NanoXplore Inc T.GRA

$115 target in 2 years for NanoXplore!

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Highlights
Forecast Graphene Demand | At its annual meeting, management mentioned
that the total apparent graphene demand from all of its purchase order
discussions that are underway looks like 120,000 tpa two years out (i.e.,
December 2022).
This Is New and Significant Information | Not only is the quantity new but also
the timeframe. Demand of 120,000 tpa would require 30 4,000-tpa graphene
production modules. Also, the slope of the ramp-up of 24 months indicates how
quickly demand has built since the company’s 4,000-tpa graphene plant was
completed in July.
Financial Impact Is Massive | The economics of NanoXplore’s graphene
production method is very robust. Each 4,000-tpa module produces $15–$18M in
annual cash flow, thus 30 modules would produce US$528M (C$692M) of annual
EBITDA (Figure 1.)
High ROI, Fast Payback | Each module generating cash flow of $15–$18M per
annum equates to a one-year payback and 100% ROI. Consequently, the rampup can be self-funding once the first few plants are running (Figures 2 & 3).
Expect U.S. Plant Build Out | To diversify, we fully expect NanoXplore to expand
capacity into its North Carolina plant plus Montreal. This would provide a good
level of North American geographic diversification and production redundancy.
Si Anode Graphene Paste Pilot Line by End of 2021 | NanoXplore has been
working for several years on a graphene-enhanced polymer coating for Si anodes
in Li-ion batteries. This work is progressing well and management expects to have
a pilot line running by the end of 2021

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