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NovoCarbon and the Demand Drivers For The Market


The alphaDIRECT Insight

With a long-term market focus on batteries and the energy storage markets, NovoCarbon has a significant and fastgrowing market opportunity ahead of it. Graphite is a key part of the energy storage supply chain with demand expected to come from key markets such as the vehicle electrification and grid storage. NovoCarbon presents a unique opportunity for investors to focus on the upstream portion of that supply chain where quality and consistency of supply are key competitive factors. The company is currently in progress of obtaining its first large customers through product qualifications and then on to the approved vendor list where it would be in a position to receive large commercial orders. The company is approaching a key inflection point over the next 12 months in our opinion and has leverage to one of the fastest growing technology markets as reviewed in this Management Series.

Shawn Severson:  First, I’d like to thank you, Paul, for taking the time to speak with us today. The last time that we spoke about NovoCarbon, we discussed your science and technology platform with Dr. Borovsky. Today our focus will be on demand drivers of the market and the industry itself. However, before we get started could you provide us with a brief introduction?

Paul Ferguson:  Thank you, Shawn, and thank you for the opportunity to speak with you today to talk about NovoCarbon. My background has been primarily in technology. I spent a lot of time working in information technology and then spent some time working with startups in wireless technology and other enterprise software. I moved into the resource space in the early 2000s and that is when I started getting involved with minerals.

We formed the company that was the precursor to NovoCarbon in 2004. The company started out as Shield Gold and then went through a couple of transitions. We first redefined ourselves as Great Lakes Graphite but as our plan has evolved, we felt that NovoCarbon was a better fit for what we are doing.

Shawn Severson:  Great, thank you, Paul. Let’s move on to today’s topic. What do you consider to be the most important market drivers for NovoCarbon, both near-term and on a longer-term basis?

Paul Ferguson: We’ve been spending a lot of time over the past few years preparing for commercialization. That has been a long, involved process of both working out the flowsheet in terms of the equipment and the processing that is required to make these products. We have also spent a lot of time working with our customers to understand their specific requirements.  We finally managed to put all the pieces together to manufacture the products that our customers are seeking at an industrial scale. Consistency of quality is absolutely critical for our customers.

The drivers in the near term and then in the longer term will be getting the first large customers over that threshold of product qualifications, on to the approved vendor list and then actually into sales agreements.  Then we will be in a position to start receiving purchase orders and fulfilling them. Subsequent milestones for the longer term will be to expand those relationships, grow our production capabilities and ramp up the level of production at out partner’s facilities in Niagara Falls.