Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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They seemed to get it spot on, it has power since i saw the below link - just bought GE's business making it as big if not bigger than AGK and GE as a partner is quite a coup
Mr Davey’s “plan”, such as it is, seems to involve a combination of subsidising big users to reduce their demand, or alternatively generators to bring mothballed gas plants back into service to deal with spikes in energy consumption. Yes indeed: the Government plans to subsidise generators to bring back the very capacity it is trying to get rid of. The wheels of Whitehall grind exceedingly slow, but even by government standards of indecision, something has plainly gone very wrong with energy policy. Great swathes of coal-fired and nuclear capacity are to be closed over the next five years, yet the margins are too small and the uncertainties too great to persuade the industry to build the necessary replacements. In all, it is reckoned that £110bn of new investment is required. Another contract for APR perhaps,a bit closer to home.
Money to be made on this beauty at the moment, sell at 1000, buy back at 950 and wait for next rise, At least some action not like watching gulfs paint dry. Makes a modest few hundred. OIMHO
In the power generation industry in a hands on role with heavy electrical machinery i am most impressed with what this company can deliver for its clients. To be able to deliver the MW of power on site in such a short time frame to me is totally astounding and i can see demand for their services being ongoing no matter how temporary the contracts are. I M H O?
One has to consider what will happen when the two main contracts expire. Hopefully more options are being considered and once they filter through it will support the share price....... but when it all goes quiet, the share price falls, awaiting the next contract announcement. The price is rising as this extension filters through but I think it will drop again towards the end of the year if nothing is announced. APR do seem to be improving in all areas and if this continues so should the price but what do I know. Do not want to wish very bad weather on someone just to get a new contract but every cloud.............
...I can think of a few more: AFR, BLVN (...not sure I dare mention VOG). It is good to see this one picking up so rapidly. Just have to hope that APR's days of diving back down into the 600s are behind us.
this seems to really move with every order,only one that does ongood news unlike oilies that im invested in. Eg lgo ntog etc.
Uruguay has recently gone live also .......... http://www.aprenergy.com/content/apr-energy-announces-commercial-operation-200mw-power-generation-project-uruguay
I think it was the Libya contract extension, See the RNS yesterday. they are now almost at last years output in half the time. The price is still below the price before last years accounting issue yet they are now bigger and have more capacity and incomes are improving. This has risen in a falling market. They are now relying on two big contracts but any more contract announcements should push this higher. Contracts like this tend to be lumpy so prices swing more with the mood hence yesterdays big rise.
Answering my own question..... It is probably on the back of this: 'FTSE 100: Aggreko gains ahead of Q2 update Temporary power and temperature control supplier Aggreko was making strong gains ahead of its second-quarter trading update tomorrow morning. While JPMorgan Cazenove kept its 'neutral' rating on the stock on Friday, analysts said that given the stock has underperformed so far this year and trades towards the bottom-end of the recent range, "a positive statement would be met with strength". ' Let's hope that Aggreko posts good results tomorrow and that we have another decent rise, in sympathy.
Anyone know what triggered today's hike. There has been one broker upgrade (of sorts): 'Peel Hunt raises target price to 750p from 600p; rating sell' ...which hardly amounts to a ringing endorsement. Interested in whether this is being played by MMs, or is there any substance to this rally.
Down day for market ........ HIGHLIGHTS · Pro forma revenues up 25% to $265.7 million · Pro forma net income up 32% to $53.2 million · Pro forma EBITDA up 42% to $157.0 million · Pro forma EBITDA margin up to 59% from 52% · 2012 contract wins of 569MW and contract extensions of 724MW · Fleet at year end 1,311MW up 46% year on year · Order backlog of 11,592MW-Months, up 80% year on year o Order backlog of 14,651MW-Months as of 15 March 2013 · Global hub strategy completed during 2012 · Strong start to 2013 with 281MW of new business and 80MW of contract extensions · Total dividend remains at 10 pence per share · Fleet capex raised to $225 million reflecting confidence in market dynamics http://otp.investis.com/clients/uk/aprenergy/rns/regulatory-story.aspx?cid=311&newsid=330924
I dont post much on these boards ( i leave that to the experts), but look at the 2 after hours trades on here...This new contract, could be a turning point for APR
APR Energy, a global leader in fast-track power, it has signed a new 250MW contract in Libya to provide a turnkey power solution. The company says this represents the largest contract in its history, and one of the largest single temporary power contracts ever to be signed. The initial term of the contract will run into mid-2014. The power solution, which showcases APR Energy's highly mobile, dual-fuel turbines, will help cover anticipated power demand during the critical summer high-heat season, as well as provide interim power while the country continues to rebuild and improve its infrastructure. This brings APR Energy's total new contract wins and contract renewals this year to 361MW. The current order book (backlog of business) stands at over 14,651 MW-months, up 26% from 31 December. At 9:06am: (LON:APR) share price was +77.5p at 821p Story provided by StockMarketWire.com
Contract Win and nobodys bothered
I guess the posts from Jange explains the falls! Thanks for the information Jange, and fingers crossed for a reduction in that net debt and a hearty growth in revenue..
The level of uncertainty surrounding APR is shown by the split of analysts' ratings: six rate the company a buy, but nine rate it no better then a hold or an outright sell. Forecasts are wide as well, with Peel Hunt's near the bottom of the range (see table). Espirito Santo is more bullish, forecasting EPS of 88.5� this year. Depending on which is used, the PE ratio ranges from 12.5 to 15 - a significant discount to sector peer Aggreko, which remains on 20 times forecast earnings. But to hit Espirito Santo's EPS target APR has to deliver revenue growth of 38 per cent, which will be challenging given the outlook. Last year, when APR had more funds and a better economic backdrop, it only delivered 28 per cent growth. Precipitous falls may follow even a small miss on those ambitious numbers.but as always dyor gl
The problem is with the diesel turbines, an older technology. Peel Hunt estimates that diesel generators made up around 60 per cent of the fleet at the end of 2012. More worrying is that the broker reckons around 200MW, or 15 per cent of the current fleet, was 'off-hire' or sitting idle. This is not a cause for concern just yet, because a fleet utilisation rate of 80-85 per cent is very respectable. The problem comes if work is slow in coming through or margins bleed as work is chased. APR itself hinted at the problem when it said one of its focuses for 2013 would be increasing utilisation of the diesel fleet. There are other signs of slowing growth. Revenue in the fourth quarter of 2012 was $57m, down 39 per cent on the prior year. Moreover, the current order backlog of 11,592MW-months, while 80 per cent up on the end of 2011, remains 583MW lower than in December. Applying the current fleet size, the order book provides revenue visibility of around 38 weeks. There is always a risk of straining cash when companies embark on rapid expansion plans. APR started 2012 with no debt, and cash of $63m. Last month, APR had $21m of cash and debt of $205m on the balance sheet, giving net debt of $184m. The issue here is not so much in the absolute levels as the movement. APR still has plenty of headroom on its $400m facility, but we'd like to see growth funded by cash rather than debt.
Analysts at broker Peel Hunt estimate that to hit full-year targets APR needs 600MW of new orders. Contract wins in this business are typically very lumpy: business goes quiet, then suddenly a big new order rolls in, such as the 200MW contract in Uruguay announced on 17 December. This contract runs to mid-2014 and, combined with 100MW of renewals, gives revenue visibility over 23 per cent of the fleet. But Peel Hunt suspects the contract was been keenly priced, given its size and competitive market conditions There are other signs that cooling global growth is being felt in the temporary power market. In 2012 APR Energy spent over $300m (�190m) investing in the expansion of its generating fleet, but this year is planning only $150m of investment to extend its gas turbine fleet. This looks like a sensible move - APR currently has all its dual-fuel gas turbines deployed, and they tend to command higher margins.
Temporary power specialist APR Energy (APR) came to the market in 2011 with a punchy valuation and ambitious plans for rapid growth. The shares rose rapidly after the September 2011 flotation and at its peak the company was valued at over �800m. But then APR stumbled; first came a late set of accounts, followed by the exit of the chief financial officer, and finally a profit warning. The shares plummeted, wiping out over a third of the value of the company, and they have marked time since then. We think investors would do well to reduce their holdings in APR Energy further ahead of what looks like another tough year. APR Energy itself has breezily reported a "strong start to 2013" with contract wins in Guatemala for 16 megawatts (MW) and Indonesia for 15MW, as well as 70MW of contract extensions in Senegal and Gabon. This is in stark contrast to sector peer Aggreko, which recently highlighted limited opportunities in international business and predicted that the loss of one-off events such as the Olympics would cut revenues by around �100m this year.
APR Energy: JP Morgan lowers target price from 1005p to 950p, while its overweight rating is left unchanged.