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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
No worries. From placing rns
§ The majority of the net proceeds of the Placing will be utilised to provide the funding required to enable the Company to commence and complete the Front End Engineering Design ("FEED") for the Project, which the Board considers to be a key step towards obtaining funding for construction of the Project and its commercialisation.
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§ Taking into account the remaining net proceeds of the Placing and current cash reserves, the Company is satisfied that it has sufficient working capital until the end of 2018.
Interesting links to what happened to Star Energy's Humbly Grove Gas storage site once Arun brokered the gas off take !
https://www.telegraph.co.uk/finance/newsbysector/energy/2821533/Petronas-buys-Star-Energy.html
https://www.reuters.com/article/petronas-trading-expansion/petronas-to-expand-european-gas-trading-desk-idUKLDE7300X420110401
Thanks EyeGuy.
But the last £1.4mn was not, at that time. "Seeking further £1.4m for the completion of the FEED and commercialisation process". Was there a placing to cover this element?
Page 9.
http://www.infrastrata.co.uk/images/stories/Presentations/infrastrata-agm-presentation-31-01-2018-v10.pdf
Feed costs are covered providing milestones hit.
Follow the new directors who've been hoovering up stock at around these prices. You don't spend those levels of cash on INFA shares if you're expecting negative news-flow. I'd say that's informed buying
I can't describe how important those levels of director buying does to my own confidence in holding stock here..
but always dyor
Thanks for the link, tidd.
Just a few questions as I get up to speed here:
1. Pocock mentioned that the EU will pay half of the FEED cost of 5mn (€, £ or $ btw?). Does Infa have the other half in cash ready to contribute?
2. The eventual capex mentioned was 300mn (€, £ or $ again?). He further mentioned that the 25% equity requirement of this would come in at the project level rather than as a hit to Infa shareholders. That being so, what will Infa end up with, if the project is owned by a consortium of IIs and industry majors with deep pockets? Pocock referred to an income stream at Infa, but exactly what will this income stream represent and can it be quantified yet in relation to Infa's MC, assuming a 20-year life conservatively? In that context, what sense can be made of the $60mn or so NPV of the asset?
Apologies if asked before. I am a total neophyte here.
ATB.
https://www.vitol.com/
Worth checking out who Vitol actually are then checking out NED Arun Raman link to them!
"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."
Not hard to join the dots and see why Arun was appointed imo
Surely, waiting for an industry offtake partner is the safest way to proceed here, even if a bit of the upside will be given away.
Picked up a few more @ 6.229 & 6.21 showing as sells. SP taking a breather, but good to see Director investing himself.
Can buy for 0.621p at the moment, only just above the bid price.
A couple of small trades have gone through NEX since then. Most recent was at 13.26.
this is odd. Last trade timed at 9.04am though at least the selling's stopped.
A period of price consolidation around this area prior to more news would be greatly welcome. 1p by Xmas would be even more welcome!
gla
Over 50% feed achieved, Tremendous progress being made, On time on budget, Project being constrructed as planned, Expression of interest EOI started, Preparing for construction phase, Proving being done project risk being reduced, Engageing with network operators, Infrastructure being designed to cope with phase three, Possible EU funding in the future, EPC invited to EOI in compliance of EU grant process, CBRE in discussion with UK, EU and international companies for funding, Detailed discussions are ongoing with major gas storage and trading companies to secure an offtake partner. Board members putting skin in the game
Looks like green lights all the way for gas storage.
https://cadentgas.com/about-us/innovation/projects/liverpool-manchester-hydrogen-cluster
Just for Naz lol
Using the existing gas grid to transport and STORE decarbonised gas saves billions in infrastructure spend
Nutter is back lol
Tidd, we tend to ignore our friend Naz lol