Active Energy Share Discussion Threads

[leewink1] 07/10/2019 20:20

Wow, dire trading now, looks real bad, wish they'd glimmer some hope.

[plumbertrade] 02/10/2019 10:22

I have emailed AEG again asking for some clarity from their recent news release, specifically regarding the plant construction. Have so far sent 2 emails with no response so doubtful this will be any different. It's not a particularly positive sign for customer/investor relations.

[leewink1] 27/9/2019 11:12

Wow, that's a delay, hope it can sustain the wait, GLA none the less.

[garth] 27/9/2019 07:28

Jailbird,

That was certainly my expectation from the earlier announcement and a post made further up the thread by another poster re welders finishing by the end of September.

This feels like another, "we didn't see that coming" delay:
"After recent meetings with the Air Quality division of the North Carolina Department of Environment and Natural Resources ("NCDENR"), it has become evident that there is a requirement to modify the existing air permits at Lumberton. As such, AEG is currently working with the NCDENR to finalise both of these permits along with the relevant construction permits. Construction is expected to proceed in October 2019 and despite the small modifications, commissioning of the 5 tph plant remains on track for the final quarter of 2019."

But there seems to be other lines of progress and this implies some test production but then also refers to them working to put in place test production facilities:
"In line with this, AEG continues to make progress in developing alternative biomass pellets utilising CoalSwitch(TM) in combination with other feedstock options, ranging from chicken litter to miscanthus grass. These materials create biomass renewable fuels and there is significant interest from commercial partners for these fuels utilising AEG's steam explosion pellet technologies. AEG anticipates that these developments have the potential to increase the range of products available for sale along with overall levels of business activity.

Encouragingly, we have already received interest from several potential US commercial customers for CoalSwitch(TM) and biomass black pellets. Over and above opportunities presented in North America, Europe remains a natural market for CoalSwitch(TM) and biomass black pellets, especially as new legislation aimed at limiting the use of coal power is introduced. Prospective customers have ordered and are receiving test samples and a testing programme, producing smaller samples of biomass fuels, is being established to accommodate these requests. Customers include utilities, including Rocky Mountain Power in Utah and a Europe-based biomass trader, as well as agricultural and forestry companies and complementary renewable technology businesses."

Finally, a sense that Lumberton is on track and they are confident in that could be implied by their picking up the Canadian connections again:

"In tandem with the progress in Lumberton, AEG is refocussing its attention back to the original opportunities in Newfoundland and Labrador. Cutting Timber Permits were awarded in November 2018 and AEG is assessing how to combine these with introducing the CoalSwitch(TM) technologies into the Province in the coming months. AEG remains in discussions with local partners regarding these future projects."

It will be interesting to see in which direction drift happens in the coming stretch of time before we next hear news. If its up, happy days. If its down, a bit more stressful but as I said yesterday, I will aim to pick some more up.

G.

[jailbird] 26/9/2019 12:33

I think many probably expected construction to have already have started and not to start in October So I guess we are looking towards end of quarter for an update on this now

[jailbird] 26/9/2019 12:31

Approx 4m sold 3m bought L2 1 v 1

[plumbertrade] 26/9/2019 12:24

I noticed that too. Poor form.What are the numbers looking like today? There's certainly some fed up people by the looks of it

[dave4545] 25/9/2019 11:12

Overall markets killing stocks.

You need stunning results just to go up 5-10%, anything else and it's a sell off

[jailbird] 25/9/2019 11:09

YepBoD is losing trust across all shareholders

[leewink1] 25/9/2019 11:03

Blimey, lead balloons today ...

[jailbird] 25/9/2019 10:52

Looks like stops being hit One was mine after it failed the 150 MA support ..so hold half still .Just about break even now.I will add again if news is positive after October Co needs to pull its finger out .. I am still optimistic

[garth] 25/9/2019 10:21

Good morning J&P.

I believe they clearly have a viable process, offer a needed environmental service and have a high quality resultant product (from the evidence of conference presentations I have viewed previously on the web, University testing results published and Polish certification)

I think the ongoing concern for investors will be the balance sheet - which I see as stretched and have done for some time - but improved to the point of viability through funds already raised. But it is still risky. They have $20M of assets and have $16M of loan notes and borrowing set against that. At period end they had $600,000 of cash.

They raised some funds during the period and some after:

"Finally, during the first half of 2019, the Company successfully completed a series of fund raising of GBP3.96 million before expenses (or US$5.02 million) through the issue of convertible loan notes ('CLNs') to new and existing investors. A further GBP2.12 million was subscribed for following the end of the reporting period"

The lions share of the funds raised went on the Lumberton site purchase:

"during the first half of 2019 Active Energy invested US$3,406,213 in order to acquire the new Lumberton site. Following an independent assessment of this asset, the value on the statement of financial position was subsequently revised to US$4million (does that mean they actually had to pay $4m in the end? Or that the asset is worth $600K more than it cost them?)

So, $600K cash at period end + £2.12M after period end. They started the second half with just over circa $3M cash, a site and an existing plant to reassemble. They have no loans falling due in the next 12 months. They modest new income streams coming from the Lumberton site.

They have 5 years worth of feedstock secured and interest leading to shipments for testing.

How long will it take them to turn those into firm orders?

Cash outflow for the first half was $615K.

The last two rents agreed were for $260K per annum.

So the current picture is $1M cash shortfall per annum? And $3M cash on the balance sheet with no loans due over the year. So three year's of cash all things being equal? However, payables were running at $2.5m against receivables at $1.4m - so not all of that cash may be there (quick and rough analysis - someone correct me if I am reading that wrong)

Cash outflow will increase as operations scale up.

So again, I think the balance sheet is tight - but they have enough room to pull it off. And if they can pull it off, it won't be a £6m company.

But again - its a quick viewpoint. I anticipate some potential weakness in the share due to the understandable sentiment conveyed in posts above this one. It will be my own intention to add a few more should that weakness persist.

Probably more to say, but got to dash.

G.

[3dwd] 25/9/2019 10:02

I nearly got involved ..but decided to wait ...I am certainly waiting alot longer now ..!!!!

[jailbird] 25/9/2019 09:14

What do you Garth? Your words always calm me down

[jailbird] 25/9/2019 09:01

Cannot sell online The Co can only go up from I would have thought ... Cannot get any worse can it !At least they have cash in the bank to get the 5T off the ground

[plumbertrade] 25/9/2019 08:58

Just tried to sell. Has to go to a negotiated order.

[jailbird] 25/9/2019 08:58

I am not sure if halted to be honest .Just reckon the modifications may have took a little longer Not gonna get worried about anything yet .. we have another 3 months yet Still on track for this quarter Let's us it can stay above .5p

[jailbird] 25/9/2019 08:51

Co Still talks the jam tomorrow, they need to change that perception
Like I said this quarter is make or break for the Co for me anyway and maybe the bigger shareholders who are frustrated with the progress

[plumbertrade] 25/9/2019 08:25

I would like to know when the construction was halted. The use of the word proceed makes it sound like it never really started. I'm not sure October will be realised. The only interesting part of the report (as we knew pretty much everything else) was about the plant, and it's very disappointing.

[jailbird] 25/9/2019 08:08

Construction is expected to proceed in October 2019 and despite the small modifications, commissioning of the 5 tph plant remains on track for the final quarter of 2019.Better be completed if only small modifications

[jailbird] 25/9/2019 08:05

Not much that we already did not know in there These are ending June 2019

[jailbird] 25/9/2019 08:04

Someone did not like the results 1 milllion sold at .50p just now

[leewink1] 23/9/2019 16:32

I see Garth, thanks for your time, worthy of a watch then.