On 11 December 2018, Hexagon Resources Limited (ASX: HXG) announced the outcome of the pilot scale McIntosh sample. 99.999% of carbon purity was achieved, from a sample of 20kg. The graphite which was derived was highly pure which is above the carbon purity specification required in the “Nuclear Graphite” industry.
The previous announcements of the company also stated that the graphite was of similar grade from the five samples each of 0.5kg. Also, no harmful element was obtained in the process.
The company at present is establishing a pilot facility where this purification of graphite will take place which will enable the future cash flows of the company.
The recent results obtained with graphite purity of 99.999% comes under a part of a focused program with the establishment of electro-thermal fluidized bed purification furnace at pilot, qualification, and subsequently, production scale. Further, it is the responsibility of the McIntosh flake to follow the procedure of purification of the graphite which is of high quality for the industrial purpose at a low operating cost.
The production of high-quality graphite has made the position of Hexagon above its competitors. It enables HXG to enter deep into the market and also receive premium prices for this high-quality graphite.
Since inception, the performance of the company is -84.12%. The performance of the company in 10 years was -83.32%. The five years performance of the company was -27.76%. Since last year, the performance of the company is 3.85%.
Up to 30 June 2018, the company made a net loss of $1,305,622. However, due to an increase in the accumulated loss has a negative impact on the investors. The company holds a net asset of $17,554,472 which indicates that the company in a position where it can meet its long-term obligations. The company owns a total current asset of $7,361,898 and total current liabilities of $348,168 which is a proof that the company is in a position where it can meet the working capital as well as manage its short-term obligations. The total shareholder’s equity is worth $17,554,472.
The net cash outflow was $1,651,201 from the operating activities of the company. Here, the primary source of cash outflow was due to the payment made to the suppliers and the employees.
The net cash outflow was $535,207 from the investing activities of the company. Here, the primary source of cash outflow was due to the payment made for exploration and evaluation.
The net cash inflow was $7,685,870 from the financing activities of the company. Here, the primary source of cash inflow was through the proceeds from the issue of shares.
By the end of FY2018, the net cash available with the company is $7,361,880. At present, the market price of the share is A$0.140 with the stock holding a market capitalization of A$39.39 million.