Blackstone Resources AG, Baar, Switzerland, (SWX: BLS) has received an indicative valuation for its German-based subsidiary Blackstone Technology GmbH from KPMG. This valuation, however, does not include the valuation of battery metals held by the company.
Blackstone Technology GmbH is a wholly owned subsidiary of Blackstone Resources AG (BLS) and was established to build Blackstone’s battery research programme. Blackstone Technology has recently moved into its new 6,000 square-metre manufacturing facilities in Döbeln, Saxony in Germany. The goal is to build the first fully workable high-tech battery production facility by mid-2021 for the next generation of 3D-printed batteries, close to the German auto manufacturing industry.
KPMG’s analysis provides an indicative valuation of the company. It includes a series of scenario tests for Blackstone Technology GmbH for the next ten years and beyond.
Blackstone Technology plans to invest EUR 192 million in the coming years. This will be financed through a mixture of equity capital in Blackstone Resources, plus debt and grants from investors, banks and subsidies from the state of Saxony, the German federal government and the EU.
Based on these scenario tests, KPMG arrived at a valuation for the company using a discounted cash flow model (DCF) using a TCF WVAC of 8.45%. Using this calculation, it arrived at a current valuation of EUR 1328 million. By the end of 2030, the indicative valuation is estimated to be EUR 2174 million.
These valuations are based on the company’s financing plans and projections for its 3D-printing technology, which aims to produce the next generation lithium-ion batteries in the next few years. This valuation excludes further expansion, the duplication of manufacturing processes and the possible licensing of this technology to large customers. The potential of these additional areas would need to be valued separately.
To put these valuations into perspective, the parent company Blackstone Resources AG (SWX: BLS) today has a market capitalisation of approximately CHF 100 million at a share price of CHF 2.30 per share. These indicative valuations for Backstone Technology GmbH suggest significant upside potential for parent company Blackstone Resources AG and point to a BLS price of over CHF 30.00 per share.
This is in line with the enormous growth expected from both the battery and electric vehicle industries in the years to come. The growth of Blackstone Resources’ battery metals division would also need to be considered and could offer even more upside potential as demand for battery metals is set to significantly outstrips supply. Blackstone Resources battery division has not been valued and therefore the share price has additional potential.
Since the formation of Blackstone Technology GmbH, the company has made significant progress over the years in researching and developing its proprietary 3D-printing technology. In 2020, Blackstone passed several important milestones in battery printing. The company has also secured several cooperation agreements with leading universities and institutions that specialise in battery research. Additional important agreements are about to be finalized soon.
The feasibility of this new technology has also been confirmed by recent studies and testing. The next step is to prove mass production of this technology through our newly acquired production facilities by mid-2021.
The first deliveries for 2021 have already been ordered. The lithium-ion batteries based on this process are universally suitable for all applications. The intention is to market and reproduce this production technology as a future standard worldwide and to license it to potential customers.
Using this unique and patented 3D-printing process, Blackstone Technology GmbH is able to produce today’s lithium-ion batteries, plus the newer solid-state batteries. This technology provides up to twice the energy density and half the current manufacturing cost of current lithium-ion batteries. Automated 3D printing production can also provide up to 70% of the conventional capital cost compared to current production equipment. The flexibility of a 3D printing system also significantly increases production efficiency and lowers battery costs.
Blackstone Resources AG
Blackstone Resources AG is a Swiss Holding Company, with its legal domicile in Baar, Kanton Zug, and is quoted on the Swiss Stock Exchange, SWX with the Symbol BLS. The Company is concentrating on the battery technology and battery metals market. In addition, it sets up, develops and manages refineries used for gold and battery metals. It offers direct exposure to the battery technology and battery metals revolution that is being driven by the demand of electric vehicles that need vast quantities of these metals. These include cobalt, manganese, graphite, nickel, copper and lithium. In addition, Blackstone Resources has started a research program on new battery technologies on solid state batteries and its production process.