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The statement has to be made unless the company has enough cash in the bank to cover all outgoings for 18 months. I think increasing the resource 12x and increasing production nameplate capacity 5x with customers taking up to 90 days to pay for the product explains the going concern statement!

£4.7m trade and receivables?? They are due in £4.7m from customers?? Payments received 90 days after shipment

In thr 2H of FY 2023 they sold 2291T but mined 3093T

So if they sold 2772 in Q1, did they mine 4000T?

Sounds like they didn't get the 100kw hydro plant fully operational until June?

Also, they have been waiting up to 90 days for payments form customers...

Https://www.energy-storage.news/german-flow-battery-firm-voltstorage-gets-e30-million-eu-guaranteed-eib-venture-loan/

A few European flow battery manufacturers mentioned in this article

**Pipeline figures do not guarantee near term or long term revenue or profitability as execution risks still apply**

https://www.lse.co.uk/rns/EQT/trading-update-l1vdudrjlgn3i8u.html

"Since the announcement of the Group's interim results in September 2020, the number of opportunities has grown from 41 to 75, an increase of 83% over six months. Additionally, between July 2020 and February 2021, the Company added non-contracted tender opportunities worth a total potential of €316 million for a total potential pipeline value of €657 million."

September 2020 pipeline = 41 worth €341m

February 2021 pipeline = 75 worth €657m

July 2022 pipeline = 200+ potentially worth €1.75billion

August 2023 pipeline = 300+? worth €2.625billion?

No need to apologise Jim.

The longspur research note has been off by a long way in the past yes. But consider this.

They made predictions in the past based on a development model. Part of the predictions also bench marked peers who at the time had huge valuations. The whole sector has come crashing down. So now we have more realistic valuations of peers across the board, yet eqtecs intrinsic value has increased (guaranteed revenues, qualified MDC, larger partners, lower capital model)

Also, panmure Gordon's predictions for 2023 so far have been quite accurate, and they are very Conservative. This will have had a bearing on zeus for example who just slashed their price target.

So we have more realistic valuations of peers.

The value of Eqtecs IP is now up as we have advanced the Technology Readiness scale whilst the pipeline has been growing.

Management have now recalibrated their ambitious short term due to the market and damage done previously missing targets.

So the new 1.3 to 1.7p targets or whatever they are seem more plausible this time. Maybe we will shift towards fair value for once instead of constantly being materially undervalued compared to peers. If that happens, all bets are off. That would probably require a sector re-rate and eqtec to break the trend (see my post at 20:46 yesterday on Absolute & Relative performance)

Please let me know what you think?

Zeus research note 31st July

https://ibb.co/dG4pqYN

Longspur research note 31st July

https://ibb.co/ZzTDzgg

Something wrong with the script here,

debts less than £5.8m, pipeline growth over 1000%, guaranteed revenue for the next 24 months, an MDC online and 2 projects containing our technology in the hot commissioning stage.

September 2019 share price 0.22p, market cap £10m, debt £25m

July 2023 share price 0.17p, market cap £19m, debt

September 2019 share price 0.22p, market cap £10m, debt £25m

July 2023 share price 0.17p, market cap £19m, debt

Factually incorrect Foxyjoe.

See the cover page "Absolute & Relative performance".

Eqtec S.P has done exactly the same as the whole market since january 2021.

From 2019 when DP took over, the share price has done better than the technology-energy market.

The share price had already dropped 50% from the high by the time the new CFO joined.

https://docs.google.com/document/d/1S1Xjlc__9tYWW6dFGPRTRKZnMXjGvZzj/edit?usp=drivesdk&ouid=111843982053030047661&rtpof=true&sd=true Very first page

These folloing three points are facts:

Eqtec 2019 - 2022, S.P 43% improvement ahead of competitors

revenues 1.6x to 26x ahead of competitors

EBITDA loss = less than competitors

From 1hour08mins on the AGM video

D.P: "I joined the company in September 2019 and we reinvent the strategy of the company you know Jeff joins me the year after and Numan six months after that so I am the longest. I've been in this management for less than four years in a business that when we joined had a 25 million debt on a 10 million market cap"

Https://www.aimchaos.files.wordpress.com/2023/04/tirupati-graphite-valuation-analysis-05.04.2023-5.pdf

https://twitter.com/AndrewMathieso3/status/1669343357305491460?s=20

https://tirupatigraphite.co.uk/images/TGPLC%20CORP%200623.pdf

In real cash terms, the monthly wage bill = roughly €80k for all 4 exec BOD combined. The rest of their renumeration will be share awards granted based on personal and company performance. The LTIP share awards will be at 0.25p so are already valued less at todays share price. Further more, each LTIP share is exercised at €0.01p so around 40% of the value of each share must be paid by the recipient. If the share price rises then new shares issued will cost eqtec less hence less dilution to cover futire LTIP awards.

Zero company performance shares were awarded to the BOD in 2022. Also, relative to peers, the BOD are average to low compared to share price performance, market cap and profitability.

The LTIP prodess is an automatic system and is used at many companies and incentivises the BOD and employees to perform.

The July £3.75m equity raise at 0.5p if done today would require 3x as many shares to be created for the same value. The BOD were forced to act during a recession. The BOD invested £185k of their own money in the 0.5p placing. That money allowed the company to purchase and engineer France MDC which has now had the SPV sold with a 5% free carry and engineering contract worth €15m plus €1.5m cash payment. This is a project that can be built in 18 months to 24 months which is probably 3 to 5x faster than starting a project from scratch. It also is a firm example of confidence that Idex are interested in a portfolio of Eqtecs projects. This is the first of many projects which will implement the licensing model at very high margins and low capital outlay to Eqtec. Eqtec had to drastically change strategy in 2022 due to almost zero new energy technology projects reaching financial close worldwide. Funding dried up and nobody could get credit or was prepared to take the risk. This was due to covid and war which nobody could have predicted would be so brutal.

The main mistakes eqtec made were having too small partners who couldn't cover any project shortfalls against rising inflation and supply chain issues + natural disasters, or who struggled to be a going concern when the equity markets around the globe collapsed. (Mnrg & kibo). Eqtec were too new and lack of commercial track record deapite having world leading gasification tech. It was too early on the journey to partner with larger companies we see today. The UK government also promised regulatory support which never came. Hundreds of billions of equity left the UK markets.

Eqtec always were undervalued compared to peers enjoying higher ebitda, smaller losses and larger equity value yet lower share price. Competitors raised at hugely inflated market caps. Eqtec never had that large market cap advantage so were more cautious with their equity raising at the crucial stage believing they were close to profitability.

18:30 sorry

"Seen a lot of this happening, you can't blame the company, seen a lot of companies saying their auditors need more time, reports out recently thst auditors are snowed in, with work, and they haven't got enough people to get it done"

From 8 mins, apparently this is very common right now due to Auditor shortages

https://www.youtube.com/live/AXjQ788jiLc?feature=share

Well let's see what we get in the next day or so.

I extracted that from tirupati FY April 2021 to March 2022 when they were more of a road building company than a mining company. Hopefully better standard of report this time around.

Number ofnemployees 290

Wage bill including execs £1,118,892 (£4k each average)

Total admin costs around £2m/year

What are you expecting?

Vatomina been running near 12,000tpa capacity for a while

Sahamamy ramping up from feb to 18,000tpa capacity

...........

Links to satelite images:-

sahamamy

https://sentinelshare.page.link/6UP9 

vatomina

https://sentinelshare.page.link/ma82

Best results on a PC and using a mouse to quickly scroll through the images.

There is a new road beind built to the north at one project and a satelite area to the east at the other.

The outer area is growing all the time. Wondering how deep they go and if grades have improved.

From a friend who runs a business

"We're just having our Audit and it does seem like there is new regulations etc as I have spent far longer this year on it. My understanding is the Auditors themselves are subject to more regulations. A lot of the questions I dealt with reminded me more of an Internal Audit."

The aquasition of the Mozambique assets happened over the end of the last FY so probably extra complicated. The Auditors were on site too late IMO. But just think, the assets have grown 12x, revenues up 170%, and they have 4 months not 6 months this time.

It's probably just a day late!

"the Company's auditors requested additional time beyond the originally planned timetable to complete their audit."

EUA February 2020, suspended around 5p and opened at 9p then went up to 30p fast