Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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So my figures are too low, EQT is even more undervalued.
Not meaning to bash PHE intentionally, they are sticking to plastic waste which has a "gate fee" of £80 per ton so they get paid to get the fuel they use, which is high calorific. Then they turn it into electricity and hydrogen. That is a European dream set up, just a shame brexit happened....
PHE could generate revenue quicker in the future if they can take an equity stake in some of their own projects, similar to the EQT model. With the right value added funding, EQT could be worth ??? Billions ???
well run
We have two we run and soon to be profitable companies here, I just personally feel Eqtec is heavily undervalued for its performance and for the sector.
Aandi, I don't think your calcs are correct, the IRR is the discount factor required to bring the net present value of the project to zero, it should not be mixed up with pay back period. You would need to understand the monthly cash flows to work out the return of the project in terms of value. Lunsam provided some good analysis and the Arden report is very helpful.
Also don't forget that 12% is the return to the client, EQT will be able to charge design and O&M fees on top.
I do not believe this should become a competition. Both companies have huge potential and everyone should be invested in both. There is a much wider opportunity for PHE than 35 sites. Once the first site is successful every man and his dog will be in touch including the far east which is the world's dumping ground. Both prices are still really low despite recent price rises. Buy both and what you can afford.
If EQT built 35 25MW sites, over 20 years (25 year life span is talked about in RNS)
After the 8 year pay back time, 12 years at £4.5m each site x 35 sites = £1.89Billion
PHE 35 sites over 20 years, £367Million.
.71 paid
aandi In relation to your 12.47 post your calculations and assumptions are off. PHE has a pipeline of orders inclusive of the 11 Peel sites of 35 sites. One thse are all built that would give PHE an annual income of £17.5m. Assuming that it takes 5 years to build all 35 sites on a 20 year lifespan this would give PHE £350m in license fee income. This does not include any international sales.
Start of another leg up?
Up @.69
Comparing phe and eqt.
PHE make £500k per year per plant. They have two reactor sizes and currently have one plant due to have the build start in September. So they will make £500k.
EQT we know have stated an IRR of 12%. And have the option to have a 25% equity stake in each project. So £150m 25MW (3 or 4 planned, billingham and 2 or 3 in Ireland)
So long term EQT earn 12% of £37.5m = £4.5m.
But it will take 8 years to pay back the initial investment. (IRR 12%) Then 17years at £4.5m profit. So over 25 years eqt earn £76m profit, phe earn £12.5m profit.
And they have 4 units already built, another unit being built, and a further awaiting planning permission. (not including Billingham and Ireland)
And under £30m market cap. Am I missing something?
Hi Stokey, hope you are well. We have discussed this before and I have no issues with PHE as an investment though I am not invested personally, good luck to all and its a broad opportunity. I do feel the relative valuations of EQT and PHE mean that from here in July 2020 I prefer to invest in Eqtec and certainly over the next 12 to 24 months.
Jettydog In relation to your 10.59 post I am invested in both EQT and PHE and my view is that they are both likely to move into profit about the same time. PHE only nees to sell 2 - 3 DMG units to be profitable. The license fee ia payable annually so it is not a question of having to sell 2- 3 a year. Protos is one so they only need to selltwo more to be profitable. I suspect from some statements within the annual report that Peel is moving to apply for panning permission on the next couple so it is quite possible that three will be operational next year.
In addition there are payments for exclusivity agreements if agreements in addition to Peel are concluded this year then PHE might ven break even this year.
0.67 paid
Feels like there is a supply of stock coming to the market, possibly the dregs from our exiting Spanish funds? Maybe.
Anyway if that can be exhausted before the next announcement then we might see some real action here again in the coming days.
Let’s hope any spare stock is gone before the Greek announcement.
Eqtec should be close to profit in 2020 and offering a solid return to investors in 2021. PHE seems a longer term play but enjoying a strong wave of shareholder interest. Unless I have missed something PHE have said nothing about revenues or profit in 2020 or 2021 (lost £2.35 million in 2019) and are heading for a major dillution as part of the Peel deal. Our market cap of £28 million while their valuation of £93m pre dilution does emphasise what good prospect EQT is.
As PHE seems to have come off its recent peak traders may switch here
Did I miss 0.54
I see we have just had a classic 38.2% pullback from the high of 0.88p from the push up from 0.15p
Projection Levels going forward if anyone is interested:
1.06p (61.8%)
1.34p (100%)
1.62p (138.2%)
1.79p (161.8%)
2.07p (200%)
2.52p (261.8%)
Figures are Fibonacci extensions and often provide some resistance and then support. Fingers crossed we just smash through them!