China New Energy Share Discussion Threads

[guyswonga74] 02/10/2016 16:50

Sssshhhhhh. Don't spread the word too soon about the progress here as I want to buy in at a good price tomorrow. Market cap is very low

[tidy 2] 02/10/2016 16:11

Good post by bigBitenow lseCnelThe 2015 accounts were negative to say the least such that any investment here was rife with risk.However, given the recent events the investment case at these levels is becoming more and more compelling.Firstly, the company is demonstrating visible improvements in it profitability, having turned a H1 2015 £640,000 loss into a H1 profit of £1.3m profit. That is eye catching.Yes they have a gaps in what they are owed against what they owe their suppliers, but there are signs that they are certainly moving in the right direction.Add to this the fact that the company has managed to increase revenues by 70% and make a net profit of 25% in H1 2016, in a period where oil averaged just $41, is again worthy of note.In addition, whilst more dilution may well be on the way, the company has stated that the capital raise on 9th June was sufficient to cover the next 12 months. I know there were concerns highlighted here on this subject but since Sept 2014 the company has diluted the shareholding by just 13%. Given the environment they have operated in these last 2 years that is again impressive. The main reason for this being that the two lead directors hold some 31% of the company's shares. Therefore dilution will be something they will be wishing to avoid where they are able.The really big positive here though is the Sunbird connection. It would be interesting enough if CNEL just did business with them, but sharing a director makes it all the more so.The two contracts in Zambia and Zimbabwe aren't about the possibility of winning work, they are about Sunbird financing the deals. Sunbird's purchase of 20,000 hectares of land for the cassava farm in Zambia and 40,000 hectares leased from the Mribi Council in Zimbabwe says a lot about where Sunbird believe they are heading.The contracts are each reported to be worth $30m to CNEL over 2 years. If CNEL repeat the net profit margins of H1, then we are talking £5.75m net profit per project. Then there are maintenance and service contracts to negotiate afterwards.If that weren't enough, the Sierre Leone project offers CNEL the chance to take a 5% share in the project but more importantly tender for 'technology and service' contracts. Again with the shared director they look likely to do well on this front, which will drive repeat revenue to underpin the business going forward.With a production of 85m litres of ethanol the plant can even at todays low prices ($1.57 per gallon) generate close to $30m in revenues. At 5% CNEL can secure $1.5m in ongoing revenues, which yet again will give them a secure base upon which to support the business going forward.There are of course risks but for me they are considerably less than only 1 week ago and at £ 7.3m the share price is far too low given the profits alone, nevermind the potential.

[tidy 2] 02/10/2016 14:34

Cnel has done the hardwork and proved up it's business model, established a solid base..not just in Africa and China/SE Asia but also North America via Canada. The scope here is truly international. In Africa this will be very big and serious money will be made especially through solid contacts & associates

[tidy 2] 02/10/2016 14:32

Sippy lse I do think this will open high again and we are headed for a re-rate 2p being the bottom again.Reason why it went down from placement price was an RNS which said the IPPA was delay and they had concerns with current market & court appeal.Since then they had IPPA signed before elections, secured Sierre Leone , Zimbabwe, Zambia (presidential elections going in our favour) and got paid 80% for Bionuetra in North America. They have also made over 1.3million profit in the first half when its usually a loss.The positives point back to mid 3p IMO short term

[tidy 2] 02/10/2016 14:30

2p bottomI think this is a case of delayed reaction to Friday's news and the realisation all the hard work has been done. The market should rerate it soon enough and start to price in where it is going. Defo a buy and hold, the trading period has come to an end for now and it's time to hold for future short, medium and long term prosperities. Maybe Friday allowed some consolidation ready for the next level up.

[guyswonga74] 02/10/2016 13:36

Very much under the radar this share following the excellent news on Friday. Shall be looking to buy more first thing if I can get in under 1.8p. Massively derisked and making a 1million profit already

[mhin2] 30/9/2016 18:02

good RNS about Sierra Leone, but a) will it cost CNEL to be part of the consortium b) how much cash do they have. Further from my brief calculation they generated more than 1 Million net profit from contracts and ongoing operations in China and Mynamar, and from the Canadian project (not clear if it has ongoing maintenance and services contract). Seems as if they need new projects to provide similar future returns. Hence the Zambia project is important, hence the essentially, Sunbird orientated RNS. Nevertheless of the Rmb45.4m revenue 14.4 was from Canada (and there is up to 20% still to come), but no real guarantee of similar results next year. On the other hand they seem to have projects on hold owing to the low oil price environ. However, it is not clear that oil prices will rise. I like the idea of bio-fuels, especially for agricultural economies, and thus the issue of energy security and energy sufficiency is a short, medium and long term issue. In that sense energy importers, but agricultural producers have an incentive to diversify their energy sources. The main issue may be whether they can justify funding it on a short term cost/benefit basis. These are just my thoughts, not intended to ramp/deramp, but to, hopefully, encourage discussion about the wider context.

[tidy 2] 30/9/2016 16:05

Law post by BBN For me what is most interesting is that under both the Zambia and Zimbabwe projects listed on the updated Sunbird website, it states that :"The design of the biorefinery and power plant is based upon a project recently completed by China New Energy in Thailand."So it's not a case of if CNEL get the $30m contract, more a case will Sunbird get the finance. With regards to Zambia the project has had sufficient enough press and drive by the government there, that the odds lean towards it going ahead.With regards to the Sierre Leone consortium deal RNS issued today, it is all about the "technology and service contract" tenders not the 5% buy in. Sunbirds director sits on the BOD of CNEL, whose technology and designs are favoured by Sunbird, who now hold the majority stake in the plant. So whose going to win those contracts, honestly?It's a 32MW plant producing 20% of Sierre Leone's power, so not a set of contracts to be sniffed at.What's also very encouraging is that from the 45m RMB H1 revenues the company was able to generate 35% gross margins. This compares to approx 11% in the previous years H1 results. A sign that perhaps the worst is over for the industry and projects are being won with far healthier margins.If they can translate that into the Zambia project, then we are talking a gross margin in the region of over $10.5m US or £8m.That would place any concerns over trade parables etc firmly in their bed.Add in the fact that the company just declared a £1.3m plus profit and there is much to be positive about, such that £7m MP is looking very cheap. There are risks and finance may well be needed, but there are plenty of other companies on AIM with far greater risks and less reward, trading much higher than CNEL.

[tidy 2] 30/9/2016 16:04

Buys going through isdx live

[tidy 2] 30/9/2016 14:56

08:00 was the tweet from Richard Bennett by the way (Head of Sunbird in response to the first CNEL RNS)https://twitter.com/rbennettuk?lang=en-gb A later tweet from him (hopefully lots of updates to come from him soon)''Finally, after 9 months, I can talk about what I have been up to''

[tidy 2] 30/9/2016 14:00

BY BUSINESS REPORTERThe project will be in the Mushumbi Pools area in Mashonaland Central. The project will result in the building of an ethanol production plant and a 36-megawatt (MW) biomass power station.The power station will supply electricity to the ethanol plant and the remainder (33MW) will be channelled into the national power grid subject to a Power Purchasing Agreement with the Zimbabwe Electricity Transmission and Distribution Company.

[tidy 2] 30/9/2016 13:18

AOG TRANSFERS OWNERSHIP OF PIONEERING BIOETHANOL AND GREEN ELECTRICITY OPERATION IN SIERRA LEONEPress Release | London | 30 September 2016 @ 11:30 amSunbird Bioenergy Sugarcane IrrigationAOG today announced that it has transferred 75.1% ownership of Addax Bioenergy (SL) Limited ('Addax Bioenergy'), its sugarcane bioethanol and renewable electricity operation in Makeni, Sierra Leone, to a group of investors led by Sunbird Bioenergy Africa Limited ('Sunbird Bioenergy group'). AOG is keeping a minority interest of 24.9% as a mark of its confidence in the future of the business, while Sunbird Bioenergy group will provide the additional financing to take the project to full commercial operation. This handover is made byway of a capital injection by Sunbird Bioenergy group into Addax Bioenergy."We are pleased to have found a new majority owner who is passionate about bioenergy and who has a focus on sustainable energy solutions that integrate local communities," commented AOG founder and Chairman, Jean Claude Gandur.Sunbird Bioenergy Africa Limited ('Sunbird Bioenergy'), which will manage and run the operation in Makeni, Sierra Leone, is an energy company with a portfolio of sustainable biofuel projects in Sub-Saharan Africa. It takes a comprehensive approach to biofuel projects, which includes fair agricultural land leases, sustainable farming and feedstock production, world class biorefineries, as well as inclusive community development and improved livelihoods."We look forward to building on the achievements of Addax Bioenergy in Sierra Leone, and restarting commercial operations as soon as possible. This opportunity is a perfect fit with our philosophy and development strategy," said Sunbird Bioenergy's Director, Richard Bennett."The operation functions on the principles of sustainable biofuels, sustainable local community development and a reduction in carbon dioxide emissions, thereby contributing towards regional climate change goals. At Sunbird Bioenergy, we operate and champion these same principles."The President of Sierra Leone, His Excellency Dr Ernest Bai Koroma also expressed his support for the transfer: "AOG is part of our family in Sierra Leone. They have successfully established this bioethanol operation in our country, which will also feed much-needed electricity into our national grid. We thank them for their approach, which ensures that local communities benefit from the business, and for their commitment to the country, even in challenging times. We look forward to Sunbird Bioenergy carrying on their work and taking the project forward to commercial success."As part of its commitment to Sierra Leone, AOG has been working with the government for some time to help enhance the country's energy strategy. AOG is pleased to say that good progress has been made towards the development of an ethanol blending policy by the government. This is part of the government's commitment to the global effort to mitigate greenhouse gas emissions, while also reducing fuel imports to save foreign exchange and improving energy security.For this transaction, African Capital Investments (ACI) and Simbi Capital acted as AOG's joint advisors. Faber Capital acted as Sunbird's advisor.BackgroundThe Greenfield project, started in 2008, began production in May 2014 and made first sales in early 2015. It had to overcome a number of unforeseeable events, which had a significant impact on the timeframe, costs and revenues initially planned. These included the Ebola outbreak in May 2014, which took a terrible human toll on the country and led to substantial delays as the company's contractors declared "force majeure" and left the site.AOG, as main shareholder, and Addax Bioenergy S.A. decided to downscale the operation in June 2015 and to conduct a review of all options for the future.AOG repaid debt financing from eight Development Finance Institutions (DFI) in December 2015 and bought back minority shareholders in Addax Bioenergy. This aimed to facilitate any future solution for the company, in particular a transfer to new ownership.About AOG:AOG is a privately-owned investment group, founded in 1987 by Swiss entrepreneur Jean Claude Gandur. It developed into a group of energy companies active in Africa and the Middle East, before diversifying into international real estate and other capital investments. Over the years, AOG has earned a reputation as an entrepreneurial investor, with an instinctive ability to recognise new business opportunities and to take bold, but carefully calculated, risks, without comprising its principles of fairness and integrity. AOG employs over 1,200 people in Europe, Africa and the Middle East.About Sunbird Bioenergy Africa Limited:Sunbird Bioenergy Africa is a renewable energy company that is building a portfolio of sustainable biofuel projects in Sub-Saharan Africa that produce bioethanol and power. It is developing comprehensive, vertically integrated bioenergy projects that include agricultural land assets, sustainable farming and feedstock production, biorefineries and biofuel distribution. All projects include a significant out-grower program and commitment to sustainable rural development.This entry was posted in Insights, News, Uncategorised and tagged Richard Bennett, Sierra Leone. Bookmark the permalink.Post navigation? Community Relations in Sierra LeoneFEATURED PROJECTZambia, KawambwaZambia, KawambwaNEWSSunbird Bioenergy Sugarcane IrrigationAOG transfers ownership of pioneering bioethanol and green electricity operation in Sierra Leone30th September 2016TAGSCassava Community Nigeria Richard Bennett Sierra Leone Sugarcane Zambia ZimbabweARCHIVESArchives

[tidy 2] 30/9/2016 13:14

Looking tasty here

[tidy 2] 30/9/2016 12:07

250k buy 1.9 paid full ask

[tidy 2] 30/9/2016 12:04

They've had it.

[effiert] 30/9/2016 11:59

whens the placing?

[qs99] 30/9/2016 11:45

interesting follow up RNS

[hitch19] 30/9/2016 07:32

CNELNice start to half yearlyFinancial Highlights-- Revenue of RMB 45.4m (H1 2015: RMB 26.7m), which represents a 70% increase over the same period last year

[hitch19] 29/9/2016 12:20

700,000 trade gone through

[knicol46] 27/9/2016 08:52

sp +7%, on the move, half year report due out tomorrow based on last year date

[hatey] 27/9/2016 08:52

Suits me if you can do it 10 times a year though.

[bobby.ifa] 27/9/2016 08:49

That's why it never gets out of its present range.

[hatey] 27/9/2016 08:35

Off again, I'm waiting for around 20-30% from current bid price before taking
profits.

[hitch19] 23/9/2016 12:34

CNEL (ZKTY) takeover ADDAXBRV yes It's old news. Previous Sunbird talk earlier this year. Wonder how the previous agreement with Addax has been sorted.....New lease agreement with better Govt deal for compulsory purchase of electricity or old lease amended and transferred.?Is the ink drying....... ;-)Old news that's relevant and could become new "news".

[knicol46] 23/9/2016 09:23

worth a read..

incase you wondering about ZKTY.. hxxp://www.chinanewenergy.co.uk/items/Group_Structure/