PPK (ASX:PPK) share price sinks 6% amid collaboration agreement

The technology and mining equipment company is having a tough day on the ASX

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The PPK Group Limited (ASX: PPK) share price is deep in negative territory today. This comes despite the group announcing a seemingly positive update to the ASX.

At the time of writing, the technology and mining equipment company's shares are down 6.4% to $13.75, having earlier been as low as $13.40. It's worth noting the PPK share price is now down more than 20% over the last week, and 30% in a month.

PPK signs collaboration agreement

In today's statement, PPK advised its subsidiary White Graphene has entered into a research and development collaboration agreement with Sun Metals.

Established in 2018, Sun Metals is the operator of Queensland's biggest zinc refinery. The company produces a special high grade of zinc metals and exports them throughout Korea, Australia, and the United States.

Sun Metals is an Australian subsidiary of Korea Zinc, the largest zinc, lead, and silver producer in the world.

Sun Metals produces around 450,000 tonnes per annum of 98% sulphuric acid at its Townsville refinery. The production and handling of this volume of sulphuric acid creates significant challenges. Pumps among other equipment often need to be replaced within months of installation.

Both companies will work together to create new composite protective coatings using boron nitride nanosheets (white graphene). These coatings are being developed to protect the interior surfaces of sulphuric acid pumps and other equipment. As such, this will expand the lifespan while operating in extremely difficult conditions.

Under the terms of the agreement, White Graphene will retain ownership of all intellectual property rights developed during the project.

There will be a full-scale testing stage on sulphuric acid pumps installed at the production facility at Sun Metals' refinery.

PPK share price summary

Over the last 12 months, PPK shares have posted a gain of around 260%. They are also up 130% year to date. The PPK share price is hovering in the middle of its 52-week range of $3.70 and $21.95.

Based on today's price, PPK commands a market capitalisation of roughly $1.2 billion and has approximately 89.3 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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