positive after a PP that would be an amazing achievement.