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Yeah, I read the JV note a while back, and wondered the same. One thing discounting that conclusion to me, was the wording. If I recall, they would be using Avista’s process, no mention of the previous IP related to Hydrodec. Maybe it could be a bolt-on after, or who knows, maybe even something around transformer oil. They have a large space, which is being rebuilt. I’m not completely discounting anything, the strategy maybe lower key, so there’s no sense in raising expectations. Another point, being their focus on the US. They’ve been burnt from pushing out, before consolidating a position in their main growth market. With that said, they’re good candidates for possible future collaboration, sooner or longer term, and with the three companies, they would have some serious combined expertise.
Lucky man.... ok thanks David. I know they have trouble with their servers/service provider, that’s why I thought it was the same this time. At least on my end, opening this site, is consistently the slowest one I visit. The previous two days, waiting 10 seconds and nothing appearing, exceeded even my patience.
Been working fine for me, and I am up in the mountains of cyprus at the moment,
Was the site down (two days) for anyone else?
No treats back down again
"The business review is on track and subject to Board approval is expected to be announced by the end of September. We are excited about what lies ahead for the Company and its shareholders."
I am keen to find out what the news is, especially now that AB has given them extra cash to tied them over until December 2019. There's only 12 trading days left in September too!
Very happy with yesterday's RNS. Significant changes in fundamentals. Run rates increasing along with profit margins. Grossly undervalued. Finally looks like the tide is turning for them!!
Intrigued to find out more about aforementioned strategic plans due by September end
Buyer are coming back - perhaps positioning themselves for the next update...has hold the 1p area nicely....
Cheers nastid and hi.
You can slowly see a build up of carbon free products getting encouraged across the world especially here in the UK. But as everything, it all takes time.
Feel like there must be some news due here soon.
The different schemes/projects, and offset sources, probably means the little I know, is dangerous rather than useful. As to US pricing under the scheme HYR is accredited to, (American Carbon Registry) I believe an average of under $5. The legacy offsets were lower, something like $3 but hopefully the newer ones get better pricing. It really needs to be nearer $10 and beyond, to help the current position.
Hi lego, Sorry for slow reply. It’s nothing exciting. I was just referring to the carbon market in the EU. I recall writing a post a long while back, that due to transitioning regulation, and reduction in free permit supply (if I recall), prices would eventually rise. Currently on a rip, with prices at €22. Although the permitting may not be comparable to the US register, I was saying it’s a shame HYR aren’t part of this scheme. It’s a little difficult to get prices for the US carbon market but it’s not as lucrative. I expect the China market will outperform the US one as well. I haven’t looked in great depth, being outside HYR operations, so a similar mechanism to get permits to market might not exist but a carbon price of €22, if Hydrodec could get into the scheme, then wouldn’t that create an investment case. The extended European patents, also help nicely.
Nastid, can you explain a little more on your post please.
Although I’ve known carbon permit pricing has been on the rise, I haven’t tracked it recently. A telegraph article reminded me of the change. EU permits are now over €20, if only Hydrodec where registered to create the offsets in this region. It would certainly create an investment proposition, in one of the areas they have extended patents.
Sadly a sea of red in trades though many of them are very small amounts.
The latest RNS is good news but does not help the financials if feedstock is still hard to come by.
The longer HYR goes without increasing feedstock supplies either via a loop contract or conventional methods the more likely the company will fail.
What would be good would be if a bigger company took over HYR that could put more resources into it. The products are way too good to be lost or flogged off for peanuts.
"Re-refining technology patent extended to Europe"
https://www.investegate.co.uk/hydrodec-group-plc--hyr-/rns/re-refining-technology-patent-extended-to-europe/201808220700044921Y/
Well you have answered your own question. The ii’s will become involved again if HYR successfully get enough feed stock to make the business profitable. Whether that is via a closed loop contract or another way. Now there has been no figures released as to whether there would be enough from one contract or whether it would take many. HYR needs this to happen quickly though as finances for HYR are pretty dire atm. So we just have to play the waiting game.
42T, lets see how they pivot around the critical issue of feed stock.
Also if they can execute the 'Closed Loop' business model successfully, that would trigger the potential reason for the institutional investors (especially the green energy/environment focused investor groups) to jump in on HYR.
I see HYR on a critical moment, pivoting successfully towards the closed loop business model by partnering with large scale utilities companies could be the key which may finally unlock the value here....lets see.
Indeed, good post.
Silly is certainly wrong. Frustrating would be more accurate. HYR hinges on getting feed stock or it will eventually go into receivership or be bought out. Frustrating for share owners and frustrating to read people making out that the share is just off the radar. It isn’t. It is just not wanted by ii’s as they deem it too much of a risk. If feedstock issue is resolved, then it will change. Until then, the most probable outcome could very well be A drew Black picking up another company cheaply.
I’m wouldn’t attribute the question necessarily as being silly, given that throughout HYR’s life, any number of institutes have invested without profit being close. I do agree the substance of the answer in the current context. In order to get further interest from instituationals, they have to show feedstock increases, and later ways to expand into the market. The transformer oil market is a growth market. The climate debate isn’t going away, and Hydrodec is well placed to take advantage but ‘only’ if they get more feedstock. I’d be happy to see central costs covered but with their improved margins, they do have a route to overall profitability. (if they address feedstock levels).
That’s a silly question but the answer would be when HYR prove that they financially stable and that will be profit making. Currently they are not profit making, have debts, running on bare bones having cut back on many bod positions and employees. On top of this the company struggles to get feedstock from which they make their products and this is the major issue. The previous RNS was encouraging but it has not happened yet and even if it did, what figures are HYR looking at? A large amount of feedstock or would they need many of those contracts? Great products from a company that has gone through bad times and done well to survive this long but it still needs to become profit making.
HYR has all the factors going for it to be part of environment / green energy focused fund portfolio. The question is when do the institutional investors start accumulating here.....I wonder....
And I topped up.... just few weeks back this was selling upwards of 3p.....HYR would hit those range again....at worst its an easy 50% rise from here......
They were never going to be in a position to announce a profit this year. What is a possibility, is cash flow that covers central costs.
I guess the timing of the recent seller, means they got wind of something but that update doesn’t warrant a panic sell. Maybe spooked by the AUS side of things but the operation there has always been very limited, operationally and organic growth wise. The move reduced costs but if it takes cash from the growth market in the US, then longer term, it might be a benefit to not have it in its current form. They had a supply deal that was delayed, if that has been slower than envisioned, maybe explains the underperform.
The US business looks good, the increased feedstocks is welcome news, and as discussed previously, closed loop is the way to go. I would’ve expected more of them already but with the carbon credits, and recent Superfine accreditation, I presume that has opened the door to the utilities.