Transcript
so hi i'm don baxter i am the ceo of salon graphite and i became ceo in early june and uh my background is mining engineering and graphite so i'm well positioned to do this so it's along graphite uh we're on track to be a pre-minute preeminent global supplier of high margin value-added graphite and graphene products salon will achieve this mission by becoming a fully integrated mine to battery processor of battery quality graphite to be sold to electric vehicles oems across the globe what sets us apart from our peers is the high grade of our vein graphite resources that can be scalable and profitably mined while practicing environmental excellence accordingly we'll be able to provide oem battery makers a reliable secure source of graphite outside of china that meets their very high esg standards so today i'm going to talk about our resource uh why we're uniquely positioned to take advantage of the growth for demand for electric vehicles uh the options we have to develop our assets into fully integrated mine to battery processors of graphite and graphite itself it's used to supply demand as it comes to the battery sector we are uniquely positioned to check every box required to make an off-take agreement with an ev oem such as tesla uh it's not all about tesla but tess is the main one we're looking more at volkswagen general motors but because our graphite has demonstrated suitability for the use of electric vehicle batteries and it's been proved to be more than efficient than the synthetic alternatives primarily from china and that's the big issue here the environmental issues from china results came in at 382 milliamp hours per gram for our reversible capacity which is beyond what is expected for the best currently commercial used synthetic graphite of a reversal capacity of about 363. our biggest thing now should proving our graphite is as good as it is it's our ability to supply sufficient quantities with security of supply from the mine site or multiple mine sites and we are also proving to be the most environmentally sustainable uh with a high grade direct shipping ore from underground mines that do not require a mill or a tailings pond uh we mine it from underground and it's ready to go straight to the battery by first raising about five million to bring the first two of ten mines into production actually it'll be slightly more than that um each of which costs about two million dollars to develop an initial rate of about five thousand tons per annum i'm looking at trying to squeeze more out of each mine uh but we we can sell unprocessed graphite at 1800 a ton uh with a 70 gross margin after royalties so at 50 000 tons per year revenue would be approximately 90 million per year we'll use production to satisfy all requirements to negotiate an uptake deal with a major oem we're looking that to do that hopefully within the next year we use offtake agreements to finance a financing of the processing facility be around 50 60 million dollars to upgrade unprocessed graphite from the mine to battery quality material increase selling price from eighteen hundred dollars a ton to ten thousand dollars a time for a processed panod ready graphite so at 50 000 tons per annum our revenues could increase to about 500 million per year um the chart you're looking at right now shows the timetable of achieving these objectives the most important catalyst being the negotiation of an off tape with it with a major oem we're in discussions now with that and uh the exciting part is now we're starting to see our battery results come out we have more to come as we get better including our silicon enhanced materials which i think are going to get a lot of excitement in space i see a tsunami of demand coming for process graphite for anodes uh this can result in an increased price even from from companies such as volkswagen and and others that are concerned about supply the chart you're looking at right now is from benchmark mineral intelligence is showing 4 million tons demand by 2030 for processed graphite for batteries so a couple of months ago that chart was showing three million tons so we're definitely seeing an increased demand and again this tsunami of demand that's coming and i think the oems and the battery manufacturers are really starting to wake up to that so companies like salon are very much on their radar right now we believe this illustrates why we are optimistic that salon will become a preeminent global supplier of high quality graphite to the global oem electric vehicle battery manufacturers we meet all the requirements the oems require for process graphite you know esg is a big factor there so we're strong in that area as well as quality material but let me leave you with a couple of uh points to think about um we can scale up production and grow out of free cash flows at the the vane graphite price of eighteen hundred dollars a ton which is straight out of the mine um after bringing you know our first two full mines into production alone we have ten more to go beyond that um once we have an uptake with a with an oem uh be it a cell manufacturer or an ev uh we can finance and develop a processor that will allow us to increase our selling price from eighteen hundred dollars a ton to 10 000 a ton and corresponding revenues from 90 million a year to over 500 million with gross margins after royalties so we're at the cusp of this thing uh really taking off this whole space is more of a revolution uh and salon graphite is well positioned to take advantage of this so you know i ask you to keep watching these videos keep following us and uh let us preview what we can do and we're pretty excited that we can show some strong value in this in this company and uh achieve some great things so i look forward to the next video we do and keeping everybody in touch and in contact with what we're doing thanks very much
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