NVX - NOVONIX LIMITED

[blacksheep]

Interesting new appointment......

 

Departing DowDuPont executive chairman Andrew Liveris has agreed to join the board of fledgling Brisbane battery and graphite company and buy $500,000 worth of shares in the company through a placement.

 

The Darwin-born, US-based corporate elder will take the role after he steps down from DowDuPont in the first half of next year.

 

Mr Liveris said he was excited about the opportunity to help create an integrated, global battery materials and specialist equipment company.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The rechargeable battery market offers huge global growth, with the opportunity to supply differentiated products and establish market share during this relatively early stage of market maturity,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Mr Liveris said.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“I am excited with the prospect of growing Novonix and its technology in the international and especially the US markets.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

 

Mr Liveris is also a non-executive director of IBM.

 

As part of Mr LiverisÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ prospective appointment, he will invest $500,000 through a placement of 757,575 Ordinary Shares in Novonix (NVX) at an issue price of 66c per share, subject to shareholder approval at the upcoming annual general meeting.

 

At 3.04pm (AEST), Novonix shares were up 5c to $1, giving the company a market value of about $56 million.

 

Novonix, a Canadian lithium battery-testing and services business, was acquired by ASX listed Graphite Corp for $5m.

 

Graphite Corp, run by former ERM Power boss Phillip St Baker, then changed its name to Novonix.

 

Before the acquisition, Graphite Corp had been focused on the Mt Dromedary graphite exploration project in Queensland, 125km north of Cloncurry.

 

Mr Baker holds 7.7 per cent of NovonixÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s shares, while the wealthy Millner familyÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Brickworks owns 15.46 per cent.

 

http://www.theaustralian.com.au/business/c...2b120781c933e1f

 

Some Research Notes -

https://www.novonixgroup.com/wp-content/upl...NT-RESEARCH.pdf

https://my.morgans.com.au/research/647DB622...4c-18d547e2ca31

[blacksheep]

Market like the appointment - SP up 25% currently @ $1.25/share

[nipper]

NOVONIX Limited (NVX, formerly Graphitecorp Limited) is a developer and supplier of materials, equipment and services for the global lithium-ion battery industry

. and back to $1.00 (took the escalator up, and stairs back to ground floor)

[blacksheep]

No doubt this ann on the 15 November - APPENDIX 3B ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ RELEASE OF RESTRICTED SECURITIES - had something to do with the decline

 

NOVONIX Limited (ASX Code: NVX) advises that 47,170,453 fully paid ordinary shares will be

released from escrow on 2 December 2017. The following Appendix 3B is requesting quotation of

these shares following the end of the ASX restriction period.

 

In addition to the shares noted above, 1,562,500 performance rights will also be released from escrow

on 2 December 2017. The Company is not seeking quotation of the performance rights.

[blacksheep]

NVX's response to the SP movement

 

The NVX share price has traded down from $1.42 at close of business on the day of

our AGM on 21 November 2017 to $1.00 at close of business yesterday 4 December

2017.

 

Given the significant downward movement we provide the following commentary to

shareholders and the market generally.

 

We can confirm there has be no announcements or communications about the

business which would give rise in our opinion to the downward movement of the

share price.

 

We can confirm that the business is progressing well to plan and budget with respect

to what we have communicated with the market.

 

The PUREgraphite anode materials business that we are building-up in Tennessee

is progressing well with all our pilot plant equipment delivered and currently being

installed and the company on track to have this plant commissioned by Christmas

and in operation in the new year. We have made significant progress evaluating and

short listing our supply chain and are preparing to run higher volume trials (10 to 20

ton) early in the new year which will provide the necessary performance detail to

prepare to scale the business to 1,000 tpa capacity by 30 June next year as planned.

We have made good progress in engaging with prospective customers both

domestic US battery makers and international battery makers and getting the

necessary agreements in place for evaluating and qualifying our materials starting in

the new year and based on production from our pilot plant which will be up and

running.

 

The Battery Testing Services (BTS) business in Nova Scotia is performing well with

strong organic sales growth coming from our existing tier one customer base and

new customers including several global brand names in the battery making and

equipment manufacturing sectors. The growth is across many fronts including sales

of our original HPC technology/equipment, sales on the newly released high power

HPC technology/equipment, growth in our testing services and consulting, all areas

exceeding business plan at present. We are currently examining how we can further

accelerate the growth of this business that is experiencing strong demand well above

our capacity to produce and serve. We are currently moving to a new facility that is

five times larger and preparing to launch our first marketing campaign and appoint

our first dedicated marketing representative.

 

The Mount Dromedary Graphite Project in North Queensland is now in public

notification phase of the process of obtaining a mining license and environmental

authority and we expect to get these permits granted in the first half of 2018.

 

Andrew Liveris and Admiral Bob Natter have now invested their funds now and are

strongly behind the company with a visit to our Tennessee operations planned for

January.

 

Overall the business is performing well in all areas.

 

In respect to the selling of shares most of the selling was prior to the escrow release

which was 2 December and no staff or directors have been selling shares.

 

The selling appears to be predominantly smaller holders and nominees (representing

multiple small holders) profit taking and liquidating their positions at significant profit.

Some of these sellers are former convertible note holders whoÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ve all converted and

are taking some of their capital off the table.

 

There was one larger holder who had some financial difficulties and sold about $1M

worth in one line to a family office (at $1.25) and we have seen a bit of that stock

come back out onto the market.

 

Other larger holders have generally been holding or increasing their positions.

[nipper]

We selectively increased our positions in a number of smaller companies, .....and a new holding was

 

initiated in Novonix, a supplier of materials and services to the lithium battery industry....

 

Argo Investments (ARG) half yearly

[nipper]

Convertible Note for $10 million. Some buyers lining up but, so far, nothing on sell side.

 

 

[nipper]

after a year of trending down, and settling around 40c, li'l ol' Li hopeful Novonix has put a bit back on, made it to 60c today. On no news; speeding ticket soon?

 

('twas a wonderfully symmetric "hope and reality" graph since listing 2 years ago.... 40c to two dollar, then back again.)

[nipper]

and back to 40c, though we have a broker (Morgans) putting a target of 65c on it:

....the company is in the final stages of fitting out new premises and expects to commission its first 500tpa of equipment in the current quarter. The first anode contract is expected in the third quarter of FY20.

 

Novonix has written down the value of its non-core Mt Dromedary deposit and the BTS business by -$11m and -$5m, respectively.

 

Morgans still believes there is potential value in Mt Dromedary, should it be sold, but based on values of listed graphite peers reduces assumed value.

 

Growth assumptions for BTS are also reduced in line with inflation. Speculative Buy (Add) rating maintained. Target is reduced to $0.65 from $0.75.

[blacksheep]

NOVONIX TO SUPPLY SAMSUNG SDI AND PURSUE R&D COLLABORATION

NOVONIX Limited (ASX: NVX) is very pleased to announce that it has reached conditional

agreement to supply lithium-ion battery anode material to SAMSUNG SDI, an international

manufacturer of lithium-ion batteries.

 

The agreement is NOVONIXâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s first for its recently launched âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“PUREgraphite Anodeâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ product

and positions NOVONIX as a new supplier in this specialised battery materials market.

The agreement follows more than six months of technical evaluation of PUREgraphite Anode

material and is intended as a first phase of a long-term arrangement.

 

Under the agreement NOVONIX will supply SAMSUNG SDI an initial volume of 500 metric

tons in 2020, consistent with NOVONIXâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s currently being installed production capacity, with

first deliveries forecast to commence in October 2020.

Larger volumes will be considered each year and will be subject to supply performance by

NOVONIX, market conditions and SAMSUNG SDI overall requirements.

 

NOVONIXâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s PUREgraphite anode material will be manufactured at its facility in the United

States and will be exported to SAMSUNG SDI battery manufacturing facilities in other

countries.

 

Signing of the purchasing agreement for 500 metric tons in 2020 is subject to SAMSUNG

SDIâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s required quality assurance processes and audit of supplier processes fulfillment.

Pricing is commercially sensitive and strictly confidential between the parties.

Financial implications for NOVONIX are material with sales under this agreement matching

the initial production capacity currently being installed at the PUREgraphite facility in

Tennessee.

 

NOVONIX will accumulate initial inventory prior to expected first delivery in October 2020.

SAMSUNG SDI and NOVONIX will also explore opportunities for the supply of new graphite

anode materials for Electric Vehicle use in Samsung SDI products under R&D collaboration.

NOVONIX Managing Director, Philip St Baker, said âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“NOVONIX is extremely honored to supply

SAMSUNG SDI and we look forward to supporting SAMSUNG SDI in delivering higher

performance batteries to the global market.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ