NanoXplore Gets a Boost for its Proposed Graphene Plant

Canadian manufacturer and supplier of high-volume graphene powder, NanoXplore (TSXV:GRA), announced on Tuesday (July 17) the positive feasibility study for its graphene production plant.

The company said that the independent feasibility study highlighted numerous improvement as compared to the project’s preliminary economic assessment (PEA) including the pre-tax net present value (NPV) at eight percent discount of CS$476 million.

In the PEA, the plant’s NPV was found to be worth C$408 million, which puts the findings of the feasibility study at a 16 percent improvement.

Further, NanoXplore said that the average operating cost was found to be C$4,402 per metric ton, which is 10 lower as compared to PEA. Also, the total capex cost totaled C$40.1 million which is 50 percent less compared to PEA.

Soroush Nazarpour, president of NanoXplore, said in a press release that the findings are important for the company and the graphene market.

“This upcoming 10,000 metric ton/year graphene production plant would be the largest of its kind in the world and would position NanoXplore as a leader in graphene market,” Nazarpour said in the statement.

According to design criteria as envisioned by the feasibility study, the plant would consist of five graphene production lines with each of them carrying a capacity of 2,000 metric ton/year. It was said that each of these lines would consist of four graphene production modules each with a capacity of 500 metric ton/year.

The company said that the first graphene production line would be constructed and commissioned by January 2020 followed by the rest of the lines a year later.

In terms of  production output, the feasibility study envisions 2,000 metric tons over the course of 2020 with full production of 10,000 metric ton during the 2022 calendar year.

Shares of NanoXplore closed the market on Thursday (July 19) at C$1.60 and the shares gained 4.5 percent over the two day trading period following the announcement on Tuesday.

On TradingView, the shares have a sell ranking with 14 verticals against, 11 in neutral and one in favor.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.