Some great post last 48 hours27 Nov 2024 08:18
#QED some interesting snippets from LSE last 48 hours;
Current market cap £51.9m
Cash runway until Q2 2025 (according to AGM presentation from last week)
£85m of tax losses available
Share price 3.5p (50% rise yesterday on lomg awaited RNS on binding commercial sea trial with one of the world's largest shipping companies MSC)
"Quadrise Plc, together with its subsidiaries, manufactures, markets, and sells emulsion fuels for use in power generation, industrial, marine diesel engines, and steam generation applications"
"£350m Market Cap is what we reached during the Maersk LONO trial, so that should be the target we hope to reach during the MSC LONO trial as it's an identical trial albeit this time with an even better fuel that can greatly reduce CO2 across the shipping (and power) sectors."
"I can’t believe it’s actually happening after waiting since the MSC RNS in January 2021 with both MSC, and Cargill, and Mac2, from Antwerp, Europe’s most important port, on the Leandra, on the 11,000 mile round trip Mexico Express, refuelling every 4-6 weeks in Antwerp with 1,500 tonnes each load, for 6 -8 months, starting next March.
Plus the OCP test at the huge Lasfar phosphate plant, plus Valkor in the last undeveloped US oil basin - when they’ve sorted out their downhole sand control.
Plus SE Asia refinery and Panama/Honduras power generation.
Success breeds success and with MSC and Cargill on board, The others mentioned above are more likely to follow"
"1. How long will the trial take? It's a certain number of hours - is it 24/7, enabling us to get the number of months?
2. Will we be paid for the fuel? How much are we likely to get for it?
3. I asked before, but what is the upshot of the "binding" nature of this deal? A successful trial means the fuel will definitely be rolled out? Onto a known number of ships (even if *we* don't know)?"
1) It is engine work hours, hence the variability in timelines. Basically, they want to know whether there will be excessive wear and/or any technical problems. When the engine is stopped, that would not generate any useful data.
2) Yes, we will be paid. But, the terms are commercially sensitive, so nothing being disclosed. It was mentioned that the price paid during the trials will reflect the small volumes involved, so the full commercial deal will obviously offer a more compelling per tonne price, but everyone understands that.
3) It's more complicated than that. The trial is binding, in that the parties have obligations and responsibilities that are legally enforceable, and people can't just pull out willy nilly. AIUI, they've drafted the binding terms for the full commercial agreement, but there will obviously be a load of contingent criteria required before that is effective, such as succeeding with the LONO, all parties being satisfied, and then they'll finalise and sign.
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