focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
AKHM
The Chairman has said they will not be cash flow positive until H2 2025 at the earliest so probably 2026. I guess this is based on having Revenue from MSC. So are you suggesting someone will lend them £6,000,000 on the hope they get a contract from MSC?
Clearly another contract signed do not get them to a position of positive cash in the forecast
HotFinance
As I posted yesterday the Funds run out June 2024 with Volkor and Q1 2024 without Volkors $1.5m. So if their is more delays with Volker expect a funding December / January.
Beyond June 2024 until cash positive H2 2025 QED will need another £4.5-6,000,000 at their current burn rate. See my post from yesterday with greater details
HotFinance....Clearly not see Andy's comments below:-
Going Concern....
The Group had a cash
balance of £1.34m as of
30 June 2023. In July 2023,
the Company raised funds
of £1.94 million (before
expenses) via a placing and
subsequent open offer of
new ordinary shares in the
Company. Based on the latest
Company forecasts which
assume the anticipated
and important receipt of
an aggregate of US$1.5m
from Valkor as described
above, these funds are
expected to be sufficient to
reach forecast commercial
revenues and cover net
project expenditure and fixed
costs up to the end of June
2024. Additional funding
will be required beyond this
point to bridge the gap to
the generation of sustainable
positive cashflows, which
are currently planned to
commence in H2 2025.
Hotfinance
Staff & Office cost are £110,000 pm
Product and Development £140,000pm
WongaFC
100% agree....Are you going to the AGM to voice this?
Coldfishpie
I know you are just trying to be possitive and have loads of wishful thinking ideas.
But to follow on from my post the BOD are likley to have further delays and unforeseen issues (pumps etc) so the realality and to be prudent they should look to riase £6,000,000 plus to give them a little fat.
Is this possible next year H1 with the market as they are..Guess a big question mark????
Which is why for the last year I have suggested to the BOD more than once they should seriously consider a trade partner for all the obvious reasons.
Coldfishpie
Let consider the facts:
Cash July 23 £3,240,000
Valkor £1,250,000
Total £4,490,000
Andy has stated this will last through to June 24 and also assumes $1,500,000 from Valkor
On the best assumptions with everything coming in on time as currently stated they will not be cash possitive till H2 2025.
So thats a gap of 12=18 month with NO money and NO MSC contract.
The burn rate is circ £250,000 being generous which mean current shortfall is £3,000,000 - £4,500,000 from June 24 to H2 2025.
All the above assumes everything from now will be on time and go as planned.
If Valkor does not raise $15,000,000 QED will recieve possiily nothing which mean the moneywill run out by Q1 2024 maybe January worth thinking about??
If they need to raies between £3-4.500,000 Q2 2024 how will this be achieved the last only riased £2m was under-subscribed
Maybe they could do this at £.005 that would be a further dilution of 50% for all shareholders. (current Market cap Approx £20m at 1.25 per share)
If all this happens ONTIME and we get a very speedy adoption by MSC sometime in 2026 I would assume the shareprice will be higher but another funding would be required as MSC will not be happy to base their future with a company with no liquidity
Coldfishpie
You are missing the point.
They will have to do another funding just to get to the end of the MSC trial. Yes if successful it goes with saying it will be easier to raise additional funds. So that's 2 more funding before we see any real revenue coming in from MSC. Should no projects generate zero money over the next 6-9 months then it will become very interesting
COLDFISHPIE
I love your optimism .....
"If things go to plan then it should not be needed🤞"
Sadly it will not go to plan. They will run out of money plus should MSC want to move forward with QED after a successful test they will also want QED capitalized sufficiently. No major would do a huge comittment to a company with no or little money
Coldfishpie
Hope you go to the AGM and express your view
Page 30 from the current report accounts show the BOD costs have risen from £457,000 2022 to £607,000 2023.
This is a huge increase baring in mind..........
The company has no commercial revenue
Every project is significantly delayed
The last funding was substantialy under subscribed
The business currently does not have enough money to concluded the MSC trial.
In addition to very generous share option grants.
Jason take home is nearly 20% up over this period......
Im begining to wonder what page the chairman is on
Still moving north
Piscator1 the purchase is mine. I'm currently in the US on a beach and bored. The purchase is against my better judgement I will probably regret the purchase but time will tell. I'm not really expecting any exciting news before the AGM and nothing fundamental to change within the next few month. On the news we hope to get within the month the sp may move a few pennies (no big deal) MSC I think has less than 50% being successful but its worth the gamble.
Some nice late volume today
Hopefully some good updates very soon... just bought another £15,000
This update could have been given anytime in the last 2 weeks yet the BOD decided on the last day of the month in the last few hours. The games continue and my faith goes further down .....
After many years of support I have lost interest in QED.
For many years every morning at 7am I would check for an RNS with excitment. I know longer have an excitement or expectation on were these projects are going
I have always hoped one of the many project would generate revenue.
In recent years none of the project seem to have any momentum
The board just dont know what to say about the BOD???
I have managed to sell 2/3 of my holding when the sp was 2-3p I still hold 4-5m shares with the hope one day something will happen. I will not hold my breath.
I think the marketing over the years has been mis directed
Communication appalling
Published timeing on project..very misguided with no contingency
I find it hard to believe this company has spent nearly £50m over a long period and have no revenue Just think about that?
Methane Abatement in Maritime Innovation Initiative MSC is collaborating with
others to conduct a study to monitor, measure and help abate methane emissions in the maritime supply chain.
further to initial exploratory discussions in 2020, MSC entered into a partnership with fuel supplier Quadrise in 2022
whereby MSC vessels will be used for proof of concept tests and operational trials using oil-in-water emulsion fuels
bioMSAR™ and MSAR® – producing 25% less nox and lower Co2 emissions – for potential adoption.
Through MSC’s Memorandum of Understanding with the
69 page report published by MSC we have the above on page 42 clearly a very important part of MSC future!!!
AKHM.....Sit back and think about what you are saying or look back 1,2,3,4 years nothing has really happened. The BOD have done an appalling job of getting any of these projects over the line with promise after promise. Their are no commercials to date If you do look back over the last 4 years every page on this boards talkabove lets give the BOD another quarter its all just around the corner simular to what you are saying. The BOD have lost all credibility which is why the recent funding was massively undersubscribed.
I dont believe the SP will not be in double digits anytime soon. Ultimately the real game changer is MSC fuel supplier agreement which must be a couple of years away minimum should everything go to plan. I would ask if its that important to MSC why have they taken so long to date? The facts are the facts they are in on hurry