Hi Mike,
thank you for your link to Cambridgenanosystems.com, very interesting site.
The cheapest way to buy graphene from them is by buying 100g at a time and then your price per gram is $40-60.
From the research that ZEN has gotten publish, it has special attributes for dispersion that make it unique. Both BGU and Sussex are on the record that ZEN's graphite was the only one they ever tested that could disperse properly (in concrete and rubber) and this made it a high value material. Now, because of these unique characteristics, I never really looked at the economics of the project as much as I should have. Why bother if we are the only able to achieve such a superior performance? We will always be able to command a premium if we offer a superior performance.
However, between the data you provided, the Mr Pigeon exposing himself as a brain damaged case, I really dug into the numbers lately. In the PEA, ZEN could produce 99.9% graphite at a cost of $2046 per tonne. Let's call it $2000 per metric ton to make things simple.
So our input cost to make graphene is $0.002 per gram. Now, the cost all in to have this processed to graphene is $0.02 per gram, or 2 cents per gram. This number came from the ZEN presentation that was pulled after it was put up by mistake. Could be off but that is $20,000 to process a ton of graphite by sonication, seems reasonable to me.
So now, let's imagine the price of graphene falls off a cliff between now and when ZEN is in production. Let's say the price falls a dramatic 99% from the current price of $40 to only $0.40. Since our cost is $0.02, that means that even after a 99% price drop, we would still have a 2000% margin.
Let me repeat that: After the price of graphene falls 99% from the prices of today, ZEN would still be enjoying a 2000% margin on its product.
So, thank you Mike and Mr Pigeon, it has now become even clearer to me how stupid valuable ZEN is. Most companies are happy being able to dominate the market by either having a better product or by being able to under cut their competition on price.
ZEN will be in the enviable position of both offering a superior product to anything out there and be able to crush the market on price. This certainly explains why AE is not worried about money or anything else. The margins ZEN will be able to achieve are more than ridiculous. If we could manage to command $1 per gram, that would be equivalent to $1 Million per ton and the current market is $40-60 IF you buy in 100g increments!!! I finally agree that Musky is not exaggerating. Sorry it took me this long to see the light Musky but you have been right all along.
Dennis, have you figured out yet what does not make sense about your Radio Shack deal? ROTFLMAO!!!!
Choo Choo,
Glorieux |
