Black Swan Graphene has announced the results of a scoping study for its large scale Québec facility. Developed in collaboration with Toronto-based engineering firm Halyard, this Scoping Study marks a significant step forward for Black Swan's growth strategy.
The Scoping Study provides an initial evaluation, including processing plant specifications as well as conceptual mechanical, civil, structural, and electrical designs, for its proposed 40,000 square-foot first large-scale production facility, based on the same processing technology currently being used in the facility located in the United Kingdom. The annual production and self-sustaining ramp up of its industry-ready products have been established by taking into consideration customers and distributors' expected demand, as well as strategic partnerships, including the partnerships with Nationwide Engineering Research & Development ("NERD") and the Arup Group ("Arup").
The Scoping Study also established capital and operating cost estimates, as well as financial analysis based on its strategy to build such facility in Québec, Canada, where the Company aims to leverage the emergence of a world class graphite industry as a raw material source and the province's low-cost renewable hydroelectricity. While the initial capacity target stands at 9,868 tonnes per annum in accordance with the Company's initial strategy, expansion beyond this figure will be driven by market dynamics and raw material access.
It was noted that, due to the modularity of Black Swan's patent-protected technology for large scale production, the Company is well positioned to also offer a licensing "at-the-point-of-use" model, which would further accelerate the adoption of its graphene products, particularly in the concrete industry.
Simon Marcotte, President and Chief Executive Officer of Black Swan, commented: "We are incredibly pleased with the outstanding outcomes of the Scoping Study, marking a significant milestone towards establishing Black Swan as a global leader in graphene production. Over the past year since going public, our team has been actively engaged in all facets of this study, collaborating closely with Halyard and potential clients and distributors. These results provide the bedrock to effectively construct and operate the project, and we hold firm confidence in their feasibility and attainability from both operational and commercial perspectives. Furthermore, the conclusion of the study aligns seamlessly with the initial estimates established in partnership with Thomas Swan & Co. Ltd., prior to the inception of Black Swan Graphene, underscoring the caliber of the partnership."
The sale price assumptions used in the Scoping Study are in line with the Company's inflation adjusted original strategy and represent long term prices, but the Company remains confident that higher prices will be realized as customers value the suitability of the product derived from collaborative product development efforts. With these new products and additives, customers gain the opportunity to explore new markets and develop their own innovative products at a minimal variation in overall costs. Black Swan continues to anticipate that the availability of such low-cost and high-performance graphene products will fuel the adoption across volume-driven industries.
