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100% owned Strutt Website is out of date I would link rns but I'm too busy atm
Do some research and then come back on the thread. You'll find snippets on the net that will alleviate your concerns
Always dyor, always and then back it up with some BB discussion
put those pieces of the jigsaw together yourself - it's much more satisfying when you do your investigation
Older, I have two concerns, firstly the first stage of construction is estimated £100M then the remaining £200M is going to be debt which will need servicing.
Secondly If brexit ends in a no deal situation how does that affect funding from the EU.
Spud, my understanding is...
Islandmagee Storage Limited (“IMSL”), is owned 90% by a wholly owned subsidiary of InfraStrata plc and 10% by a wholly owned subsidiary of Mutual Energy Limited
not 100% as you suggest?
That 426,129 is a buy by the way
I've bought 1mn at 0.6p yesterday afternoon and this morning.
So are the 0.6p trades buys? I always thought only DMA traders could buy off the bid? There must be surplus stock around if you're able to buy at bid!
Hi EyeGuy,
I think you're right. There's a seller about, as you can buy right on the bid yesterday and today.
Infrastrata plc own 100% of islandmagee storage ltd (the project) any entity wishing to acquire the project would (imo) have to make an offer to infa
Old
You're asking questions we can't answer fella.
Trust the management to do the right thing
One last question,
In Infa's Jan 2018 presentation, they state:
"Due to the nature of the process, we expect the project to be viewed as a long-term investment. With that view, the expected yield is a
15% ROI. "
Now, my question to anyone is, is the 15% ROI based on an unleveraged capital investment in the project (at project level) or using the 65/35 debt/equity split?
Also, if another entity (or entities) acquire the project 100% by committing to the £308mn of capex, what's left in it for Infa? Will Infa get a small free carried %, or an annual royalty income for putting it all together, or simply be paid out a capital sum that recognises the work done , sunk costs and goodwill incurred up until the point of a deal?
O and W. I personally thought warrants were being done over last few weeks - maybe as part of a larger block list.
Not 100%. Wait and see
http://tradeinsight.co.uk/infrastrata-its-finally-happening/
A very well researched blog by David Marshall (a private investor )
In the relatively short time since it was published a lot has happened
Thanks everyone for your replies.
You have the advantage over me in that you have all been here quite a while, whilst I am still building up a picture in my mind of where Infa is at, and going, from a standing start.
older,
No, I'm not surprised but then I'm not privy to company internals. We can only place our faith and trust in management to do the right thing for the shareholder. You can perform all the due diligence and research to exhaustion but without trustworthy and competent management it's all 'gonna' turn to dust.
I trust this management to do the right thing for the company and therefore for its owners ie the shareholder.
I am sure they know what they're doing. The EU believe in them though that's no recommendation!
It's a binary. Buy and hold the stock or don't hold the stock at all. That's investing for you
https://www.icis.com/resources/news/2011/04/01/9449096/petronas-buys-out-vitol-at-humbly-grove/#
"PETRONAS Energy Trading will be using Humbly Grove's storage capacity to optimise its UK gas portfolio in combination with its flexible Dragon LNG terminal send-out capacity, and other UK and northwest European (NWE) gas positions," the group said. It added that it will also be looking to add more flexible gas positions to its portfolio."
Arun Raman
Arun Raman has spent the past 20 years within the commodities and infrastructure sector. While at Star Energy Group plc (now known as Petronas Energy Trading Ltd.), Arun was responsible for commercialising its 10BCF Humbly Grove Underground Gas Storage Project, including the negotiation and commercial delivery of the Gas Storage Agreement with Vitol SA as the capacity offtake client. He also negotiated and executed agreements with the National Grid in relation to physical gas flows between the Humbly Grove gas storage facility and the National Transmission System. On the trading side, Arun set up trading desks for natural gas, power and carbon emissions for the group.
Â
Following on from there, Arun was hired by Vitol Services Ltd. in London where he was actively trading carbon emissions and other commodities. Arun specialises in commercial negotiations and monetising assets underpinned by commodity flows as well as trading of commodities around such assets."
Petronas have made their intentions clear as far as UK gas assets are concerned.
Exciting times.........
I'm assuming SI Capital have advised their clients they expect a higher share price.
It'snot stopping the COO adding at these prices
Morning schlemiel,
Absolutely right there. There is so much hidden value in the current MC relative to what is the replacement cost of this venture so far. I'm just concerning myself with near-term funding needs, over and above FEED which is covered.
Aren't you surprised that no warrants have been exercised yet?
Ask yourself this question. How much would it cost a company to start the entire process of developing storage at Islandmagee? The process being :
Formulation of the idea
Setting up a new company to develop the process from start through to pre-construction
Securing planning permission, permits, EU PCI status
Hiring staff
Securing funding
Securing the expertise and developing those important commercial, political (EU, UKG, NIREG, IREG) and financial relationships so important to developing a 'public' asset of this size
Developing inter-company relationships
Fixtures, fittings and premises
and all the other expenses required for such an enterprise
All the above takes TIME AND EXPENSE. Well, INFA has already been through this entire process.
I believe mgt is incurring minimal expenses to FEED and then maybe looking to sell to the highest bidder, assuming there is one of course
Over the long term LNG is going to become so important to the Irish economy (both Ire and N-Ire) and storage and security will become a priority. Islandmagee could become a US import LNG hub, transit,. trading and storage site into Europe and Ireland
I don't know what may happen though. We can only wait for news
Answering my own question, in the April placing the following was written:
"Placing Shares have a '1 for 2 warrant' attached to subscribe for further new ordinary shares at 0.48p per share exercisable within 3 years. Should all 192,708,333 warrants be exercised this would raise an additional £925,000 for the Company."
So, as half yearly SG&A was about £400k, warrant conversion should be enough to cover WC costs out to June 2019, even with additional costs associated with the hire of the new COO.
It's just a question of seeing these warrants getting converted in size now. I haven't seen any RNS yet, to indicate this process has begun.
Thanks guys.
Are you satisfied that Infa has enough WC to get through 2019 H1 without another placing, after the FEED has been completed? Will warrant exercises be enough?
Seems to me this is one of the very few issues outstanding here.
.48 from that placing eyeguy
Last point I’ll check tomorrow if strike is 0.48p or 0.6p.
They placed £925k.
Currently imo in this range warrants are being done- which is fine by me as it provides more working capital.
Strike price 0.6p