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Big vote of confidence from new sppointee - all falliing into place imv.
Good to have a promotional video but would be even better if they could add a few more deals from their pipeline.
Atb,
Northern
The project progress looks good to me and importantly they seem cogniscant of the need to avoid dilution into the future.
'ATOME, which is fully funded to FID of the Villeta project, is therefore optimistic that it will be able to successfully fund the 120MW facility within the specific purpose Villeta project vehicle without the need of direct funding into the vehicle by ATOME'.
re: interview - I had the same discussion on tactical step taken by two other CEOs . . . was satisfied with both of them. One is on song with a 13-well promising MS gas programme, the other nicely proceeding with higher Au production.
I now agree capital markets are tight and will become more so. Generally it's time to hunker down for an indifferent period (= recession).
what do you expect? PL is a charlatan. watch every PI lose on this in time. I hold some and should have sold 120p, this is going to pennies with PL involved. thank goodness I did not fall the the RI. cheaper today already. messers this lot
hasn't made more deals yet is already raising cash and the sales compared to the buys today tell a story. The management here talk a good story but they and the wider group don't appear to be able to deluver.
They've talked of Paraguay then we find out it's for 17% cos. No farm out 're the gas field. Not seen anything 're plans for drilling next year. For years they've talked about acquisitions and not made any. Still not sure what this Lithium venture is going to produce.
I can't remember either when we last had a strategy.update from PL either.
So very sadly for all us shareholders the management have talked a lot but are not delivering and it's gone on for some time now. Probably explains why it is out of favour with potential new investors. I cannot see PL pulling any rabbits out of hats either.
Atb,
Northern
Thanks all for the comments and corrections. I've been watching this since the IPO, but have not bought shares yet, mainly because it's going to be a long time before they have any significant income and it was obvious they were going to need more funds before then. So I'm with skier.
While "it's what they do with that cash and why they needed it! It wasn't that long ago with the Times share tip that she mentioned a raise wasn't required in the short term!" Well the Times must have meant short term in terms of days, or the reporter did not know what he was talking about. At the interims they had £1.6 m net cash and were burning it at the rate of about £7.5m a year. I would imagine that rate would increase as the installation and staffing ramp up. So they will need more in a few months time again.
Taverham, you are quite right of course, BUT it was almost a denial that they would be going back to the market for more money, and that was just misleading.
I shall continue to watch with interest, but it's likely to be months before I invest.
The director support is substantial and I think that means the sp will hold up well. In the not too distant future I expect a bid from an energy major for this company.
Not a direct shareholding in ATOM, although I do have exposure due to my MEN holding.
I would say just over 10% is 'not' a heavy discount in this market with a 8% dilution (that's pretty positive TBH) - it's what they do with that cash and why they needed it! It wasn't that long ago with the Times share tip that she mentioned a raise wasn't required in the short term!
It may drop tomorrow to near the raise price, but it also may well have some support as its not a large dilution. I wonder if MEN took part in the raise or will let their holding % drop lower!
It may turn out to be a very good move to raise this cash at this stage - time will tell - it brings new shareholders in also!
Good Luck!
ATOM Is losing millions, the marcap today sits at a lofty £38m, and now management have started diluting shareholders with a heavily discounted fund-raise(s). Will keep this one on the watchlist for now. Suspect this might drift back down toward that old 50p low in 2023, as sentiment is likely to turn sour after the dilution.
Hardboy, the Directors had no choice but to waffle because to say anything about near term plans would have undermined the then sp and thereby the fund raise. So behaviour was predictable and designed to help company . Just wish i had not bought last week at 1.20.
The discount to the current SP is relatively marginal in the current market conditions, which is reassuring. This won't be the last fund raise though and the extension of the facility with PLLG, with a price of 80p should act as a cloud for some time.
Hi Hardboy- Have another read of the first RNS. The £2.7m has been placed, in part with suppliers and directors. They dont have a target for the PB raise, it looks like they have introduced it so current holders can get in at the placing price if they wish. They have no target for the PB raise as far as I can see
Last Tuesday they gave a webcast. I specifically asked what plans they had to raise additional funds and they waffled a bit about project partners providing the capital when required: absolutely no mention of going back to the market; and less than a week later we have a Primary Bid offer to raise £2.7m. I accept they did not want to give specific details, but basically the Board of Directors have deliberately misled shareholders. What do shareholders think of that behaviour?
It's still 30 months from production. Wouldn't mot would be predators wait till there is something more tangible to buy
The increase in project size announced today imv is evidence that the company is moving at speed. i can see a takeover/ reratewithin 12 months as bigger players look carefully ay this.
Expect Atome will be fine. CPH2 have identified the potential issue (still to be confirmed) and are working on a solution to retro-fit to the first 2 units built, just a bit late for Octopus who wanted theirs last month (other customer affected looks like it could be AFCryo in NZ).
Delivery of Atome’s electrolyser is not due until end Q1 2023, only a small deposit paid with nothing else due until Q1 2024 and a free upgrade to the next generation tech at that time as well. All info from various RNS, think I’ve summarised it correctly but DYOR obvs.
News from CPH2 (from whom ATOME have ordered an electrolyser) today was not great - their other buyer has pulled the plug.
For those who do not have a Times subscription, here is the text of the tip:
Share tip: Atome is ahead of the game in green tech
Lucy Tobin
Sunday November 20 2022, 12.01am, The Sunday Times
Amid the energy market and fertiliser crisis created by war in Ukraine, the value of Atome Energy more than doubled to 152p. The only pure-play green hydrogen and green ammonia producer listed in London was seen as a saviour in the transition away from Russia’s oil and gas.
Then the shares sank to 75p — below Aim-listed Atome’s 80p float price last December — alongside a general sell-off of new energy amid the realisation that the journey to green hydrogen is a much, much slower burn.
It is one that is worthy of interest, though. Atome, now trading at about 90p, stands out from its rivals for its focus on the production of green ammonia from green hydrogen.
It will be made entirely renewably and carbon-free via electrolysis from hydroelectric power, mostly in Paraguay, with another project in Iceland. Currently, most hydrogen comes from electricity from coal or gas, so Atome can help decarbonise agriculture as well as the heavy goods and shipping industries.
Atome has only just begun building small operations in Paraguay. It is, though, ahead of the market.
After fast-tracking production more efficiently than rivals, it is soon set to receive a 1MW electrolyser for a site near a hydroelectric dam in Paraguay. That dam generates energy 24/7, unlike wind and solar power producers, and is expected to be producing green hydrogen to fuel Paraguay’s buses and barges before the end of next year, meaning revenues will start to trickle in for Atome.
“The value of this work is fairly marginal,” said Sam Wahab, renewables analyst at Liberum. “But it shows proof of concept — that Atome can achieve sales of green hydrogen — and bodes well for larger projects ... and sales outside Paraguay.”
Once green hydrogen technology has caught up to serve global transportation in a few years, Atome will be primed to boost production.
The £9 million raised at its float looks sufficient to cover current projects, and Atome’s well-connected board — chief executive Olivier Mussat previously worked for the World Bank — has lined up an array of potential green hydrogen customers.
Atome also has first-mover advantage, and good commercial locations — Paraguay has both spare energy capacity and a government that is strongly encouraging green hydrogen technology.
In a drive for real cashflow and yield, investors may have overlooked Atome’s potential. The firm is pre-revenue, but it’s not far off.
This is a risky punt but one with potentially significant rewards. Buy Atome.
Yes, I totally agree. Had a decent H1 and things appear to be improving H2 too - oil price better, production on a number of fronts, Farm out and Paraguay spud hopefully not too far away. I'm hoping Atome also can start to pick up more projects and apparently they had a very positive write up in The Sunday Times yesterday.
In terms of lithium they seem to be in the right place but am not sure how they mine it and not sure how they.get the expertise to build a business in that but potentially could be big if they could. Basically I just want to see them.keep improving on all.fronts but yes very undervalued imho.
Atb,
Northern
Northern
Molecular Energies (MEN) starting to look ridiculously cheap atm, even on a simple arbitrage basis given their holding here, dont think the market has woken up to fact production is back on stream over there and generating significant revenues for such a small market cap.
I really do hope it gives both shares a boost. To me more importantly it would be good if Atome started to get a few new projects to show that others agree and are putting their money into projects with the company.
Atb,
Northern