React Energy Share Discussion Threads

[rodrod1] 11/4/2016 09:51

Thanks Trout. Very helpful to have the wider view before the RNS lands later on.

[troutisout] 11/4/2016 09:38

Well having initially got caught in the spiral downwards you either cut your losses or dig deep and do the research, I have done the latter with REAC as I believe there is a lot of potential here.

Today's planning is very important on many levels and although it is not a given the Derbyshire County Council officer's recommendation to grant approval is very important. The local Parish Council and the North East Derbyshire District Council are both against the scheme, but the DCC Officer has reached the verdict that it can be approved on planning criteria. It would be very difficult and costly to uphold a refusal at Appeal with this report made by the Governing Authority. So on balance I believe we will see Approval from today's meeting. I also believe the Company think the same as when they saw lots of opposition at their Plymouth Biomass site, they withdrew the application just before the hearing.

The planning being granted would be a huge bonus in it's own right, but it would also give their partner Ebioss another gaisification plant order and increase the critical mass for investment. Ebioss are lending REAC some money at the moment to push forward their Biomass portfolio, but previously were going to invest €6m in the Enfield Biomass project and they have made no secret that they would like to enter the UK market and also have a listing on the UK's AIM market (they are currently listed in Madrid). I could see a takeover from Ebioss who would be able to use all of the tax losses and gain an AIM listing to boot.

We are also waiting on financial close for Newry, this will be about €8m and with this planning we could see some larger finance come in to play, as they may want to be in Clay Cross as well (much bigger project, therefore potentially more profitable).
There are also 8 wind turbines all with planning permission and some are ready with offtakes, etc and just need financing to build. these do have a good IRR and there is interest in investing in these . I am invested in another irish Company REDT Energy and they manufacture energy storage batteries, if each wind turbine had one of these linked to it the profits would balloon. So I think there is a lot to play for in just those permitted turbines ( a total of €1.17m net operating profit per annum with all up and running).

Anyway enough said, Zac Mir has this morning mentioned REAC and suggests a target of 16p for the SP, he did say this previously but this time we do have the planning decision to back up the TA. (6th stock in so towards the end)

youtu.be/es8emZqrFSY



DYOR,

Trout.

[rodrod1] 11/4/2016 09:12

well said indeed trout. I have been advised that you are The REAC information man to follow

[troutisout] 11/4/2016 08:14

For every trader that is going to buy and then sell at a loss 8 minutes later, could you please just send me the £200 and not pay the commission for two trades, it is only my opinion but I feel I am a much better and deserving recipient of your money than the MMs here.
Alternatively you might want to hold onto the shares, there are many things being developed at REAC and this planning is just one of them, others would be just, if not more, transformational to the current situation.

DYOR,

Trout.

[troutisout] 11/4/2016 08:13

Hope not, as it is at 11am.....;o})

[rodrod1] 11/4/2016 08:12

I think news is spreading that the planning meeting is this morning @ 10am

[gpback] 09/4/2016 09:32

REACT Energy shares doubled to 6.15p on the news that the Clay Cross project

[mally6] 08/4/2016 07:40

News on monday be a good time to buy today.there has been big undrcover purchases over last few weeks.ill try to by on a dip if poss

[troutisout] 07/4/2016 16:07

Timbo,

Nothing compared to what planning for Clay Cross will do for the future, if we get permission on Monday. We can look forward to financial close for Newry as well. With Clay Cross as another project. I think we will start to see some larger interests in the financing.

[timbo] 07/4/2016 15:45

That announcement should have had a health warning for long term holders! I've just seen it for the first time today. Wow!

[troutisout] 07/4/2016 15:21

bozzy_s

No insider dealing, I posted yesterday about the Officer's Report as it was on the Derbyshire District Council's website I also provided a link.

Unfortunately for me I never bought any yesterday and have been out all day up to now, so see I could have made a fortune. No ramping, no hype, no buying, just sharing my research and spending hours reading planning docs.....

The reason the Company had to issue an RNS was the price rise and share interest, if they were a little more open with shareholders in the first place, they wouldn't have had to issue one today.

[mac_steven] 07/4/2016 15:15

bozzy-It's not successful yet.It's been recommended for approval at the meeting on 11/4/16.

[bozzy_s] 07/4/2016 15:11

Not much insider dealing going on here then!!!

2 million shares traded, share price up 105%, then company announces successful planning application. Wonder who the insiders were?


I see I voted REAC a buy on 27-7-15 but can't remember why.

[timbo] 07/4/2016 01:06

Thanks again - much appreciated! I shall get to the end of the planning doc eventually!

[troutisout] 06/4/2016 23:44

Timbo,

It has been a long saga, the way I read it and there have been hundreds of documents, the CHP side is the clincher to getting the planning permission. This was only really brought to the fore at the end of last year, with a flurry of documents and examples. CHP wasn't really mentioned much in early documents and then prior to the final submissions it was all about CHP

It provided and negated several arguments, the proximity of this facility to housing and the new housing development proposed was used as an argument against permission. Also the economic value this facility has to enhance the local area.

The examples shown in submissions show a district heating source like the CHP needs to be sited next to the end customers (local properties), it also really helps the economic benefits to the local area.

The moans about it not being immediately CHP working are sour grapes really by those anti the planning. Yes planning policy states that where CHP is to be permitted it would be best if it were utilised immediately and not just CHP ready, as this facility will be. They have agreed though that it is hard to enact CHP until a customer base is agreed and as one of the options is the development site that has not been given full permission yet (just outline permission), it is difficult for Clay Cross Energy to do any more than be CHP ready for when a deal can be agreed.

SLR the advisors who submitted the applications have stated to the council that they needed to be given a hearing soon because of the uncertainty about future incentives for CHP and district heating (I saw it that they were trying to force the council to finally have a hearing, after well over a year of toing and froing and asking for more info).

I think if a CHP customer was found the Company would be on it like a shot, however as I say, the argument has been used by those that don't want the facility, that they don't want it, but if it happens why isn't it CHP working when built, not just CHP ready.

Reading the Officer's recommendations I think being only 'CHP ready' isn't a reason to refuse and is in fact is still a reason to grant permission.

[timbo] 06/4/2016 21:10

Do you know if they still have the intention to provide thermal energy as a secondary output. The comments in the planning document seemed to suggest a disappointment that this wasn't the case...

[troutisout] 06/4/2016 19:59

A year old but gives an idea of what is proposed,

[timbo] 06/4/2016 17:11

Good work Trout! I'll have a look at this. Thanks again for your diligent search.

[troutisout] 06/4/2016 16:02

Timbo,

Just spent over an hour reading the 112 pages of the DCC Officers report and now see it looks like some traders may have also seen the recommendation to grant permission. Still not a given but looking good.



Trout.

[troutisout] 31/3/2016 12:15

Timbo,

Just had a look at the council website and the planning meeting for Clay Cross is set for 11th April 2016, so less than a fortnight away...finally got there, they were hoping for January and then hasn't made the last 3 meetings.

If permission granted this would be Company changing as Clay Cross 12 MW is three times the size of Newry with CHP capability for district heating as well.

Trout.

[troutisout] 31/3/2016 10:29

Timbo,

Remember Ebioss were going to invest 6m in Enfield, they have the cash to acquire (would assume it would need to be at around 11p to satisfy all equity for debt holders, so just £8.25m) and it seems to be a long term goal for an AIM listing in UK.

[troutisout] 31/3/2016 10:20

From that, we have potential from wind turbines of €130k x 9 net operating profit when all up and operating and €2m net operating profit from Newry with 4MW (they intend to double this to 8MW in stage 2).

So €3.17m in net operating profit per annum, from just these projects. With all approved for planning and with many having offtake agreements and subsidy agreements in place, it is just down to the financing side. These have historic subsidy agreements that new sites will not be able to get.

DYOR....

[timbo] 31/3/2016 10:14

Thanks Trout. That was my thinking too about the accumulated losses and listing (and trimmed overheads making it leaner) making it an acquisition target - I hadn't thought of EBIOSS.

[troutisout] 31/3/2016 10:12

I am not going to jam up with large posts again, but if you would like more information on the projects, take a look at the post in the link below,

[troutisout] 31/3/2016 10:05

Trying to work out what we have at the moment,

Wind turbines - from the above calcs we are looking at,

Pluckanes 0.8MW x €1.7m = €1.36m
Moneygorm and Altilow 1MW x €0.7m = €0.7m
other 6 sites with planning 3MW x €0.4m = €1.2m.

A conservative total valuation of €3.26m as they stand. of course further development would increase this sharply (especially those just at the 'with planning' stage).

GG Eco has 3 biomass units up and running and has a 30% stake in the SPV with Equitix. Equitix also has a loan facility which would be enough to complete another 5 units. Development of these held up by Government changes to the RHI (renewable heat incentive) system.

Newry, we have to believe that this will be repowered and that the finance will be in place to purchase the gasifier from Ebioss/ EQtec. If so with payment needed to be made by 30th of June, I am hoping we will see it much earlier than that.

Clay Cross, interesting one, lots of dissent (like Plymouth)but a new proposal to use CHP for a district heating system for the surrounding area, adds to the green credentials and may just tip the balance in favour of approval. I say interesting because things are coming to a head with that.

Other sites - we haven't heard about any of them and so will write them off for the moment. Although Enfield did seem to have a small possibility of getting back some of the near £3m invested in the project, by way of a free carry.

Aim listing and tax losses - the listing alone, together with the tax losses could see the Company as a tasty acquisition and I can't help thinking Ebioss might be the entity that could benefit most by acquiring REAC. They have stated in their literature that they would look to seek an AIM listing in the UK (currently on Madrid exchange). Their business would be able to use all the tax losses as well.

Costs - admin costs have been reduced dramtically and I can only think the headcount is now very low, hopefully Director's remuneration has been reduced as they led us into the problems we had.
Financing costs are high, but to be expected given the Company's position when arranged. There are a lot of warrants out there priced at 10p and £5.7m of debt was turned into equity at 11p, so there must be a huge incentive by stakeholders to get the price higher than this.

It just needs some concrete progress and the share price will react (pun intended) accordingly.

DYOR!


Trout.