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Hexagon Resources Ltd

Hexagon Resources gains new substantial holder as it commercialises downstream processing business

The company recognises that controlling downstream value-added processing and product marketing adds substantial strength to its upstream projects.

Hexagon Resources Ltd - Hexagon Resources gains new substantial holder as it commercialises downstream processing business
Hexagon is well positioned to leerage growing demand in the lithium-ion battery market and the rapidly emerging graphene market

Hexagon Resources Ltd (ASX:HXG) remains focused on its objective of becoming an integrated producer of high value specialty materials for the battery and related technical industrial sectors.

The company has been engaged in building a foothold in the North American market and material processing industry for nearly two years, with Hexagon managing director Mike Rosenstreich referring to its activities as “bceing a doorbell to the US battery supply chain”.

This appears to have resonated with key stakeholders and resulted in management executives spending significant time in negotiations and evaluation of several opportunities.

New substantial holder

Investors have also noticed as seen in the 6.99% stake in Hexagon that UBS Group AG and its related bodies have recently acquired.

The Swiss financial services company obtained more than 20 million shares, becoming a substantial holder.

Commercialising downstream business

For the past two years, Hexagon has focused on commercialising a downstream business to become the ‘natural customer’ for its own upstream graphite concentrate materials.

Technical work on upstream mineral resources is being undertaken to better understand where efficiencies and strengths can be exploited.

The company confirms there will be a delay to the progress of the McIntosh joint venture with Mineral Resources Limited (ASX:MIN), with the proposed JV structure still a matter of discussion between the JV parties.

Work at Hexagon’s Halls Creek Gold Project is planned to start during this field season after access clearance from native title claimant groups.

The project has a growing value to Hexagon in the current high-gold price environment, despite it not being a core asset.

Downstream manufacturing offers higher margins than ‘mine-based’ processing

During discussions regarding the development of its downstream graphite business, Hexagon’s potential strategic funding partners have expressed a clear desire that the company expand its focus.

This evolution in strategy would present exciting complimentary opportunities for Hexagon to access within its downstream commercialisation strategy as well as fast tracking towards cashflow.

The company has determined downstream manufacturing of finished high value products offers higher margins than primary ‘mine-based’ processing into unfinished industrial-mineral concentrates.

Quick facts: Hexagon Resources Ltd

Price: $0.06

Market: ASX
Market Cap: $17.22 m
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Hexagon Resources graphite scoping study a highlight for June quarter

Hexagon Resources (ASX:HXG) managing director Mike Rosenstreich tells Proactive Investors that the completion of a scoping study on the development of a standalone advanced graphite purification processing plant (GPPP), was a highlight in its June quarterly report. He also detailed the...

on 12/7/19

2 min read