If You Invested in Graphene Mfg Gro (GMGMF)

Graphene Manufacturing Group Ltd. (OTCQX: GMGMF), also listed on the TSX Venture Exchange under the symbol GMG, is an Australian-based clean-technology company focused on energy saving and energy storage solutions. According to the company, its products are enabled by graphene that it manufactures in-house using a proprietary production process. GMG states that this process decomposes natural gas (methane) into carbon in the form of graphene, hydrogen and residual hydrocarbon gases, aiming to produce high quality, low cost, scalable and low/no contaminant graphene suitable for clean-technology and other applications.

The company describes its present focus as de-risking and developing commercial scale-up capabilities and securing market applications for its graphene-based technologies. GMG highlights two main business areas: an energy savings segment built around graphene-enhanced coatings and lubricants, and an energy storage segment centred on graphene aluminium-ion battery development in collaboration with the University of Queensland, supported by funding from the Australian Government.

Energy savings products and applications

In its energy savings segment, GMG has initially focused on a graphene-enhanced heating, ventilation and air conditioning (HVAC-R) coating, marketed under the THERMAL-XR® brand. Company disclosures describe THERMAL-XR® ENHANCE as a graphene coating system applied to heat exchange surfaces, such as cooling coils and other metal components, with the stated aim of improving thermal conductivity, enhancing corrosion resistance and maintaining or improving performance of new and existing units. GMG reports that independent verification and customer case studies, including projects at a large international airport, have measured changes in temperature reduction across cooling coils and air flow pressure after application of THERMAL-XR® ENHANCE.

GMG notes that THERMAL-XR® ENHANCE powered by GMG Graphene has been granted a patent in Australia for a 20-year term from the date of grant, and the company is progressing patent applications in other jurisdictions. It also reports regulatory milestones such as approval from the Australian Industrial Chemicals Introduction Scheme (AICIS), Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) registration in Europe, and United States Environmental Protection Agency (EPA) consent notice approval conditions for its THERMAL-XR® ENHANCE graphene coating product. These regulatory steps are presented by GMG as enabling sales in multiple regions.

The company has built a product range around THERMAL-XR®, including THERMAL-XR® ENHANCE in various pack sizes, THERMAL-XR® PREP detergents, and a THERMAL-XR® kit with an electric spray gun and accessories. GMG has simplified the application process from three steps to two steps (PREP detergent followed by ENHANCE graphene coating). It has also launched a multi-language global product catalogue and labels, with product information and instructions available in 16 languages for distributors and end users.

GMG also markets G® LUBRICANT, described as a graphene-enhanced engine oil additive suitable for mineral, semi-synthetic and fully synthetic oils. The company states that this lubricant additive is focused on saving liquid fuels, initially for diesel engines, and is offered in multiple pack sizes for distribution and resale.

Distribution, training and commercialization approach

To support commercialization of its coatings, GMG has introduced the GMG SPRAY ACADEMY, a training program for distributors and contractors on cleaning, preparing and coating surfaces with THERMAL-XR®. Training is delivered in person, online and via video, and GMG indicates that customers can receive a five-year warranty for THERMAL-XR® coatings when applied by trained and accredited technicians. The company has also described plans to use networks of trained HVAC contractors to apply THERMAL-XR® ENHANCE on refrigeration and air-conditioning coils, including for roll-outs in Australian capital cities.

GMG reports collaboration with distributors and partners in various regions. Examples disclosed by the company include distributor agreements in several Asian countries, a distribution arrangement with Nu-Calgon for North America under the brand "Nu-Calgon CoolWorx® powered by GMG Graphene", and an agreement under which Beijer Ref’s Australian operations will offer THERMAL-XR® ENHANCE as an optional coating on certain refrigeration evaporator coils. GMG characterizes these relationships as part of its strategy to expand market reach through channel partners and wholesale networks.

Energy storage and graphene aluminium-ion batteries

In its energy storage segment, GMG is working with the University of Queensland on the research, development and commercialization of graphene aluminium-ion batteries, referred to as G+AI Batteries. The company states that this work is supported by financial contributions from the Australian Government. Public updates from GMG describe progress on pouch cell development, electrolyte and electrode design, and testing performed with the Battery Innovation Center in the United States.

GMG has reported that its G+AI battery technology is being developed for high power and fast charging applications and has discussed potential comparisons with existing lithium-ion chemistries such as lithium titanate oxide (LTO) batteries. The company has also indicated that it is pursuing patent protection for aspects of its battery technology, including a hybrid electrolyte and electrode structures, and that it is exploring potential use cases in sectors such as heavy mobile equipment and other applications where high power and rapid charging are important. In addition, GMG has developed a graphene additive slurry that it states is aimed at improving the performance of lithium-ion batteries.

Graphene production process

GMG emphasizes its in-house graphene production as a core capability. According to the company, its proprietary process decomposes natural gas (methane) into its constituent elements, producing graphene as carbon, hydrogen and some residual hydrocarbon gases. GMG describes the resulting graphene as high quality, low cost, scalable and tuneable, with low or no contaminants, and suitable for use in clean-technology and other applications. The company has also referenced commissioning of a modular graphene production plant as part of its scale-up efforts.

Business objectives and strategic focus

Across its disclosures, GMG summarizes its strategy through four stated critical business objectives:

• Produce graphene and improve/scale cell production processes
• Build revenue from energy savings products
• Develop next-generation battery technology
• Develop supply chain, partners and project execution capability

The company repeatedly notes that its focus is on de-risking and developing commercial scale-up capabilities, as well as securing market applications for its technologies. It positions its energy savings products, such as THERMAL-XR® coatings and G® LUBRICANT, alongside its longer-term energy storage development activities, including G+AI batteries and graphene additives for lithium-ion cells.

Stock information and sector classification

Graphene Manufacturing Group Ltd. trades on the TSX Venture Exchange under the ticker GMG and on the OTCQX market in the United States under the symbol GMGMF. While industry classification data may list the company under mining-related categories, GMG describes itself in its own releases as an Australian-based clean-technology company focused on graphene-enabled energy saving and energy storage solutions, supported by its proprietary graphene manufacturing process.

FAQs about Graphene Manufacturing Group Ltd. (GMGMF)

• What does Graphene Manufacturing Group Ltd. do?
  According to the company, Graphene Manufacturing Group Ltd. develops, makes and sells energy saving and energy storage solutions enabled by graphene produced through its in-house proprietary process. Its activities include graphene-enhanced HVAC-R coatings, graphene lubricant additives and development of graphene aluminium-ion batteries.
• How does GMG produce its graphene?
  GMG states that it uses a proprietary production process to decompose natural gas (methane) into its natural elements, producing carbon in the form of graphene, hydrogen and some residual hydrocarbon gases. The company describes the resulting graphene as high quality, low cost, scalable, tuneable and low/no contaminant.
• What is THERMAL-XR® ENHANCE?
  THERMAL-XR® ENHANCE is described by GMG as a graphene-enhanced coating system designed for heat exchange surfaces. The company reports that it can improve thermal conductivity, protect against corrosion and help maintain or improve performance of heat exchangers and related equipment. THERMAL-XR® ENHANCE powered by GMG Graphene has been granted a patent in Australia.
• Where is THERMAL-XR® being commercialized?
  GMG has reported regulatory approvals and registrations that enable THERMAL-XR® sales in regions including Australia, Europe and North America. It has also announced distribution arrangements in several Asian countries and partnerships with distributors such as Nu-Calgon in North America and Beijer Ref’s Australian operations.
• What is G® LUBRICANT?
  G® LUBRICANT is a graphene-enhanced engine oil additive described by GMG as suitable for mineral, semi-synthetic and fully synthetic oils. The company states that this product is focused on saving liquid fuels, initially in diesel engines, and is offered in multiple pack sizes for distributors and retailers.
• What are GMG’s energy storage activities?
  In energy storage, GMG and the University of Queensland are working collaboratively, with financial support from the Australian Government, to progress research, development and commercialization of graphene aluminium-ion batteries (G+AI Batteries). GMG has also developed a graphene additive slurry aimed at improving the performance of lithium-ion batteries.
• What are GMG’s four critical business objectives?
  The company identifies four critical business objectives: producing graphene and improving/scaling cell production processes; building revenue from energy savings products; developing next-generation battery technology; and developing supply chain, partners and project execution capability.
• How does GMG support application of its coatings?
  GMG has launched the GMG SPRAY ACADEMY, a training program for distributors and contractors on cleaning, preparing and coating surfaces with its THERMAL-XR® graphene coating system. The company notes that coatings applied by trained and accredited technicians can qualify for a five-year warranty.
• On which exchanges does GMG trade?
  Graphene Manufacturing Group Ltd. trades on the TSX Venture Exchange under the symbol GMG and on the OTCQX market under the symbol GMGMF.
• How does GMG describe its overall business focus?
  GMG describes itself as an Australian-based clean-technology company whose present focus is to de-risk and develop commercial scale-up capabilities and secure market applications for graphene-enabled energy saving and energy storage solutions.