The technology consists of tiny cube-shaped memory cells with potential to enable massive amounts of data to be stored on smaller, faster memory chips.
The technology is being developed by the University of NSW (UNSW).
Charles Murphy, Managing Director, speaks exclusively to Proactive Investors about how the company has advanced and upcoming catalysts.
PROACTIVE INVESTORS: Welcome Charles.
Firstly, what attracted you to technology and how did you secure first mover advantage?
Charles Murphy: We have been reviewing technologies involving rare earths for several years and this one stood out for its cutting edge science and large global markets.
How does the technology work and what type of applications would it be suitable for?
Charles Murphy: The technology is a new type of resistive random access memory that uses tiny nanocubes made from cerium oxides. The technology works by applying jolts of voltage to the nanocube memory cells, changing their state between resistive and conductive to create and store data.
We are intending to design the memory technology for manufacturers to incorporate into their own devices. We expect that initial market applications for resistive ram will be enterprise storage memory and embedded MCU smart card/wearable markets. Right now these also seem to provide the right mix of needs addressed by the technology.
Can you outline this size of the global memory markets, and how could this technology disrupt it?
Charles Murphy: The global memory market is USD 78 billion. No one knows how quickly the market will move towards such a disruptive potential technology, however one thing that everyone agrees is that the current technology being used will very quickly hit a wall in terms of scaling.
In regards to testing and proof of concept, what has been conducted so far, and what is the forward work plan?
Charles Murphy: UNSW testing has proven that data can be reliably stored in and retrieved from the nanocube memory cells. Accurately repeating this over 200,000 times in testing also proved exceptional reliability. At the technology level these are excellent results.
UNSW have been working on the technology for over 2 years already. We are starting prototype development ASAP and expect this to take 6 months. We will update the market as commercially appropriate within this period.
Are there any early stage commercialisation opportunities, or is there a go-to-market strategy?
Charles Murphy: With these types of technologies there are several opportunities. Among these we could sell the technology outright, partner for development or develop a memory product for others to incorporate.
From a corporate level we could look at a sale of the subsidiary investee company AAM or a really interesting concept for investors to consider is the possibility of a spin off into a separate ASX listed vehicle through a reverse listing or new IPO.
We haven't ruled anything in or out - but our number one aim is to ensure that SOR shareholders who have taken the risk with us are rewarded.
Finally, why should an investor consider adding Strategic Elements to their portfolio?
Charles Murphy: We have a fantastic structure to gain exposure to technology and resources projects. There is nothing else like it on the ASX.
The Company is actually a Pooled Development Fund and we operate under a Federal Government program. To stimulate investment in Australian SME's, the Federal Government enables most investors in Pooled Development Funds to pay no tax on capital gains or dividends.
The key difference is that we provide investors with the chance to spread their risk across both the resource and technology sectors and provide upside with Federal Government registered tax benefits.
The memory is being developed under licence from the University of NSW in 100% owned Company Australian Advanced Materials.
We have also just formed Maria Resources that is pursuing a collaboration with Dr Franco Pirajno to explore WA deserts for mineral systems and models more commonly found overseas.
Having spent over 20 years mapping in WA for the government Dr Pirajno knows the geology of the state like no other geologist. In his previous commercial life he was part of the team that made several copper discoveries in Africa.
The initial project in the Great Victoria and Gibson deserts is seeking a Polish style of copper called Kupferscheifer and has over 190km of outcrop for low cost exploration. Highly anomalous copper in several historic drill holes 8 km apart with all the hallmarks of Kupferscheifer provide a clear exploration focus. It is an absolute cracker of a project.
We have also backed 100% owned Strategic Materials Pty Ltd to do comprehensive work at a 1914 era goldfield in New Zealand. No one, not even the locals were aware of the potential of the old goldfield as over 1000 pages of key information was buried in the archives of New Zealand.
These records were recovered and the outstanding features of the historic Aorangi mine were revealed. Last known underground assays from Level 3 returned 663.9 g/t gold over 0.75m including 5342.5 g/t gold over 0.25m. Drilling approvals and licenses are being sought, however there are multiple high-grade targets in the 232km2 project.
PROACTIVE INVESTORS: Thank-you Charles.
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