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Council Land at Lower Portland Farm is Advertised as open tender for 5 year tenure on grade 2 land - see farmers weekly - There are no grade 3 lands in the area - see the land classification map.
Thanks Transformerman, you eloquently put down what I was musing when I saw the Hunts Post article. It can only help making Burwell an important green hub.
Great posts.
Also at the Q and A last week, JP mentioned he was due to attend meetings in connection with Burwell
Even more of a coincidence?
What is important for me however, is the lease for the land for the battery project being finalised. We were told that was being finalised last week and once we have receipt of that it really is game on SP wise.
1. Grid connection has been secured with off take already agreed
2. Planning permission in place
3. Strong indication the lease for land has been finalised
All 3 = rerate of share price.
Burwell 50 MW battery storage will be one of the biggest in the UK. Massive interest has been or will be shown in this project of ours.
In response to your question Confounded the other day regarding the farm the council has bought.
I have done some digging. I am not saying that this land purchased from the council, is 100% for Corcel’s solar project but there are some interesting coincidences.
The Lower Portland Farm bought by Cambridgeshire Council is about 2 km from our Weirs Drove Burwell project.
50 MW Solar:
50MW solar site needs c.200+ acres
This farm bought by the Cambridgeshire Council is 241-acres and will provide “provide long term environmental and development opportunities”.
There is a possibility that the Council have bought this land and will act as the landowner and lease the land to us for our 50 MW solar part of the Burwell project.
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We have the following timelines:
1. January 26, 2021: News report saying Council bought 241-acres of land
2. January 31st Christian “wrap up securing the site in the NEXT WEEK”. Here, Christian is talking about the land for the Battery Storage side of the project.
3. February 4th: Scott Kaintz visits Burwell site.
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So what does this all mean?
1. With receipt of commercial terms agreement with Burwell landowner for the POWER PROJECT this means that there are NO MORE HURDLES for Corcel to jump over before financing/sale of project can take place.
2. IF the 241 acre The Lower Portland Farm, (2km away from our Batter Storage facility) is going to be used for our 50 MW solar, what has given the Cambridgeshire Council the confidence to make such a purchase in these current economic times???
Last podcast on 31st Jan 2021:
Christian Yates: “the solar project will not be all in one great big field, we will look at 3 or 4 different pockets potentially and build it out at 5, 10, 15 MW a time and we have already identified 3 sites and are in advanced discussions with landowners on those.”
Regarding recent sale of The Lower Portland Farm:
It was offered for sale in for lots:
Lot 1: 1.75 acres of land
Lot 2:141.3 acres of Land (52 acres located east of Heath Road, and 89 acres west of Heath Road divided into 4 fields.)
Lot 3: 68.06 acres
Lot 4: 28.66 acres
So the land was sold in 4 lots and we are looking at building out the solar in “3 or 4 different pockets”.
Christian Yates said build at 5 MW, 10 MW and 15 MW pockets.
200 acres for 50 MW.
So rough calculation of 4 acres per 1 MW.
Lot 1: unusable
Lot 2:
a) 52 acre piece can do 10 MW.
b) 89 acres piece split in to 4 fields. Assuming fields are of similar size = 22.25 hectares per field
So each of the 4 fields can do 5 MW. 5MW x 4 fields = 20 MW
Lot 3: 68 acres can do 15 MW
Lot 4: 28.66 acres can do 5 MW
So a combination of lots 2,3 and 4 = 50 MW bang on the dot.
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Again, this land bought by the council might not be for our solar project and there is plenty of other land available near the Burwell substation for our 50 MW solar.
What impresses me so much about the battery storage side of things are the people involved.
As we know, Christian Yates, our Burwell project director, has extensive links in this industry as previously posted.
Also we have Joseph Jayaraj.
FLEXIBLE GRID SOLUTIONS LIMITED
Joseph Jayaraj Director
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Joseph Jayaraj appointed to EsTeq board (Now named FLEXIBLE GRID SOLUTIONS LIMITED) to focus on strategy and business development, as well as negotiation and implementation.
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Joseph Jayaraj has over 25 years’ experience in financial services, most notably as a Managing Director of the MACQUARIE GROUP, with a focus on European credit special situations and as Head of Macquarie Global Investments & Environmental Technology Assets.
His previous roles with Merrill Lynch’s M&A team in New York and RAB Capital’s Special Situations Fund in London. Joseph founded ORB Capital to lead principal investments in private equity and private debt opportunities, largely to SMEs.
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So he has worked as Managing Director of Macquire Group with some examples below of the funding they have delivered:
Energy storage provider Connected Energy has secured £3 million (US$4.13 million) of investment from Macquarie Group and Engie to fuel its growth plans in the UK and abroad.
https://www.energy-storage.news/news/engie-macquarie-invest-in-connected-energys-2nd-life-ev-pack-storage
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Storage technology market-leaders Arenko Cleantech had a landmark 125 megawatt UK battery energy storage joint venture with Macquarie Bank. It was heralded as the UK's largest multi-site energy storage development and Macquarie provided up to an initial £125 million of funding.
https://www.pinsentmasons.com/thinking/case-studies/blueprint-funding-battery-storage-projects
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I am so impressed with the team involved with Burwell and also the subsequent projects that they already have in the pipeline.
Funding will not be a problem whatsoever.
Listened to the Stock Box interview again.
Christian comes across really well and knows his stuff, sounds like he is increasing his involvement and they will be bringing new projects along side soon.
Yes I agree with that very much and I am sure once it has be signed we will see much more communication regarding Burwell and lift off in SP.
Maybe that explains why Align have not stated a higher sp target, maybe they will update this once the lease has been concluded?
Yes, I agree we should now currently be trading in the 2-3p range considering the projects we have especially Burwell.
Podcast January 31st 2021:
1. securing grid connection (arguably most important you need to do has already been done.)
2. securing the site we are hoping to wrap that up in the NEXT WEEK or so
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Tweet: Friday Feb 5th 2021:
Scott Kaintz: Tweets photo of him at the Burwell site on Thursday.
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So we have Christian Yates saying on January 31st “wrap that securing the site in the NEXT WEEK”
…and yesterday (Friday) photo of Scott Kaintz being at the Burwell site saying he was there on Thursday.
Very strong indication that the lease for Burwell site has now been finalised.
We successfully got planning permission last year and grid connection but this lease for the land is CRUCIAL.
Let’s not forget our Southport project did not progress because we were ‘unable to agree on commercial terms with the landowner and so ultimately walked away.”
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NOW we should have commercial terms agreed with the landowner of the Burwell site. Once we get this RNS then it is game on. The project can go ahead. Without commercial terms being agreed with the landowner means a Southport walk away could have happened.
Yes we need to sort out financing for the project but that will not be a problem as my previous post have shown with Christian Yates stating:
1. “all these funds don’t have their development arm and don’t have their own proprietary projects”
2. “so they will have to COMPETE WITH EACH OTHER to acquire assets”
3. “what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
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With receipt of commercial terms agreement with Burwell landowner and subsequent RNS stating this means that there are NO MORE HURDLES for Corcel to jump over before financing/sale of project can take place and the market will price the project accordingly.
Our market cap is seriously undervalued and now with a clear path to development of Burwell the SP should react accordingly.
Of course funding will take the SP on to another level entirely but with all the regulatory hurldles achieved for Burwell and confirmation of the commercial terms agreed for lease of the Burwell land in an RNS we should see a nice rerate to a much healthier SP level.
2 to 3p is what we should be trading at now and then rising in anticipation of financial close for Burwell.
The 3p SP target is very conservative indeed. It doesn't fully price in the potential ahead for Burwell, let alone Mambare and Dempster! A few of the experts I have spoken to believe this company should be sitting at well above 10p. Especially given the government backed drive for batteries and green tech!
Thanks TF, a bit puzzled why Align have only placed a sp target of 3p, seems very conservative ?
Feb 5th 2021:
The UK's battery storage pipeline has grown 50 per cent in the last 14 months amid soaring demand for projects that can balance an increasingly renewables-heavy grid, according to statistics published this morning by RenewableUK.
Legislation that came into force last December that lifted restrictions on the size of battery projects that local planning authorities are able approve will add momentum to the rapidly-growing market, Wharton predicted.
"We're already seeing grid-scale batteries of 50MW being built, providing valuable flexibility to the grid”
“SOARING DEMAND FOR PROJECTS’
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Initial DEMAND HAS EXCEEDED EXPECTATIONS for Mast Energy Developments Plc PLO news release today as well.
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Christian Yates Burwell project director:
‘in this sector sector.. all these funds bar one are trading at premium’s to NAV. clearest indication for appetite and demand.”
“about $ 1 billion being raised”
“all these funds don’t have their development arm and don’t have their own proprietary projects”
“so they will have to COMPETE WITH EACH OTHER to acquire assets”
“what we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
- - - - -
Clock is ticking until serious rerate here.
You're welcome mcfcnige.
Yes I agree about Christian. Him being involved with Burwell and that project too is the reason I am invested here. He's a veteran of this sector and will help us get the best deal possible with his great contacts.
Hi TF,
Great posts thank you.
Potential is mind boggling but surely it would be better to keep some interest in the project rather than take the money and run.
Heard the interview with Christian, he sounds very excited, you can tell he knows his stuff.
So MED is being valued at £23 million with an initial 9 MW in production when they IPO, 20 MW to come 6 months after that and another 20 MW 6 months after that.
We have 50 MW + 50 MW.
That's why Malik's calculations in previous posts are on the money.
We can see the attraction of the clean energy sector in the UK….
Today
“Kibo Energy PLC ('Kibo' or the 'Company'), is delighted to announce, further to the RNS dated 28th January 2021, Mast Energy Developments Plc (MED) has raised in excess of £5m through Clear Capital Markets Ltd for its upcoming IPO…which on listing will have a market capitalisation of c. £23 million.
Initial demand has exceeded expectations and the fundraise has now closed. This confirms Kibo's belief that the UK clean energy sector is an exciting investment case going forward. We look forward to further updates from MED regarding existing projects being brought into production in the very near term, as well as any acquisitions of further projects, on their way to becoming a significant contributor to the growing reserve power market.”
So MED will have 9MW in immediate production when they IPO and c.20 MW in production within the first six months from listing and adding another c.20 MW in production over the next 6 months. Their market capitalisation will be c. £23 million.
Burwell is 50MW battery storage and 50MW solar.
The market has totally missed the importance of Burwell and there will be an almighty scramble when people figure it out.
Hi mcfcnige. Apologies for not replying to your first post a couple of days ago I missed that.
Of course Corcel may not be selling the Burwell project.
If we do decide to go it alone then the battery storage could be worth as high as £120k per MW a Malik quite rightly states. Even if we discount this to £80k per MW then that is £4 million per year to Corcel. A modest PE ratio of 10 would value Burwell at £40 million and multiples to our current market cap.
In response to your question I think IMO they would be more likely to flip the Burwell project first to generate funds in buying more projects they currently have going on behind the scenes.
Burwell is of high value too as they have obtained the final 100 MW of the Burwell substation and have planning permission in place as well.
Valuation of our Burwell project now:
Battery storage side: £1 million - £2.5 million
Solar: circa £3 million
Total: £4 million - £5.5 million.
I would lean on the higher end of this valuation due to the fact that many investment funds in this field don’t have their own development arm and don’t have their own proprietary projects.
Financing for Burwell or sale of the project, either or, will significantly rerate us here.
Dec 1st 2020:
“Corcel said that after a review of revenue projections it had sanctioned the project to PROCEED TO “SHOVEL READY“ status and thereafter FINANCIAL CLOSE.”
Thanks Transformer I will do a bit more research this evening and I might buy in tomorrow . Its been on my watchlist and I keep seeing it creep up a little. However I want to get in for 1.2 Not liking the spread too much
Transformer and Malik, you both seem to have a good level of understanding in the Burwell project.
can i ask why Corcel would want to sell it so quickly and what sort have value would it have ?
Hi maddogmcree
Burwell is expected to begin operations in 2022 however the upcoming financial close is what will cause us to re rate here.
As per 22 September 2020 RNS:
Corcel Plc, ("Corcel" or "the Company"), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces the receipt of both PLANNING PERMISSION and a GRID CONNECTION for the Burwell energy project.
So planning permission and grid connection in place.
Dec 1st 2020:
“Corcel said that after a review of revenue projections it had sanctioned the project to PROCEED TO “SHOVEL READY“ status and thereafter FINANCIAL CLOSE.”
Webinar:
Scott Kaintz: “Once the project is “SHOVEL READY” numerous development options exist from bringing in partners to flipping the project in its entirety or to taking it through to construction”
Christian Yates has great links and will help facilitate any deal.
With the battery storage market being so hot and also as per Christian Yates saying “all these funds (investing in this space) don’t have their development arm and don’t have their own proprietary projects, so they will have to COMPETE WITH EACH OTHER to acquire assets” we will be highly sought after for Burwell.
“What we are doing at Burwell will have HUGE ATTRACTION for these funds should we not wish to hold this project long term or wish to seek co investors in these projects.”
So we are waiting on financing for Burwell or sale of project and either of those will be company making for Corcel.
Just asking ? Timescale to be operational