Is Hazer Group (HZR) Due For A Rerate?
Equity Story have been big supporters of Hazer Group (HZR), and they are now receiving some well-deserved media coverage.
For those who don’t know – put simply, the Hazer process utilises Natural gas and Iron ore as catalysts to produce at very low cost and high quantity, Hydrogen and Graphite.
Importantly, they can potentially produce Hydrogen with zero carbon emissions, and the Graphite they produce is high in purity, highly crystalline, and highly sought after in high-value forms including: Spherical Graphite, Graphene, Carbon Nano Onions, and Carbon Nano Tubes.
Hazer announced last week: “Ongoing laboratory test work in collaboration with The University of Sydney has confirmed Hazer’s ability to produce 99.95% ultra-high purity synthetic graphite from graphite concentrate produced by the Hazer Process.”
“The significant breakthrough demonstrates the potential for the Company’s synthetic graphite to become a high-quality alternative product within the rapidly growing end-user markets, where ultra-high purity levels are required, such as, for use in lithium-ion batteries.”
“The early stage indication is that we have the potential to become the lowest cost producer of graphite globally. We also eventually see ourselves as an environmentally responsible and sustainable producer, and believe battery manufacturers will be very receptive to this,” Hazer Group’s Managing Director, Geoff Pocock said.
The two high-quality products produced by Hazer have a combined market value of over $125 billion dollars. The Hydrogen gas price is stable, and demand is growing whilst the graphite market is growing daily, with new technology bringing about even stronger growth.
Please find the Hazer article below from yesterday’s Australian, where Director, Geoff Pocock, outlines how Hazer could benefit from the hydrogen revolution, especially in Japan.
“On a large scale, we have the potential to lower the costs, and increase the availability of clean hydrogen worldwide. This would be a clear advantage for the Australian hydrogen sector, as demand for hydrogen, particularly from Japan, is increasing at a dramatic rate”
He says the Japanese government wants to become the first nation that is significantly fuelled by the super-clean energy source, and plans to spend upwards of $22 billion yen ($252m) on hydrogen initiatives.
If the upcoming Pre-Pilot Plant proves to be successful, this could open the doors to some significant partnership opportunities and in turn we could potentially see a significant re-rate in the current share price.
If the upcoming Pre-Pilot Plant proves to be successful, this could open the doors to some significant partnership opportunities, and in turn, we could potentially see a significant re-rate in the current share price.