Active Energy Share Discussion Threads

[garth] 17/2/2021 18:14

Is that a 6 million delayed reported purchase at the end of the day driving the rise?

G.

EDIT: volume spike of that magnitude showed on my phone app yesterday but I can't see it as a single reported trade listed via PC.

[thesaint5] 17/2/2021 09:52

Progress..

[bobbieblock] 08/2/2021 11:27

Absolutely. Hopefully will generate some excitement round here

[garth] 08/2/2021 07:34

No apologies for posting this news from DRAX this morning. Lots more in the full release. But just look at those numbers.

Two ways of looking at that - we really are a minnow. AND, its a massive market place for next generation pellets to take...

£226m paid - but taking on an equivalent value of debt so circa £450M-£500M enterprise value.

G.



Drax Group PLC

08 February 2021

8 February 2021

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Drax Group plc

("Drax", the "Group" or the "Company"; Symbol: DRX)

Proposed acquisition of Pinnacle Renewable Energy Inc. - a major international producer and supplier of sustainable biomass

Drax is pleased to announce that it has signed an agreement (the "Acquisition Agreement") with Pinnacle Renewable Energy Inc. (PL.TO) ("Pinnacle"), providing for the acquisition by Drax Canadian Holdings Inc., an indirect, wholly-owned subsidiary of Drax, of the entire issued share capital of Pinnacle (the "Acquisition"). The Acquisition will be implemented by way of a statutory plan of arrangement in accordance with the laws of the Province of British Columbia, Canada, at a price of C$11.30 per share (representing a premium of 13% based on the closing market price as at 5 February 2021 of C$10.04 per share and valuing the fully diluted equity of Pinnacle at C$385 million (GBP226 million(1) ), with an implied enterprise value of C$741 million, including C$356 million of net debt(2) ). The Acquisition, which remains subject to Drax and Pinnacle shareholder approval, court approval, regulatory approvals and the satisfaction of certain other customary conditions, has been unanimously recommended by the board of Pinnacle and has the full support of Pinnacle's major shareholder, affiliates of ONCAP (which, together hold shares representing approximately 31% of Pinnacle's shares as at 5 February 2021). Completion is expected to occur in the second or third quarter of 2021.

The Board believes that the Acquisition advances Drax's biomass strategy by more than doubling its biomass production capacity, significantly reducing its cost of biomass production and adding a major biomass supply business underpinned by long-term contracts with high-quality Asian and European counterparties. The Acquisition positions Drax as the world's leading sustainable biomass generation and supply business alongside the continued development of Drax's ambition to be a carbon negative company by 2030, using Bioenergy Carbon Capture and Storage (BECCS).

Highlights

-- Compelling opportunity to advance Drax biomass strategy
- Adds 2.9 million tonnes of biomass production capacity
- Significantly reduces Drax average cost of production(3)
-- Increased global reach and presence in third-party markets
- C$6.7 billion of contracted sales to counterparties in Asia and Europe
- 99% of capacity contracted through 2026, significant volumes contracted post 2027
-- Strong return on investment
- Cash generative with 2022 EBITDA consensus of C$99 million
- Expected returns significantly ahead of Drax's WACC
- Funded from cash and existing agreements
-- Reinforces sustainable and growing dividend
The world's leading sustainable biomass generation and supply business

-- Drax and Pinnacle combined
- 17 pellets plants, three major fibre baskets, four deep water ports
- 4.9Mt capacity from 2022 - 2.9Mt available for self-supply
- 2.6GW of renewable biomass generation, with potential for BECCS
-- Global growth opportunities for sustainable biomass
Commenting on today's announcement Will Gardiner, Chief Executive Officer of Drax, said:

"I am excited about this deal which positions Drax as the world's leading sustainable biomass generation and supply business, progressing our strategy to increase self-supply, reduce our biomass production cost and create a long-term future for sustainable biomass."

[cliffv69] 05/2/2021 10:07

Anyone know when the primarybid bought shares will be added to broker accounts ?

[fund1] 04/2/2021 12:25

Thanks for that

[11dg] 04/2/2021 10:12

new video on LSE website

[garth] 04/2/2021 08:27

From the BP. thread. Passed me by. Interesting though.

Crazi3 Feb '21 - 16:28 - 5943 of 5944
0 2 0
Bloomberg Economics
@economics
·
26s
It's 2021 and the UK government is backing the opening of a new coal mine, right before it hosts global leaders for major climate talks...

G.

[garth] 03/2/2021 07:45

London South East interview link added to the bottom of the header.

Looks like we are finally back on our way folks.

Well done to management getting those CLNs converted and that raise away at a 1p and not down at a fraction of that which is what could have happened. Credit where credit is due.

G.

[fund1] 03/2/2021 07:40

Looks like it's going to start where it left off yesterday. That interview as got me excited

[fund1] 03/2/2021 06:16

Lots of exciting stuff happening. Right sector at the right time

[fund1] 02/2/2021 22:49

Good interview https://youtu.be/pzyzpUF7Ki8

[trjones2] 02/2/2021 19:29

thats funny pedro

[pedromendoza] 02/2/2021 18:00

He was last seen heading in a south-easterly direction towards the shops. :)

[pieinsky] 02/2/2021 16:38

Any news on Peatswitch????

[garth] 02/2/2021 14:40

Thanks Saint.

Link to note added to the bottom of the header.

Nice numbers.

G.

[thesaint5] 02/2/2021 14:29

We expect there are likely to be additional offtake requests in the coming weeks.

As a result, we have included a moderate estimate for the operation of the
CoalSwitch™ reference plant operating on a batch production process initially at
~3tph, increasing to 5tph through the year

Into 2022E, the CoalSwitch™ reference plant can be scaled up to
5 to 8tph on a batch process with moderate investment.




and...

The 50tph plant is a true game changer for AEG. The metrics as shown in Table 2, show production of 400,000 tonnes of fuel per year, which can be used to supply about 2 50-60MW plants on a 50/50 basis. At maximum output the plant potentially generates revenue of ~US$68.5m on a 3-shift basis, running 7 days per week for a full year. With an estimated net margin of ~27.5%, depending on the type of feedstock, the payback period for the plant is about 3.5 years.


Notably, 2023E is likely to have a significant uptick in revenue and EBITDA results as a result of the operational start-up of the 50tph CoalSwitch™ plant.

[nigelmoat] 02/2/2021 13:29

Added today to an already large position. Confident news flow can only take this in one direction.

[garth] 02/2/2021 12:23

Thanks Saint for the link.

"Things are about to take off" Andrew Diamond, FD

Refreshing to hear that from a FD.

:0)

G.

[thesaint5] 02/2/2021 10:55

Media, communication..

[nico115] 02/2/2021 09:06

Great rns Should double v quickly

[garth] 02/2/2021 08:46

Well, with £7m raised they surely cannot mess this up now. My concerns about the wider market remain in play - but I have bought back some of my January top slice this morning. With the extra shares in issue liquidity will be improved but increases may be more subdued I guess - but future prospects have been significantly de-risked.

Should be pretty consistent news-flow from here on for the next 6 months. Plant construction, manufacture of product, updates on the second saw mill line, fulfilment of the June delivery, new orders?

G.

[belo horizonte] 01/2/2021 19:44

Wasn’t me! 😉

[thesaint5] 01/2/2021 16:44

Placing £6 million at 1p plus conversion of CLN £15.6 million at 1p.

Who was it who said 'no placing', own up!