logo-loader
viewHexagon Energy Materials Ltd

Hexagon Resources increases focus on downstream graphite market

The company is focused on downstream, high-margin production of advanced graphite and other aligned materials.

Hexagon Resources Ltd - Hexagon Resources increases focus on downstream graphite market
Hexagon’s aim is to achieve near term profitability

Hexagon Resources Ltd (ASX:HXG) has recently increased its focus on downstream graphite opportunities, where prices and margins remain strong.

Downstream graphite (or secondary processing) market refers to the technologies and processes utilised to transform raw graphite concentrates into finished, value-added products for use by customers, such as specialty anode graphite used by battery manufacturers.

Hexagon has built up a formidable technical knowledge based on test work of its McIntosh project flake material which is applicable and highly valuable for a range of flake precursor material applications.

The company is now executing its new business plan encompassing energy materials with a focus on advancing its downstream graphite transformation work to fast-track a positive cash-flow business.

To this end it will:

  • Focus expenditure on downstream, high-margin production of advanced graphite and other aligned materials.
  • Continue important downstream product development of advanced graphite materials. Test results of Hexagon’s electric-arc furnace (EAF) graphite electrode additive was completed recently, with results available soon.
  • Execute a fast-track commercialisation of battery materials production via procurement of commercially available flake concentrates with specific attributes to be transformed into battery-ready materials in formats understood and acceptable to mainstream battery manufacturers, meeting the strong ‘Made in USA’ sentiment and requirement of the burgeoning EV manufacturing industry in the US southern states.
  • Progress the company’s two upstream graphite projects; the McIntosh and Ceylon Projects and subject to positive feasibility studies, these two projects could be brought online at some point in the future as the supply-demand situation stabilises and rebalances.
  • Explore the Halls Creek Gold project, with an airborne magnetics survey due to commence this week.

Hexagon managing director Mike Rosenstreich said: “We are committed to create long-term shareholder value by maximising our near-term growth opportunities.

“We hold two exciting graphite projects for when the time is right. Today, in order to take advantage of the current market and prepare us for the future upturn, Hexagon’s money is better directed to continue with our stated strategy of developing opportunities for near term profitability in downstream specialised, high-value graphite products and critical energy-materials.

“The Hexagon team is very active on a number of opportunities and we expect to make a series of announcements in the near term.”

Quick facts: Hexagon Energy Materials Ltd

Price: 0.07 AUD

ASX:HXG
Market: ASX
Market Cap: $20.47 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Hexagon Energy Materials Ltd named herein, including the promotion by the Company of Hexagon Energy Materials Ltd in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Hexagon Resources updates Proactive on investor discussions...

Hexagon Resources Ltd (ASX:HXG) managing director Mike Rosenstreich has recently returned from a two week roadshow and shares the highlights with Proactive. The company has also recently updated its name to Hexagon Energy Materials to better reflect the changing focus of the company.

3 weeks, 3 days ago

2 min read