HPQ_Pres_2020 Aug final

Click on the above link to access the Company Presentation.

If HPQ is of interest to you please contact either our broker, Beer and Co (mbeer@beerandco.com.au) and/or the Managing Director of HPQ Ltd, Stuart Jones (stuart@ultrahpq.com). A short Zoom meeting will be arranged and the Company has a comprehensive data room which will be made available upon signing of a NDA.

Beer and Co is a Melbourne, Australia based broker, who are working closely with  HPQ Limited (HPQ), an unlisted public company, to raise $5m in Equity capital for a 33% equity interest in the Company. The funds raised will enable all the remaining testwork to be carried out with the Company’s advisers to progress HPQ’s globally strategic high purity quartz project in North Queensland to a decision to proceed. Beer & Co  believe HPQ to be an amazing and inexpensive investment given its unique features. Following a series of sessions with the Company and its advisers, Bechtel, Core Resources, Mining Plus and Wogen UK, we have summarised below all the key features of the Company and its project:

  1. HPQ has a globally significant strategic deposit of very high-purity quartz in North Queensland enabling production of ultra-high purity quartz sands which  will sell initially into end use application markets including optics and high purity quartzware applications such as pharmaceutical glass and with planned product development into Solar PV and Semiconductor manufacturing. This is certainly a globally important critical mineral.
  1. Today there are only 2 major global producers of ultra-high purity sand– Sibelco – Spruce Pine USA and The Quartz Corporation USA – HPQ will have lowest costs so will generate high margins. HPQ also has the real opportunity to be one of the 3 major producers of Solar grade and semiconductor grade sands in  the future.
  1. Resource grade now established by leading Australian Resources experts, Mining Plus Pty Ltd (www.mining-plus.com) at 99% Silica meaning close to 99.995% for its processed sand base case (HP5 sand). HPQ in situ quartz rock resource is extremely scarce globally.
  1. Much in-house test work already done to indicate that HP5 is achievable. Once steady state HP5 production is achieved, the step up to much higher margins on HP7 and HP9 are considered achievable, subject to more testwork.
  1. The Process flow sheet has been designed by HPQ and test work verification will now take place with its leading consultants, Bechtel (https://www.bechtel.com/) and Core Resources (www.coreresources.com.au) The consensus is that their process will be much simpler than its competitors.
  1. The political and economic risk for HPQ is very low. Australia is a great place to be producing and selling its products into Asia.
  1. HPQ is using Bechtel, a global leader. Since 1898, Bechtel have helped customers complete more than 25,000 projects in 160 countries on all seven continents that have created jobs, grown economies, improved the resiliency of the world’s infrastructure, increased access to energy, resources, and vital services, and made the world a safer, cleaner place.
  1. HPQ now has a validated resource of 1.2Mt at 99% silica in the Measured and Indicated categories with huge exploration upside.
  1. Sibelco and Quartz Corp have an effective duopoly at the ultra high purity end of the market (Solar PV and Semiconductor end uses); initial production of 15,000T pa by HPQ is equivalent to only 1 year’s forecast market growth.
  1. HPQ are also engaging Core Resources in Queensland. Core provides services in all aspects of metallurgical testing, process engineering/flowsheet development and site process services for the global mining industry.
  1. HPQ have created a partnership with Wogen Resources (https://www.wogen.com/) based in London. Founded in 1972, Wogen has a long history of trading, selling, procuring and servicing customers across the globe in its field of exotic metals and minerals. Wogen strategy is to select and back a single producer with best in class resource base for each commodity and to support them on a long term relationship basis. Sourcing materials from the remotest corners of the globe and delivering them on time and competitively priced is the expertise its producers and buyers rely on. Wogen deals in the whole range of exotic non-ferrous metals specialising in Electronic, Precious, Noble, Light and Minor Metals, Ferro Alloys and Minerals.
  1. HPQ has an Offtake agreement in place with Wogen and they and the Company both describe the agreement as a win / win arrangement. Offtake is fundamental to successful sales and marketing for HPQ.
  1. Beer and Co is our broker (contact details in the slide deck) and they are very impressed by the depth of the relationship between HPQ and its development partners, Bechtel, Core, Mining Plus and Wogen.
  1. Beer and Co and HPQ have agreed a very fair company valuation for the new investor, with sensible clawbacks for existing shareholders upon achieving an aggressive EBITDA milestone, which will benefit all shareholders.

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