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/

Strategy

• 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

Summary

• 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.

COVID-19 has economically affected all industries across the globe. However, some industries have flourished as the world has turned. Meanwhile, with vaccines beginning to be rolled out globally, we could be returning to normal sooner than we think in 2021. Materials companies could be some of the biggest beneficiaries of a normal world in 2021, especially with further economic stimulus globally seemingly imminent 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 sector. Materials companies, especially those which focus on materials that have consistent demand, may benefit even more so than others in the coming year. Companies with a focus on high-quality, natural, and eco-friendly materials are uniquely positioned to benefit, and one of those materials is graphite. Graphite is a valuable mineral used in everyday household products such as: Lithium-Ion Batteries (Batteries used in Electric Vehicles such as Tesla), Cellphones, Lubricants (WD-40 and Q20), High Pressure Gaskets, Refractories, Pastes, Crucibles, Brake Pads, Electronics and Paints etc.

While graphite has been a valuable material used for years, graphite demand is currently being driven by the overpowering growth in the manufacturing of Electric Vehicles to replace the internal combustion engine worldwide. Natural Spherical Coated Graphite is the most sought-after for electric vehicle battery anodes. Graphite is the material in these cars, which allows the energy to be stored and used at will. A further increase in demand is being driven by governments worldwide to transition to clean energy alternatives which means bigger and better batteries to store gigawatts of power being generated by clean power sources such as wind and solar. No Graphite means no clean energy. Companies like Gratomic are transitioning into the role as key partners for the manufacturing of Li-ion batteries, allowing them to keep up with the robust increase in demand as the world transitions into a cleaner tomorrow. This means that the EV battery market could grow to about $133.46 billion by 2027, potentially increasing demand for natural graphite as a cleaner and more affordable carbon source. This could be amplified further than projected as manufacturers become more price competitive. There is a rapidly advancing company, based in Canada, at the forefront of this potential demand, Gratomic Inc. (TSX.V:GRAT) (OTCQB:CBULF). Under the strong leadership of Namibian-born and raised CEO Arno Brand and some of the top names in the graphite industry. Gratomic is becoming a leader in the mining and commercialization of graphite products. With Gratomic’s focus on high-quality, natural, eco-friendly clean graphite, low capital costs, cash flow used for expansion/acquisitions, and a strong supply network, the company is continuously growing and expanding its global footprint.

Aukam Project

With 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.

Work by Gratomic over the past eight years has led to a better understanding of the quality and distribution of the graphite mineralization at Aukam. With significant amounts of graphite visible over a 15 Km (9 miles) strike length. Gratomic’s exploration has demonstrated the mine’s significant potential for expansion and growth. Gratomic’s exploration of Aukam has been so successful to this point, that the company has been awarded a Mining License (ML 215) by the Ministry of Mines and Energy in Namibia, which is a critical step towards moving the discoveries at Aukam into moving the plant into its commissioning phase. As one of the only jurisdictions of viable vein graphite outside of Sri-Lanka, what makes the Aukam Project so exciting is it offers near term production potential with early revenue upside, the potential for world-class resources, the potential for multi-decade mine life, and, most of all, the potential for a regionally sized graphite footprint. Through Aukam, Gratomic aims to be a leading supplier of eco-friendly, high grade, high-purity, clean Aukam graphite to the North American EV Market. Gratomic’s graphite is processed on-site to 98% + Cg and upgraded to 99% + Cg through Air Classification. It is then put through a micronizing spheronizing processes to meet, or exceed, strict North American EV market standards for anode materials. Furthermore, natural high-purity vein graphite of this quality, with little to no deleterious elements present, does NOT require additional acid leaching making the Aukam processing plant one of the most environmentally friendly processing facilities in the world. Gratomic has a 20,000 tpa through put, high efficiency processing plant on-site. This plant is weeks away from full completion, and its modular design allows for easy expansion, with the environment in mind. Internal calculations done by the Gratomic team of industry experts, reveals the production of one tone of graphite at a percentage of approximately 98% Cg, will create a very low carbon footprint of 0.8Kg of carbon emissions or 16 tons per annum. The Company’s on-site processing plant also boasts a remarkable water recirculation and filtration system that is expected to recover up to 95% of the water used during the processing phase.

Aukam’s Potential Has Already Led to Sales Agreements

Though 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 Property

Gratomic 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 Success

Gratomic 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 Promising

Because 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%.

Still not convinced? In the last month, the stock has gained nearly 60%, while gaining nearly 16% in the last week alone!

The Stock’s Technical Indicators Look Bullish as Well

As 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

Mid-Term

• 50 Day Moving Average
• 50–100 Day MACD Oscillator
• 50–150 Day MACD Oscillator
• 50–200 Day MACD Oscillator

Long-Term

• 100-Day Moving Average
• 150-Day Moving Average
• 200-Day Moving Average
• 100–200 Day MACD Oscillator

Fundamentals: Forecasted Growth, Little Debt, Efficient Management

One 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 investors

For 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 investors

Following up on our January 12, 2021 Announcement

As of today, and for the foreseeable future, graphite is the only viable material for the anode in this type of battery. Nearly all applications of Li-ion batteries use coated spherical graphite as the anode material. Graphite is the material with the largest share in weight in Li-ion batteries amounting to up to 70% of the total battery weight, totaling between 5kg (hybrid electric vehicles) to 100kg (full electric vehicles) per vehicle. Nevertheless, as the main appeal for electric vehicles versus traditional internal combustion engine (ICE) vehicles is their low environmental impact, the very fact that this key material’s supply chain generates negative environmental impact is a roadblock for unlocking repressed demand. Therefore, the battery-grade graphite that Gratomic expects to offer to the market with a neglectable environmental footprint will be the perfect solution to allow the EV manufacturers to overcome this challenge. Gratomic has already initiated contacts with battery manufacturers in different countries, in order to tailor the development of the uncoated spherical graphite according to each individual requirement. As of today, and for the foreseeable future, graphite is the only viable material for the anode in this type of battery. Nearly all applications of Li-ion batteries use coated spherical graphite as the anode material.

Disclaimer 

Digital Marketing Agency of Record: GloBull Technologies Inc., (“GloBull”). 

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector. 

2) The Article was issued on behalf of and sponsored by Gratomic Inc.. GloBull, has or expects to receive from Gratomic Inc.  $92,000.00 for 31 DAYS (24 BUSINESS DAYS). 

3) Statements and opinions expressed are the opinions of the author and not GloBull, its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by GloBull for this Article. GloBull was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. GloBull requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. GloBull, relies upon the authors to accurately provide this information and GloBull, has no means of verifying its accuracy. 

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5) GloBull, and its respective directors, officers and employees hold no shares for any company mentioned in the Article. 

6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Gratomic Inc.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. 

These forward-looking statements include, among other things, statements relating to: 

(a) revenue generating potential with respect to Gratomic Inc.’s industry; 

(b) market opportunity;

(c) Gratomic Inc.’s business plans and strategies; 

(d) services that Gratomic Inc. intends to offer; 

(e) Gratomic Inc.’s milestone projections and targets;

(f) Gratomic Inc.’s expectations regarding receipt of approval for regulatory applications; 

(g) Gratomic Inc.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and 

(h) Gratomic Inc.’s expectations regarding its ability to deliver shareholder value. 

Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: 

(a) the ability to raise any necessary additional capital on reasonable terms to execute Gratomic Inc.’s business plan;

(b) that general business and economic conditions will not change in a material adverse manner; 

(c) Gratomic Inc.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; 

(d) Gratomic Inc.’s ability to enter into contractual arrangements with additional Pharmacies; 

(e) the accuracy of budgeted costs and expenditures; 

(f) Gratomic Inc.’s ability to attract and retain skilled personnel; 

(g) political and regulatory stability; 

(h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; 

(i) changes in applicable legislation; 

(j) stability in financial and capital markets; and 

(k) expectations regarding the level of disruption as a result of CV-19. 

Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance, or achievements of Gratomic Inc. to be materially different from any future plans, intentions, activities, results, performance, or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: 

(a) Gratomic Inc.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; 

(b) public health crises such as CV-19 may adversely impact Gratomic Inc.’s business; 

(c) the volatility of global capital markets; 

(d) political instability and changes to the regulations governing Gratomic Inc.’s business operations 

(e) Gratomic Inc. may be unable to implement its growth strategy; and 

(f) increased competition. 

Except as required by law, Gratomic Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Gratomic Inc. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency, or completeness of the information in this document. Neither Gratomic Inc. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document. 

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Gratomic Inc. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Gratomic Inc. or such entities and are not necessarily indicative of future performance of Gratomic Inc. or such entities.

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