Applied Graphene Materials PLC Period End Update and Notice of Results (4139Y)

TIDMAGM

RNS Number : 4139Y

Applied Graphene Materials PLC

03 March 2017

Applied Graphene Materials plc

("Applied Graphene Materials", "AGM" or "the Group" or the "Company")

Period End Operational Update and Notice of Results

Significant commercial progress in AGM's three core sectors

Ahead of the Company's interim results for the six months ended 31 January 2017, which are expected to be announced on 11(th) April 2017, Applied Graphene Materials, the producer of specialty graphene materials, is pleased to give the following period end update on its operational progress during the last six months.

Key highlights:

Significant progress has been made in all of AGM's core target market segments of composites, coatings and oils & lubricants, including repeat sampling and first production orders and the acceleration of joint development activity with a number of commercial partners including some global operations:

Composites Sector

   --      Development of graphene enhanced pre-impregnated composites (prepregs) with SHD Composites 
   --      Collaboration with Century Fishing Rods leading to first production orders 
   --      Development of enhanced aerospace structures 
   --      Product development with Airbus Defence and Space 

Coatings

   --      JDA with James Briggs Ltd 
   --      ISO testing results proving outstanding corrosion barrier properties 

Oils and Lubricants

   --      PURAGLOBE commenced test-marketing AGM graphene enhanced sustainable base oil technology 

Composites

Graphene enhanced prepregs after joint development between AGM and SHD Composites

Following 18 months of collaboration with SHD Composites Ltd (SHD), SHD will officially launch an industry leading AGM graphene enhanced epoxy prepreg system - MTC9800 - at the JEC World exhibition (Paris, March 14-16). MTC9800 has already been test-marketed in production volumes to launch to customers and is supported by data that demonstrates outstanding mechanical properties, particularly in fracture toughness, interlaminar shear and compression performance. MTC9800 is suitable for a range of industrial applications, particularly where customers are looking to further reduce weight and extend the life of parts over repeated loading cycles. Anticipated early industrial applications include, amongst others, Motorsport, Sporting Goods and Renewable Energy.

Collaboration with Century Fishing Rods

Over the last 18 months AGM has collaborated successfully with Century to develop and produce a demonstrable working application for its graphene nano-platelets (A-GNPs). Century has designed, tested and fully evaluated a range of next generation, graphene reinforced, high performance rods. Initial in-house testing and validation of the Century GT1000 rod was followed by extensive, and near destructive, field testing against large and powerful pelagic fish off the Ascension Islands. Century is successfully marketing its new range of graphene reinforced rods to a global customer base.

Graphene development for aerospace structures

AGM has recently completed the first phase of a development project with the University of West Scotland (UWS), Spirit AeroSystems, and other industry partners whose identity we are unable to disclose due to commercial confidentiality, investigating the applicability of AGM's graphene for enhancing the mechanical performance of resin infused Aerospace structures. Incorporation of AGM's graphene has delivered results that increase shear strength and fracture toughness. AGM and UWS consider these initial findings to be highly encouraging and further optimisation development work has already commenced in building on these baseline improvements.

Product development with Airbus Defence and Space

During 2016, AGM successfully completed the exploratory phase of its development program with Airbus Defence and Space. The details of the program work are subject to a strict non-disclosure agreement. However, the Group can disclose that it is focused on using the unique properties of graphene in satellites. Based on the success of the initial work, both parties are now collaborating on a final product development stage, with the aim of qualifying the material for flight use and first application by early 2018.

Coatings

JDA with James Briggs Ltd following accelerated product development

The Company has continued to work closely with James Briggs Limited over the past few months. Particular focus has been on coatings products where the inclusion of graphene has been seen to demonstrate improved anti-corrosive properties which, in turn, potentially increases the life cycle of painted items. To date, we have seen some encouraging results. The focus now is to optimise the product formulation and ensure the appropriate development and testing regime is followed which, depending on precise outcomes, is typically a further 3 to 6 month lead-time before product launch.

Testing - Creating new barriers with graphene

An independent test programme investigating the addition of A-GNPs to epoxy coatings, has shown outstanding performance enhancements based on industry ISO standard anti-corrosion and barrier tests. The tests were carried out by PRA (an independent testing consultancy) and demonstrated that very small additions of A-GNPs decreased water vapour transmission rates by up to 95% and extended time to initial corrosion in excess of 500%. The results were achieved with dispersions based on AGM's uniquely synthesised graphene nanoplatelets.

Oils and lubricants

PURAGLOBE - developing graphene-enhanced, sustainable high performance base oils

AGM has continued its collaboration with PURAGLOBE in developing sustainable base oils, enhanced with graphene nano-platelets. PURAGLOBE has recently commenced test-marketing its sustainable base oil technology, enhanced by the addition of AGM's unique, synthesised nano-platelets. Initial customer engagement has been aimed at businesses developing innovative lubricant technology in both Industrial fluids such as gear oil, metal working up to greases, as well as driveline fluids, where PURAGLOBE's graphene enhanced, sustainable base oils will offer finished lubricant manufacturers the opportunity to formulate products with exceptional sustainability and protection. Greater protection against friction and wear can help extend the lifecycle of parts and reduce downtime of equipment. This synergistic effect leads to savings in manufacturing and production costs and reduces the demand for replacement parts, which lowers the carbon footprint involved in manufacturing and operations.

Jon Mabbitt, Chief Executive Officer of Applied Graphene Materials, said:

"I am pleased that we are demonstrating substantial progress as a result of the hard work since IPO and over the last six months in particular. We have consistently focused on the core markets where we know we can deliver significant enhancements for large-scale industries and our collaborations across these areas are now gaining considerable momentum."

Ends

For further information, please contact:

Applied Graphene Materials [phone]

Jon Mabbitt, Chief Executive Officer

N+1 Singer [phone]

Richard Lindley / Nick Owen

Hudson Sandler [phone]

Charlie Jack / Emily Dillon / Jocelyn Spottiswoode

Notes to Editors

About Applied Graphene Materials

Applied Graphene Materials works in partnership with its customers using its knowledge and expertise to provide bespoke graphene dispersions and formats to deliver enhancements and benefits for a wide range of applications. The Group's strategy is to target commercial application in three core markets: coatings, composites and polymers and functional fluids.

The Group has developed proprietary bottom-up processes which are capable of producing high purity graphene nanoplatelets using a continuous process. The manufacturing processes are based on sustainable, readily available raw materials and therefore do not rely on the supply of graphite, unlike a number of other graphene production techniques. Applied Graphene Materials owns the intellectual property and know-how behind these processes.

Applied Graphene Materials was founded by Professor Karl Coleman in 2010 with its operations and processes based on technology that he initially developed at Durham University. The Group was admitted to AIM in November 2013, raising GBP11 million, and is based at the Wilton Site on Teesside. In January 2016 the Group raised a further GBP8.5 million to support its ongoing activities.

This information is provided by RNS

The company news service from the London Stock Exchange

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March 03, 2017 02:00 ET (07:00 GMT)