AXE - Archer Materials

[greggles]

Thanks for the heads again up Greg

No problem barney.

AXE received a Price Query from the ASX yesterday and released their reply this morning. Their response, attached below, sheds a little more light on the recent price increase.

 

[barney]

No problem barney.

AXE received a Price Query from the ASX yesterday and released their reply this morning.

Price wise we should likely get a lower Volume inside day today given the high range higher Volume yesterday. Be interesting how it pans out by the end of the week.

 

[System]

On November 5th 2019, Archer Exploration Limited changed its name to Archer Materials Limited.

 

[Dona Ferentes]

On November 5th 2019, Archer Exploration Limited changed its name to Archer Materials Limited.

and things are different now

Archer Materials Limited (AXE, formerly Archer Exploration Limited) has focus on the development of the Group's advanced materials with a key focus on integrating graphite and graphene in three key growth areas of reliable energy, human health and quantum technology and exploring our mineral exploration projects.

Modest aspirations!

..on Tuesday the stock doubled when it became the first Australian business to be admitted into IBM’s Q network, the group of global organisations that are collaborating to develop quantum computing: outfits like Daimler, ExxonMobil, JPMorgan, Samsung and Accenture.
Archer has a board of three, a staff of eight, $2.2m in the bank and costs $150,000 a month to run. Nevertheless, CEO Mohammad Choucair and technology chief Martin Fuechsle appear to be leading in the global race to build a room-temperature quantum computing chip, based on a 2016 idea by Choucair, which is why this tiny Australian firm with almost no money was invited to join the giants in the IBM Q Network....

- according to Alan Kohler

 

[Dona Ferentes]

Where Will Quantum Computers Create Value—and When?

https://www.bcg.com/publications/2019/quantum-computers-create-value-when.aspx

 

[Dona Ferentes]

Hardly a grind. Might be at the pointy bit, though.

 

[Dona Ferentes]

One for the little guys

AXE will raise up to $3,000,000 at an issue price of $0.60 (60 cents) per new Share. The funds raised from the SPP will be used to increase the pace of our current work programs and to start hiring additional staff to do this work.

At Archer, we are proud of our high level of engagement with shareholders and regularly update shareholders through online platforms and in-attendance events. We have also offered shareholders the opportunity to visit our offices and laboratories and will continue to find more ways to make shareholders feel part of the Company. As part of this strategy, we have decided to undertake a SPP rather than a broker sponsored placement as an SPP gives shareholders an opportunity to participate at a price discount normally reserved for sophisticated and professional investors.

In 2017 we completed an SPP at a share price of $0.075 (7.5 cents) per share and then completed a subsequent SPP in 2019 at a share price of $0.13 (13 cents) per share. The Archer closing share price on the last trading day prior to this announcement was $0.685 (68.5 cents) per share.

 

[frugal.rock]

The quantum computing technology that axe is currently working on is potentially ground breaking.
A tiny company with its fingers in a few pies.
To me, this seemingly unknown company has a potentially big future, huge in fact, if they can bring a room temperature quantum computing chip to fruition.
Technical analysis went out the window on this one and I purchased a small holding earlier in the week based purely on the fundamentals.
Very rare for me to buy purely from FA with no TA.
@tech/a , do you know anything about this company? (Just thought you might be friends/ acquainted with some of the people who work there?) Cheers.
F.Rock

 

[Dona Ferentes]

probably more SA or GA* , @frugal.rock.

Its hard to know what and where the company will be. Quantum computing is coming, but when? And how much is needed to get to that point. Room temperature clearly has a cost advantage, if all other things are equal.

I'm curious as to the price action. The SPP has little current upside (60c v 61c on market) so the long term shareholders need to be confident it will hold at, near or above this price. I wonder if the company went to sophisticated and professional investors and was told that 40-50c would be their entry point. Good on the desire to not dilute. (but the other side of this is AXE couldn't pitch it meaningfully??)

Post-doc QMC son says most current quantum computing is still pseudo. Doesn't produce the goods or handle the algorithms that should deliver the touted outcomes.

*SA, GA = Speccie or Gambling Analysis

 

[frugal.rock]

One could consider it's a speccie or a gamble. So are many stocks.
Below is what caught my eye.

"Archer Materials has announced a new agreement with IBM which it hopes will advance quantum computing and progress work towards solutions for the greater adoption of the technology."
From;
https://www.zdnet.com/article/archer-to-work-alongside-ibm-in-progressing-quantum-computing/

Trying to find a list of companies in the IBM Q research group, but is currently alluding me. I believe I saw some big players (yesterday?) involved though.
(Samsung, Fujitsu, Mitsubishi, Intel AMD etc)
The future requires quantum computing. Can the world continue with current cryptocurrency mining methods? I think not. Just one of the smaller advantages of it.
It's a long game speculation and with $900 in it, that's not a lot of risk for something potentially price explosive in a few years?

Recent price action suggests that this may not be a far fetched idea.
I bought into the rumour.
How far can current processors speeds go on current tech?
From memory, processing speed is expected or required to double every 1.5 years to maintain the edge required for modern computing.

Clearly, the race is on!

F.Rock
PS, Currently, have switched my focus to the long investment strategy rather than full on day trading due to a number of factors, one being the current speculative nature of the markets in general. Forward thinking.

 

[Dona Ferentes]

as it is reported:

"An extraordinary debate rages over the value of one-time South Australian minerals explorer Archer Materials. The copper, gold, and graphite explorer has been turning over rocks in South Australia since 2007, without much luck. So, it pivoted into quantum computing. As you do.

On May 5, Archer Materials' share price doubled on news of a partnership with IBM, then doubled again when the hefty Alan Kohler suggested on May 9 (in The Australian) that it had the potential to be the next Intel. The comparison to a US computer chipmaker worth more than $US250 billion ($355 billion) apparently relevant if Archer can be the first to develop and commercialise a quantum computing chip that can operate at room temperature.

The stock peaked at 71.5¢ cents on May 26. It currently trades at 46¢, which is well over the 19¢ it traded at on May 1.

Chief executive Dr Mohammad Choucair, also its chief scientist, is, naturally, a true believer. The comparison to Intel, he says, isn't ridiculous, in the context of the project's long-term commercial potential and Archer's promising technology, which he developed. According to Choucair, Quantum computing makes up about 1 per cent of the trillion-dollar semi-conductor industry, and that slice isn't getting any thinner. The IBM partnership, he added, shows that it's "not just hot air".

Though, do you think his board is entirely on the same page? A few days after Kohler's article appeared, both chairman Greg English and director Alice McCleary dumped stock. English jettisoned 600,000 shares for $277,939.75, while McCleary converted 330,000 19.29¢ options while selling the same number of shares for twice that amount, making a profit of $87,453.

Now, everyone has expenses. Still, if Archer does become the next Intel, a company worth a breezy 3450 times Archer's current market cap, won't they feel like idiots.".

https://www.afr.com/rear-window/directors-dump-stock-after-kohler-pump-20200721-p55dxw

(don't hold, don't care)

 

[Dona Ferentes]

and .... where are we?

Quantum devices successfully built for qubit control

Commenting on the Company’s 12CQ chip development, Archer CEO Dr Mohammad Choucair said:
“We commenced our technology development related to qubit control a few weeks ago (ASX ann. 9 Jul 2020) and now the first devices have been built to perform the initial [qubit control] measurements related to Archer’s 12CQ chip operation. We have remained on track in our development since we first commenced the [12CQ chip] project in April 2019”.

“Qubit control is explicitly our next big technological milestone. Over the coming months, Company shareholders will expect to see a series of results that will be released to ASX by Archer that relate to qubit control – a key requirement of quantum computing processors. When successful, the work would be major validation, at a relatively early-stage of the overall development of a quantum computing processor, of the commercial viability of the 12CQ chip”

 

[frugal.rock]

Axe on the move.
Chopping away nicely. Blazing the way.
Webinar with IBM on Quantum Computing soon. Announcement not market sensitive apparently....
On a high of $ 0.54 up 17.4%

 

[Dona Ferentes]

Axe on the move.
Chopping away nicely. Blazing the way.
Webinar with IBM on Quantum Computing soon. Announcement not market sensitive apparently....
On a high of $ 0.54

market sensitive Ann today. didn't move AXE much from around 48c.

AXE is progressed its graphene-based biosensor technology development by successfully prototyping key device hardware using additive manufacturing .... through the Company’s collaboration with the University of Adelaide, as a founding industry partner of the ARC Research Hub for Graphene Enabled Industry Transformation.
Commenting on the Company’s biosensor development, Archer CEO Dr Mohammad Choucair said: “Additive manufacturing allows Archer to make prototypes of key biosensor elements in less than a few hours. By using 3D printing we are able to accelerate progress towards commercialising Archer’s innovative graphene-based biosensor technology”.
“When the Company undertook the recent Share Purchase Plan the main purpose of the fund raising was to allow the Company to accelerate the pace of development of our key projects and technologies. The 3D printing of biosensor components is consistent with that strategy.”

A video of the biosensor device cartridge 3D printing can be found here

 

[barney]

market sensitive Ann today. didn't move AXE much from around 48c.

I confess I really can't comprehend how this technology even works, but it seems amazing.

Can you guys possibly fill this old dude in on how AXE has an advantage in this space to set themselves apart from the opposition?

I remember watching the Co. meandering under 10 cents for what seemed like an eternity, but I missed the spike in Jan this year and am now thinking I missed the boat ... Familiar story

 

[frugal.rock]

As Dona said, the announcement today didn't move the price much.
Quite sure that the market was busy elsewhere....
Putting the biosensor thing aside, it's the room temperature quantum computing chips which is why I am in it.
If they pull that off, they are the future of computer processing chips.
The next Intel and AMD combined kind of potential.
Super Computers to the maximum.
I accumulated on the recent pullback FWIW.
I believe we are waiting on the qubits measurements testing results for the room temperature chips.

 

[barney]

As Dona said, the announcement today didn't move the price much.
Quite sure that the market was busy elsewhere....
Putting the biosensor thing aside, it's the room temperature quantum computing chips which is why I am in it.
If they pull that off, they are the future of computer processing chips.
The next Intel and AMD combined kind of potential.
Super Computers to the maximum.
I accumulated on the recent pullback FWIW.
I believe we are waiting on the qubits measurements testing results for the room temperature chips.

Thanks Rock .... Curiously, how many other Co's are involved in this space? ie Do AXE have an advantage over their competitors? ps Go BUD

 

[frugal.rock]

Thanks Rock .... Curiously, how many other Co's are involved in this space? ie Do AXE have an advantage over their competitors? ps Go BUD

There's quite a few from what I understand. AXE seems to have a potential headstart on a room temperature chip. (Something that doesn't need a cryo fridge thing to keep it cool, I guess.)
It's a race, whoever wins gets a big prize. No idea what the odds are, so to speak, however IBM and the Quantum gang like AXE enough to have invited them to the party.

 

[barney]

There's quite a few from what I understand. AXE seems to have a potential headstart on a room temperature chip. (Something that doesn't need a cryo fridge thing to keep it cool, I guess.)
It's a race, whoever wins gets a big prize. No idea what the odds are, so to speak, however IBM and the Quantum gang like AXE enough to have invited them to the party.

Cheers M8 .... Watching

 

[Dona Ferentes]

I saw something the other day about some advance in quantum computing... And it was still cryo, some ridiculous low temp. I watch with interest big AXE will ever make it because as FR notes, it will be a game changer. I guess.