Mycelx Technologies Share Discussion Threads

[pugugly] 11/3/2022 07:39

As supected were short of cash - Placing at 50p - Jury still out (imo)

[nico115] 09/3/2022 10:35

Tried to buy some as no covid and high oil price great for myx750 shares only offer until 59pMarket are buyers Stupid false price

[someuwin] 09/3/2022 10:08

High oil prices good for myx

[slicethepie] 08/3/2022 18:34

Looks like we have a desperate seller forcing the mm to take stock, given the price is well below the 72p and 60p paid by the directors prior to the successful Pfas result would look like an opportunity ?

[concentrate] 11/2/2022 13:51

Revenue of the following:

2020H1 - $3.6m
2020H2 - $3.9m
2021H1 - $4.2m
2021H2 - $4.3m

Current cash burn of $1.3m per half year.

A Gross Margin of just shy of 50%, so another $6m of annual revenue needed before cash break even (all else being equal).

Overall I thought it was an honest but poorly worded RNS.

"targeting a similar level of year-on-year revenue growth but this remains subject to the timing of anticipated contract wins and renewals"

The sentence sounds so negative, "but" this remains subject to.. "similar levels"... I imagine given the revenue levels, any single deal could materially impact these numbers either way. The sentence even seems to cast doubt on new projects materialising over the year.

They could have written something like "targeting strong year-on-year growth to continue based on our current anticipated contract wins and renewals, although the precise timing of these is not known."

I really agree that the oil recovery bodes well for the core business, and hope they can capitalise on that.

I agree with someuwin, most investors are following the PFAS. I said earlier than I'm most interested in hearing how the financials for this use case are currently arranged. (e.g. contract size, market size, gross margin, etc.).

[pugugly] 11/2/2022 12:15

kinbasket:- Thanks - always a different comfort factor when on a free carry. Agreed re pocket change - More like money found down the side of the sofa!

Thanks for comment on the technology -

[kinbasket] 11/2/2022 11:40

Pugugly, I don't think you've missed anything it isn't profitable and may not be for a good while.

I don't think that's the play here though. As far as I can tell they have a very good technology in an important sector (ESG) that must be worth more than the market cap. What they need is a decent cash ramp that get's them to some kind of value realisation. Whether that's profitability or a sale. They have a ramp of a couple of years so I'm not worried yet.

I've said it a few times here but for a Haliburton or Schlumberger this is not even pocket change. That's how I see it playing out.

For full disclosure I bought a lot around 20p and have sold enough for a free carry so my comfort factor may be different to others.

[someuwin] 11/2/2022 10:15

Their legacy business (O&G clean-up) is not profitable at current levels. The big excitement is in removing contaminants from water - particularly removing PFAS from drinking water which is a huge multi-billion opportunity, for which MYX appears to have have one of the best and cheapest solutions based on their patented polymer tech.

[pugugly] 11/2/2022 09:59

Maybe reason to get out is that still appears to be a massive cash burner and remember EBITDA H1 normalized excluding sale of building negative $1.3 million.

No sign that I can see from trading update of profitability in the near future.

I am ready to be corrected if anyone has data to the contrary.

[slicethepie] 11/2/2022 09:31

Someone keen to get out, way below recent director purchases ...must have energy bills to pay!

[someuwin] 11/2/2022 07:16

Revenue up 20%. But the only important bit is this sentence...

"We were pleased to report a successful outcome at our PFAS trial in the United States in December, as we believe the PFAS remediation market has the potential to generate substantial cash flows for the business for the foreseeable future."

[concentrate] 08/2/2022 21:09

Interesting that Cambridge Water is installing additional treatment.

Huge amount of news in the US at the moment, too

[someuwin] 31/1/2022 15:02

All these locations, and many more in the US (let alone the rest of the world) will need some form of PFAS drinking water treatment. MYX seems to offer the best small footprint, cost effective solutions.

[someuwin] 31/1/2022 14:48

Good new PFAS article on Bloomberg

Drought Exposes ‘Canary in This Coal Mine’ of PFAS in Well Water

Jan. 31, 2022, 11:00 AM

* More than half the U.S. facing some level of drought
* PFAS already found in groundwater at 1,385 sites

Drought is exposing new layers of risk posed by PFAS contamination in drinking water nationwide, a public health hazard expected to cost billions of dollars and take years to solve, state and federal officials say...

[concentrate] 27/1/2022 16:29

Agreed, I watched this and it's interesting.

My concern is simply financial. I've been convinced that the potential market is huge and that Mycelx has a leading technology that could get widespread adoption.

But what revenue share do they get when they partner with Oleology? To illustrate with imaginary numbers: if Oleology win a $1m contract for PFAS remediation, with a gross margin of $500k, do Mycelx receive $2k? $25k? $250k, $400k?

The whole of the Oleology website is centred around Mycelx tech. Their clients are huge corporations. They talk about widespread adoption in Australia.

But Mycelx have <$10m in revenue and they are not required to report Oleology as a material customer, leading me to conclude that their revenue from Oleology is currently immaterial to the business. Possibly they each bill end customers separately, but this seems unnecessarily complex. Or Mycelx sell the filters separately, which seems to cut us out of the lucrative parts of the contract.

As Olelogy are now trialling in the US, I'm just hoping the opportunity will work for our benefit also.

Hope that's clear. I will probably ask the question at the next investor presentation.

[someuwin] 27/1/2022 14:59

Cheers farting - that is another good presentation (from September last year).

[someuwin] 27/1/2022 09:41

Yes, they obviously have a close relationship.

The Mycelx PFAS page has a lot of co branding and calls Oleology a partner.

[concentrate] 27/1/2022 09:29

Just looked up that it's definitely independently run (by Paul Callaghan in Australia), but doesn't explain why they seem to have built a decent company with very prestigious clients (Shell, Rio Tinto, BHP, Chevron) using Mycelx technology, yet not even appearing as a named client in the Mycelx financials.

[concentrate] 27/1/2022 09:09

Thank. Good presentation.

Shame he couldn't directly address the question (I think to a BHP representative) about dealing with 100ks litres/s.

Still learning about this share, would like to understand more about the relationship with Oleology. In particular, how are Mycelx compensated:

"OLEOLOGY has a long and close working relationship with MyCelx Research & Engineering Design in the USA, enhancing specialised engineering support to our Australia based engineering design, construction, and service resources.

OLEOLOGY has developed the process IP independent of MyCelx for the market sectors integral to Australia; Mining, Trucking & Logistics, Waste Contractors, Marine Supply Bases and PFAS remediation sites.

OLEOLOGY has designed many containerised Water Treatment Plants, mobile skid and hire systems for clients across Australia. Further abroad OLEOLOGY is also developing mission-critical water treatment systems for major clients in Singapore, Malaysia, New Zealand and USA."

Even so, this company does not even get a mention in the MYX 2020 Financial Statements nor in the 2021 H1 interims.

I really hope it is independent and not owned by a Mycelx fouder, because that would be very underhanded.

[someuwin] 27/1/2022 08:53

Another slide from the above excellent presentation.

The PFAS problem is moving to the mainstream. MYX has been doing small scale installations treating airbases, fire stations etc for industrial water PFAS contaminations. But growing realisation of the global problem affecting domestic water supplies, and muti-hundred million $ class actions are focussing minds, especially in the USA now.

[someuwin] 26/1/2022 22:35

Wow!!

This is a presentation from Oleology to the WQHN conference in Australia from November last year (i.e two months ago)

Oleology is Mycelx's partner for PFAS remediation solutions.

5 mins - Been in discussions with the US EPA for 12 months. They now have trial equipment there (this was the successful trial which was RNS'd 2 days ago) webinar with representatives from across the USA, they asked the footprint needed to treat 110 million gallons of water per day! The US are focussed on treating Drinking water - which is HUGE!

18 mins - Questioner names 5 competitors when asking what makes Oleology solution a game changer. In reply he says that 4 of those 5 competitors have already approached them wanting to use the MYX tech.

Watch the whole video to get a sense of just how big this PFAS remediation could get. Especially for MYX

[someuwin] 25/1/2022 14:28

...Well, they claim to be low cost. (I believe the MYX solution produces dry waste which doesn't require any further costly burial or processing)

"The MYCELX solution is designed to offer a lower life-cycle cost of treatment, primarily due to significantly reduced waste versus alternative technologies."

The fact that the trial commenced December 2021 and positive results are announced less than 2 months later is very impressive. As they did the test with a mobile system it should be easy to replicate the test in other locations to other companies / authorities. Once commercial roll out is underway mass adoption could happen very fast.

[concentrate] 25/1/2022 12:54

Although on a slightly different topic, this article from yesterday relates to the same place where the Mycelx US trial took place

This is a more relevant article from a few weeks ago

There must be so many small towns near airports and military/ air bases with the same problem. The question is whether the Mycelx technology is seen as an affordable, practical and effective solution to roll out.