RE: Swazers. Oh dear.21 Sep 2024 15:15
I very much agree, Dusty.
And I think that is what's going to happen.
The post from 30silver a while back hangs heavy on me, in which he explained the difficulties in going from test scale to full scale and how those within the industry require everything to be proven at full scale before committing. He spoke from experience and his post was a cogent one. Coupled with what I learnt myself regarding Hitachi Zosen Inova and their leading Australian advisor, who also advises start up recycling companies not to commit to anything other than technology proven to work at full scale over defined times, I think next year is going to be a financially challenging one for Powerhouse.
If the test centre is a success, and let's hope it is, I think those waiting in the wings to purchase shall either do so at test scale with contracts and FID made and/or purchase at full scale only when proven at a greater scale.
I just can not envisage third parties committing money to anything not proven, at whatever scale. Everything, I believe, rests with Powerhouse, including providing the necessary finance.
It's coming down the track like a freight train in my eyes.
There's no way with the cash burn, even with the income from Engsolve, that Powerhouse have the money and time to prove everything by the end of this year and in doing so then upscale to prove everything works at 14tonnes from which they can then sign binding contracts.
From an investment and trading point of view, it's about doing so with this about to unfold I believe.