Graphene Manufacturing Group Ltd. Approves AU$1.4 Million Deployment: The Remaining Capital Needed for a Second Generation

Executive Summary

• The Board approved an additional AU$1.4 million investment to complete the Gen 2.0 Graphene Manufacturing Technology plant, bringing total capital cost to AU$2.3 million.
• Construction is on schedule and expected to be online by mid‑2026; early procurement and engineering are substantially complete.
• Quarterly financial update shows cash of A$13.9 million (up from A$7.7 million) and a non‑cash warrant liability adjustment that does not affect cash or operations.

Key Details

• Additional Investment: AU$1.4 million approved to finish Gen 2.0 Plant, which will produce 10 t/yr of graphene.
• Total Plant Cost: Estimated at AU$2.3 million; largely covered by the March 2025 Bought Deal Financing (C$5.796 M).
• Project Timeline: On track for commissioning and start‑up in mid‑2026; long‑lead item procurement complete, engineering/design underway.
• Energy Strategy: Plant to be largely self‑powered using renewable generation, energy storage, and hydrogen‑enriched natural gas from tail‑gas power.
• Cash Position (Dec 31 2025): A$13.9 million, up from A$7.7 million at June 30 2025.
• Warrant Liability: 18.6 M outstanding share purchase warrants; IFRS requires fair‑value liability accounting, creating a non‑cash loss but no cash impact.
• Warrant Exercises: Approximately 2.9 M warrants exercised post‑Dec 31 2025 for gross proceeds of A$3.6 million, reducing the warrant liability and strengthening cash.
• Underlying Net Assets (Excluding Warrants): Positive A$21.5 million as of Dec 31 2025.
• Market Capitalization: Approximately US$200 million at Dec 31 2025.
• Management Comments: CEO Craig Nicol expressed excitement about progress; Chairman Jack Perkowski highlighted the plant’s role in future expansion.

Notable Quotes

“We are very excited with the progress to date of the Gen 2.0 project and are looking forward to bringing the plant online – on time and on budget.” – Craig Nicol, Managing Director & CEO

“A successful Gen 2.0 project will form the basis for the Company's future expansion plans.” – Jack Perkowski, Chairman & Director