Good Morning, In this seventh issue of Archer’s 2020 Newsletter, I want to highlight the world-class achievements the Company has made recently, which is the result of Archer’s many years of dedication and an almost obsessive pursuit of excellence in materials technology.
The big picture is small
Archer’s strategy is to build an industry-leading materials technology company. This involves building innovative deep tech. We are at a critical, exciting, yet relatively early stage of business and company development, with several technologies that have demonstrated the potential to disrupt multibillion-dollar global industries.
Since 2017-18 the Company has transitioned to capture greater value from the materials lifecycle beyond mineral exploration. Materials are the tangible basis of all technology, and we have successfully begun building quantum computing qubit processors, graphene biosensors, and next-generation lithium-ion batteries.
The Company now has access to almost half a billion dollars worth of facilities, infrastructure, and equipment to build our technology, together with a high-impact portfolio of intellectual property and has attracted and retained pioneers at the forefront of deep-tech innovation to lead this development.
A track record of success
Archer will continue to grow, and we are determined to succeed. The Quarterly highlighted this determination, reporting activities across all our business units, and across all facets of the Company’s value-added development including commercial, technological, and IP – all amid a COVID-19 backdrop.
This has been possible with the support of the Archer Board and our Shareholders. In June, that support was evident with our Share Purchase Plan heavily oversubscribed raising over $6 million in capital which is, and will continue, to be deployed in executing on our Company strategy.
Key commercial highlights in Q4 included our quantum computing agreement with IBM, which now sees Archer an ecosystem partner in the global IBM Q Network, making Archer the first Australian company building a quantum computing qubit processor to join the exclusive network.
We also near completion of the sale of our Leigh Creek Magnesite Project, in which Archer is set to receive over $2 million in shares in the Canadian Stock Exchange Listed Volatus Capital Corp., which is pending approval from the Foreign Investment Review Board (this is currently mandatory).
Deep tech with global impact
We are well capitalised with $8.1 million cash in the bank (June 30) and no corporate debt. Our current cost base implies we have 3 years of cash however, we expect our cost base to increase as we grow and accelerate our work packages, although we expect to do so in a strategic and moderated manner, as we have done so to date.
In the short to mid-term there is a lot to look forward to at Archer, with key results and outcomes of our activities to be released to ASX, specifically regarding:
- Control measurements on qubit components in the 12CQ quantum computing chip. To put things in perspective, some top 10 NASDAQ companies in the quantum economy haven’t even reached this stage of development yet. Successfully building and performing the control prototyping of the 12CQ chip would be a world-first.
- Growing the Archer team across the Advanced Materials business function, to include top talent in leading our technology development, and securing valuable aspects of each technology ‘stack’: quantum computing, complex biosensors, and computational materials discovery in energy tech.
- Monetising our mineral exploration assets to continue funding the execution of the Company strategy. Together with the sale of Leigh Creek Magnesite Project, the Company is undertaking further value-added activities towards commercialising its Halloysite-Kaolin Projects (e.g. beneficiation, high-value materials properties and end-use viability).
We look forward to updating you with exciting news in the coming editions, with commentary and contributions from Archer staff.
Dr Mohammad Choucair, FRACI FRSN GAICD
Chief Executive Officer
Archer Materials Limited (ASX:AXE)