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I Didn't think this could have went any lower..is there any light at the end of the tunnel..??
Well the sale is going through but to be fair, we knew that already. The company needs to shake of this jam tomorrow reputation and giving dates for the sale of Australian plant and then missing them really does not help.
Moan over.
Yes, happy may have been the wrong word. Pretty much every year there has been concerns about feestock, so it was more to do with the contrast. Based on the reading from lots of updates, personally, I get the impression that they're pleased with the results from their feedstock supply push.
I'm not expecting, or at least discounting, anything from slickers. Nice if it happens but I'd much rather they concentrated on the US market. If we could swap the previous international plans, to US ones, we'd now be in a much better position.
They are progressing but they earned the label of jam tomorrow and they still need to prove with figures.
Feedstock up on same period last year but wasn’t that a quiet period last year?
Good to hear a bit more of other possible revenues. No news about alliance with slickers.
Is the resolution about buyback of shares a standard vote?
Hydrodec have had a hard time over the years and I think they will come good but they need to prove it with profit.
The sale price was in the middle of my ‘guesstimate’ of $1-2m, not wonderful but the possible extra revenue in royalty payments is welcome. More to the point, once complete, the onerous tolling charges will stop.
I’m surprised the needle didn’t move by much but the update belies/hides the potential. I can’t remember the last time when Hydrodec reported they were happy with feedstock supply. I’ve been following this for more than 10 years. This at a time when output capacity is 2-3x that of old. The multiplier effect kicks in only when they reach high levels of utilisation. The extra product line is something I’ve been expecting/waiting for a long time.
Moving into profit is now when, not if, but we do need a benign economic backdrop to continue, and there are some future headwinds on the horizon, not least of which are geopolitical.
I’m pleased with progress, and if they can get a foot inside California, that really would be game changing. I suspect it won’t be done alone, maybe through licensing or joint venture, and only once the current business model proves to watchers that it turns a profit.
Did anyone go?
Has anyone noticed the last resolution passed at the agm?
Hydrodec has released an encouraging AGM statement this morning with a number of positive developments which should start to crystallise the upside in the shares, notably the sale of the Australian operations and the potential addition of a complimentary product that could drive higher utilisation earlier than previously expected. The utility focus and market developments are also making progress, justifying the Group’s strategy and the Board remains confident in the outlook for 2019 and beyond. Reiterate buy.
The Group has announced that it has agreed in principle the sale of the Australian plant for A$2m (US$1.4m but excluding decommissioning and associated costs). The expected closing date for the transaction is 30 June. While the disposal proceeds are below our expectations of US$2m, we welcome the transaction and see a small incremental positive development in the licensing and royalty payments to Hydrodec which are not factored in to current forecasts.
New supplies of feedstock to the Canton plant are at record levels with a number of new suppliers now delivering to the facility. As such, refining volumes are ahead of 2018 levels of c. 50% utilisation and accelerating towards our current year forecast of 70% utilisation.
Hydrodec has identified a complimentary product line with a large existing market, using parrafinic feedstock (instead of napthenic). While the main focus remains on building up the napthenic feedstock supplies to drive SUPERFINE sales, the Group is currently negotiating to purchase parrafinic feedstock to market new products, raising nearterm utilisation which should ultimately be accretive to earnings.
We make no change to forecasts at this time. Hydrodec trades on 4.1x EV/EBITDA, 7.7x P/E, 6.9% dividend yield and a 16% FCF yield (all 2020E). We believe the existing assets and potential for high cash returns are extremely attractive to equity investors at current levels and reiterate our buy rating and 100p price target.
Very positive update though I must point out that the plant is NOT sold yet. As usual with most things in life, everything always takes longer to do in reality.
It will certainly be interesting to see the full deal figures at end. As usual though, this might still run later than June but I wouldn't worry if it does.
Lord Moynihan and David Dinwoodie certainly are working hard and spending a considerable amount of time in the US.
The new paraffinic product line is very good news. Shows there are looking at new revenue streams and one with a good feedstock from.
HYR could well of now seen the bottom regarding the share price. A lot to do still this year and things WILL probably run behind schedule but overall I am very happy with this progress.
Looking forward to hearing from the AGM today.
That was certainly an interesting read. Looks extremely positive though they still need to deliver. Should be a good rise today I’d guess and further news to come later.
There you go 42trader. Australian plant sold for 2 million Australian dollars + royalties for minimum of 7 years.
Seems some are getting itchy feet and sold out. I can understand that as AGM is just 2 days away and no news of the sell of the Aus. plant yet.
Possibly a buying op if the plant sale is delayed?
Thanks legobrickgirl, and you.
Yeah, its a long way to travel, and it finishes pretty quickly.
I would think 1-2 million for the plant. It’s a buyers market as they say.
This site has missed the second rns stating AGM on 20/06 as well as results on their website. Nothing too important.
I’m almost tempted to go to the AGM, just a long way to travel.
Hope your well.
If you strip out the strategic review costs, and the AUS write down, the picture is pretty strong. I'm assuming the partner in Australia became a hostile one. i.e prevented site access, maybe even legal means to slow down the sale etc. Not something you can stop if that is what happened.
I'm not sure I've read it correctly but the tolling agreement must've included a clause that had Hydrodec paying an onerous set amount whether it is in operation, or not. Presumably the eye watering 7.1m, included this, plus legal/termination costs, and business write down valuation... a bitter pill, given it didn't generate very much revenue.
Carbon credits are becoming a useful additional revenue, as well as the unique selling point.
I wonder what the sale price will be for AUS, under $1m, $2m?
http://www.chartupload.com/viewer.php?file=31675616875638378018.png
Seems the two year plan is on tract. Can they now proceed with year two and boost feedstock and revenues?
Obviously it is negative that the debt has increased but I suppose it was always going to be e pensive getting rid of the plant in Australia. But at least now they have an offer and they are not looking at relocating.
I added £4K this morning. I wish I had hung on with my original buy as the share price has dropped to the support level of 57p where it has bounced. I’m hoping this is the bottom and now provides a 4 bagger to The brokers second target of £2:50.
It does feel like jam tomorrow some times, but it also feels like some progress has been made. Just need confirmation in the coming weeks for the sale of the Australian plant.
Good luck to anyone who’s left here.
Hydrodec has released full year 2018 results following the pre-close trading update at the end of March. Revenue increased to $14.9m at the Canton facility in the US with an overall Group Adjusted EBITDA loss of $1.2m, driven by costs of business reorganisation. The results commentary reinforces Hydrodec’s key strategic objective to deliver
substantial increases in feedstock levels available to the Canton facility to support the US focused utility strategy. The recent management changes and newly appointed marketing personnel should support this objective to drive increasing utilisation and, in our view, the Group is increasingly well positioned in this market which lends credibility to our buy thesis.
The Group ended 2018 with $2.2m of cash and net debt of $9.3m. The slower than expected disposal process in Australia (expected to complete in June) and related cash burn are impacting cash flow but support from Andrew Black and potential to re-finance the lease arrangements in the US should continue to fund the Group’s strategic
ambitions so we see the Group’s cash position and overall funding as lower risk at this time.
It appears to us that the Group is benefiting from some of the changes already made, including the realigned relationship with G&S, new management and marketing personnel and in their relationships with feedstock suppliers. While it is early days, we see significant positives in how the Group has navigated some challenging issues and are
encouraged by the strategic progress with the Board confident of meeting current market expectations for 2019.
We make no change to 2019 forecasts. Hydrodec trades on 3.7x EV/EBITDA, 8.8x P/E, 6.0% dividend yield and a 14% FCF yield (all 2020E). Although we acknowledge execution is required through 2019, and is being demonstrated in our view, we believe the existing assets and potential for high cash returns are extremely attractive to equity investors and reiterate our buy rating and 100p price target.
Just tried again selling and still able to sell full £12k but I am able to buy without going to NT.
Good and bad news here but i'm guessing it was what was expected.
The obvious negative was the increase in loss due to the length of time it has taken to sell the Australian plant and maintaining the costs. I'm guessing it was these costs that have delayed the sell.
The good news here is it looks like the Australian plant will go soon (by 20th June). This should then allow for extra finance to fund Canton and push for more feedstock.
The Carbon Credits will likely be used to bribe companies that are heavy polluters to reduce their carbon offset while selling their feedstock to HYR.
Here's the link that JetSetWilly mentioned.
https://www.hydrodec.com/media-centre/news/2019
Trade wise, I am able to sell my full holding of £12k which is the first I have seen as prevoiusly was only able to sell about £1-3k at a time. Buying wise, I am able to buy £4k worth before it goes to NT.
Pretty much as expected given what they had said in last trading update. Oz has been more of a drag than expected but they sound confident of a sale. And they are saying still expect to meet market expectations for this year which is positive. Looks like they are going to try to be more open too - there are a number of other non RNS “news” pieces on the website this morning which look like were timed with results.
Well there we have it ,same old story, poor management by Colin and his boys once again, can see 50p on the way .
Good to see a large buy go through.
Been able to buy smaller trades of £1.5k at 64p and sell at 64.1p. Strange eh? Not big enough to make a profit straight away. MMS trying to make the share more liquid maybe? Good to see you can sell £1500 without going NT where before used to be as little as £300. Not sure if that changed today after the £40k buy or whether it was earlier.
I’m tempted to buy more but it’s not far off my original buy so will wait and only buy more if it does drop more.
The 60p bottom you've called looks like a good call. Time will tell. With a NAV of $1.04 and an enterprise value at over double the market cap makes HYR certainly looks cheap.
It is possible to buy at 64p for smaller trades which suggests most trades shown are actual buys.
Just bought in here today after releasing equity from BOO yesterday as I see a far better potential here now, albeit with more risk.
Read into this what ever, but I notice the share is not as illquid as it was a few months ago.
I notice the 56p resistance level LBG mentioned, but I am not show tbh if the sp will drop much further. Holding cash to add on further drops.