Afc Energy Share Discussion Threads

[markbarker] 16/9/2015 09:17

Back in ride you have done well to hold

[holism] 16/9/2015 07:22

Beeezz, I think Lanstead Capital have already made a pile on the shares having hedged the obligations under the funding agreement. In fact if you look at Lansteads investments AFC is a star performer.

If £3m is forecast there would be no immediate reason to raise money at the current share price if Bond believes generating power in Germany later this year will rerate the share price. Current cash flow is probably at about £300k per month I guess.

[holism] 15/9/2015 22:09

I am sure I read somewhere that the Lanstead deal will preserve a cash balance of almost £3m. i.e. at the end of May, but i can't find the source.

[ride the wave] 15/9/2015 18:44

This is all part of the parcel of investing in a start out company . Of course they will need money going forwards but it will be for the benefit of the company (in the longer term) .

I'm a long term investor who planted his seeds very early on . The last placing was at 10p and I've got no problem at all , if they raise money at 25p - 30p . AFC have come a long way in the last year or so and I don't see them slowing down anytime soon .

I'm looking forwards towards 2020 and beyond but in the short term , we have our quarterly update due in 2 weeks and 10 or so weeks later we should have Stade running at full power for the world to see .

Forget about short term price action , price is what you pay and value is what you get . Time is the friend of a wonderful company and the enemy of the mediocre .

Good luck all investors - keep your eyes on the prize !!!

[dangersimpson2] 15/9/2015 16:42

The Lanstead terms are not that opaque they pay c.£14k for every 1p that the shareprice is above 13.333p each month until End Mar-16.

What is quite opaque is the other side of the equation the cash burn. We know that cash admin expenses are c.£5m of which c.£2.7m are salaries. They lose c£2.3m on their operations annualising the HY. But this is offset by R&D tax credits and grants they recieve and strangely for a technology company they depreciate more than they capitilise which helps cashflow. Overall cash burn is probably somewhere between £0.5-0.6m month which at the current shareprice means they run out of cash in June next year.

So cash isn't currently tight but companies tend to like to raise from a position of strength not when the cash is tight so my expection is for at least a small placing before the end of the year to keep the lights on. If they need to fund any capex then the placing will be larger and therefore maybe at a lower level but afaics they haven't given any guidance on this so it's hard to guage they may just raise to pay wages rather than invest at this stage.

Why the AMC holders don't like Lanstead is nothing to do with the opacity of terms imo but because Lanstead have been pretty agressive sellers of the shares after the initial spike up with imo pretty poor disclosure. It is understandable because they are in the business to make money and they do that by selling the shares they've recieved in the placing to fund their contribution to the company. It's the trade off the company get's with the Lanstead deal - if the share price rises they get much more money than if they had if they had simply done a placing but in return they get a shareholder who will sell aggressively into any rise. The company must know this and still think it's a better deal than a straight fund raise at 10p though so if shreholders trust the mangagement then they should be happy with it.

[trotterstrading] 15/9/2015 15:58

Beeezzz,

The Lanstead ESA is a blackbox, no point trying to understand how it works, its an OTC derivative product and the terms are confidential. One things for sure Lanstead are not popular with PI's, check the boards on AMC and you will so see how p*ssed PI's are with Lanstead the opaque nature of the ESA.

Its plainly obvious AFC will need money and lots of it to scale up production, the only questions are when, how much and at what price. My guess is that these discussion are already taking place in the background and the ITK's have exited the share for now, waiting for the financing to be secured. There will be plenty of PI’s sitting on the sidelines watching developments with interest (myself included), personally I will look to get back in around the 25p mark, it may never get there, but in my experience AIM gives you plenty of opportunities to get onbaord before the boat finally departs.

I rate the CEO, Adam Bond very highly, he has transformed the company and the share price has responded accordingly, if he can get it right this share could be a star performer again in 2016, but there are still plenty of risks as they attempt to scale up for production.

[beeezzz] 15/9/2015 12:06

Figures taken from 2015 AGM presentation = Lanstead

£0.30 £256,733
£0.40 £348,422
Extrapolated :- £0.35 £302,577

I wonder if Lanstead has reduced its stake lately, anyway a companies share price is based primarily on its value and as the share price declines the amount of revenue also declines.

By the looks of it they will need at least enough manufacturing capacity to produce 7Mw of FC's by end of next year.

[harebridge] 15/9/2015 11:29

Any reason why this has halved in the last month?

[new tech] 15/9/2015 08:02

Powerhouse Energy making technical adjustments to better enable integration of its gasifier with AFC's fuel cells:


Update on PHE G3-UHt Construction and Commissioning
Powerhouse Energy Group
15th September 2015



PowerHouse announces that the construction and commissioning of the newly developed PHE G3-UHt Waste-to-Energy system is nearing completion.

The commissioning and integration work is continuing apace at the Company's Brisbane engineering facility in Australia. All individual components have passed their initial evaluations at nominal operating temperatures and are operating to specification. However, our engineering team has determined that a minor modification to the de-oxygenation system (the system which removes excess oxygen and ambient air during the feed-stock conveyor process) will dramatically improve our ability to tune the resultant synthesis gas. In other words, this modification will better allow us to determine relative volumes of Hydrogen and Carbon Monoxide produced in the syngas creation process. The ability to increase or decrease the relative amount of Hydrogen can have a significant effect on the potential integration of a Hydrogen Fuel Cell into the G3 System.

The new de-oxygenation process has been designed, modelled, and the engineering has been completed. The newly machined parts are on order and are expected to arrive within the next few weeks.

Our initial electrical generation trials will commence with a standard reciprocal generation set and will begin upon completion of the new de-oxygenation component to the feed-stock conveyance system. In addition to operating these trials on standard plastic feed-stock, PHE has contracted to begin trialling the ultrahigh temperature gasification of shredded tyres. We will also be testing other difficult to eliminate feed-stocks such as ASR (auto shredder residue) which continues to present challenges to the auto dismantling industry and contribute to the toxic waste streams of the world. By demonstrating our ability to adequately deal with this pernicious waste component, we will become the most ecologically friendly mechanism by which to extract the energy value from ASR and contribute to a cleaner planet.

Additionally, official invitations for the first week of November 2015 have begun to be sent out to interested commercial parties and European government representatives to witness the demonstration of the new PowerHouse G3-UHt Technology.

A variety of environmental and government safety certifications, as well as the protection of new intellectual property which has been developed, will begin to be applied as testing and trialling the system continues.

"This marks the beginning of the actual commercial phase of the company," stated Keith Allaun, Executive Chairman of PowerHouse. "We finally have a technology in which we can be confident, which is proving to be commercially robust, and which delivers on the promise of PowerHouse. With this new demonstration unit, we are confident that we can begin making tremendous commercial strides in this next stage of the company."

[holism] 15/9/2015 07:26

robo- AFC do not need fundraising if you are confident the Lanstaed deal will generate cash each month over and above the cash burn until the end of May 2016. That will depend on the share price unless some form of hedge can be put in place. AFC is in a golden window of opportunity but will need the support of deep pockets going forward. I think Adam Bond, with his considerable experience in project finance, will be up to the task.

[robo175] 14/9/2015 23:08

My guess is your just scare mongering, on what basis do you say we need a placing?.

[trotterstrading] 14/9/2015 22:39

I'm very positive on AFC, held them for years, until I sold them recently at 48p. Looking to get back in but the recent share price decline and the last RNS look suspiciously like a placing is imminent. My guess is a placing price around 25-30p.If not a financing round I would be happy to hear others theories on the recent share price decline?

[beeezzz] 14/9/2015 13:52

True cost of wind farm industry... taxpayers taken for ride by useless government decisions. It would be a good idea if they didn't put all their eggs in a couple of green energy suppliers and spread it around to increase jobs, competition and diversity.

[beeezzz] 14/9/2015 13:05

MF give their 2 pence worth....today

[tradeyodha] 14/9/2015 13:04

I am still here. I still have part of my short position in it. Have taken 2 profit targets already.If it goes back to 40-45 p range I will check and add to my short position with targets in 20s.

[robo175] 14/9/2015 12:37

Anyone SEEn TradeYodha LOL

[ride the wave] 13/9/2015 18:07

Norbus is just a MUG - full stop !!!

Stupid donut

[robo175] 13/9/2015 14:12

Norbus made a post a while back on AFC, it was the first one I saw from him, just from that post I filtered the DH ever since.

[lordgibil] 13/9/2015 10:20

I would advise taking no notice of Norbus, he is a lowlife who will give positive or negative views depending on how it suits his investments. I don't own any AFC shares at the moment but I have done for years and I was here when he was telling everyone that the company was a scam and now its building a power station.

[norbus] 13/9/2015 09:06

bz

I would not put the house on business as usual from Bond who HOPES all will go to plan by end December; these AIM chips have a habit of going pop in the night

[beeezzz] 12/9/2015 15:01

RTW....So you think a Mcap of £280ml+ is fair valuation for company not going to be profitable until at least end of 2016, Hmm I doubt the market will buy it.

Obviously high growth companies command a high pe and future profits are baked into the share price not sure about a £1 yet, must stay realistic here.