George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Pathetic chat and irrelevant now as the ground works have been shelved and all the heart has been removed.
BESS is better.
Historically sub coal pallets would have been a nice thing but apparently the Welsh Moratorium put an end to sub coal plastic pellets.
It is water under the bridge and gone.
Good to see it coming along and SAE barely even mentioned. Actually think it's quite welcome to be just a plain old project developer. Construction completion and progress will help unlock new opportunities too - companies aren't taking any unnecessary risks investing in plans right now and material facts in place should open things up a bit.
Powerhouse aren't burning plastic. They will be converting it using heat and pressure. The Welsh moratorium is for burning waste.
Yeah, that's what I'm meaning. Maybe we can try again if powerhouse got the green light?!?
Wales already rejected one waste to energy project from SAE
Cute.
Stuttgart, Baader Bank and gettex have over 300% spread.
Yes, I'm heavily invested and very optimistic about PHE. Recently it has been coming into a positive news flow but hasn't been without problems getting to this point. PHE share price finally looks to be breaking out after a 90% drop over 3 years.
Anyone else read about phe - power house energy getting to turn plastics into energy in Wales. Is that not what we wanted to do?!?
And a spread of over 20%
The SP is a complete joke and it is getting choked.
The lack of comms imo strikes alarm bells yet again after the abatement bonus was given.
To SAE bod pull your socks up and give investors a bloody chance
No, I agree with what you say about tidal stream. This SHOULD be the case. The issue however from a political angle, is politicals often like big eye-catching projects as PR stunts. Then when reality hits, such projects are often overdue and overpriced compared to if they had done it in small increments (See. HS2). However, maybe you are right in the sense of a rising tide lifts all boats.
Like others here, I am just annoyed with all the sod's law moments the company has had to endure. I do agree management have done exceedingly well given the circumstances (even if they have had to act rather ruthlessly and make incredibly difficult decisions to keep our heads above water).
It will be interesting to see how things unfold, but part of me is cautiously optimistic in the medium to long run.
Tidal stream is also exportable - you can sell turbines around the world and ship them in ways you can't big concrete barrages. Barrages are always eye-catching because they can generate loads of power and being so place-specific represent regional opportunities. They also deliver very cheap and reliable power but the payback is more over 50-100 years while CFD structure is for 15 (although change is apparently coming to recognise barrage ROI over long periods). Another example of how UK policy in particular is short termist. I do think energy price shock of recent years will however have focused minds in regional authorities and so some of these good value projects may finally happen. It is all good for the tidal supply chain because of similarities of many parts and resulting economy of scale in a developing sector.
People should be complaining loudly about the need for a £30m ring fence and the need for an official target for tidal by 2030, but I think the current level of support is now, without wanting to jinx it, low but secure enough. The flop of the last CFD auction due to higher costs, and quick increase to auction prices in the next round, I think shows the government got at least some of the message that it can't be complacent or mess about any more. Tidal should have been here in 2017 but better late than never.
The whole tidal stream sector is imo doing well. Orbital just got a new project in the US, Hydrowing seem to be developing at a good rate, and Nova continue to bring in big funding and in Edinburgh their factory is operational and producing turbines. They also have their Canadian, French and Indonesian projects and I think will bid for a CFD this year. The Proteus news from Japan is also good news for the sector and 20% very good news for SAE!
Share price - I think we will get news on BESS soon and I think development of BESS at Meygen in the medium term also. Overall Meygen is a 300MW power plant with no fuel costs, so at some point the revenue will be there (as it would have been with Usk). For now and people have money parked in savings accounts or stocks paying dividends but as SAE hits milestones, at current prices it is going get gradually more attractive, but hard to say especially with macro trends at what precise point that is. As many have said I think the team managed crises of recent years pretty well all considered and it is exciting if choppy to be involved with the biggest company in probablt the most exciting sector of the renewables economy.
My friend has sent me this today:
https://www.reddit.com/r/SimecAtlantisEnergy/s/xGbLGP2qXQ
Https://proteusmr.com/2024/03/12/operational-highlights-retrieval-of-the-ar500-turbine/
What about tidal lagoon and tidal barrage projects? It seems current government and industry discourse around tidal seems to be emphasizing them more. I would assume there would be more flexibility with using tidal stream, as it would take less time to set up such devices comparatively compared to barrages and lagoons.
Also, what about the likes of NOVA innovation? I am assuming you are betting on SAE because they are in the tidal real estate business now, rather than the production of tidal turbines. I do think there is money to be made here, but there are too many issues with the uncertainty caused by the UK’s political system. It’s a lot like the weather: Unpredictable in the medium to long run.
It’s just annoying thinking about how bad management of the UK economy means there are a load of weaknesses in regard to our energy production that can be exploited in the geopolitical arena in future (among other things).
Same vessel as a couple of weeks ago I think, in gills bay near the cables.
I understand. Well, I agree that things turned around a bit for SAE, and for now they seem fine, but it's still really challenging for them. As you mentioned, market conditions aren't paritcularly easy as well right now.
That being said, and all positive development acknowledged, in the end any investor wants to see some returns and as it stands today, SAE has a long way to go here until it can prove to generate a positive cash-flow without relying on public money.
Anybody looking for an explanation of why the market cap is where it stands today, I'd say the explanation is rather evident.
Not saying things can't turn around drastically though.
Should tidal energy gain serious traction in the upcoming years, SAE is going to have good cards, given the experience they and the people at Proteus have by now. If I weren't already in, and wanted to bet on tidal stream energy, SAE is still the best bet imo.
No price target here and did not want to be too harsh in response, I just felt you painted it a little bit too much like a lost cause when reality is we know the creditors are supportive and that things are improving: debentures rolled-over, going concern status resolved, moved to profitability and should have more of the one-off payments for BESS that brought that improvement about.
It is just a hell of a market right now, and you can get 5% in a bank for no risk. SAE turned a very positive few corners just as the world economy turned some very negative ones, but at some point I think that will right itself and patience will be rewarded. It isn't like there are other small cap or even big ESG stocks with a positive story right now.
Well, I didn't intend to be negative here. But it's. A fact that the company has a lot of debt and uncertainty in their baggage. That's a fair explanation for the current share price. Tidal remains expensive and until SAE can make a profit, some money will have to flow into repayments and interest. Whether or not there is hope for tidal remains speculation and the book-value market cap tells as that, at least for now, the market does not have a lot of confidence.
I believe that this could change once MeyGen and BESS are on track. But I only tried to explain the low market cap after all.
I have no price target for SAE but would love to hear some (with an explanation if possible).
Labour will be better but it depends on things like if the Greens can pressure them in marginal seats. Good to see Marine Energy UK have now said it wants to see a £30m tidal ring-fence. Every tidal company that is now growing also adds to its ability to make this case.
That said I think Mister Tidal is being negative - Meygen's main creditors are Scottish Enterprise who have an interest in the sector succeeding, are doing the long term development funding tidal needs, and unlikely to want to do anything that jeopardises Scotland and the world's biggest tidal stream project.
Also Meygen does not rely on public money - it relies on government making policy that supports new and beneficial technologies, in a way government should be expected to. These are not the same thing.
Meygen and USK need to hit milestones and probably will but at a pace not unusual for significant infrastructure projects. There is also lots of evidence that tidal - especially paired with storage - is a superior renewable energy source to others.
As always, we are in a bad market, and renewables funds that booked bumper years can still expect to be 20% down on last year's prices. At some point this will also change, and I think SAE hovering around 1.2 on promise of good news has now at 0.8 just taken the hit already seen in the SPs of other big funds over recent months. As always, it does not track the market tightly.
I think you have the right approach. What do you think of the prospects of getting kept afloat by Uskmouth for the meantime? And also, do you trust Labour when it comes to talk about Tidal. They seemed serious about it in 2019, but now, god knows. It's probably just PR.
The market cap sits at the book value because that's all you get if the company files for bankruptcy which it almost did. And now it's only alive because of the mercy (or desperation) of their creditors. Until they can prove that they can produce positive cash flow and avoid getting destroyed by their debt, there is little to no hope for SAE. On top of that, it is highly dependent on large sums being granted from the public. It's highly political on top of the fact that there is no prove that tidal is viable in larger scale and/or whether it can outperform other sources for energy.
We all "hope" that SAE will succeed here but there's so much uncertainty and debt.. without getting things in order no one would place anything else than play money on this stock right now.
Even if things started to look slightly better recently, there's still a long way to go.
Their debt is crippling and their market cap does not really allow to raise money either and now they need £100m (my guess) for the next phase.
So yeah, it's tough times for SAE.
Not trying to be negative here but I guess these are the facts.
Why?
It's actually pretty obvious why the share price is where it is today..