Director, RaaS Research Group, Research as a Service (RaaS)

RaaS Research Group (RaaS)

Director, RaaS Research Group

Insightful Financial Models and Research Analysis

Research as a Service (RaaS)

Connect to the right investors through smart and insightful financial models and research analysis.

Equity Bottom-Up

<div>
<div>
<div>
<div>
<h2>Archer Materials Ltd</h2>
<h3>Quantum computing sustained by cash, not physics</h3>
<div>
<div>
<div>
<div>
<p>Archer Materials (ASX:AXE) is developing a qubit processor chip that could potentially operate at room temperature and integrate into modern electronics. Archer has received patents for the 12CQ chip technology in Hong Kong, USA, EU, China, Japan, South Korea, and Australia. AXE is making the processor chip in Sydney, building on Australia’s critical mass of expertise in quantum computing. Alongside this development, Archer is developing a Biochip – a lab-on-chip using graphene to enable multi-disease detection and compatibility with digitised processing. These two technologies represent substantial potential advances in applications, power and efficiency in their respective sectors. Archer intends to licence production and use of these two technologies to third parties under patent. Following execution of an exclusive licence agreement with University of Sydney in December 2018 AXE has divested a range of mineral projects and exploration rights focused on magnesite and graphite with the final divestment of mineral assets completed in FY22. Aware of the extensive R&amp;D necessary to achieve the company’s vision, AXE has focused on raising capital via placements, share purchase plans (SPPs), and options issues and exercises. These activities leave AXE with $26.4m in cash at 30 June 2022 as the company gears up to produce the 12CQ quantum processor chip and progresses its biochip design toward commercial fabrication.</p>
<div>
<div>
<div>
<div>
<h3>Business model</h3>
<p>Archer aims to commercialise a mobile compatible quantum processor using its 12CQ processor design. The first step to commercialisation has been to gain patents in relevant jurisdictions to allow commercial operations in those markets. These have now largely been achieved. Archer now intends to de-risk the technology by building an operational qubit processor chip prototype. Once achieved, partnerships with well-resourced organisations in the semiconductor industry are intended to lead to production.</p>
<h3>Patent grants and proof of concept advances key</h3>
<p>AXE recorded operating cash outflow of -$4.2m in FY22 with proceeds from the issue of shares of $25.6m leaving the company in a strong short-term cash position. 12CQ chip patents were granted in Hong Kong in August and Australia in May. The qubit material was integrated with mobile compatible HEMT technology in February. AXE fabricated devices for qubit electronics in June, and achieved sub-10 nanometre fabrication in August. This will increase AXE’s quantum devices’ compatibility with existing industrial foundry processes.</p>
<h3>Proof of concept then valuation upside</h3>
<p>Archer’s peer group in quantum computing R&amp;D and commercialisation include Google, the Chinese government, a range of US government agencies and academic institutions, and IBM (which is a partner). These are formidable peers. In the listed space AXE fits in the semiconductor sector with companies developing chips for specific purposes such as Brain Chip (ASX:BRN), BluGlass (ASX:BLG) and Weebit Nano (ASX:WBT). Until AXE has shown proof of operation and a route to commercialisation of its technologies it is difficult to calculate a valuation.</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>





Archer Materials Ltd
Quantum computing sustained by cash, not physics




Archer Materials (ASX:AXE) is developing a qubit processor chip that could potentially operate at room temperature and integrate into modern electronics. Archer has received patents for the 12CQ chip technology in Hong Kong, USA, EU, China, Japan, South Korea, and Australia. AXE is making the processor chip in Sydney, building on Australia’s critical mass of expertise in quantum computing. Alongside this development, Archer is developing a Biochip – a lab-on-chip using graphene to enable multi-disease detection and compatibility with digitised processing. These two technologies represent substantial potential advances in applications, power and efficiency in their respective sectors. Archer intends to licence production and use of these two technologies to third parties under patent. Following execution of an exclusive licence agreement with University of Sydney in December 2018 AXE has divested a range of mineral projects and exploration rights focused on magnesite and graphite with the final divestment of mineral assets completed in FY22. Aware of the extensive R&amp;D necessary to achieve the company’s vision, AXE has focused on raising capital via placements, share purchase plans (SPPs), and options issues and exercises. These activities leave AXE with $26.4m in cash at 30 June 2022 as the company gears up to produce the 12CQ quantum processor chip and progresses its biochip design toward commercial fabrication.




Business model
Archer aims to commercialise a mobile compatible quantum processor using its 12CQ processor design. The first step to commercialisation has been to gain patents in relevant jurisdictions to allow commercial operations in those markets. These have now largely been achieved. Archer now intends to de-risk the technology by building an operational qubit processor chip prototype. Once achieved, partnerships with well-resourced organisations in the semiconductor industry are intended to lead to production.
Patent grants and proof of concept advances key
AXE recorded operating cash outflow of -$4.2m in FY22 with proceeds from the issue of shares of $25.6m leaving the company in a strong short-term cash position. 12CQ chip patents were granted in Hong Kong in August and Australia in May. The qubit material was integrated with mobile compatible HEMT technology in February. AXE fabricated devices for qubit electronics in June, and achieved sub-10 nanometre fabrication in August. This will increase AXE’s quantum devices’ compatibility with existing industrial foundry processes.
Proof of concept then valuation upside
Archer’s peer group in quantum computing R&amp;D and commercialisation include Google, the Chinese government, a range of US government agencies and academic institutions, and IBM (which is a partner). These are formidable peers. In the listed space AXE fits in the semiconductor sector with companies developing chips for specific purposes such as Brain Chip (ASX:BRN), BluGlass (ASX:BLG) and Weebit Nano (ASX:WBT). Until AXE has shown proof of operation and a route to commercialisation of its technologies it is difficult to calculate a valuation.













Archer Materials Ltd - Quantum Computing Sustained by Cash, Not Physics

Materials Analyst/Strategist, Janus Analysis

Gaius King

Materials Analyst/Strategist

Accelerating Tomorrow’s Independent Research

Boost Research

Boost Research Ltd is an appointed representative of Messels Ltd which is authorised and regulated by the FCA of the UK. 

This document is issued by Boost Research Limited solely for its clients. It may not be reproduced, redistributed or passed to any other person in whole or in part for any purpose without written consent of Boost Research. The material in this document is not intended for distribution or use outside the United Kingdom. This material is not directed at you if Boost Research is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you.

This document is provided for information purposes only and should not be regarded as an offer, solicitation, invitation, inducement or recommendation relating to the subscription, purchase or sale of any security or other financial instrument.  This document does not constitute, and should not be interpreted as, investment advice.  It is accordingly recommended that you should seek independent advice from a suitably qualified professional advisor before taking any decisions in relation to the investments detailed herein. All expressions of opinions and estimates constitute a judgement and, unless otherwise stated, are those of the author and the research department of Boost Research only, and are subject to change without notice. Boost Research is under no obligation to update the information contained herein. Whilst Boost Research has taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, Boost Research cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. This document is not guaranteed to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty either expressed or implied is made, nor responsibility of any kind is accepted, by Boost Research or any of its respective directors, officers, employees or analysts either as to the accuracy or completeness of any information contained in this document nor should it be relied on as such. No liability whatsoever is accepted by Boost Research or any of its respective directors, officers, employees or analysts for any loss, whether direct or consequential, arising whether directly or indirectly as a result of the recipient acting on the content of this document, including, without limitation, lost profits arising from the use of this document or any of its contents.

This document is provided with the understanding that Boost Research is not acting in a fiduciary capacity and it is not a personal recommendation to you. Investing in securities entails risks. Past performance is not necessarily a guide to future performance. The value of and the income produced by products may fluctuate, so that an investor may get back less than he invested. Investments in the entities and/or the securities or other financial instruments referred to are not suitable for all investors and this document should not be relied upon in substitution for the exercise of independent judgment in relation to any such investment. The stated price of any securities mentioned herein will generally be the closing price at the end of any of the three business days immediately prior to the publication date on this document. This stated price is not a representation that any transaction can be effected at this price.

Boost Research and its respective analysts are remunerated for providing investment research to professional investors, corporations, other research institutions and consultancy houses. Boost Research, or its respective directors, officers, employees and clients may have or take positions in the securities or entities mentioned in this document.  Any of these circumstances could create, or be perceived as creating, conflicts of interest. Boost Research’ analysts are not censored in any way and are free to express their personal opinions. As a result, Boost Research may have issued other documents that are inconsistent with and reach different conclusions from, the information contained in this document. Those documents reflect the different assumptions, views and analytical methods of their authors. No director, officer or employee of Boost Research is on the board of directors of any company referenced herein and no one at any such referenced company is on the board of directors of Boost Research.

Messels is authorised and regulated in the United Kingdom by the Financial Conduct Authority for the provision of investment advice. Residents of the United Kingdom should seek specific professional financial and investment advice from a stockbroker, banker, solicitor, accountant or other independent professional adviser authorised pursuant to the Financial Services and Markets Act 2000. This report is intended only for investors who are 'professional clients' as defined by the FCA, and may not, therefore, be redistributed to other classes of investors.

The content of this report is covered by our Policy of Independence which may be viewed at www.messels.com.

 

Analysts’ Certification

The analysts involved in the production of this document hereby certify that the views expressed in this document accurately reflect their personal views about the securities mentioned herein. The analysts point out that they may buy, sell or already have taken positions in the securities, and related financial instruments, mentioned in this document

<ul>
<li>Uranium Price has fallen 7% over the past two months</li>
<li>Actively looking for uranium short positions</li>
<li>Provide summarised watch list</li>
<li>Wisdom from Samuel Longhorne Clemens</li>
<li>
<a href="https://www.smartkarma.com/entities/27844" target="_blank" data-smartkarma-citation="entities:27844:1">Yellow Cake PLC (YCA LN)</a>, <a href="https://www.smartkarma.com/entities/17078" target="_blank" data-smartkarma-citation="entities:17078:1">Berkeley Energy (BKY AU)</a>, <a href="https://www.smartkarma.com/entities/25364" target="_blank" data-smartkarma-citation="entities:25364:1">Cameco Corp (CCO CN)</a>, <a href="https://www.smartkarma.com/entities/27734" target="_blank" data-smartkarma-citation="entities:27734:1">Kazatomprom Natsionalnaya At (KZAP KZ)</a>, <a href="https://www.smartkarma.com/entities/28004" target="_blank" data-smartkarma-citation="entities:28004:1">Jangada Mines PLC (JAN LN)</a>, <a href="https://www.smartkarma.com/entities/28005" target="_blank" data-smartkarma-citation="entities:28005:1">Europa Metals Ltd (EUZ LN)</a>, <a href="https://www.smartkarma.com/entities/10708" target="_blank" data-smartkarma-citation="entities:10708:1">Buxton Resources (BUX AU)</a>, <a href="https://www.smartkarma.com/entities/2564" target="_blank" data-smartkarma-citation="entities:2564:1">Musgrave Minerals (MGV AU)</a>, <a href="https://www.smartkarma.com/entities/18292" target="_blank" data-smartkarma-citation="entities:18292:1">Myanmar Metals (MYL AU)</a>, <a href="https://www.smartkarma.com/entities/13112" target="_blank" data-smartkarma-citation="entities:13112:1">Archer Exploration (AXE AU)</a>, <a href="https://www.smartkarma.com/entities/15927" target="_blank" data-smartkarma-citation="entities:15927:1">Canyon Resources (CAY AU)</a>, <a href="https://www.smartkarma.com/entities/4293" target="_blank" data-smartkarma-citation="entities:4293:1">Catalyst Metals (CYL AU)</a>, <a href="https://www.smartkarma.com/entities/14712" target="_blank" data-smartkarma-citation="entities:14712:1">Core Exploration (CXO AU)</a>, Exore Resources (ASX: ERX), <a href="https://www.smartkarma.com/entities/20213" target="_blank" data-smartkarma-citation="entities:20213:1">Stavely Minerals (SVY AU)</a>, <a href="https://www.smartkarma.com/entities/28006" target="_blank" data-smartkarma-citation="entities:28006:1">Tietto Minerals Ltd (TIE AU)</a>, <a href="https://www.smartkarma.com/entities/28007" target="_blank" data-smartkarma-citation="entities:28007:1">Horizonte Minerals PLC (HZM LN)</a>, Bellevue Gold (ASX: BGL), <a href="https://www.smartkarma.com/entities/14443" target="_blank" data-smartkarma-citation="entities:14443:1">Allegiance Coal (AHQ AU)</a>, First Au (ASX: FAU), <a href="https://www.smartkarma.com/entities/3189" target="_blank" data-smartkarma-citation="entities:3189:1">Base Resources (BSE AU)</a>, <a href="https://www.smartkarma.com/entities/19210" target="_blank" data-smartkarma-citation="entities:19210:1">Breaker Resources Nl (BRB AU)</a>  </li>
</ul>


Uranium Price has fallen 7% over the past two months
Actively looking for uranium short positions
Provide summarised watch list
Wisdom from Samuel Longhorne Clemens

Yellow Cake PLC (YCA LN), Berkeley Energy (BKY AU), Cameco Corp (CCO CN), Kazatomprom Natsionalnaya At (KZAP KZ), Jangada Mines PLC (JAN LN), Europa Metals Ltd (EUZ LN), Buxton Resources (BUX AU), Musgrave Minerals (MGV AU), Myanmar Metals (MYL AU), Archer Exploration (AXE AU), Canyon Resources (CAY AU), Catalyst Metals (CYL AU), Core Exploration (CXO AU), Exore Resources (ASX: ERX), Stavely Minerals (SVY AU), Tietto Minerals Ltd (TIE AU), Horizonte Minerals PLC (HZM LN), Bellevue Gold (ASX: BGL), Allegiance Coal (AHQ AU), First Au (ASX: FAU), Base Resources (BSE AU), Breaker Resources Nl (BRB AU)  


New J Hutton – Exploration Report (Weeks Ending 22/03/19)

Australia

Archer Materials Limited focuses on materials technology development and mineral exploration. The Company specializes in intellectual property, mineral tenements, in-house expertise, and an advanced materials inventory. Archer Materials serves customers worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Archer Exploration (AXE AU)

Archer Materials Ltd - Quantum Computing Sustained by Cash, Not Physics

Archer Materials Ltd Quantum computing sustained by cash, not physics Archer Materials (ASX:AXE) is developing a qubit processor chip that...

Research as a Service (RaaS)

New J Hutton – Exploration Report (Weeks Ending 22/03/19)

Uranium Price has fallen 7% over the past two months Actively looking for uranium short positions Provide summarised watch list Wisdom from Samuel...

Boost Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)