Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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In the December update Larry said:
"The development of Mistral is on track. I'm very proud of our product development team and the progress they are making toward a product that will be transformational for Invinity. I firmly believe that the official launch of Mistral next year will be the most significant announcement in the entire stationary energy storage market in all of 2024."
Brand new battery, government support and industry tailwinds. All providing forward momentum for IES.
there’s a chance to see an estimated sevenfold increase to more than 50 gigawatts in capacity connected to transmission networks by 2030, according to aurora energy research cited in this bloomberg news report. that’ll help store more power when it’s abundant, distribute it when it’s scarce and align governments with net-zero emissions goals.
europe is about to get a burst of activity in battery storage projects, with the uk, ireland and italy leading investment across the region.
the battery trend is accelerating in europe on the wake of the us inflation reduction act, which offers investment tax credits for domestic solar, battery and electric-vehicle factories. another example of the ramp-up is in australia, where utility-scale installations will more than double this year.
in europe, the uk is forecast to *****uple energy storage capacity by 2030. britain has added more large-scale capacity in 2022 than any other nation, according to the european association for storage of energy industry group.
“france, germany, poland are seeing what’s happening in the uk and saying, ‘great, batteries work,’” peter kavanagh, chief executive officer of harmony energy storage. “let’s embrace and change policy to enable them.”
Another Lithium Plant goes up in flames: https://www.telegraph.co.uk/world-news/2024/02/18/lithium-battery-warehouse-flames-recycle-plant/
After selling at 33….thank you sellers you saved me a few thousands
It's absolutely wild that you have the likes of ITM able to raise £420m over 2020 and 2021 and what they have to show for it is £4m revs in 2021, £5.6m revs in 2022 and £5.23m revs in 2023 (£101m loss) and here we have IES who has seen revenues increase 500% over the past year to ~£21.6m yet are seemingly struggling to even raise as much as they have received in grants from the Department for Energy Security and Net Zero...
The difference in private sector funding since 2020/21 is, as I said, wild.
Just imagine another company seeing all the developments in China decided to pivot and become a vrfb manufacturer now? They’d be at least three years behind and need to be able to raise £50m… at a minimum … in this environment?!
IES are the outright ex China global leaders in this relatively new tech, they’ve just got to bring it home now and deliver on all the promise.
Plus the company’s outlook has never been stronger 👍
The big positive is that IES got significant funding away when they needed it - £22.5m in 2020, £29m at the back end of 2021 and £21.5m last year.
Now with the market cap much lower they'd be unable to raise the above amounts through equity but the mcap still remains supportive enough to get enough funding over the line in combination with a sensible loan package, as you point out.
Bear in mind the warrants were to be exercised at 50p so we're only talking £7.25m or less required in order to have funding to Dec 31st.
Would imagine they'll be looking for much greater funding to get them right through to cash positive in early 2025 though.
Thanks, April 24 should be the worst case scenario, like you say there should be enough behind them now to get a sensible loan package together. They still seem to be recruiting which is a good sign I feel.
This is the relevant part of the interims and why the share price has fallen so:
'Going concern
In assessing whether the Group has the ability to continue as a going concern the Directors have modelled a base cash flow forecast for a period up to 31 December 2024. The Directors have prepared a base case scenario that assumes the 14.5m Short-Term warrants originally granted in 2021 ("Short-Term Warrants"), are exercised. Under this scenario the Group would expect to remain cash positive for the period up to 31 December 2024 assessed for going concern purposes. The forecast does indicate that the Group would move into negative cash shortly after the period assessed for going concern as a result of working capital investment on future sales. The Group would defer any working capital investment if it were to result in exhausting all cash. This forecast is also based on delivering existing signed sales contracts during 2023 as per forecast gross margins and existing and future sales contracts during 2024 at anticipated positive gross margins. The Directors recognise there is a risk that the Short-Term Warrants will not be exercised if they are not 'in the money' before the expiry date and given it is not at the discretion of the Group.
In assessing going concern the Directors have also prepared a severe but plausible downside scenario which forecasts delivery of existing and future sales being made during 2024 being delayed beyond June 2024 and forecasted margins not being achieved, and the Short-Term warrants not being exercised. Under this scenario the Group would exhaust all available cash by April 2024 and it will be necessary to raise further funding within the next 12 months in order to continue trading and deliver on the strategic objectives.'
The deadline for the short term warrants has now passed so some sort of funding, all things being equal, will be coming in the next couple of months. What with IES being close to cash flow positive debt financing must be one option at this stage...
Agreed but they had been banking on warrant proceeds in their forecasts so it will be interesting to see if they can survive without a placing. Recent updates have been promising so no news is probably good. At least vanadium is now quite cheap.
Possibly a small one with a strategic partner, not back on the open market at this low of a price.
Previous placings have been at 175p, 100p and 32p. To be forced into one even lower with their flagship, cash generating Mistral product so close to market (H2 2024?) would be mighty frustrating.
Thanks all for the responses.
Probably, have all the warrants now been timed out?
I expect this to have at least one more placing before getting to cash flow positive next year
Well my apologies if I am wrong but the only Invinity Energy I could find appears to be an Arabic site.
Sahid, there is, it's called 'Invinity Energy Systems' although there is more IES related info posted on BMN telegram groups than there is on the IES specific group. So doesn't really add much value.
No there is no Telegram group for IES.
Easy for you to check for any group, just type into the search bar at the top of your chat page.
Yes but it's never been very active.
Is there a telegram group for IES investors?
Should settle around the low 20s
The lack of concrete news since the highly positive Investor Meet in September really is very disappointing and more than explains the sell off since.
And selling this off. Anyone have access to the full shares traded today? Doesn’t seem that much traffic going through. Mind you, doesn’t take much to move it down ten per cent…