Velocys Share Discussion Threads

[fluky] 22/9/2016 14:42

I agree. A fresh approach with start-up veterans rather that oil industry ones is needed.
Two observations regarding the construction completed press release: no estimate on the timing of start-up and no mentioning of the JV partners in the Notes. I still wonder why the billion dollar companies did not provide a loan to ENVIA.

[visionon] 22/9/2016 14:19

gac141. Noted. In which case perhaps the "disgruntled MR.Jungels" should also step down. If he doesn't understand why shareholders might be upset at excessive board remuneration at a time when VLS's share price is languishing at c.30p then I would suggest that he is not on the ball. Furthermore if he was on the ball presumably he would have ensured that his board didn't exceed their pay authority in the first place.

Is an oil industry 'veteran' the right person to chair a clean fuels company ? the oil industry still seems to be in denial about climate change and the phasing out of fossil fuels. Perhaps we need some fresh eyes in the chair.

Comments welcome.

[gac141] 22/9/2016 13:53

David Pummell speaks about the ENVIA Plant.

[gac141] 21/9/2016 11:40

Yes I saw that and yes the board were very top heavy. I queried it at the AGM and a rather disgruntled MR.Jungels said it was outvoted. Thank goodness for that!

The outgoing Director certainly was a great asset and it is pleasing to see he will remain available to Velocys.

[visionon] 21/9/2016 11:19

I'm surprised no-one here has commented on the director resignation and the way VLS have worded the RNS. Let's not forget that the board exceeded its pay limit and at least one large shareholder made their feelings known in the proxy voting at the AGM. Something had to give, irrelevant of what stage ENVIA is at. Smaller board seems appropriate. Who knows, at this rate shareholders might outnumber board members at the 2017 AGM - now that would be a thing !

[sheep_herder] 21/9/2016 10:34

NO! Totes serious. Look at her fly...

[sheep_herder] 21/9/2016 09:11

Lots of good news this morning. Just look at the share price fly....

[musarddjm] 21/9/2016 08:43

Southwest and FedEx Corp. will use biofuel produced by Red Rock Biofuels LLC from forest waste. The Fort Collins, Colorado-based company expects to begin construction of its first refinery this year and to ship jet fuel starting in 2018, said Southwest, which will buy 3 million gallons a year.

[riddlerone] 21/9/2016 07:20

ADVFN's news feed up the creek doesn't show this

[gac141] 21/9/2016 06:55

Yes I am an optimist and yes I have got it wrong with Velocys over the years but not because Velocys got it wrong. Millions of investors got it wrong when Oil prices fell off the cliff. They will rebound. Look at the 50 gears cycle....

I have been doing a lot of digging about over the last 3 months together with some help of other contributors on this board, and with the interims out next week, I am very excited to see the commentary from our directors.... This quarter could be a game changer and set Velocys on a path of significant growth.

Let us see next week....

[laptop15] 20/9/2016 22:16

No worries Fluky. Looking forward to the results.... could be interesting reading.

[visionon] 20/9/2016 18:01

gac141 optimistic ? never !! ;)

keep the newslinks coming folks - much appreciated. interims not long off now so hopefully the sound of a plant cranking up to accompany them.

[fluky] 20/9/2016 17:17

My apologies, laptop15.
I reacted on visionon's post.

[laptop15] 20/9/2016 16:56

Flukey, it wasn't me that mentioned you last comments. Just so you get the right person check the posting history.

[fluky] 20/9/2016 15:01

laptop15: I didn't forget the recurring biannual catalyst charge revenue. I ignored it because it is not relevant at this time, since it only starts about 4 years after FID.
I like your remark about the bickering couple...Allow me my view: gac141 is an optimistic optimist and I am a sceptical optimist...

[woolybanana] 20/9/2016 11:11

Well, at least we are getting somewhere, it is not just a Lego kit.

But, I notice that the emphasis is now on getting product from waste sites; whatever happened to the small scale conversion to product from natural gas? I accept that the conversion from waste might be a better short or medium term bet but surely, if they are really gonna grow, they have to take on the flare off gas and small fields as originally planned?
And what happened to the order of plant for Russia, was it cancelled?

[visionon] 20/9/2016 08:36

gac141 thanks for the alert. The view from hill is undated but the night ones are seemingly from July and August (see URL title). In all three it looks like a plant still being finished, although that may just be external groundworks i.e. it might be being commissioned at same time. not uncommon in building projects.

laptop15 it is Abramovich and his stake is now 29.5% - see 24 Aug RNS. but yes hopefully you are right !

fluky - don't forget that there are also recurring catalyst revenues every 2yrs (if I recall correctly). I think your catalyst figure might just be the initial charge. not income immediately but contracted future income. and the contract would be at least 15yrs I would imagine. gac141 will probably know. i.e. there should be a useful long-term cash-flow.

p.s. gac141 and fluky. I wonder if you are in fact an elderly bickering middle-class couple posing as strangers…on two boards. ;)

[meijiman] 19/9/2016 20:54

I like the one of the senior management.
They have just been told the number of people who have taken up the last fundraising-its hilarious............

[laptop15] 19/9/2016 19:11

Pics look good for the factory, thanks for posting the link Gac. Hopefully your patience will soon be rewarded :))Surely ibramovich wouldn't be raising his stake to 24 percent in july if he didn't think it would be worth it in the end!!

[gac141] 19/9/2016 15:48

New images of East Oak on Velocys Website

[gac141] 19/9/2016 14:47

The cash outflow will be significantly less than that ... Susan Robertson said so at the AGM... check the accounts for half and full year last year and these have been massively reduced this half. We'll see at the Interims..

[fluky] 19/9/2016 14:28

Significant?
Here is my back of the envelope calculation of the Velocys' revenues for the 1,100 bpd Red Rock Biofuels plant, based on the info given in Lipski's presentation at the Oil Barrel Conference on June 13, 2013:
License: $3.3M; Reactor: $5.5M; Catalyst: $3.74M; or a total of $12.54 + engineering fees. Estimated net profit $6M. This profit will be spread out over the 2 years of the construction. It will help but it will hardly make a dent in the estimated losses of $20M this year.

[gac141] 19/9/2016 13:24

If the get the Red Rock deal that is worth a significant amount of revenue.. check out the previous communiques.

See this

"News UPDATE: Velocys Expects USD45 Million In Red Rock Revenue; Wins Patent Case LONDON (Alliance News) - Velocys PLC Monday said its Red Rock Biofuels customer has won a USD70 ...
Alliance News22 September, 2014 | 10:20AM Email Form
LONDON (Alliance News) - Velocys PLC Monday said its Red Rock Biofuels customer has won a USD70 million grant to build a biomass-to-liquids plant which will incorporate Velocys Fischer-Tropsch technology, resulting in an initial USD15 million for Velocys and expectations for more revenue to come.
The company, which makes technology for smaller-scale gas-to-liquids projects, said Red Rock, a Colorado-based subsidiary of IR1 Group LLC, will build the new plant in Oregon. The plant will convert around 170,000 tonnes per year of forestry and sawmill waste into 1,100 barrels per day of ultra clean transportation fuels, Velocys said.
The plant is backed by a USD70 million grant under phase two of the US Defense Production Act Title III Drop-In Biofuels project.
Velocys said the successful execution of the project would result in revenue of USD15 million to Velocys during construction of the plant, with an additional USD30 million in expected revenue over the life of the facility.

[beeezzz] 19/9/2016 12:56

Still burning cash....so don't see any action in share price other than downwards....

Major problem I see when moving from fossil fuels to greener alternatives, the big fossil fuel suppliers just keep lowing their prices, which puts a brake on more expensive greener projects without tax funded grants, its a conundrum..for sure.