Hi Mr. D, I think it is wishful thinking that we should expect anything from the Israli think tank. I believe AE left a sour taste in their mouth. I doubt there will not be a PR concerning cement. The price point required for the cement industry is too low. Dr. Dube stated at the AGM that there are much more lucrative markets for our graphene such as Graphene Quantum Dots (GQD).
I believe the presentation that night identified a price north of $4k per 50 mg GQD. There are a few variables that need to be addressed by Francis and the team before we can determine our cost to produce the GQD's.
- 1st question is which of the 3 universities process will be used to produce the GQD's.
- 2nd question is, what will be the yield of the processes to convert from 99.8% pure graphite to graphene and then the yield from graphene to GQD's.
- 3rd question would be how much of the $4k+ did ZGS negotiators give up to get this production off the ground.
- Do we have a marketing plan in place and are there ready buyers for our GQD's.
If we make a few assumptions we could hazard a guess as to what our revenue will be in 2020.
Assumptions
- the yield from graphite to graphene is 90% the same as our recovery from ore to graphite.
- the yield from Graphene to GQD's is say 1%.
- a processing fee to the universities of 50% of the revenues.
- a $4k selling price, which will get us in the door of the end-users
- production of 1 litre per quarter of GQD's.
So if a GQD is 50 mg then 1 gram would contain 20 GQD's. 1 kilogram would contain 20,000 GQD's.
Therefore 20,000 GQD's X $4000= $80,000,000 in revenues per quarter. If we split the revenues with the universities then we each get $40m. This is our target imo.
Our costs to provide that 50 mg GQD is the real question now. For ease of calculations lets use 5 grams or 5000 mgs. One percent of 5k is 50 mgs or one GQD. In my opinion it will take approximately 5 gram of graphene to produce 1 X 50mg GQD.
Obviously I am very conservative using 1 percent yield to convert to GQD's but I would prefer ultra conservative then pie in the sky #'s. This is the best business case for development that we have been provided. Further the GQD industry is in it's infancy and is expected to grow quickly over the next decade. GQD's could be the single product to launch this boat. I wish I had more bucks to put into the pot, but alas I do not. This is why we are pursuing this development opportunity. Cement just does not cut the cheese.
I hope the above analysis is clear enough for all. We need to know the yield and cost to get to graphene.
1 metric ton is 1m grams.
ValueHunter
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