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Hazer Group enters 2018 cashed up, more inflows expected

Shares in the company are trading 150% higher than their December 2015 IPO price.
growth with money concept
The company is well funded to continue commercialising the Hazer Process

Hazer Group Ltd (ASX:HZR) has entered the 2018 calendar year with cash reserves of $8.32 million, an increase of $1.6 million on the prior quarter.

Cash inflows during the December quarter totalled $2.89 million from the exercise of options thanks to continued strong share prices.

Shares in Hazer are currently trading at $0.50, more than double the December 2015 IPO listing price of $0.20.

Positively, further cash inflows are expected in the current March quarter due to tax rebates from FY17.

Cash continues to be invested in research and development

Importantly, while Hazer maintains a strong financial position, it is not from lack of investment into research and development.

During the December quarter, operating cash flows of $1.29 million were recorded as core research and development activities continued to commercialise the Hazer Process.

The Hazer Process is a low-emission hydrogen and graphite production process.

This process enables the effective conversion of natural gas and similar feedstocks into hydrogen and high quality graphite, using iron ore as a process catalyst.

READ: Hazer Group teams with Mineral Resources to build synthetic graphite facilities

Last quarter, Hazer executed a binding agreement with Mineral Resources Limited (ASX:MIN) to jointly develop a large-scale commercial synthetic graphite facility.

Initially, it will be targeted towards the production of at least 1,000 tonnes per annum (tpa) of ultra-high purity graphite and capable of modular expansion to a nominal 10,000tpa.

Technology being de-risked

Furthermore, last quarter, a key development milestone was achieved regarding the scale-up and commercialisation of the Hazer Process.

This occurred through the demonstration of on-line injection of iron ore catalyst in the pre-pilot plant.

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