Opportunity
Raising A$1M (post money valuation of A$13M)
Price guide A$13.58
Summary
Ultra-high purity quartz sand and powder is the fundamental building block for all digital technology and solar PV renewable energy.
Ultra-high purity sand and powder market is driven by growth in the manufacture of all solar PV cells, fibre optic cables and semiconductors embedded in all high demand growth consumer applications including Smartphones, Electric Vehicles, 5G networks and associated digital platforms.
Business Highlights
“The world’s most critical mineral”
Ultra high purity quartz sand and powder is a critical and essential mineral used in the manufacture of Solar PV crucibles for fabrication of solar grade silicon wafers and semiconductor crucibles for fab of semi grade silicon wafers.
High growth opportunities have been driven by renewable energy generation, chip demand for all digital hardware and other specialty applications including fibre optic cables, electronic encapsulants, quartzware applications such as lighting and pharma/lab glass.
The major industrial manufacture markets are China for solar PV and US, Japan, Korea and Taiwan for semiconductor chips.
All end-use consumer applications depend on a secure supply of ultra-high purity quartz sand and powders, these are:
- All smart electronic devices including phones, TVs, laptops, modern sensors
- All digital platforms such as Facebook, Amazon, Alphabet, Netflix, Google
- All fibre optic cables including for use in 5G networks
- Electric Vehicles (all new vehicles generally) depend on digital tech to operate
- All solar PV cells and modules and related renewable power generation
- The consumer demand has created markets worth USD Trillions and all are at risk of supply security of ultra-high purity quartz sand and powder derived from a single producing resource in the USA.
Investment Highlights
- Critical mineral leveraged to the growing Solar PV, EV, fibre optics, and semiconductor and renewables thematic
- Long-life quartz resource in Queensland, Australia
- Qualifying resources with the right chemistry are extremely scarce globally
- Strong management and advisory team and expert project partners
- Low volume, high value markets with existing USA-based resource monopoly impacting APAC manufacture markets
- Ultra HPQ has proximity to hi-tech, green-tech APAC manufacture markets
- Estimated lowest costs of production relative to main competitors
- Near term initial product with early stage cashflow from simple quarry and haulage of lump product to the sales point
- Multiple near-term product development opportunities into growth markets
- Financial Return – Near term initial product cashflow: Revenue A$7M, Ebitda $4M
- NPV of A$35m on a standalone product basis.
- Valuation growth enabled by processing plant build and volume expansion backed by long-life asset and multiple exploration assets
- Listing planned within 18 months
- Previous testwork funding round was oversubscribed
Critical Mineral
Renewable Energy & Semiconductor Thematic
Growth Markets
Strong Management
Key Information
Funding Strategy
- A$1M – for this raise Capital Raise
- Exit Opportunity via Listing ASX /Joint Venture
- Potential grant application for plant build in line with Federal Government on-shoring and advanced manufacturing agenda
- Later expansion capex funded from cashflow or moderate senior debt
Use of Funds A$1M
- Resource work – New stockpile mining lease, lease rents and fees including 3rd party tenement management costs.
- Product Testing – Mineral characterisation test to identify further reduction in U and Th re the Low Alpha EMC Filler product plus contingency for follow-up tests. Techno-economic assessments of Low Aluminium material.
- Project management – Includes management of process testwork, tenement work including mine planning and development and planning for next stage funding or pre-IPO funding. Includes costs related to facilities rent and corporate costs.
- Contingencies – Testwork and Environmental work.
- Costs of Raise – capital raising fees.
Videos
Competitor video provides insight into the processing and critical uses of ultra-high purity quartz sand
