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I wonder where the 27.9m eqtec shares will come from. Share buy back? Or an equity raise? If it is a raise, and only for 27.9m, it gives us a little inclination about future equity raises and how the big one will not be done at todays low share price.
There are a few scenarios anyway.. Is it Monday yet?! :)
Section 16.8, metal NRG give us 60million shares and eqtec give metalNRG 27.9million shares. Was due to happen around the 14th May.
Over and above this, metal NRG have earmarked a further £500k for eqtec projects.
Do a search for eqtec on the prospectus, 36 results
Andi......somethings brewing.....Just think what a Wood Group partnership in BioSNG could do for our sp.....Wood could transform roll out of Eqtec technology overnight.....Im not kidding about 50p per share.....Execution=momentum.....lol Reg
*nearing contractual completion
From the 22nd March operational update:
"Recommissioning EQTEC technology. The Company is excited to announce that it is pursuing recovery of two plants built with EQTEC technology where operations were previously suspended by their owner-operators for lack of technical integration capabilities. Not only does this demonstrate the Company's commitment to ensuring its technology sustainably delivers value for communities, but it will see EQTEC lead consortia to acquire, repower, own and operate its technology in target markets such as Italy and Croatia. The two plants are expected to be acquired in 2021, with the first acquisition nearing contract completion."
My only doubt that it's one of the irissh projects is they need to be built from scratch. The metal NRG presentation talks about shovel ready brownfield sites which makes me think it could be one of the existing Croatia or Italy projects which would be ready for funding and could be up and running this year. The 22nd of March RNS talks about a consortium lead by Eqtec and one of the projects bearing contractual completion and they will be low budget which ties in with the metal NRG expected free cash, and also lines up with the statement "ideally leading to first investment in May 2021"
Andi.......sorry its number three on your list.....Biomass to Bioenergy.....Reg
Hopefully metal NRG buy eqtec shares on the open market. If eqtec took shares in metal NRG at their recent placing, there are warrants attached. Taking shares in eqtec on the open market would not included warrants. The deal is for £500k of shares, I'm sure it will be easy to spot on L2 if the shares are bought on the open market.
All deals are papered with NDA’s so we will get news only when everything is signed and sealed. Till then we wait!
Andi.....looking at all your listed project possibilities.....the last one looks the most probable.....Namely.....a UK BioSNG collaboration project .....Allowing Eqtec to enter the BioSNG market.....in patnership with Wood Group and MetalNRG.....Reg
Andi.......looks like the stars are starting align for Eqtec......MetaNRG the finance.....Wood Group BioSNG plant engineering......month of May.....I feel we are in for some rather exciting news soon.....Reg
Hi Reg, it's hard to say which from the following it could be:
1. Biomass-to-Energy. The Company is pursuing multiple deals in Europe, predominantly in Greece, Croatia and other central and southern countries, as well as in the USA. It anticipates the closure in 2021 of five to eight deals with contract values to the Group totalling €20-40 million.
3. Biomass-to-Bioenergy. The Company intends to close the first of several potential deals for biomass-to-bioenergy plant construction in Ireland, with local partner Carbon Sole. Working with them and one or more methanation technology partners, EQTEC will pursue at least one deal in 2021, worth €15 million to the Group, for production of biofuels and potentially other clean, bioenergy, with similar deals to follow in successive years.
4. Recommissioning EQTEC technology. Two plants are expected to be recovered for lack of technical integration capabilities. EQTEC will lead a consortium to acquire, repower, own and operate its technology in target markets in Italy, a 1.0 MWe plant for converting local, agricultural waste to electricity and heat. In Croatia, EQTEC will work with local partner Sense ESCO d.o.o. ("Sense ESCO") to recommission a 1.2 MWe plant transforming local forestry waste wood to provide electricity and heat. The two plants are both expected to be acquired in 2021, with the first acquisition nearing contract completion.
Finally, but importantly for the business, in 2021 we expect to invest in five significant innovation projects with existing R&D partners and with private sector companies with whom we have collaboration agreements. These will accumulate more data utilising our core technology for new types of feedstock, including all variations of RDF, sludge and plastics; as well as a range of joint technologies for applications in biofuel, bio-SNG and 'green' hydrogen.
Andi.....could this be the BioSNG Methanation plant.....worth £15m to Eqtec mentioned in FY statement.....Wood Group.... could partner Eqtec.....to build the BioSNG Mehanation plant......Finance......well with Wood Group involved its hard to say no.....Reg
Financial close on a European project of between £1.5m and £15m expected this month? How much free cash do metalNRG have right now?
MetalNRG Eco with input and support from EQTEC. The waste-to-energy company will focus on “shovel ready” projects with a typical CAPEX of between £1.5m to £15m that can be financed via equity and debt.
Investment criteria remains the same…..projects that offer short term revenues and economic upside for the longer term.
EQTEC to participate with £500,000 in current fund raise via a share swap with MNRG.
EQTEC to appoint NED to the Board of MetalNRG post fund raise.
Areas of investment focus in Europe & U.K:
Biomass-woodchip and Refuse Derived Fuel
Benefits of improved technology mean that Brownfield sites can offer efficiency and a route to rapid revenue generation and superior financial returns.
From metal NRG presentation, eqtec mentioned from page 30-34
"Pipeline of projects being developed,
ideally leading to first investment in
Stop press.......May 11th MetalNRS RNS.....Eqtec were issued 500,000k shares in AIM listed investment vehicle MetalNRG .....bringing total number of issued shares in target to 1m.....This might explain dip in Eqtec sp last week.....Monday might be the first trading day for new shares.....Reg
Phil.....timing = momentum......Wood Group.....what would they want with Eqtec?.....Bio SNG (synthetic natural gas) production technology is the simple answer.....Wood Group licence the Vesta Methanation plant process.....using Clarient agents.....to produce Bio SNG.....FY statement mentions this..... DP expects to work with one or more Methanation partners.....pursuing at least one deal in 2021 worth £15 million to Eqtec.....Wood Group will be the partner.....Dont say Reg didnt tell you so
Too old for this discussion. but ..as an aside I have yet to see a CEO who does not expect their share price to be XX . Reality is the difference between expectation and feet on the ground. As for incentive plan, it is what it says >>to provide an incentive to management to perform.
The 2.2 strike price was at 5% premium to the share price at date of grant so not exactly e resounding endorsement nor earth shattering. Since your view is that this was set based on expectations, on that logic I would have expected it to be set at 8p if he expected the share price to be 10p in 2021. I am sure DP did not expect the share price to be 1.65 today, but it is.
Regards hiring, nothing to do with expectation but necessary structure that needs to be put in place as a result of the strategic direction that DP has outlined for the business. He needs people to qualify leads in the regions since he decided to with using local partners to generate leads.
Anyway not worth getting all fussed about, you are well within your rights to expect the share price to be 50p by year end.
Each of us have our reason and logic for investing. There are plenty of potential news but what can not be predicted is timing.
.....if DP expected sp performance to be 1.6p.....2021 share incentive scheme would be say 1p.....not 2.2p.....company would also be conserving cash.....not spending £4m.....Reg
Phil.....2.2p 2021 company share incentive scheme.....£4m investment in new talent.....looks to me.....DP expects growth in both revenue and sp this year.....If this were not the case......neither would be happening.....What could happen on 27th.....Wood Group review announcement......Strategic partnership.....I believe DP will have something to say....Reg
I think some people are getting carried away with their optimism which may lead to them being impatient.
With regards to DP waiting for 27th to announce something or pulling an announcement out of the bag when he wants, I am really not sure that is how it works. He may make some immaterial announcement whenever he wants , but listing rules demands that any material announcement has to be made as soon as practical once it becomes available.
Else it may lead to insider trading where those "in the know" will buy or sell shares prior to the announcement. And the company will be pulled up if there is evidence of unusual heavy share trading prior to an announcement. Not a good look if you are looking for any company looking to gain the trust of institutional investors.
EQT will do well but as a long term play. For those looking for double digit price by year end, prepare for to de disappointed , unless DP pulls a rabbit out of the bag. Based on current forecast, If everything goes to plan we will be EBITDA positive by year end, not profitable if you consider ITDA.
At 10p share price , assuming no new shares were issued this year, we will have a Market cap of over £780Million.
In which case our stay in the MSCI index will be a very short one because at that Market value we have well outgrown the index and will probably need to go into the mid Cap index. [ With that assumed growth trajectory, we will probably be in FTSE100 in 3 years!!.]
If people remain realistic they can sit back and enjoy the growth of their investment without much disappointment. DP is very keen for this company to succeed but he can only announce news when he has it. He depends on authorities giving planning permission, banks approving development funding, co-investors reviewing the plans and deciding that it is worth their while to invest. In other words 85% of the activities are not within DP control. He can only chase them up without being too pushy and loosing the potential partner.
For example if you read the 26th April minutes of North Fork Community Development Council meeting, you will find that the council is still trying to find $3-4 Mill for the project. DP may have assumed that this project would be complete this year but if the council can't get the money to complete the construction then there is nothing he can do.
Vil.....yes news is much overdue.....We need a Fox Fanfare announcement on 27th.....to say Eqtec have arrived.....Reg
Brilliant Reg !
We have had very little news this year that might have had an immediate meaningful impact on our valuation , with the possible exception of that CC . That doesn`t mean that developments have not been moving on at a pace behind the scenes .
Reporting unconfirmed potential contracts or possible financial developments would only have a negative effect .
As mentioned earlier I think the extended listing on the 27th is likely to be accompanied by some positive news , possibly some serious new investment and perhaps even a full operational update . Not to do so might put the benefits of this appeal to a new wider market at risk , I`m fairly confident that DP will want to announce the listing with maximum interest and appeal , a damp squib would be a wasted opportunity .
I would still be a little disappointed should we not make double digits by the year end , however I`m not sure that you will see your 50p this year , but give it a little longer ~~~~
FY report states.....Eqtec expects contract closures in 2021 to number 6-11......value to Eqtec.....around £50-70m......These figures include Billingham.....FY also states.....75 business tender opportunities were identified by company during 2020.....valued at £559m.....of which Eqtec have sent commercial offers worth £339m.....Eqtec are spending £4m in 2021...recruiting key people ....to close deals and work on future increased order book....IMHO extremely positive......not a sign company is going to run out of cash any time soon ......Conclusion.....the only thing investors should worry about here is execution.....First deal close .....and rerate will follow......Other positives are.....this month winder indices coverage.....joint brokers.....2.2p 2021 company share incentive scheme......My perception tells me....looking at all the above information ....Eqtec will win through.....Reg
Hi Bandicoot. Good post, but without any substance or facts. If you have the time , please let me know the long list of achievements of DP over the past year, including, obviously the goods he's delivered. If you wish, I could also supply a list on WIP, not delivered. I am having a similar problem over at PHE where, a week or so ago, I posted back of cig packet calculation, based on number of unit sales of DMG by 2030, which gave a sp of £8+. One would think, with all that potential, the FOAK at PHE would have been a priority it would have thrown the kitchen sink at, As it is, in the UK, it has given the kitchen sink to another party (Peel), and left it in their hands. Apolos for mentioning different company, but similar disruptive technologies, and cf Peel to Wood Group.
Many posters say that they have found the 'best' share on AIM. aandi posed this question to me a few days ago, and I posted a list of 4 or 5 companies doing a lot better than EQT, some with better prospects, and I have a few more. I have PHEand EQT because they can solve a World problem, that's a BIG ask. I just wish they would have the urgency that the problem demands.