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Eco fanatics would rather continue bashing Drax and the UK, which has made some of the biggest changes in reducing emissions, while impoverishing large swaths of this country's population in the process, than take action against the real elephant in the room; that China burns more than half of all the coal consumed in the world and that is constantly increasing, now over 12 million tons a day, and we then buy their cheap product made with cheap dirty energy!! Makes you think where a lot of these groups get their money from and what the real objective of their paymasters is??
Sir David Attenborough has warned against the ‘alarming’ practice of razing forests to fuel wood-burning power stations in Britain.
About 6 per cent of the UK’s total power comes from Drax, a wood-burning power station in Yorkshire which goes through seven million tonnes of biomass pellets a year.
It emits approximately 13million tonnes of carbon dioxide – making it Britain’s biggest emitter of the greenhouse gas – yet receives more than £800million of taxpayer subsidies a year by claiming to be a ‘green’ energy source.
While the power station insists burning wood is ‘renewable’ as trees grow back, critics say this is misleading as a mature tree could take 100 years to grow.
The warning comes as the House of Commons environmental audit committee announced it would investigate whether burning so-called ‘biomass’, as burning wood pellets is called, is fuelling deforestation.
Looks like its the Maldives then!
Have fun on Hayling/ Canvey Island or Bonor once you get out of debtors prison covering your shorts Eff.....
:-)
Good to see the correction in the price yesterday, lets hope it holds. Still think it has been grossly oversold on the tax concern, and can only think it is spec shortsellers causing the problem in the quiet summer period. Hope they get their just deserts! All energy news seems good for Drax, whether it is delays at Hinckley; funding problems at Sizewell. Don't think the market has even started pricing in the role Drax is taking in the global biomass market.
https://www.lse.co.uk/news/DRX/
(Sharecast News) - Electricity generators will be spared from the government's tax net, a spokesman for the Prime Minister said.
When asked whether the windfall tax on oil and gas producers' profits would be expanded to include electricity generators, the spokesman told Reuters: "We would not seek to make any new policies or major fiscal decisions. So there's no plans to do that.
"We will continue to evaluate the scale of the profits and consider appropriate steps but there's no plans to introduce or extend that to that group."
As of 1308 BST, shares of SSE were trading up by 3.22% to 1,748.0p on the back of the news, while those of Drax had shot up 8.44% to 713.0p.
Because effix said the price will plummet. I wonder if they have amended the short they purportedly taken out?
Any news on the big rise today?? Just touched 700!
The only thing I can think of is the Uniper release to the market (they need bailing out by the German government).. I sense rumours went around the market concerning utilities. The two things happened around 30 mins apart.
Drax is the complete opposite end of this situation. Drax is bailing out the country by keeping the lights on.
any knowledge on SUDDEN drop today recently
I think DRAX will fly tomorrow
outlined below - upgraded expectations and coming to assist the country in the coming winter.
Updated expectations for full year 2022
In response to increased pressure on European gas markets and associated concerns about electricity security of supply in the UK this winter, Drax continues to optimise its biomass generation and logistics. To accomplish this Drax is reprofiling biomass generation and supply from the summer to the winter, enabling it to provide high levels of reliable renewable electricity generation in the UK throughout the winter when demand is likely to be higher.
The Group also expects to provide additional support from pumped storage hydro at Cruachan Power Station, building on a strong year to date performance, which reflects a high level of system support activities.
Separately, at the request of the UK Government, Drax has now entered into an agreement with National Grid - in its capacity as the electricity systems operator - pursuant to which its two coal-fired units at Drax Power Station will remain available to provide a "winter contingency" service to the UK power system from October 2022 until the end of March 2023. The units will not generate commercially for the duration of the agreement and only operate if and when instructed to do so by National Grid.
Under the terms of the agreement, Drax will be paid a fee for the service and compensated for costs incurred, including coal costs, in connection with the operation of the coal units in accordance with the agreement.
Full year expectations
Reflecting these factors, Drax now expects that full year Adjusted EBITDA(1) for 2022 will be slightly above the top of the range of analyst expectations(2), subject to continued good operational performance.
That leak of the 'thinking' behind adding generators to the windfall tax has caused a lot of confusion around this stock.
Forward power prices for winter 22 and summer 23 are at all time highs. Calendar 23 power is £25/MWh higher than it was on 27th April, the date of the last update. The company has plenty of volume still to hedge for 2023 and 2024
The outlook for the company has gotten BETTER in the last two months.
I can get people being bearish on the rest of the economy. I don't get the bearishness on this stock absent a windfall tax.
I live approx 200 yards from the end of the branch line going into Drax. Regular deliveries going in today no problem.
You'd certainly be a qualified (if very poor financial manager) contrarian if you did short this share. I am very pleased to have topped up with another tranche last week. Do I sell and take that holiday in the South of France or wait a bit so I can run to a private jet to the Maldives.....choices, choices. So glad that I am ulikely to meet a cetaing shorter who this year might be holidaying on Canvey Island or Butlins Bognor Regis.....
Nice and you wouldn't want a short on this share at the moment...would you!! :-)
HSBC raises Drax price target to 955 (850) pence - 'buy'. A nice bit of news today.
"My short gains will become truly epic in the next weeks and months. I see it falling like a stone from here going forward"
Oh dear EFFIX, already up 10% since your latest prediction, you really haven't got a clue.
I copied and pasted the below from the SSE page. An explanation for the bounceback.
Ministers are backing away from a windfall tax on Britain's electricity generators in favour of a French-inspired consumer price mechanism in a battle to tame inflation.
Under plans being drawn up in Whitehall, a new system would break the link between the price of low-carbon electricity and that of natural gas, which has risen to record highs following Russia’s war on Ukraine.
This would allow energy suppliers to take advantage of the comparatively cheaper cost of electricity generated by wind and solar farms – and pass on the savings to households and businesses. In France, most electricity is generated by nuclear power. This has meant Emmanuel Macron’s government has been able to order EDF to sell energy at below market rates, shielding consumers.
Telegraph, paywall: https://www.telegraph.co.uk/business/2022/06/17/rishi-sunak-backs-away-windfall-tax-electricity-generators/
If it makes you enough cash to Foxtot Oscar from posting on this board, I for one will welcome a further drop in the sure and certain knowledge that any decline will be followed by a recovery within the next 18mths. Stop making a t*t of yourself and cash out and bow out.
My short gains will become truly epic in the next weeks and months. I see it falling like a stone from here going forward. Saw it way too many times with this trash stock to miss the opportunity to hit the jackpot!
you have a real problem my friend. pity your posts devalue an otherwise intelligent board
We got to 600p much faster than I expected. I’m moving my shorts target to 510p. Price action and Sunak’s steal suggest we’re going below 500p now. Hurrah!
At the time, CoCo was pontificating about DRX alone whereas this contagion is now affecting pretty much all equities. The business is cash generative, has cost control over much of its base feedstock and in a price inflated market. Its not nice to watch the price drop so quickly but the market is reacting normally and this business is still going to be providing dividend income to the LTH. Not the time to panic but an opportunity to monitor and slowly accumulate.
maybe effit is right for once......drax going under 600p?
Lets face it - some of these people cannot stand Drax regardless.
Quite simple - plaster the media with the following messgae - ' We are the biggest generator in the country and we are keeping the lights on. If you dont like it - do one!!!!!'