Parkmead Share Discussion Threads

[fardels bear] 05/9/2019 16:57

PMG has 15% equity in Platypus.

[fardels bear] 05/9/2019 16:55

Still looking for a lower entry point, alley?

[anley] 05/9/2019 16:25

You guys are not watching what the market is saying...............NO.........

If it was such a resaonable deal then the share price should be up BUT its down and going down.............

[cyan] 05/9/2019 15:52

"I think they have a bit more in mind than that."

Fair comment. That's IF they can get planning permission for more turbines at £1.4 million cost each.

Significant capital outlay with, in my opinion, underwhelming earning potential.

If only they were supplying to something like a nearby Aluminium smelter THEN earnings look like they would be much higher .

[paleje] 05/9/2019 15:47

I think they have a bit more in mind than that. It wouldn't even service the loan they've taken over so we have to wait and see what's planned.

The only point I was making was that the land in itself has a value around or higher than the price paid. So odious though it may be that his wife has been bailed out via the deal and there is some dilution plus a loan to cover, it is not the end of the world and may even surprise when they ultimately reveal how they intend to make it pay. And if, as some expect, one of several potential o&g deals gets announced, or FY numbers excel, or better still both, in the coming months this episode will be forgotten. Imo.

[cyan] 05/9/2019 15:42

How long does a wind turbine last?



"How long does a wind turbine last? The design life of a good quality modern wind turbine is 20 years. Depending on how windy and turbulent the site is, the turbine could last for 25 years or even longer, though as with anything mechanical, the maintenance costs will increase as it gets older."

So the turbines need replacement in , maybe, 20 years and it takes 13 years to recoup capital costs;

These more remote turbines supplying to the grid do not look like great earners to me.

If there was an immediate local user the numbers would be better.

[cyan] 05/9/2019 15:24

The value of this project;



"For wind turbine sites with an annual average wind speed ranging from 5 to 8.5 m/s, and 100% of electricity exported to the grid, the resulting wind energy income is shown below."

There is a Table with various scenarios;

With top end wind speed of 8.5m/s and a 900 Kw turbine (permission is for 800KW); £148K each equals £296 K for the pair

Running costs £41K each total £82k



Free cash £214K pa

All for capital outlay of atleast £2.8 million

[paleje] 05/9/2019 15:17

According to Knight Frank the average per acre price for Scottish farmland is £4.3k and we got 2,320 acres with a bit of income thrown in and some planning permissions. It's not exactly a stitch-up although it will be interesting to see how it will add to group profits. I'm sure more will unfold in due course and imo the share price will recover.

[typo56] 05/9/2019 15:11

I may be missing something but I thought it was clear that the total deal is £8.5m. Shares to Linda and Kevan plus taking on the £3.6 debt.

[cyan] 05/9/2019 15:09

Answering my own question;

The cost of each 800Kw turbine is £1.4 million

[typo56] 05/9/2019 15:06

If Kevan sold shares, would there have to be an RNS? I don't think so.

Linda's ought to be. Sometimes these things get 'gifted' and go off radar.

[mallorca 9] 05/9/2019 15:01

Anyone know what % of Platypus is PMG owned ?

Got to go out with Mrs Mallorca for a walk / tea so would appreciate if someone else could research.

[mallorca 9] 05/9/2019 15:00

Going back to Platypus, I hadn't realised until I re read things today, that 1st year production is likely to be the equivalent of 10,000 bopd. Their current net gas production from Holland is circa 800 bopd !!!

That is going to be massive for PMG .

[mallorca 9] 05/9/2019 14:57

anley,

I don't think that it's a dreadful deal. Certainly I don't like the dilution.

The land / equipment has an asset value of £8m and currently brings annual revenue of circa £500k.
Then there may be development potential with planning.

I think that many renewables companies would have liked to have got this onshore asset.

Of course we don't like the inter co / wife bit and the dilution however ,
this is now a PMG asset and hopefully Tom is genuine in wanting to develop a renewables arm -- he has been talking about it for a long time.

Also .. his wife and Kevan Smith haven't received a £ in cash - their consideration was fully met via Parkmead shares.

[cyan] 05/9/2019 14:56

Quite a cost for a loss making estate with planning permission for just two turbines that will at best throw off a few hundred thousand in income when operating.

How much capital required to erect them? Couple of million? Anyone hazard a guess?

But; PMG will point out; look at the potential...

All just a coincidence that TC's wife is involved; I am sure they would anyway have identified this as a must have buy that will; "maximise long-term value for our shareholders."As per last the last lines of the 29th March 2019 RNS

[mallorca 9] 05/9/2019 14:50

Mmm , I'm not sure -- it wasn't as clear as it could have been.

The full years results - out Nov only go up to end June, however there should be a note there if the loan is still outstanding.

[typo56] 05/9/2019 14:40

By "Parkmead will also assume GBP3.6 million of Bank of Scotland debt currently held by Pitreadie" I read that to mean they'll continue to run the loan, not repay it. I may be wrong. If so, that will have reduced cash.

[typo56] 05/9/2019 14:39

I'm pretty certain they've taken on the £3.6m debt with BoS in addition to issuing 9,645,669 new shares and handing them to Linda Cross and Kevan Smith.

Linda will get the majority of the shares in consideration of the £4.3m she'd lent to Pitreadie Farm Ltd plus 75% of the shares in consideration of the £600k for the equity. Kevan will get the remaining 25% of the £600k worth of shares.

It's simple maths. 9,645,669 * 50.5p is only enough to pay Linda and Kevan, not the full £8.5m acquisition cost.

[mallorca 9] 05/9/2019 14:09

Typo - is that debt still on the books - or was it cleared with equity -- it was a little unclear to me.

[mallorca 9] 05/9/2019 14:08

The above anticipated gas production from Platypus is equivalent to circa 10,000 bopd.

[mallorca 9] 05/9/2019 14:05

Again from the Interims 29 March - looking forward to an update on this in November


'Platypus gas field joint venture partnership is optimising export route ahead of an offtake agreement, with various export options available
-- First gas at Platypus targeted for 2021 at rates in excess of 50 MMscfd per day, with further potential upside from the Possum prospect'

[typo56] 05/9/2019 14:00

Thanks a good point mallorca 9. Perhaps 'Bank of Parkmead' should further boost revenue be lending money unsecured to a few other shareholders at 2.5% pa.

On the downside, won't they be paying interest on the £3.6m debt they've just taken on?

[mallorca 9] 05/9/2019 13:47

Gosh - blue on my monitor !

60p ?

[mallorca 9] 05/9/2019 13:37

Also from the Interims dated 29 March 19 …...


'GBP2,900,000 has been lent to Energy Management Associates Limited by The Parkmead Group Plc as at 31 December 2018. Interest charged during the period amounted to GBP37,000. (Six months to 31 December 2017: GBP11,000, Twelve months to 30 June 2018: GBP41,000). Outstanding interest due at 31 December 2018 was GBP67,000.

So …. very nice revenue from that loan - better than simply leaving the money lying in the bank.