Author: Atrium Research September 14, 2026
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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Zentek’s core asset is the Albany Graphite Project, a PEA-stage deposit of naturally occurring ultra-high-purity graphite in northern Ontario.
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Albany is being developed to supply 5N (99.999%) specification-grade graphite to the nuclear, defence, and semiconductor markets, and its recent PEA carries an after-tax NPV5% of US$3.85B (US$2.29B at 8%).
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Bench-scale purification has already reached 5N+ (99.9992% carbon) at 2.60 ppm equivalent boron content through an acid-free process.
Zentek Ltd. (ZEN:TSXV, ZTEKF:OTCQX) is a Canadian advanced-materials company developing a rare ultra-high-purity graphite deposit in northern Ontario. While most graphite developers are geared toward the battery supply chain, Zentek’s Albany Graphite Project is suited to nuclear, defence, and semiconductor applications that require 5N (99.999%) specification-grade material. An updated PEA released in August reframes Albany around that opportunity, and bench-scale testing has already purified its graphite to nuclear-grade specifications. Alongside the deposit, Zentek has commercialized a graphene platform through ZenGUARD™, a graphene-based coating, and is advancing an aptamer-based diagnostics platform. We are initiating coverage on Zentek with a BUY rating and a $2.70/share target price.
Investment Thesis Summary
The Value is in Albany. Its August 2026 PEA carries an after-tax NPV5% of US$3.85B (US$2.29B at 8%), a 27.4% IRR, and a 4.4-year payback over a 30-year mine life, reframing Albany as an ultra-high purity developer rather than a commodity flake developer like nearly all other peers.
Purity That Commands a Premium. Albany targets 4N (99.99%) and 5N (99.999%) graphite for nuclear, defence, and semiconductor use, in which material typically sells for US$25,000-$120,000/t against roughly US$500-$1,500/t for commodity flake graphite. Bench-scale purification has already reached 5N+ (99.9992% carbon) at 2.60 ppm equivalent boron content, inside the nuclear-grade threshold, supporting the PEA’s US$23,485/t realized price.
AI Has a Graphite Problem. Graphite is a listed critical mineral in the US, Canada, and EU, yet roughly 79% of mine supply and the bulk of downstream purification sit in China. Hyperscalers are contracting nuclear power for AI, and many advanced reactor designs need graphite that North America does not supply.
Commercialized Graphene in ZenGUARD™. Zentek already generates revenue from ZenGUARD™, a patented graphene-based air-filtration coating, and sits on a broader base of graphene IP that opens further opportunities across coatings, advanced materials, and diagnostics. It is early proof the Company can turn its materials science into commercial products.
Experienced Team, Undervalued Story. A leadership team rebuilt through 2025 has repositioned Zentek around high-purity graphite processing. We value the Company on a sum-of-the-parts basis, applying a 0.1x multiple to Albany’s NPV8% of US$2.29B.
Catalysts
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Albany NI 43-101 Technical Report – Q3/26
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Pre-Feasibility Study – TBD
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ZenGUARD Commercial Orders & Channel Expansion – Ongoing
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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