React Energy Share Discussion Threads

[troutisout] 31/3/2016 09:33

No mention at all about Enfield, what to read into that I don't know. I had written it off, with the pleasant upside if they did manage to salvage something.

Whether changes to the ROCs have put it on the back burner? Until the long term subsidies are clearer and the Government stop changing them all the time, no-one is going to commit £40m+ to a project like Enfield.

Trout.

[timbo] 31/3/2016 09:29

No mention of Enfield anywhere? Or have I missed something?

[troutisout] 31/3/2016 08:51

Well I have read the Interim results and am pleased with them, they show a much reduced admin cost and much reduced loss for the period to Dec 15.
I also understand with sympathy the comment about Government changes to subsidy schemes which have affected some of the Company's pipeline progression. We need to see this worked on especially GG Eco.
Good to see they beat the deadline and applied for REFIT2 subsidy in Ireland for Altilow (applied and received) and Moneygorm (applied and awaiting). These two turbines will need financing for construction but when built and running should be valued at €1.7m for the two.

Valuations for wind turbines are approximately,

€0.4 - €0.7m per MW with planning and consents,
€1m per MW under construction
€1.7m per MW up and running

REAC have Pluckanes 0.8MW up and running, Altilow and Moneygorm (1MW in total) with all consents and build ready and 6 further sites (3MW) with planning permission granted.

I reckon that is the Company's current valuation there without anything else.

Anyway I digress, the Interims showed a much reduced loss, a much reduced admin cost and slow but steady progress forward on the parts of the pipeline they want to concentrate on first.

[singer8] 21/3/2016 11:52

once a liar and con man always a liar and con man
sharetips6 aka trader-mick aka hatey
oh dear hatey you are such a sad troll

hatetrader
34simon
55investor
27howard
29howard
21trader
tradermick
tobytime
norbus
hatetrader1
hatey

[sharetips6] 21/3/2016 11:14

tomboyb

I'm not the sharetips6 from twitter aka city unit aka market merrkat aka aimcasino

[tomboyb] 21/3/2016 11:04

Pot calling the Kettle black -

Springs to mind -

[sharetips6] 21/3/2016 11:00

Lee Trades ‏@Lee_Trades · Mar 18

"#REAC - Bought some looks very cheap, could easily bag and then some."

Buys early, suggests it's got 100% rise and more to come then sells for
around 10% !

illeman and topinfo are so proud of what they do !

[bean02] 18/3/2016 14:22

Royally pumped and dumped. Check the trades

[gonuts1] 18/3/2016 14:08

18/03/2016 1:55pm
UK Regulatory (RNS & others)

TIDMONZ

RNS Number : 6121S

Onzima Ventures PLC

18 March 2016


TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES(i)
--------------------------------------------------



1. Identity of the issuer or ONZIMA VENTURES PLC
the underlying issuer
of existing shares to which
voting rights are
attached: (ii)
------------------------------------------------------------- ----------------------
2 Reason for the notification (please tick the appropriate
box or boxes):
-------------------------------------------------------------------------------------
An acquisition or disposal of voting rights
-------------------------------------------------------------- ---------------------
An acquisition or disposal of qualifying financial
instruments which may result in the acquisition
of shares already issued to which voting rights
are attached
-------------------------------------------------------------- ---------------------
An acquisition or disposal of instruments with
similar economic effect to qualifying financial
instruments
-------------------------------------------------------------- ---------------------
An event changing the breakdown of voting rights
-------------------------------------------------------------- ---------------------
Other (please
specify):
------------------------------------------------------------ ---------------------
3. Full name of person(s) NIGEL JAMES THEOBALD
subject to the
notification obligation:
(iii)
------------------------------------------------------------- ----------------------
4. Full name of shareholder(s)
(if different from 3.):(iv)
------------------------------------------------------------- ----------------------
5. Date of the transaction 18 MARCH 2016
and date on
which the threshold is
crossed or
reached: (v)
------------------------------------------------------------- ----------------------
6. Date on which issuer 18 MARCH 2016
notified:
------------------------------------------------------------- ----------------------
7. Threshold(s) that is/are
crossed or
reached: (vi, vii) 15%
------------------------------------------------------------- ----------------------



8. Notified details:
----------------------------------------------------------------------------------------------------------------------
A: Voting rights attached to shares (viii, ix)
----------------------------------------------------------------------------------------------------------------------
Class/type Situation previous Resulting situation after the
of to the triggering triggering transaction
shares transaction

if
possible
using
the ISIN
CODE

[troutisout] 18/3/2016 13:59

Anyone got any clues???

[hope67] 10/1/2016 21:24

Zak Mir

It has to be admitted that at first glance shares of React Energy would not appear to be the ideal candidate as far as being a charting contender. This is said as much on the basis that this is clearly not the most liquid of stocks, a point underlined by the way that there have been erratic looking movements and gaps on a periodic basis. Nevertheless, the situation is saved as far as the perspective of a chartist is concerned by the way it is possible to draw a falling wedge reversal on the daily timeframe from as long ago as October 2014.

The top of the wedge was conquered by the bulls to start the New Year, and the message at the moment is that provided there is no end of day close back below the 2014 resistance line / 10 day moving average at 2.85p we should see at least an intermediate rally back to the main post summer 2015 resistance at 7.5p. However, the big price on a 1-2 months timeframe here would be for a journey to hit the 200 day moving average at 8.92p and the old November 2014 floor at 10p, all of this powered by the latest bounce for the RSI indicator off neutral 50 – typically a leading indicator on a new upside leg.

[troutisout] 08/1/2016 09:38

Last one from me,

positives - an extra one... they issued an RNS at 7am in the morning and before Ebioss had announced it...is this the start of timely communication to the market?

[troutisout] 08/1/2016 09:32

Some historical musings,

troutisout 25 Aug'15 - 10:13 - 172 of 232 0 0 edit

Grass Door bought GGES for £2.3m with a further £1.7m in deferred consideration,

What do we have now?

3 working projects, all with a 30% equity share (70% owned by Equitix). These total of 1.6MW of power generation that is currently up and running.

There are 5 other projects in the pipeline that are to be developed in the short term. These will need £80k of staff time from Grass Door and will on completion return £100k of development fees and £50k annually of Management fees.

Say an average of 500KW per project, we are talking about just over 4MW of generation. The good thing here is the projects are already funded by the Equitix funding line, which has £3m left.

This would give us a 30% stake in something with a build and development cost of around £5.5m invested in them.



ryan83 25 Aug'15 - 10:15 - 173 of 232 0 0

so trout, whats your valuation on REAC now? so much info to digest here isnt there.

troutisout 25 Aug'15 - 10:23 - 174 of 232 0 0 edit

Ryan, maybe more jam, but this time it maybe a little different. Up to now the management don't seem to have delivered but also they have been hamstrung by finances and also the Enfield and Newry problems, Enfield getting to financial close while having to guarantee ludicrous rents and Newry the gasifier system. These two have now been resolved or at least a line drawn under them.
Enfield has planning permission and grid offtake agreements in the name of Enfield Biomass. REACT spent over £2.5m getting it to where it is now and it is hoped that these agreements as IP are worth something to Foresight and that these can be used to give us a free carry on the project. If this happens this will be a positive out of a big mess. Foresight or their vehicle now are holders of REAC due to the rent arrears being turned into equity here.

Newry needed a new system and I believe they will go to the EQtec system from EBIOSS, EBIOSS may also want to be involved with funding the project. I see this progressing soon as Farmers are now 51% owners of Newry and they have put in €5.7m as well as loans to the company now converted into shares.

Remember all our creditors now have a vested interest in the share price rising as they are now equity holders. Also remember they agreed to accept equity at 11p a share and not 4p, so they will want to see appreciation in the share price

Finally we have now got some financial backers and they will want to drive the Company on far more than previous Directors.


troutisout 25 Aug'15 - 10:40 - 175 of 232 0 0 edit

Wind turbines in Ireland,

React have one turbine up and running Pluckanes and 8 more with planning permission (2 of which have had wind masts up for over 12 months and have all the results and permissions to be 'build ready').

These 8 are all for 0.5MW (Pluckanes is 0.8MW)

Pluckanes gives us €130k of Net Operating Profit pa. and each of the other 8 turbines are forecast to give similar. so £900k NOP pa. once all built.
That would also give us a portfolio of 4.8 MW of wind turbines.

Even at planning permission stage the 8 would be valued at between €0.4 and €0.7m per MW. Under construction €1m per MW and up and running €1.7m per MW.

So at base case now, 4MW x €0.4m + 0.8MW x €1.7m = €3.96m or just over £3m

troutisout 25 Aug'15 - 10:41 - 176 of 232 0 0 edit

React has £900k in cash, having paid off the examinership expenses.

troutisout 25 Aug'15 - 10:42 - 177 of 232 0 0 edit

They have just sent £500k to get through the examinership quickly to keep the AIM listing, so the owners believe the listing is of great value as well.

troutisout 25 Aug'15 - 10:58 - 178 of 232 0 0 edit

Ryan,

There is a lot of information that needs to be looked at and researched. It doesn't really matter what I think it is worth, the share is so illiquid that the share price can jump or drop dramatically on very little trade, so I don't take the current market valuation to be the correct one.
All Companies were written down in the results before coming out of the examinership so there is a huge potential to increase NAV figures as REAC progresses.

The shareholder base is full of creditors that would like to see at least 11p and also new financiers buying in or converting at 10 and 11p. So that seems a good starting place. Most of these are locked in from selling for 12 months so any drag is limited at the moment. The only thing is how many other shareholders want to exit, but the register shows 310 separate shareholders or nominees on it, many look to be 'friends and family', this stock flies so far under the radar Joe Public doesn't know about it.

The other game changers will be the larger Biomass projects Newry has all permissions, as does Enfield (although at the moment we aren't part of that), Clay Cross due soon and Plymouth struggling against local sentiment.

Interesting to see comments about late stage talks by Grass Roots to authorities and pension funds to set up a portfolio of small CHP projects for care homes and hospitals, that could be a huge positive.

All the parts have real potential but they lacked financial backing with Enfield and Newry bleeding the Company dry, having wiped out 5.7m of debt with an equity swap and attracted new finance partners maybe we can see these parts of the company flourish.

MY own feel is that Grass Door and the Irish wind turbines are worth approximately £3m each and add in the £900k cash could easily substantiate an share price of 11p and subsequent valuation.

Newry, possible Enfield free carry and Clay Cross don't feature in the above but will do if things do start to look positive.

DYOR,

Trout.

[troutisout] 08/1/2016 08:39

Top of the toplist leaderboard at 8.30am for the third day this week (Monday, Tuesday and now Friday).

Hopefully that will lead to more people looking in detail at what the Company has and then we may start to see more investors buying in.

The different projects add up to far more than the current market cap, yes they need more investment but if that is forthcoming then the share price is way off mark.
This is why creditors accepted 11p for over £5.5m of debt to be turned into equity, this is why there are approx. £5m of warrants exercisable at 10 or 11p.

Do some research into the projects and the values attributed to projects with planning and that are build ready and then see what the valuations are, when built...

[troutisout] 05/1/2016 13:02

gerryjames,

I believe the figures for Enfield 12MW Biomass were even better £12m revenue and £8m EBITDA, that had a heat offtake as well as electricity and had the economies of scale, as well as waste wood as feedstock.

We don't know how the negotiations are going on Enfield, just started after last results RNS (apparently). React hold the IP in as much as permits and offtake agreements and they spent £2.8m getting it to where it is now.
Also interesting is that Ebioss, were going to put finance and their technology into that project and I believe this still to be the plan. But it all depends what Foresight the landowner and fund want.

Planning is also going through (has been for nearly 2 years now) for Clay Cross Biomass, another 10MW facility in Derbyshire.

Trout.

[gerryjames] 05/1/2016 12:12

Thank you for your reply and the figures, funny enough I worked on average domestic bill x 7000, got a bit less but didn't know the margin. 50% net profit seems very high. Yes, I'm hoping RedT will do well as I'm still underwater there from Camco carbon trading days. Good luck with this I suppose funding of the new plant will show confidence in it's future.

[troutisout] 05/1/2016 11:09

Hi gerryjames,

Why gasification? Good question.

You state that wood pellets can simply replace coal and there are already examples Drax for one, however there will be many coal fired power units being closed in this country just due to their age. Burning anything still creates pollutants. Calling it carbon neutral is a little bit of marketing. When you add in the processes of collecting the feedstock, transporting it to a manufacturing base, then processing it into pellets and transporting it to the final power station, I can't see the carbon footprint being neutral.

Gasification is still relatively new in terms of plants out there working on industrial scales, but there are benefits of gasification, the production and use of syngas means that it can be used to generate electricity, heat (or both) and a power source for vehicles and other machines.
These plants such as Newry are designed to feed into the grid electricity but will also be able to feed heat to local customers. Enfield as an example is permitted to use 60,000 tonnes of wood waste (saving that from going to landfill) and has electric and heat offtake agreements in place. On the continent district heating systems are powered by Biomass gasification technology.

Finally I think these are two different markets, large scale generation and smaller scale more local generation. I reckon we will see more and more smaller scale, local generation as the years go on, using many different renewable energy sources and energy storage solutions (you might want to look at REDT Energy PLC (RED) another Irish Company with a good product for the energy storage market).

Grass Door provide biomass solutions for heating large buildings, so there are many different levels of size.

As for figures I hope the post above yours helps a little.

[gerryjames] 05/1/2016 10:10

1.Why the need for gasification when wood pellets can simply replace coal in established power stations, making it cheaper less complicated and also carbon neutral. Another Irish Company Active Energy for example has developed such a product.
2. This needs expansion to become a meaningful utility in a difficult and rapidly changing market. Is there a business going forward, what is the cost per kilowatt, what do your numbers tell you Troutisout? It's been a disaster so far.

[troutisout] 04/1/2016 16:20

Been knocked off the top of the risers board, share price looks cheap at this level and I think we will see it move up to the 5p over time.
MMs only offering 10k online and this is a big problem here at REAC (as a lot of traders will have found out today) the illiquidity and huge spreads by the MMs that do cover the stock, together with stamp duty means this is very expensive to trade. Someone buying can find themselves 25%-30% down on costs and spread before anything else happens.

Trout.

[troutisout] 04/1/2016 13:24

and they raised €4m through a sale of bonds on Christmas Eve

[andy pipkin] 04/1/2016 12:15

bought a few of these a few weeks ago, so this is a nice start to the year.

[troutisout] 04/1/2016 09:40

Hi Smudgedan,

Having problems accessing the other site so thought I would reply here.

I had missed the after the close RNS and the Company have got to stop issuing these and act in a more professional manner and issue timely RNSs (preferably at 7am or during trading hours).

I see the RNS as positive and not so much in what it says, most of it was known anyway, but that they have finally decided on EQTec and have signed the deal with Ebioss.

Now the interesting stuff begins, they have previously told us that financing partners were there for Newry and Farmers paid back the AIB over €5m that they had originally loaned to the NBL. Will bank finance be a possibility? Ebioss were rumoured to be interested in financing this and the Enfield projects.
Other finance options were mentioned previously and the IRR for Newry is still very good for investors (even with this extra refinancing). Pension funds, Warrant holders and the technology provider have been mentioned as potential financiers (my own view was the slight delay with Ebioss has been down to them organising finance themselves - recent RNS confirms they are about to raise lots via a bond issuance and I can see them taking a share of NBL with that money)

I am hoping this is the first of several updates on REAC's projects, they need to get some of these moving forward to prove up the value of these assets.

Trout.