LONDON (Alliance News) - SIMEC Atlantis Energy Ltd on Monday said Liberty Steel has begun a planned GBP15 million investment in new & upgraded equipment at Newport steel facility, adjacent to Uskmouth power station in Wales.
Liberty Steel owns the Newport facility along with SIMEC Atlantis' largest shareholder, SIMEC Energy. SIMEC Atlantis has signed a 20-year power purchase agreement to sell electricity from its Uskmouth power station to SIMEC Energy.
Planning work and front-end engineering at Newport involves the installation of an electric arc furnace and casters for liquid steelmaking and slab production at the site.
These processes will be powered by renewable energy to be provided from the 220 megawatts Uskmouth power station that SIMEC Atlantis is currently converting from coal to waste-to-energy pellets.
"It is management's view that SIMEC Atlantis Energy is currently materially undervalued and can see no plausible justification or rationale for recent share price behaviour," said SIMEC Atlantis Energy Chief Executive Tim Cornelius.
The stock was trading 0.7% higher on Monday at 23.60 pence per share.
"The Uskmouth conversion will deliver considerable value for shareholders and the possibility of future acquisitions of SIMEC Energy hydro, storage, onshore wind and bio-fuel projects place SIMEC Atlantis Energy on a trajectory of rapid growth, with the ambition of transitioning swiftly into a cash generative, yield growth and equity value growth company of scale," added Cornelius.
Simec Atlantis (SAE)