Company Interview / Shaw's small cap big idea

Philip Pepe from Shaw and Partners sees the potential for Hazer Group (ASX:HZR) to be a transformative player in the green hydrogen and graphite sectors, pointing to its status as an emerging small cap with significant upside potential. He sees Hazer’s pathway to commercialisation as particularly compelling due to its progress in scaling hydrogen production with a unique technology that also produces high-quality graphite as a byproduct.

Philip sets an ambitious price target for Hazer Group, citing option-like upside if the company secures joint projects with partners such as US-listed KBR. While Hazer is loss-making, the achievement of commercial demonstration is perceived as a turning point. The technology has reached a level where scale-up from 100 to 50,000 tonnes per annum is plausible, offering cost-competitive green hydrogen with the advantage of saleable graphite, positioning Hazer as a potential alternative to China-dominated graphite supply.

Glenn Corrie CEO of Hazer Group emphasises their edge using an iron ore catalyst and highlights major partnerships with KBR and Mitsui. Corey points to the growing strategic importance of graphite and anticipates key commercial milestones, such as signed offtake agreements and revenue realisation, in the next 12 months.

Pepe views small caps as the birthplace of wealth-generating opportunities, referencing historic examples like CSL (ASX:CSL), ResMed (ASX:RMD), Fortescue Metals (ASX:FMG), and JB Hi-Fi (ASX:JBH), which all began as lesser-known stocks before achieving major success.

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