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Not overly convinced by this one I'm afraid. A PSA is only valuable when the project it is related to achieves FID. In this instance a visit to the SBS website suggests they are a third party developer (services Co.). No sign of an actual live project. I am in here and would like to think this is potentially massive news, but not seeing evidence of that. Comparisons to Vestas a long, long way off yet, unfortunately.
Yes, this is potentially huge, surely? Maygen 1A is 6MW and four turbines, so the 150MW site would be about 100 turbines. If they get the others it could go to 450 MW and 300 turbines over time. So leaving aside anything else we are looking at a very significant manufacturing business in turbines, hence the talk of a possibly establishing a local manufacturing facility once orders exceed 100 turbines. Given the enthusiasm for the performance of their own turbine at Maygen 1A I assume it likely that the bulk if not all of the turbines for subsequent phases there will also be Atlantis turbines. That's a lot of turbines and must imply very significant revenue/profits in due course. GL and DYOR etc.
New collaboration with SBS in Thailand with potential for 450MW of consultancy work and turbine supply. A long way to go, but a comparrison to someone like Vestas but for ocean renewables doesn't seem like too much of a stretch.
As with all major infrastructure projects this is a longer term investment rather than one of those 'this will multibag tomorrow' (allegedly) shares. However, do you really think this would have attracted 10s of millions of grant funding if it was likely to be a lame duck? Real revenue is now coming in from Phase 1A which in itself will make the balance sheet look a lot healthier, and this is just the beginning. Atlantis have now proved the technology, and will be fine tuning to improve the economics. The Maygen project alone is massive, but let's not forget that they have projects around the world. There will be many sitting on the fence watching but not yet investing. As confidence increases they will start buying and the sp will rise accordingly. With all the various projects and partnerships, news can drop at any time and act as a catalyst. The next results will relate to year ended 31st December so will not account for significant revenues from Maygen but I am sure they will include some post period information about that. I am confident about the future here and am glad to be in early before the penny drops with most PIs but everyone obviously has to do their own research and decide accordingly. Time will show who is right.
Thanks for interesting discussion. I, like Cebo, am not in this one but hold Miton UK Microcaps who have a decent interest. I have not so far bought because cannot convince myself they will make meaningful profit from this activity in anything but the long term (if at all).
Great RNS confirming Maygen 1A performing well and indeed exceeding expectations. Looking good for the future.
Yes, a good CfD round will provide Atlantis with a good installation pipeline for the next 6 years. It's rivals (Tidal Lagoons) are currently more expensive and take longer to build, so fingers crossed.
The only thing holding ARL back is the upcoming CfD round. If they can secure a good slice of the pie (which I believe they should), then they should be back around the 80 mark.
Ctw, thanks for your reply and very much along with my thinking. I do like the look of the Company and what it is trying to achieve, certainly one that I will keep on top of my watchlist for the time being. Thanks and Good luck.
Hi Cabo. To be fair I think it's a bit too early for them to be making any announcement on funding for French projects. However, they have secured EU funding for existing projects and one positive of this for me was that it may unlock further EU grant funding post Brexit. With Maygen 1A up and running and generating revenue, and with Maygen 1B due later this year (and with a lot of grant funding already in place, and hopefully more to come) we will have a great demonstration project which should unlock other funding possibilities for the future. All imo and please rely on dyor. GL.
Ctw , hi, not invested here at the minute but I have a kept an eye on this Company for a while now and really looking for a reason to invest, but cannot, as yet, make the finances and potential work enough for me to invest. Today's RNS is all about intention but not a lot about how it will be payed for. Your thoughts appreciated.
French partnership. Underlines that Atlantis is not just about Maygen but is rather a global leader in tidal power. This is a company with ambition and the now how to deliver on it.
.....if we will get the results a bit earlier this year? Should be a fascinating read with so much going on. So much potential here in my view. With so many projects in the pipeline news could drop out of the blue at any time.
http://renews.biz/106202/atlantis-seeks-10m-eib-loan/ Sounds like the first 4 turbines are earning revenue, with the wheels in motion for the next 4 turbines. Nice to see figures being banded around, plenty of grant cash and EU loans coming in: "Atlantis Resources is in line for an €10m European Investment Bank loan to finance the next phase of its flagship MeyGen tidal array in the Pentland Firth. The company has applied to the Luxembourg headquartered institution for funding for its 6MW MeyGen Phase 1B, also known as Project Stroma. Construction of the €57m four-turbine array is scheduled for the autumn with full operations in 2018. Phase 1B is already backed with a €20.3m Horizon 2020 grant codenamed Demotide. The project is also the recipient of a €16.78m NER300 award originally allocated to Marine Current Turbines in 2012 for the defunct Kyle Rhea project."
April 3rd 2017 - UK Gov. CFD strike rate prices for potential tidal stream projects starting in: 2021/22 - £300 2022/23 - £295 http://www.cwp-ltd.com/cfd-2017-allocation-round/ The cheapest projects will win....Do Atlantis have enough of a headstart and enough scale to make the grade? You'd have to say they are a strong candidate.
Thanks for the info guys - I see that it will have an impact on the bottom line then.
ROC accreditation is necessary milestone for differential payment, based upon £300 /MWhr 'guaranteed' price. Without ROC accreditation only able to get the wholesale price for electricity, which is currently less than £50/ MWhr. Future, large scale, generation by Meygen would be under the CfD regime, which is auction bid based. The current indicative strike price, though, is also £300 /MWhr.
Hi all, Courtesy HyperAl on advfn hTTps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211292/ro_banding_levels_2013_17.pdf ARL gets 5 x ROCs, most other renewables get 2 x or less. Applies to first 30 MW of ARL's production. IE it's a 'guaranteed' , heavily subsidized offtake price that underpins the business case (somewhat). The 'elephant in the room' is , what price for the balance of ARL's projected production as the phased rollout continues ? Answers on a postcard, pls - preferably with the Chancellor's irrevocable signature ! ATB
I don't claim to fully understand it but meeting its obligations under the order and getting these certificates is definitely a plus. Failure to do so would involve having to make buy out payments so this is a definite tick in the box for the company's finances as well as for its green credentials.
Awarding of full accreditation under Renewable Obligations Order and the receipt of Renewables Obligations Certificates is "a truly momentous occasion" according to Tim Cornelius. Could anyone explain why?
http://www.4coffshore.com/windfarms/atlantis-calls-macquarie-for-help-nid2801.html Some interesting notes coming out now. "Last month the European commission granted the transfer of 17m from the Kyle Rhea project to Atlantis Resources' Meygen tidal project. MCT was acquired by Atlantis from Siemens AG in an all-share deal in July 2015. Following completion of the acquisition, Atlantis applied to the European commission, with the assistance of the member state, Scotland, to have this funding transferred. Atlantis' portfolio of Scottish tidal power projects currently includes Meygen (398MW), Brough Ness (100MW), Mull of Galloway (30MW) and Kyle Rhea (8MW)," That's in addition to the longer term potential plans for 450MW in India, 450MW in Indonesia and the smaller plans in Canada.
have initiated coverage on Atlantis with an outperform rating and an initial target of 71p. They also value Maygen at 154p once Phase 1 (86mw) is complete in 2021. This does not take into account Atlantis' other projects: see Proactive Investors article 23/2/17.
Gross income is about £4.6m. I read somewhere (can't find it just now) that ARL own about 75% of Meyden, so about £3.5 m would be my estimate pa.
The calculation posted here last week indicated a gross income of just over £1 million per turbine per year. I'm unsure how much of that AR gets to keep and how much is shared with project partners.
Come on who was it who said all the turbines had fallen over!