Eqtec Share Chat (EQT)

Also revealed

Maybe I'm being highly optimistic in thinking they have something to celebrate that's yet to be reviled.

Party tomorrow £200 per ticket, whilst we plummet to a new 12 month low,

Will the rest of us be celebrating with the Deeside update?

Always appreciated your detailed posts and research aandi along with others and there have been some good debates on here. At the end of the day though, the delays and missed opportunities to update have proved very costly.

North Fork as an example, last month no meeting - Eqtec should have jumped on it - the previous month so few words in the minutes but highlighted progress at a standstill - again they could have provided their own detail particularly as they’ve ploughed additional funds in. We are leaving things to the eleventh hour to update - are they stalling and trying to agree on the words to soften the next blow? I dread looking.

Today we have details of a jolly tomorrow, released on a day when the share price is plummeting - who is authorising these ill advised comments instead. It does show a distinct lack of professionalism.

"new managent at amati"

Please don't attempt to blame new management at Amati for them abandoning EQT, they clearly state in the fund updates that the drop of EQT SP by 59% after the two largest projects were deferred meant that EQT no longer aligned with the fund investment criteria of being over £100M

The CEO and CFO should have realised that was surely going to be a consequence, whilst macro events have affected the market, a considerable amount of the share price movement have been down to DPs lack of delivery, whilst continuing to grow the companies exposure to rubbish partners like Kibo

The arrogance of the BoD to not update on Deeside until the latest date possible (assuming they lower themselves to get an update out tomorrow, before they go partying)is absolutely shocking.

If you want to understand whats going on, Amati were also very clear with that, the markets are moving away from long term growth companies and looking for impact investments that are reacting to circumstances, at the moment the only reactions we are getting from EQT are poor ones.

@ Northfork the gasification plant is installed we are told, and photos show the steel structure all erected and in place. But is it pressure tested, all ancillary equipment fitted, small pipework connected, instruments, all electrical cables installed and terminated, control room built and all IT systems installed... I suspect not so probably not this year?

The MDC's were existing plants, all that equipment is already installed so only upgrades required, maybe newer control system installed but using existing cabling, all the power export gear is already installed and there, the alternators are there ready to go. The MDC's were a step further on that shovel ready, actually they were retro-fits, upgrades of existing plants hence 12 - 18 month projects instead of the 42 months and counting we are at with Northfork. Of course covid and fires probably set back Northfork by a year so without covid, Northfork would likely be a year behind instead of 2 years behind we are at now.

I was here for the 1000% share price rise and it is my only investment hence my interest. Sometimes think maybe I react and post too often, but at the same time the whole eqtec concept is complex and there are quite often half truths and misunderstanding by posters on here so feel obliged to keep the discussions accurate.

As for being a DP fanboy well this is a growth share and has suffered the same drop as many others over the last year so is it an eqtec issue or a market issue to blame for the drop in share price?

The tone on here sometimes will not help encourage new investors, that's for sure. Missed revenue targets and new managent at amati and the share price has been devistated. 2022 forecast revenue is twice the 2021 original forecast revenue so are we technically in a better position than at this point in 2021? Only difference is Amati sells and world events devastating the markets

David, I hope aandi doesn't mind me jumping in here, but (as far as I know) the only actual date given anywhere for North Fork commissioning was in the minutes from the North Fork Community Development Council monthly meeting on February 28th,

"Biomass plant—update: Wade Wheeler reported that a small crew is working at
this time. The target for becoming operational is August 27th."

Nothing since to either confirm this date or not......

https://docs.google.com/document/d/1kNbYSklKcMlWEcFR2TmwX3yFAqIg-2jGYi8-gJXaBXc/edit

Regarding the two MDC's, nothing more definite than "By the end of 2022, the Company expects to make fully operational two MDCs...."

"...and two additional plants under construction for other owner-operators". These being Northfork and Larissa I believe.

aandi - You must live and breathe EQT based on the number of posts and support for the company. I have a 7m (large for me ) holding at this SP level and like many are very disappointed at the failure to deliver. December RNs used the word "soon" but 6 months later we are still in the dark as to when the NF plant will be up and running. All the while cash is burning but not the waste!
EQT are reluctant to put timescales on projects which may be controlled by others but in making a large commitment in NF surely they are able to exercise a degree of control and project management to get the plant up and running.
What is your best guess of commissioning date here and on the MDCs in Europe?
It is hardly surprising that PIs are losing confidence and selling up given there are more excuses than clarity on project plans and timescales.

Whole project terms were arranged and signed under old management, none of the current eqtec execs were on the BOD back then so its a legacy project under old eqtec terms. They were cash strapped from the start, explains why equipment was supplied to the project...
explains why Gerry sold 25 million at 1.91p !...he knew when to cash in

Oh and that was before the carbon credit RNS so some more revenue to add on, and 2023 biochar prices will be higher surely so revenue might be higher now, but so will wages and opex etc, so could all be relative.

Sorry, my mistake... Northfork annual revenues will be $4m, so eqtec should get $2m. Some old info here for user Lunsam here on LSE few years ago,

"North Fork is already financially closed, EQTEC are due a final payment of c. $700k Q4 2020 before the project is commissioned Q1 2021. EQTEC have a 20% stake in North Fork, and their project will be valued at $20m with annual revenues of $4m (EQTEC stake = $4m, EQTEC revenue $800k p.a.)."

*%51 stake. That's my understanding but not totally sure, there were questions asked by David B at the AGM about controlling stake and the loan but they weren't directly asked so still unclear. Details a little over my head I'm afraid but that's some background info anyway.

Eqtec replaced general electric as gasification technology supplier at Northfork end of 2018 start of 2019.

"GE to supply equipment for North Fork bioenergy project in US - NS Energy" https://www.nsenergybusiness.com/news/newsge-to-supply-equipment-for-north-fork-bioenergy-project-in-us-100915-4667887/

"Air Products Completes Acquisition of GE's Gasification Business and Technology" https://www.prnewswire.com/news-releases/air-products-completes-acquisition-of-ges-gasification-business-and-technology-300896203.html

Northfork hit by Forrest fires and covid delays plus supply chain issues. Eqtec were minority partner (not even 20% partner at that stage) so had little control over supply chain issues and couldn't travel to the site due to covid.

Northfork community have had to sell almost their entire stake in the project is my understanding and eqtec have provided a loan to the project, out of which eqtec are still receiving revenue for their services. Eqtec as of 2H 2021 have had a bigger managerial role at Northfork but as it won't be an MDC, eqtec are not as involved as they are at the other two European plants which will be online sooner.

Eqtecs stake in Northfork now 51%. Revenue from Northfork expected to be in excess of $2m/ year which eqtec will get 61% of once it's online.

Whole project terms were arranged and signed under old management, none of the current eqtec execs were on the BOD back then so its a legacy project under old eqtec terms. They were cash strapped from the start, explains why equipment was supplied to the project (taken from existing non-starter Newry biomass plant which was mothballed before being built) - equipment given in exchange for an equity stake in the project, forget how much, 15% maybe? Not big enough for eqtec to have a deciding say or managerial control.

correct me if I am wrong but mt understanding of this saga which has been trying to get off the ground since 2005 is that
EQT came onto the project a few years ago ...it was EQT's flagship project.....they were singing all the praises and then Northfork said it could not raise the funds subsequently EQT said it would stump up the funds for 100% ownership of the project. So the current situation being EQT needs to pay for the project and manage it and maybe get a payback period of 10 - 15 years....win win for Northfork (transforming the local community and creating 6 local jobs)...lose lose for EQT shareholders.....maybe I missed a few details but Northfork is turning out to be yet another disappointment