Active Energy Share Discussion Threads

[garth] 10/12/2020 10:53

Kim,

TBH I had another inner groan when I read the RNS. How many years on?

And still waiting to be achieved for CANADA!

G.

[kimoldfield] 10/12/2020 08:01

I am surprised this wasn't done previously it is such an important detail to finalise. I am imagining the sun beginning to show on the horizon, hopefully not another false dawn this time!

[garth] 10/12/2020 07:24

10 December 2020

Active Energy Group Plc

("Active Energy", "AEG", or the "Company")

Patent Awarded for CoalSwitch(TM)

Active Energy, the London quoted international biomass based renewable energy and forestry management business, is pleased to announce that it has been awarded a new U.S. patent for its CoalSwitch(TM) process and the beneficiation of biomass. The patent, number 10,858,607, was awarded on 8 December 2020 and will ensure Active Energy holds the legal rights to exclude any other company from producing, selling or using the claimed CoalSwitch(TM) process for over 17 years. The proprietary CoalSwitch(TM) process includes subjecting steam-exploded biomass to a second washing step to remove additional salts and light volatile compounds derived from the biomass.

This new patent combines with the U.S. process patent, number 10,647,935, which was awarded for AEG's PeatSwitch(TM) technology on 12 May 2020. AEG's PeatSwitch(TM) patent gives AEG the exclusive rights over the process of producing an engineered soil from raw biomass in AEG's unique reactor.

The Company continues to file further patent applications in the US and will follow each of these with additional filings in Canada, Malaysia, Thailand and Europe.

Michael Rowan, CEO of Active Energy, said:

"CoalSwitch(TM) has significant market potential and is unique given the distinct and highly beneficial differences between its processes and other biomass beneficiation methods. The value driver is in the pre-treatment and post-treatment processes that effectively remove most of the soluble mineral contaminants. These patent awards to AEG underline the important commercial opportunities for CoalSwitch(TM). We look forward to continuing to develop the patent portfolio for AEG."

[martyminer] 03/12/2020 12:26

Thanks very much, very insightful

[thesaint5] 03/12/2020 11:01

Marty, I have this as top pick for 2021, sure there's a lot of hurdles in order to achieve trust from investors and better comms needed, what they do have is the ingredients to achieve in my opinion.

Lumberton, from lumber business alone reaching cash flow positive business should give investors peace of mind that a milestone has been achieved as stated, further it will support business going forward hopefully negating need for begging bowl being handed round. I also believe with a cashflow positive business this will enable financiers a greater depth of leverage for expansion of coalswitch capabilities, again negating any future dilution to us shareholders.

We need remember that RMDE have successfully secured $250 million finance for coalswitch plants with first being in production early 2022 with all production subject to a binding off take agreements, that alone is proof the product works, it's appealing to financiers and more importantly there's huge demand. Not forgetting the annual annuity income this provides AEG, very nice indeed.

Lumberton will be a showcase business model globally, I think the 5tpa plant is outdated tech hence the 3tpa showcase, however it's about showing what can be done and what levels of profit can be achieved with updated equipment, the 50tpa plant being built by RMDE (new tech) produces huge profits.

One sniff of an order from a utility company this will multiply many times over, stock certainly reminds me of PHE a few years ago, some might not remember the time that was delisted with many writing off their chances.

Market cap today of sub £8 million is more than underwritten by lumber business, CoalSwitch is not priced in.

[martyminer] 03/12/2020 10:42

So where do we see this heading in the next quarter and beyond?I thought that this was an innovative product and a positive alternative so over time a steady climb with peaks on significant developments? Thoughts?

[skinny] 03/12/2020 07:53

.

Highlights:

-- Player Design Inc. ("Player Design") were appointed in September 2020 to complete the engineering and construction process for the Plant

-- Additional equipment has been sourced and Active Energy has commenced the procurement process
-- Construction crews will commence work in January 2021 with commissioning of the plant expected during Q2 2021

-- AEG is in active discussions with prospective customers for the delivery of the next generation biomass fuels, including CoalSwitch(TM) in the USA

more.....

[garth] 23/11/2020 07:17

Or maybe not melting up...

New FD - and all you really need to know is contained in one sentence:

"Throughout the four years Andrew held this role (at VOG), he was involved in two substantial equity raises, a successful M&A transaction and multiple capital and debt restructuring exercises."

Groan.

G.

[garth] 20/11/2020 10:52

Melting up...

[isa2020] 14/10/2020 13:18

Interesting drop on very few shares with positive noise coming from partner. Interesting to see what future role AGE group going to play

[thesaint5] 30/9/2020 20:53

Not seen the share price Angel note, Allenby one stated revs of $8 million for 2021, seems quite low estimated IMO, if you consider they expect to exporting 100 container per month come year end, on $8m revs that's only $6,666 per container of log. Bargain if so, I'll have some to burn! -

"The aim is for these production levels to increase to up to 100 containers per month from the Lumberton Site before the end of 2020."

There's also other parts of the lumber business not taken into consideration, that's just one contract, unless I'm reading that incorrectly -

"Under the terms of the first agreement, AERP is expected to ship up to 8,000 tonnes per month from ports near Lumberton, namely the Port of Wilmington, NC and Intermodal Container Port of Dillon SC"

Lumber prices have sky rocketed of late, expecting further increases over winter period. With two shifts running they should be able to get us cash flow positive, profit margins shown in interims is impressive.


It is a pity the company have not made more of the achievements of RMDE, the importance of the CoalSwitch being commercial with contracts signed makes this business seriously undervalued IMO, there's much good work around the globe that can be achieved using this tech. No matter the BoD's failures in this regard I'm sure they have a surprise or two over coming weeks.

No matter how our BoD look at things over the last 12 months they have been focused on a small 5tph plant whilst Spinks with RMDE have motored on with multiple 50tph plants all funded.

£40 million for the technology rights as we stand today would be a bargain, £8.5 million market cap simply does not correlate to the techs value even with the failures of the BoD over last few years, all thanks to RMDE of course.

[jomanny] 30/9/2020 19:00

I could be wrong but I added the note interest and corporate costs. The cost of sawlogs have increased a lot recently so this adds to revs. Still unsure how this means generating free cashflow. It's a low margin business.
I saw in a broker note they have a contract to supply significantly more sawlogs. Is that correct, Broker projections of $11/12 million. share price ANGEL?

[jomanny] 30/9/2020 15:17

I listened. About what I expected though some of the resolutions were close.
Saint in reference to us being cashflow positive by year end.Maybe ebitda positive but that doesnt include the cln coupon at 1p.
Hopefully what we have now can cover corporate costs.
Another licence would be great to help with the loan conversions and share price.

[garth] 30/9/2020 15:15

Thanks Saint.

Anyone with any question about where these are heading would do well to read that update from RMDE. That man Spinks has done OK in Canada. What goes for Canada goes for elsewhere. They have off-take agreements in place for the ENTIRE capacity of the 50 TPH plant - before it has even been commissioned.

And going back to the issue of Californian fires:

"3.Received, from Government, conditional terms for the issuance of a Forest Fire Damaged Fibre Permit providing RMDE access to a fixed annual volume of fire-affected fibre on Crown Land, creating Carbon Abatement and Sequestration opportunities and allowing for Salvage & Reforestation to take place on affected timberland, where otherwise this would not be the case due to quality issues."

It is not economically viable to clear that damaged timber. Except it is when used as a Coalswitch feedstock.

G.

[thesaint5] 30/9/2020 13:48

Financial backing to the tune of c$250,000,000 for the CoalSwitch technology, the company that owns that technology is cash flow positive by year end most probably and has a market cap of £8.5 million.

Is there another green tech on any listed exchange as cheap with these credentials ?

[garth] 29/9/2020 08:40

Now, that's a nice update from Allenby

:0)

Maybe we can now get back to the 1.2p levels we were at before the recent drift down.

And then let the news flow begin.

G.

[maccamcd] 29/9/2020 08:11

update from Allenby

Revenues grow significantly – more to come in H2
Active Energy Group (AEG) reported revenue of almost $0.5m (H1 2019: $0.1m) generated from just its lumber activities and rental income. This is an impressive performance when one considers that the Group did not gain 100% control of the lumber business until April 2020 and consequently revenues largely reflect sales in Q2. Now running a second shift, we expect volumes to rise significantly in H2 and anticipate Group revenues of around $2.5m for the year to December 2020. 2021 will see a continuation of this trend and in addition some initial revenue from the CoalSwitch™ reference plant. Our current thinking is that 2021 revenues could reach around $8m based on lumber producing $6m and CoalSwitch™ c.$2m. AEG is now gaining significant traction and we expect to see commensurate growth in the share price over the next twelve months. (Ian Jermin)

[garth] 29/9/2020 07:41

"AEG is focused on increasing the scale of these lumber activities at Lumberton and announced in Q2 2020 an intention to move to a second production shift. After Labour Day weekend earlier this month, this second shift commenced. AEG is now focussed on further increasing the lumber revenues and plans to increase production levels to initial targets, including the delivery of up to 100 containers per month and the delivery of circa 1,500 rail ties per week. This should result in monthly revenues in excess of US$400,000 per month. AEG is aiming for the Lumberton Site itself to operate at breakeven from lumber operations before the end of 2020."

In November 2019, AEG granted the first CoalSwitch(TM) licence to RMDE for its forthcoming projects in Alberta and British Columbia, Canada. During 2020, AEG and RMDE have been working together to commercialise the opportunity in Alberta. In the last nine months, RMDE has made significant progress both in terms of plant and engineering design for a 50 tph facility in Alberta and in obtaining the requisite financial support from partners. RMDE is also working on additional projects in Canada which could further accelerate additional licensing opportunities for AEG.

AEG has also continued to assess additional licensing opportunities for CoalSwitch(TM) technology and process both elsewhere in North America and internationally. AEG is currently working with a number of international prospective partners who wish to establish CoalSwitch(TM) production facilities in various territories.

Existing Business Operations: Newfoundland and Labrador

During the first half of 2020, the Company has re-examined the business opportunities from its existing assets in Newfoundland, Canada. This year, Active Energy has had on-going conversations with the Ministry of Forestry and Fisheries in regard to AEG's existing timber permits and appointed new advisers to move the business opportunity forward. AEG believes that its recent experience in North Carolina will provide an important platform for a revised business opportunity in Newfoundland and AEG hopes for further developments in the coming months.

G.

[skinny] 29/9/2020 07:17

.




Highlights:

-- Lumber operations continued at Lumberton, North Carolina ("Lumberton" or the "Lumberton Site") throughout the period in spite of the COVID-19 operating conditions.

-- Lumber operations increased substantially following the completion of the acquisition of the joint venture interest in Renewable Energy Systems, LLC ("RES") from Renewable Logistics Systems LLC ("RLS") announced on 31 March 2020. All lumber activities at Lumberton are now wholly controlled and operated by Active Energy Renewable Power ("AERP"), a wholly owned subsidiary of the Company.

-- Revenues of US$499,893 for H1 2020 (H1 2019: US$99,830), reflecting the increasing lumber operational activity.

-- Completion of a fund raising of GBP800,000 (gross) through the issuance of Convertible Loan Notes ("CLN") with the proceeds immediately deployed to accelerate the development of lumber production volumes.

-- Strengthening of operational and industry expertise with the appointments of Max Aitken and Jason Zimmerman as independent Non-Executive Directors in January 2020.

Activities post the end of the Period:

-- In August 2020, the grant of the Construction and Air Permit (the "Permit") by the North Carolina Division of Air Quality which allows the Company to complete the construction of its existing CoalSwitch(TM) plant, thereby enabling its operation to produce CoalSwitch(TM) pellets at Lumberton.

-- Expansion of lumber operations and sales at Lumberton through increased container shipping capacity for saw log export to international customers and the commencement of a second sawmill shift following the Labour Day weekend.

-- Appointment of an industry qualified engineering firm as the EPC for the CoalSwitch(TM) plant at Lumberton, this role includes project specific engineering and the commencement of site specific detailed engineering.

-- Announced an equity fundraise of GBP1.51m (before expenses) with new and existing shareholders and stakeholders which completed in early September 2020, following shareholder approval at a General Meeting.

-- Awarded London Stock Exchange's Green Economy Mark reflecting AEG's environmental credentials.

-- Inclusion of AERP in the Advanced Biofuel Fuel Payment Program operated by the US Department of Agriculture and registration of AERP to the System for Award Management (SAM) database of entities entitled to work with the Federal Government.

-- Additional award of a patent in regard to the CoalSwitch(TM) process by the US Patent office.
-- The Company has also received several licensing enquiries from potential international partners in respect of additional CoalSwitch(TM) plants since the award of the Permit.

Outlook:

-- AEG has significantly improved its operating and financial position since the beginning of the financial year in spite of the challenging environment. The goal of generating increasing revenues from the wood processing and saw log export businesses is now being achieved. AEG continues to accommodate demand from its customers for its current activities at Lumberton.

-- The delay in respect of the award of the Permit, primarily owing to the impact of COVID-19, has meant consequent time delays to the CoalSwitch(TM) development programme but the Company is acting as quickly as possible to overcome these challenges and limit the effect of the delay.

-- The award of the Permit has meant that the Company has been given the operational parameters for the operation of a CoalSwitch(TM) plant at Lumberton and the Company is now focussed on achieving commencement of commercial operations as soon as possible.

Michael Rowan, CEO of Active Energy, said:

"The period under review has seen AEG build the platform to deliver on its two key strategic objectives, becoming a producer of next generation biomass fuels and establish a complementary, profitable lumber operation at the Lumberton Site. The Board is pleased with the progress AEG has made in recent months, particularly against the backdrop of COVID-19, in ramping up production at Lumberton and, whilst the pandemic has resulted in delays to the development of the CoalSwitch(TM) reference plant, we are confident the commencement of commercial operations can be achieved in the short term. I look forward to updating all stakeholders on the timeline and delivery of the plant as our business focusses on the biomass-to-energy market."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

Enquiries:

[thesaint5] 28/9/2020 10:41

Hi Garth,

Yes like the tech and how the company is transforming itself, there's clearly a long way to go however with the lumber side of the business expanding from one shift to two, I would expect full year revenues for 2021 to be in the region of $8 million, potentially higher. A margin of 40% would see Active cash flow positive effectively from around Q4 2020, if correct this would be transformational in my opinion.

If they can add a couple of licensing deals for CoalSwitch by year end that really would be something, two 50tph plants would generate revenues straight onto bottom line in excess of $4 million.

Wait and see what's contained within those interims, appears to me to be significantly undervalued, it is however the market that decides on valuation and it appears it is waiting for company to come good on what they have promised, hope they deliver.