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That's all I can see.
So, can anybody explain in detail why we are happy about a struggling company that sells its assets?
Yes, we had insider buying stock but why exactly is still not obvious to me.
Getting some money short term is great and much needed but what's the long term plan now?
Develop MeyGen which can certainly make use of this money but will anything be left given the companies debt situation?
Where are the analysts when you need them?
Evening Mister Tidal all they have sold is the 1st 230mw.The total planed for Uskmouth is 1GW for that they have received-pre payment of £10m and now sold the lease for the future payments from Quinbrook for the 230mw (only )for £9.8m.
Hope that helps
For a company with a capitalised value of c6m prior to the announcement of a sale of part of its freehold property for c£10m, this would seem an important asset realization. However it would be interesting to know
a) what the book value is of this interest, and
b) the income received from the current lessee which will now be foregone
Hopefully we’ll see a considered response tomorrow in the market
GLA
My first instinct was oh dear they're selling off their assets. Then I realised that if 75% vote in favour of the change then they will have faith in this being the right move for the company with a plan up to 2030. I am not an expert at these things just a novice investor. I eagerly await what the out come off that vote is. That should tell us where the analytics are with this move.
Hello OT!
I think it's a language barrier for me here 😅
So, they get £10m now and another £10m over the next 30 years? There's some phrases I find hard to translate unfortunately
No Mister Tidal they have already had £10m they will get another £9.8m in staged payments over next 18 months. That is just for phase 1
The other planned Bess project contracts of approximately 750mw have yet to be announced .Maybe they have sold it too cheap but without the sale SAE s prospects would have been somewhat limited.
Okay, I understand. Thank you for the clarification.
So, while it's not the best thing in the world, we can still be happy that there have been assets which SAE has access to while working on MeyGen. If SAE gets in total £20m, whether that's too cheap or not, that's (almost) half of their total debt. Assuming they get another £20m for another 230MW, that would eliminate £40m in debt leaving them with just £13m of debt which would look a lot healthier. Of course, this assumes that they can or want to use the money to pay off debt which I can't tell at this point.
In any case, viewing it like this puts things into perspective so I guess we may indeed see this RNS as very positive at this point in time.
Btw.. does this mean that the total value of Uskmouth should be around
1000 MW * (£20m /230 MW) = £87m
This would mean that, at least on theory, SAE could be debt free, run with less operation costs, still for a few millions on the side on top of MeyGen revenue plus two CfD contracts...?
Does this armchair analysis come close to reality?
Mister Tidal it depends on which Route SAE take the initial contract with Quinbrook was £40m over 30 years for 230mw.
https://www.lse.co.uk/rns/SAE/sae-achieves-milestone-in-bess-project-delivery-bn5pkfgzvj1hrt3.html
All looks good to me.
That it's £10m now but without owning the land 31 years from now really doesn't bother me too much. Very little disappointment that it is a small amount under the £11.8m for securitising the revenue that SAE once floated, but hard to moan in current market conditions. As mentioned it is only phase 1 of the BESS and the update on a BESS at Meygen is more exciting than losing a small amount of land that was tied up for the next three decades anyway.
It is not a bad offer they are putting to Abundance investors and I guess it would be accepted, meaning no liability headaches for a long time if the vote goes as we'd want. An increase in interest payment, repayment of capital starting earlier, and incentive for SAE to repay sooner or incur higher rates, is all reassuring. Continuing to receive 10% p/a or risk your investment going into default would seem a no-brainer imo.
Nice to see some Q2 certainty on turbine 4 going back under. Think bids for next tidal auction round open in March at the new strike price, with successful bids announced early Q3, so good things up in Scotland too. Initial market reaction seems of similar view. Also happy to have RNS and Abundance comms harmonised. Increasingly professional.
Well, if we're all happy then I guess I shall be happy too. 😅
Let's see if this marks some turning point for their market capitalization and that it improves their long term perspective. Really looking forward to their announcement for the implementation of their first CfD and let's keep our fingers crossed for another ring fenced budget in AR6!
I'll be relieved when the SP reaches 3p (my average) and happy when it reaches double figures! Still a long long way to go...
My average is 7.7, so I’ve a lot further to go
Even if there is a takeover bid, it will hardly be at a multiple of seven times the current price!
Finances are now much improved, whilst outlook for tidal and Bess is strong.
A reassuring RNS indeed.