Gratomic Inc. - SPONSORED
Gratomic Inc. (TSX.V:GRAT) (OTCQB:CBULF)Gratomic, Inc. is a Canadian-based junior exploration company. It is engaged in the acquisition and exploration of exploration assets located in Canada and Namibia. The firm holds a portfolio of prospective mineral properties located throughout Canada, including seven graphite properties. The company was founded on February 27, 2007, and is headquartered in Toronto, Canada.
About Gratomic Inc.Established in 2014, Gratomic is an advanced materials company focused on low-cost mine to market commercialization of carbon-neutral, eco-friendly, high-purity vein graphite. The Company is set to become a key player in EV and Renewable Resource supply chains. Gratomic Inc. is a leader among peers, anticipating full operational capabilities in 2021 and aiming to transition to an open pit operation in Q4 of that year. Gratomic is in the process of solidifying its development plans for micronization and spheronization of its clean Aukam graphite. This significant milestone is a small, additional step in the Company’s existing Eco-friendly processing cycle and will allow its naturally high purity graphite to meet ideal North American battery-grade standards for use in Li-ion battery anodes. The Company promises to deliver mine-to-market traceability and guaranteed quality control. This will be accomplished by providing documented tracking on all graphite generated at its flagship Aukam Graphite Project. The tracking will begin at Aukam and will be verified at every stage during transport. Two off-take purchase agreements are currently held for its vein graphite sourced from Gratomic’s Aukam Graphite Project in Namibia, Africa. Fulfillment of the contracts is slated to begin in early 2021. The agreements exist with TODAQ and Phu Sumika. TODAQ is an innovative tech company and will partner with Gratomic on its mine-to-market commodity tracking. Phu Sumika is a large global graphite supplier to battery and lubrication companies. Gratomic Inc. is listed on the OTCQB under the symbol CBULF. For more information: visit the website at: www.gratomic.ca Subscribe to the link below to receive news and updates: https://gratomic.ca/contact/
- Focus on high-quality, natural, Eco-Friendly clean graphite
- Low capital cost
- Complete 20,000 tonnes per annum vein graphite production and transition to open pit in 2021
- Use cash flow for expansion/acquisition Establish strong supply network among EV and Battery Storage Manufacturers
- Accelerated added-value manufacturing
- Gratomic is a leader among its peers with targeted commissioning of its 20,000 tonnes per annum processing plant in Q1 of 2021. The custom-engineered modular processing facility was designed for quick and easy expansion.
- The Company aims to transition to an open-pit operation in Q4 2021
- This distinguishes Gratomic in an industry with a success rate of less than 1% amongst its peers Graphite is a valuable mineral used in everyday household products such as Lithium-Ion Batteries, Electric Vehicles such as Tesla Style Batteries, Cellphones, Industrial Lubricants and High-Pressure Gaskets, Refractories, Pastes, Electronics, Paints, etc.
- The EV battery market is estimated to grow to approximately $133.46 billion by 2027, while global demand for anode graphite material is estimated to grow at 9x’s the current supply demand to 1.75 million tonnes by 2028 from 2017 levels.
- Namibia is a politically stable and mining-friendly country, with one of the only jurisdictions hosting vein graphite outside of Sri Lanka.
- Once the Aukam Graphite Project completes its commissioning phase and enters its operational phase, it could increase global Vein Graphite Production by 400%, making Namibia (and possibly Gratomic) the largest producer of Vein Graphite in the world.
- Gratomic has 100% controlling interest in the Buckingham Graphite Property in Quebec.
- Under the strong leadership of CEO Arno Brand and Gratomic’s world-class Executive Leadership team, the company has experienced an appreciation in its stock price of over 750 % since March 16th, 2020.
Aukam ProjectWith Gratomic’s 5002-hectare (5002 ha) Mining License (ML 215) Aukam Graphite Project, and additional Exclusive Prospecting Licenses totaling 141,600 hectares (1416 square kilometers) in the Karas region. The Company is sitting on immense potential. This southern Namibia project, which is also close to the port city of Luderitz, is nothing short of impressive.
Aukam’s Potential Has Already Led to Sales AgreementsThough Aukam is still on the path towards commercial production, other businesses are already interested in what Gratomic has to offer with this mining property. Gratomic has entered into sales contracts and off-takes with TODAQ, an innovative tech company, and Phu Sumika, a large global graphite supplier to battery and lubrication companies. Under a $25 Million supply agreement with TODAQ, Gratomic will supply the company with pre-graphene graphite to be used by TODAQ as a reserve backstop to underpin the value of deployed Toda Notes, the company’s cryptocurrency. To date, TODAQ has already placed three initial purchase orders for 1,800 tons of graphite, or $9 Million USD. Finally, in another sales agreement, Gratomic will supply Phu Sumika 7,500 tons of graphite per annum for a five-year term from the time Aukam begins commercial production. The sales agreement projects the sale of graphite ranging from 80% to 99.9% carbon at an average weighted price of USD $1,800 per ton.
Buckingham Graphite PropertyGratomic also has 100% interest in the Buckingham Graphite Property. This project covers 480 hectares in eight claim blocks and is located 7 km northwest of Buckingham, Quebec, Canada. The Buckingham Property is located within the Central Metasedimentary Belt of the Grenville Geologic Province. This is an area rich with minerals and is underlain by paragneiss and marble, with associated pegmatite, and amphibolite. Graphite mineralization occurs from here in two main zones, the Case Zone, and the Uncle Zone, where it is disseminated in paragneiss and marble as well as in veins and masses within pegmatite and skarn.
The Joint-Venture with Perpetuus Advanced Materials Positions It for SuccessGratomic entered into a joint-venture, collaborative agreement, with Perpetuus Advanced Materials. Perpetuus is a UK-based company believed to be the world’s only producer of graphite-derived graphenes with outputs independently verified for volumes and quality. What is graphene anyway and why is it so exciting for the general public? This variation of graphite, with its unique properties, can elevate thermal conductivity, facilitate electrical conductivity, and elevate physical and material properties. Most importantly, graphene-based products are easy to handle, easy to package, and eco-friendly The joint-venture agreement calls for Gratomic to supply high-grade graphite concentrates for Perpetuus, while Perpetuus supplies operating expertise and Intellectual Property. Both Gratomic and Perpetuus will evenly split profits 50/50 based on the agreement.
Where Does the Venture Go from Here?Gratomic currently owns 3 reactors housed in the Perpetuus factory in the UK. Perpetuus has developed its own patented dry plasma processing technology. With consumers becoming progressively more focused on eco-friendly and sustainable products, the Gratomic-Perpetuus partnership has been consistently hailed for its environmentally friendly computer-controlled production processes. With their global footprint and joint partnership, the companies have already generated numerous market-ready products for sale to multiple market sectors.
The Stock’s Returns Have Been Extremely PromisingBecause of macro-level tailwinds, and excitement from its various mining projects and Perpetuus partnership, investors have been very excited about this company, both over the long-term and short-term. Long-term, the company has soared in the last year. The stock is up a shocking 750% since March 16th, 2020. Since the stock hit its 52-week low on March 20, it has surged by 1000%.
The Stock’s Technical Indicators Look Bullish as WellAs a result of the stock’s strong performance over the short, mid, and long-term, its technical indicators appear to be quite bullish. According to BarChart, Gratomic has a 100% BUY rating based on these short-term, mid-term, and long-term bullish indicators: Short-Term
- 20 Day Moving Average
- 20–50 Day MACD Oscillator
- 20–100 Day MACD Oscillator
- 20–200 Day MACD Oscillator
- 50 Day Moving Average
- 50–100 Day MACD Oscillator
- 50–150 Day MACD Oscillator
- 50–200 Day MACD Oscillator
- 100-Day Moving Average
- 150-Day Moving Average
- 200-Day Moving Average
- 100–200 Day MACD Oscillator
Fundamentals: Forecasted Growth, Little Debt, Efficient ManagementOne of the things that makes Gratomic so appealing is how little debt it has, while sitting on a mountain of assets and equity. Judging by Gratomic’s current ratio of 3.0x, quick ratio of 2.1x, and debt-to-equity ratio of 13%, the company is more than capable of meeting its short-term obligations and is being more financed by equity than debt. This is especially promising for a company showing the growth potential that Gratomic has shown. Furthermore, the company has a net income growth forecast of 63.3% for the next fiscal year, and an average net income growth rate of 12.3% over the next five fiscal years. Reflecting this projected growth is the fact that as of 3 trading sessions ago, Gratomic is now trading on the OTCQB Venture Market in the United States under the symbol (OTCQB:CBULF). With new access to American investors, this could set up the company for even more growth, success, and returns.
Takeaway for investorsFor investors looking to educate themselves and learn why there is a surging demand for graphite as the world recovers and returns to normal, Gratomic is a key operator to research. This is a company that is efficiently managed and led by some of the industry’s top graphite experts, has little debt, and has potential access to more graphite than many, something that could possibly be VERY lucrative as the demand for EVs and EV batteries surges. Global recognition of Gratomic is growing as well, with controlling interests in a project home to some of the world’s largest reserves of high-grade vein graphite, and through a strategic partnership with a world leader in graphenes, this company has a bright future. Through hard work and dedication, the current Executive Leadership team has guided Gratomic through the lows, has put a detailed plan in place and has set the company on a new path with a more defined and targeted strategic focus. This hard work is starting to pay off as demonstrated by the 750% share price increase since March 16th, 2020. Additionally, since the stock hit its 52-week low on March 20, it has surged by 1000%, has gained nearly 60% in the last month, and has gained nearly 16% in the last week alone reaching an all-time high on December 22, 2020. Normally in a situation such as this, investors may have concerns about the stock overheating. However, a macro-level overview demonstrates many tailwinds for material stocks – and Gratomic should be no exception. Stocks like Gratomic could be some of the biggest beneficiaries of a normal world in 2021, especially with the seemingly imminent growth of global economic stimulus, and a plummeting U.S. dollar. On top of forecasted pent-up demand in 2021, dovish economic policies and a weak U.S. dollar have historically provided strong tailwinds for the broader materials sector. Especially materials companies with a focus on high-quality, natural, and eco-friendly materials. Lastly, the projected growth of EVs has the potential to create an extensive growth catalyst in the demand for graphite on a global scale. According to the Deloitte report, total EV sales are expected to grow from approximately 2.5 million in 2020 to around 11.2 million in 2025, and are anticipated to reach about 31.1 million by 2030. Another forecast from BNEF expects to see EV sales rise to 56 million vehicles by 2040.
Address to investorsFollowing up on our January 12, 2021 Announcement