The PPK Group Limited (ASX: PPK) share price is climbing high today. As of writing, shares in the technology and mining equipment company are trading for $8.47 – up 15.55%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.95%.
Today's massive price rise comes as the company made a major breakthrough in an exciting new technology.
Let's take a closer look at today's news.
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PPK Group share price rockets
In a statement to the ASX, PPK Group advised it has had a positive development surrounding the "equipment design and production methods" of its "high purity" Boron Nitride Nanotubes (BNNT). The company says the result means it has been able to greatly expand its BNNT production capacity.
According to Deakin University (which is a 50/50 partner with PPK Group in the company that develops the technology), BNNTs are flexible fibres that are "100 times stronger than steel but as light as carbon fibre." The technology has the potential to be used in a range of industries, including "mining, medicine, and space travel."
In the statement, PPK Group says it and Deakin University have been able to triple production of BNNT.
"This means annual BNNT production capacity per module could be in the order of 50kg which is more than three times the original BNNT production estimate of 15kg p/a per module as previously reported," the company said. It also highlighted the fact the product still achieves 95% purity levels.
Due to the developments, the cost of production has increased from $700,000 to $850,000. However, this is a fraction of the increase in output. The company claims its subsidiary is "now the lowest cost pure BNNT producer in the world." The potential for greater margins is clearly enticing investors, judging by today's PPK Group share price action.
Management commentary
PPK Group executive chair Robert Levinson said:
Only 2 years ago when PPK acquired its 50% stake in BNNTTL, the company was producing only 3 grams per day (732 grams per year). The progress in developing Deakin's patented technology to now produce 50 kg per year from a single module with a total capital cost of $850,000AUD, is nothing short of amazing.
He added:
This achievement confirms that BNNT Technology Limited is well advanced in terms of producing BNNT in pure grade and in commercial quantities which places us in an excellent position to advance upstream applications in partnership with Deakin University.
PPK Group share price snapshot
Over the past 12 months, the PPK Group share price has increased by around 170%. Just over the past few days, the company saw sustained share price rises after receiving a $750,000 government grant and appointing a new executive to its senior management team.
PPK Group has a market capitalisation of $730.2 million.
