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AKHM,
QED have said it many times, big companies are slow movers. They aren't kidding. But the lawyers are even slower movers as they get paid for every letter, phone call, word on a document, could be an eye watering hourly for MSC's lawyers.
https://aaronhall.com/which-lawyers-have-the-highest-rates-how-much-do-they-charge/
But the legal agreements must be flawless to all parties and there are three of them all wanting to make sure that the wording does not disenfranchise them in even the minutest way, so it is a laborious process of working out what each party wants written, then getting compromises, then putting the documents out for the 3 of them to read and give feedback, then repeat over and over until the final document is accepted by all parties.
JM said QED can get back really quickly. When you consider that their part is the smaller of the 3 and they have limited requirements (supply Surfactants, MMU, expertise, etc, and take a cut of the savings) so will unlikely have much they want changed at any point. Whereas the other two are huge and will take their time to get back, and also have big lawyers that have to look at it from the position of the massive companies they are dealing with, so will have round after round of back and forth with the contracts.
It will all get signed off when they finish nailing it down, simple as that, it has to conclude at some point.
You couldn't write it! You would think some of these companies would be fast tracking and prioritising everything to get these new fuels trialled, tested and into commercial production.
Https://shipandbunker.com/news/world/969118-hapag-lloyd-sets-out-challenges-of-biofuel-bunker-procuremen
Mildly amusing I have to say.
It is hard to figure out precisely what a realistic value for Quadrise is until the first deals are signed, revenues flow, and we see some formal results published. I think that's the first hurdle, but it will hopefully give us a very rough idea.
But there are several other important factors: it is highly likely that the first movers will negotiate and receive early adopter deals. And fair enough, they're being more forward-looking by acting as anchor customers, which benefits us. If that hypothesis is true, customers that come on board post-commercialisation could/should net Quarise better per-tonne revenues.
Another factor is that our products are also partly linked to commodity prices (conventional and bio), regulatory factors (CO2 trading), subsidies, etc. So, there'll naturally be quite a bit of variation.
In short, I think we can go from "thumb in air" to "ballpark" once first deals are signed and start flowing through, and then iteratively refine more accurate models and predictions that factor in the aspects discussed above.
It may multiply to what though . I want to see this company go to its highest potential so a multiplier from some positive RNSs won’t get it to where I want it to be . Only serious commercial revenues will do that. We all have our “get out “ price. Mine is high . Good luck to all !!
"Price will do nothing significant until commercial revenues."
This is AIM, the SP is all about future prospects, and it will explode with a couple of decent RNS's
Plenty of scope for you to rinse and repeat, as usual.
Laughable if it wasn't so false and misleading.
Everyone that knows QED expects the share price to multiply on the MSC agreement signing, even if they will never say that one here.
Basically this is all there is to say on this board. Price will do nothing significant until commercial revenues.
For one it’s a large scale trial which will require a fuel supplier. Doubt very much QED is capable of supplying at that scale. So then you’re talking about another tripartite agreement, looking to tie up commercial deals along with trials. Cepsa wouldn’t want a repeat of the Maersk back stab so it will take more to get this moving imo. Also, the larger trial will likely confirm the economics better than the 60 tonne trail at site B. It’s likely this has been the plan all along, “commercial discussions” can cover a wide area.
I hope Cepsa are interested again, but who knows.
What are peoples thoughts on the holdup re Morocco. The test was completed end of last year and results submitted to client. Why on earth are we not in a position to start the second trial on other plant?
Yes, what I just said. Morocco covers most running costs while the big prize has a chance to come to fruition.
A small commercial income is better for the share price that being very close to a large commercial income. Buyers want a derisked investment
Ultimately, the day QED show by their results that they are actually on and moving along the pathway to commercial income, is when the more risk averse investor will see us as a good buy. You`ll know when that day comes because the SP will shift significantly in a matter of days to levels not seen in many years.
A Morocco commercial deal along with a LONO underway should achieve such an outcome, but in the meantime we`re at the whim of short term traders and shorters waiting in the wings for an opportunity.
My sense is that this is another classic case of slightly ambiguous communication by the company that has led to further confusion of shareholders. They probably issued the MSC RNS due to multiple enquiries from shareholders to kill many birds with one stone (and/or guidance from the NOMAD), though it has been received negatively because we are ultimately in the dark. I do think there are sufficient irons in the fire for us to get some tangible progress this quarter and we'll just have to wait e.g. there should be progress in Utah now re: drilling. They just need to keep the momentum up and start closing. Easiest way to shut us all up!
Having read the transcript and looking at the bare facts presented therein, there seem to be multiple positive fronts to the business plan, several in final stages.
From the transcript:
"In parallel, there’s some further work going on in Q2 that covers testing of bioMSAR, further formulations of that including a net zero project at Aquafuel and accelerating the possibilities of commercial rollout of bioMSAR Zero as well. We’re looking at other applications potentially to fast track that particular rollout of basically a B100 which is a 100% biofuel product as well."
From the Directors Talk video, Fast track bioMSAR and a B100 bioMSAR Zero in Q2 (now), looking at other markets to get them moving,