Valuation Commentary: Saint Jean Carbon Inc. (TSX-V: SJL) (OTCQB: TORVF) (Frankfurt: WNFN) is considered to be among one of the most advanced technology companies, if not the most advanced, in North America when it comes to graphene innovation. Importantly for shareholders is the near-term catalyst potential for share price appreciation, as the Company are forerunners to obtaining the largest offtake agreement for mass-produced spherical carbon coated graphite (SCCG) for the largest lithium-ion battery manufacturers (electric car/green energy storage). SJL.V is currently in the process of building the first high speed commercial shaping and coating mill in North America for a major ev manufacturer, the Company has the materials, the people, the technology and knowhow to be a top-beneficiary in this multi-billion dollar industry. SJL.V's current market cap of C$13 million (trading at ~C$0.07/share) is minuscule compared to its potential, the value of the spherical carbon coated graphite patent alone has serious potential to result in a multi-billion dollar market cap in a very short time period. As the reality of the accomplishments and potential are understood by the marketplace, we expect shares of SJL.V to rise several multiples higher than its current price.
Over the last year SJL.V has filed several potentially revolutionary 100%-owned patents for applications of graphene, including a) the first superconductivity room temperature wire, b) a proprietary method for production of single layer (one atom thick) natural graphene with no impurities and without heat damage, c) production of diamagnetic graphene (which means it repels magnetic fields, in so being first in the world to temper/control graphene), d) a glucose meter that uses magnetic resistance graphene to instantaneously detect micro-changes via saline levels from tear ducts (once in commercial application it is expected to be ideal for instantly alerting diabetics). That is just a sampling of patents, the Company has ~35 other secondary and tertiary patent innovations in the pipeline.
As impressive as those inventions are for the future, currently ~75% to 85% of the Company's time and efforts are spent on the green energy storage and green energy creation side of its business as those have immediate real-world demand with serious near-term monetization potential. On the green energy creation side SJL.V has graphene photo cells in the lab yielding 100% light energy flow through efficiency, this holds potential to lead to a new paradigm for solar cells. On the green energy storage side SJL.V is rapidly advancing toward serious monetization with its first large-scale SCCG prototype mill now under construction for a major electric vehicle manufacturer. Its proprietary SCCG technology has efficiencies that dwarf what others are capable of and has so impressed lithium-ion battery manufacturers that it is expected to translate into an off-take agreement for the Company to supply raw materials, grind, shape, and coat 150,000 tonnes per year of spherical carbon coated graphite for 20 years, generating $350 to $500 million/per year in revenue at capacity.
Additionally on the energy storage side of the business, the Company is involved in a collaborative effort that leverages its patents and expertise. This November-2016, within two weeks of Saint Jean announcing it has appointed the top Li-ion battery expert in the world, Dr. Zhongwei Chen PhD, MSChE, BS, as Chief Technology Officer, Saint Jean Carbon announced it is building the world's first recycled high performance Lithium-ion battery in cooperation with their main battery manufacturing partner. The battery will use recycled/upcycling material from an electric car power pack and the upcycled anode material from Saint Jean Carbon. This battery will prove the life cycle of the raw materials can be extended by being re-used over and over again, and help position Saint Jean as an integral player in the future of the energy storage sector [see related November 24, 2016 news release entitled "Saint Jean Carbon Building a Recycled High Performance Lithium-ion Battery"]. Also, this January-2017 the Company announced it is building the first graphene based lithium-ion battery.
The Company was formed ~3 years ago to capitalize on the opportunities and advancements in graphene research and the growing enthusiasm for electric vehicles (which rely upon large quantities of specialized graphite for the anodes in lithium-ion batteries). CEO, Paul Ogilvie, is an individual rooted in technology success and also has a history of successfully advancing graphite mining projects to high valuation takeout. SJL.V is first and foremost a technology business, its graphite mining holdings should only be viewed as strategic back-up as the Company's M.O. is to treat raw materials as a commodity that can be sourced globally according to spec to feed end applications of the Company's technology. Everything the company does is geared toward ensuring it will have a part in meaningful final applications. The Company has built relationships at the highest level of research in the world and is on the forefront of innovation that will transform the future.
Graphene was only first isolated ~10 years ago. It is a thin layer of pure carbon, bonded together in a hexagonal honeycomb lattice. It is the thinnest compound known to man (at one atom thick), as well as the lightest. It is also the strongest compound discovered (100-300 times stronger than steel), is the best conductor of heat at room temperature, and also the best conductor of electricity known. Graphene has potential applications across a wide range of industries. Saint Jean is one of the most advanced in terms of production of graphene and in mid-2016 the Company was requested by the National Research Counsel of Canada to submit samples and help set the national standard for graphene production and quality. To date we are not aware of anyone else managing to meet the call to submit samples.