Eqtec Share Discussion Threads

[vatnabrekk] 04/9/2023 15:02

I have to admit it doesn't look good.

[stevea171] 04/9/2023 14:53

The 2nd MetalNRG RNS released 9am today and the original 7am one make no mention of their intent to invest in a 2nd EQT project as they have been saying all along.

Instead they will be pursuing mining related projects to take advantage of the expected uptick in gold/copper prices and the miners.

"the Board confirms its decision to concentrate growth and value creation efforts on the mining sector. The initial focus will include gold and copper projects, alongside other precious and strategic metals, which face high demand due to global macroeconomic, energy transition, and technology trends."

[stevea171] 04/9/2023 14:30

Today's RNS headlines:
EQTEC PLC Bank Refinance of Italy Market Development Centre

MetalNRG PLC Bank Refinance of Italy waste to energy plant

Are these not 2 cases of misleading/lying headlines?

We understood there was to be a refi allowing the original investors incl EQT (20%) to take some or all of their capital out and easing their cash flow problems. But we find out in the text that none of this is happening.

Instead the Italia MDC has been offered a loan of EU2.9 million under certain conditions which may or may not be fulfilled in Q4 with Eqtec, the company, getting nothing. How much debt has the MDC racked up already (financed by EQT?) to be included in H1 results and FY results?

It is expected that the loan requirement in Q4 will be EU2.9 million as this full amount is to be drawn down immediately and an EQT bridging loan? repaid. These will be the estimated losses and capex of the Italia MDC to the date of the loan draw down.

Is EQT expecting another cash raise to cover this loan to the MDC in the next 3 months and not telling us as usual with all the other cash raises/loans in the past 18 months or so?

This is yet another MAJOR screw up that has been hidden up to now with only a glimpse of disclosure in this RNS.

[pa123] 04/9/2023 13:21

maybe by Christmas

[vatnabrekk] 04/9/2023 12:00

All good questions marktime. I just hope we will have some answers in the not too distant future.

[marktime1231] 04/9/2023 11:11

Despite the catty squabbling here, which I think is because Steve has about-faced from being stubbornly argumentatively defensively cloth-eared positive to negative, this rns does reveal that Italy MDC is not operating as intended. To be fair to Steve being positive became unsustainable and you are allowed to change your mind on the evidence, but as someone who was once on the receiving end of his snap I can understand it might grate on those who were suspicious all along. And on those who now are desperate for a revival, to be so negative all the time apparently long after divesting. At least we are getting a critical analysis of the bilge coming out of EQT pr team and what it really means. But, on balance, if that France funding is realised then EQTs future is brighter but then it could hardly have got any worse. Anyway ...

"EQTEC Italia MDC S.r.l. ("Italia MDC"), the operating company for the Plant, is implementing a series of performance improvements anticipated to be completed in early Q4 2023, at which point, assuming the required performance criteria have been achieved, Italia MDC will draw down the amount of the full Facility.

The Plant became operational in March 2023 and EQTEC completed handover protocols and transfer of plant operations to Italia MDC in June 2023. The Company remains actively involved with supporting Italia MDC in its endeavours to drive more productive and continual operations."

The key word here is "continual". It doesn't work as a steady continuous automated process, there are interuptions or interventions necessary which means staff time which means unbudgeted costs. So Italy MDC might operate technically fine only in discrete batches, not according to the business plan, and will indeed be loss-making. It has been my guess all along that this involves the feedstock end of the process, or it could be residue glazing and contamination in the fluidised bed, something which has baffled every other group trying to integrate waste gasification plant, and something which has taken four or more years to try and resolve rather than the 1 year envisioned here.

It would have been helpful to have provided some operating detail ... waste processed, net energy exported etc ... versus target. And financials, so revenues and costs against tonnes and kWh, in the kind of way material processors and energy companies give updates. I guess they are still working on how to report, not having had anything to say until now. No mention of the opportunity to sell off the black soot residue.

I do not understand the financial consequence of this announcement on EQT itself. Someone in the meantime needs to be providing Italy MDC with operating cash flow, is that what EQT mean when they say they are providing support. And in the meantime presumably EQT is not receiving proceeds from a financial close or net income, clobbering the outlook. Given the parlous state of EQT and the rate at which it spends cash do we have another going concern and funding problem, or is that saved by the promise of funds from France?

[stevea171] 04/9/2023 10:51

Posters here have said 'there are no problems with the tech' but problems elsewhere.
But guess what?

Now for the first time EQT admit there are problems with the tech.
Make no mistake, these issues and the guarantee liabilities could bankrupt the company.

Still no new FC's after 12 months last year and 8 months so far this year.
Extended silence on the Croatian MDC.
I wonder why?

[stevea171] 04/9/2023 10:20

The lying is to shareholders and the market.

[1flynn] 04/9/2023 10:08

In short if EQT have been lying the bank will pull the plug on the loan it's that simple.

I,d imagine the bank will own the complete site if EQT get exposed for cooking the books for the loan at a later date.

[stevea171] 04/9/2023 09:58

1flynn. They have had since March when the plant became operational (so they say) to advise shareholders the MDC is not operational in any accepted sense. But have not done so till now and in an incomplete and unacceptable way.

What are the problems?
What are the fixes?
How much capex is involved?
What are the operational metrics currently and targets for Q4?
How has this happened?
Who is responsible?
Does this affect the North Fork plant or plant at Larissa?
What liabilities is the company facing wrt guarantees they provide?

[1flynn] 04/9/2023 09:45

Stevea171 it's simple they wont get the loan if EQT fail on performance and profit.

That will independently verify it either works successfully delivering a profit or not.

Ok with that as I dont have much trust in what the BOD say given their history.

[stevea171] 04/9/2023 09:34

1flynn. Yes, cynical, clear as mud RNS's. What it amounts to is lying by omission and commission ....

By now the market has concluded they are not to be trusted.

[1flynn] 04/9/2023 09:25

I,m as cynical on Eqt and the greed and lifestyle of the BOD especially, and their clear as mud RNS,s.

But it's normal practice for a bank to set certain performance criteria conditions to be met before allowing EQT to access the loan on a new project.
That will determine whether the BOD have been honest regarding their performance percentages expectations.

It's just another loan of €580,000 for EQTs 20% though while they prove the concept works hopefully providing a profit and drumming up interest for future customers.

[stevea171] 04/9/2023 08:55

So you are not prepared to give us your analysis. Thought so! Just yet another one liner.

Because EQT is confirming everything he said without giving details. Why have they not mentioned problems at the Italia MDC all this time until now?

"The Company remains actively involved with supporting Italia MDC in its endeavours to drive more productive and continual operations."

So it is operating in start/stop mode. Not continual operations. So it requires continual manual intervention and is losing production. How much? 50%? 70%? They won't say and refuse to come clean.

[adey1] 04/9/2023 08:48

...and you take his anonymous online postings as gospel because...?

[stevea171] 04/9/2023 08:35

Adey. Lets hear your analysis of this RNS rather than your one liners.

He looked at it as a possible addition to his other tech investments. But quickly decided the Italia MDC was not worth investing in.

Chickens here coming home to roost as I expected.

[adey1] 04/9/2023 08:31

I think you'll find the German investor, wasn't invested, a bit like yourself....

[stevea171] 04/9/2023 08:24

Paul. MNRG has not mentioned anything about the Italia MDC. For good reason! They have put out an RNS today concerning a strategic review.

[paul8515] 04/9/2023 08:20

So MNRG up 32% on this news - we are up barely 3%. Massive loss of trust here, and Altair is a big burden.

[stevea171] 04/9/2023 08:17

This RNS confirms all the issues reported by the German tech investor who visited the Gallina plant and spoke by phone with staff there over a number of months earlier this year. The plant has never operated normally and is still not doing so even after all this time.

The banks are not daft so no refi. This is no refi now or later. This is a loan to the Italia MDC (not to Eqtec) because the plant has run out of finance and is loss making. Palumbo is not being straight with shareholders. He is using PR speak and refuses to give a full accounting of the problems at the Italia MDC and operational performance incl profit/loss to date as I have mentioned in the past:

the operating company for the Plant, is implementing a series of performance improvements anticipated to be completed in early Q4 2023, at which point, assuming the required performance criteria have been achieved, Italia MDC will draw down the amount of the full Facility.

The Plant became operational in March 2023 and EQTEC completed handover protocols and transfer of plant operations to Italia MDC in June 2023. The Company remains actively involved with supporting Italia MDC in its endeavours to drive more productive and continual operations.

[vatnabrekk] 04/9/2023 07:46

Is this kicking the can down the road a bit, or have I misunderstood?

[m4rtinu] 04/9/2023 06:54

It doesnt seem to me that this RNS is announcing the repayment of Eqtecs loan to the SPV in the near future. Is this interpretation correct?

[stevea171] 04/9/2023 06:42

The ultimate RNS in deception.

[m4rtinu] 02/9/2023 10:00

What DP says and reality are sometimes not in complete alignment. The only board member who I really have faith in is Yoel. I would guess most long term holders know as much about gasification as JVDL. As for DP, his relationship with Altair is potentially a conflict for me. CFO doesn't strike me as having unique skills to write home about.

In spite of this I still hold in the hope the tech wins before funds run out.