Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The UK’s rapidly emerging power flex deficit | Timera Energy
We set out in numbers the scale of the UK’s growing flexible power capacity deficit, renewable output swing ranges and flex capacity investment requirement.
https://t i m e r a-energy.com/the-uks-rapidly-emerging-power-flex-deficit/
In my opinion, these are the worst and best case Plan B’s for DKE:
Worst case Plan B (considering the value of the Arlington gas peaker pipeline, in terms of energy security and potential income, I deem this an unlikely outcome)
The sites are sold for somewhere between £4-6m and the proceeds split 50/50 between DKE and DKE Energy (read Arlington). Once the balance sheet is balanced, this would leave DKE with £1-2m, in cash, and a SP between 0.3-0.6p (I use ARA as the example, which has a market cap of £1.5m and £1m cash). In essence, DKE becomes a SPAC.
Best case Plan B
Centrica agrees to fund the £3m (non-senior debt) to get the first two sites into construction. In return, Centrica gets favourable offtake agreement terms and, potentially, access to the rest of the gas peaker pipeline. Why Centrica? Centrica Business Solutions has partnered with Arlington on battery storage developments and, from the recent webinar, seem to be on very friendly terms. In addition, with interest in energy security at a peak since the conflict began, it does seem logical to conclude that getting the whole pipeline into production must be a high priority for all interested parties.
In summary, DKE is significantly undervalued under these two Plan B’s and any others I can think of. The DKE SP is being suppressed by Market malaise and a fear of dilution. However, ironically, the current meagre SP might be DKE’s saving grace as it forces the BoD away from dilution (as evidenced by the absence of an approved Prospectus for the current funding package) and improves their negotiating position with any entity interested in the Arlington gas peaker pipeline. Finally, please consider that, if there wasn’t anything better to achieve, why haven’t the sites been sold to the highest bidder already?
Thanks to Jimbo for this as it make my life easier, as this is why I am here:
For those with an interest in DKE, I thought it was worth reminding everyone what the main investment opportunity is here (particularly at the current meagre SP).
Two, out of three, of Arlington Energy’s directors (MC & PG) are directly involved in Dukemount Capital and DKE Flexible Energy (JV). Therefore, we can assume there is a strong foundation of support between DKE, the JV, and Arlington. Indeed, the dates on the below RNS (22/03/21) and Arlington article (23/03/21) imply that we can effectively label the JV as a portal directly into Arlington. From what I can ascertain, the JV ‘portal’ enables Arlington access to Main Market funding, through DKE, to develop the sites and, for its part, Arlington grants DKE 50% ownership of a pipeline of sites valued at cost price (considerably under their saleable market value).
As mentioned on the recent Roast podcast with MAST, gas peaker sites are in demand and there isn’t an abundance available. Arlington has a pipeline of such sites which, almost certainly, DKE will get first refusal over.
It’s fair to say that DKE has not won over investors with it’s current funding package. However, the value of DKE could re-rate very quickly if Arlington/DKE manage to cover the funding shortfall, for the first two sites, through non-dilution instruments. A higher SP would then enable the Prospectus to be reworked, and approved, so Main Market funds could then be raised to bring the rest of the pipeline into construction.
The above opportunity is why I’m invested.
Team – Arlington Energy
(https://www.arlingtonenergy.co.uk/team/)
10MW Portfolio of 11kV Gas Peaker sites Heads signed with AIM listed Dukemount Capital plc – Arlington Energy (https://www.arlingtonenergy.co.uk/2021/03/23/10mw-portfolio-of-11kv-gas-peaker-sites-heads-signed-with-aim-listed-dukemount-capital-plc/)
Dukemount Capital - Environmental Energy Project - Vox Markets
(https://www.**********.co.uk/rns/announcement/e75f5015-9161-4855-a7b0-d13f8d02585c/)
The Sunday Roast / Midweek Takeaway with Louis Coetzee, Non-Executive Chairman of Mast Energy Developments (LSE:MAST) (https://audioboom.com/posts/8066026-midweek-takeaway-with-louis-coetzee-non-executive-chairman-of-mast-energy-developments-lse-mast)
Morning everyone I do hope so :)
Big day coming up?
Would be great to see an RNS from BOD on progress so we can continue to rise .. it’s been a long time since any news so we are due updates progress of JV
Yes I honestly think it’s two things.
1. Dukemount website says they’re looking for £38m funding with a JV - NON DILUTIVE
2. TR1 holder essentially said all good having spoken to the CEO
Point one is huge. Point two is very encouraging
Mkt cap is ridiculous
A lot of new interest .??
Only that it’s minor and it would be great if it continued. Even better if there was a reason…..
Anybody any thoughts on share price rise.??