Member Info for Bondy123

Alt - thanks for posting the link to the presentation, and others for their comments, appreciate it.

What's clear to me from the feedback and presentation is that clearly, the AFC product has never been in a better place than it has today. Even without feedback from the AGM, looking at the images of the power tower, I can, for the first time in years see a product that I can actually see at charging points, on construction sites etc. So that is excellent. There's also clearly a scaling up of operations when it comes to engineering, product dev, which is also great.

What I'm not getting from any of the feedback posted, or the deck is a similar sense of excitement about progression on the commercialisation front vs product development. Were there any positive comments around commercial traction or scale up of commercial operations (i.e sales & marketing), manufacturing capability? We now have more booked revenue than we ever have (£5m), which is fantastic, but I would like to understand whether this is still in test and trial mode (which is fine if it is), whether they are 'ready to go', or whether readiness will take 6 months, a year, 2 years etc...? Any thoughts from attendees would be welcome here.

Lastly, in the presentation it says the ABB order will be delivered in 2023 - I'm assuming this is the ammonia add on, and not the initial unit that was initially slated for deliver this year, did anyone pick up on this?

Overall, my thoughts are an AGM is an AGM - we should be happy they gave us a little more and launched a new product. The product looks good, but wondering if these will have to go through trials and tests before we can start selling them at scale. I don't really care either way because if £5m of booked revenue turns to £10 next year, we are still in a good place. Only really looking for feedback from people who attended the AGM, as the question is related to discussion at the AGM. Thanks in advance, and thanks again for the presentation and comments. There's no obligation to post here at all, so thoughts are gratefully received.

By any chance did anyone ask about size of commercial team or expectation of scaled orders?

Scaled orders are key. Currently, Grid powered 10kw chargers are between £750 - £1700 dependent on the brand you buy. You would then need to pay for installation etc which might cost another few hundred.

Granted, this is a different proposition, designed to standalone in remote areas and be flexible, but it comes with another challenge which is the supply of hydrogen, but how much more would one pay for this? £10k? £20k? In either case, you would need to sell 50/100 of them to earn £1m.

It could work if you were a leasing company that charged a premium lease fee per unit, per event. I hope someone asked the question about the unit value vs diesel generator or other so we can get to the bottom of this system's economically viablility.

This checks the EV charging product box. The power tower is now something I can really see deployed (vs the L system). This really is a reason to be excited as I always thought the footprint of the L was too big for EV.

Key thing now is how feasible is it (in the UK, for example) to get a continuous supply of bottled hydrogen to these units. Does both the supply of green hydrogen and infrastructure exist for this currently? How close is this unit to being something that can be bought at volume? What would be the early scenarios where deployment is feasible?

Unfortunately, due to family reasons I can no longer make it to the AGM. Gutted. Was looking forward to seeing the Power Tower. Any how, I had written down my questions. Don't expect anyone to ask them, but this is what they would have been!

1. Acknowledging exact prices might not be able to be disclosed, but what can you tell us about the unit cost of a 10kw unit, relative to Diesel generators? A range is fine? If this can't be provided, then please frame the economics of the system and why it should be attractive to hire companies or constructors from an economic perspective?

2. When do you expect fulfilment of Julich agreement?

3. Considering we now have an assembly line and partners in place, when do you expect that AFC will be in a position to start to take orders for multiple units at a time. Seems as if current partnerships only require a unit or two at a time? How far away is that?

4. According to your forecasts, when do you expect AFC will become a profitable business?

5. Much of the excitement recently has been around diesel genset displacement, and data centres. How is progress on the EV charging front? Will the UK be a market that we deploy within in the next 6 months?

6. What was the value exchanged with De Nora for developing our electrodes, and what is the status of that relationship?

7. How big is the commercial team now, and how big will it be by the end of the current calendar year? 

8. What is the status of Hiiroc / MACE / Ricardo agreements?

9. Do we think there is an EV charging opportunity in the UK?

Hope everyone who does enjoys themselves. Thanks in advance to anyone who posts about their day.

https://www.gtreview.com/news/sustainability/uk-export-finance-eyes-domestic-hydrogen-boost-with-new-guarantee/

By the way, I'm not suggesting there will necesarrily be news in time for the AGM. History suggests that doesn't really happen here, for the last couple of years anyway.

Why is it not a good time to buy right now? The last time I bought was a week or so ago at 41p, and completely happy. I am of the thinking that with the Power Tower designed being completed, any day now we could see a multiple unit order, or an order to develop a system for VARD. Either one of these would be confirmation of starting a new phase, would significantly de-risk the company and push the share price up. I have much more faith looking at the power tower than, say the unit for ExE due to footprint. Perhaps we'll agree that it will be further orders that will push this, but that they could come at any time now? IMO

Nope, I am not DW. I have not been AB’s biggest fan, but I am a fan of AFC’s tech and the new power tower.

‘ Bond saw the end of Chlor alkali, but as you well know they had been targeted for almost a decade before that.’ - this is 100% true Desertwolfch. We know they had to fix the product. But fixed the product, they have .Look at the power Tower, it is a thing of beauty!

The Chlorine industry failure was not his fault nor his strategy, this preceeded his time at AFC.

Apologies I meant £2m for julich.

Also I think £1m might be overcooking it for julich as I would imagine the £4m for ABB carried a premium for requiring the fast tracking and build of a product that didn’t exist yet..

“Bondy, ABB ordered for 4 Million Pounds, the first payment should have been in 2021 already theoretically, as we did not see that it will be now or should have been now by 2 million, the rest in steps“….

Dw I didn’t have time to respond but you’re wrong here. The ABB agreement signed in financial 2022, that’s why no rev was realised in those accounts. Agree some would be realised in this financial year but although the solid cell will be delivered later this year, I don’t believe ammonia extension + testing milestones will be achieved until after this financial year. With those two components out of the mix I would suggest the max they will re or e this year is £2.5m.

Based on the pricing of the abb deal, that would make julich (100kw) c.£1m. I think acciona, exe, urban airport etc combined will make up the other £1m. Remember acciona is not billed as a sale in the RNS but a ‘collabortion’ so I think there is potentially some price offset for the marketing and pr it’s due to bring. I could be wrong but I think with the current agreements in play it is looking good to meet broker forecasts, but other agreements, I.e a vard pre order, or altaaqa will, I feel push it more in to the territories you mention. All IMO.

Dw, actually, no we don’t have £4m to book already this year from ABB. I think half of that will spill in to the next financial year and be realised after the ammonia update and certain performance criteria is met. I don’t recall there being an upfront payment of £4m, but happy to be corrected. Julich yes, acciona, UA and Exe yes, but they won’t all make up the other £2m. So I expect further commercial news to make up from what I think wil be about £2m from ABB and about £1m from everything else.

DW, that is an over expectation though, stated guidance through the brokers is c.£4m for this year and £11m for next year.

TBH I think the salary is warranted if you look at the expectation. The expectation is to take this from R&D to scaled manufacturing business. To move from low hundreds of millions to Billions market cap. I am comfortable him getting that salary if the board thinks that AB can move the company to these two points. In fact, if he does I'll even support an increase if we are a company sustaining a multi billion market cap. I'll admit I have criticised AB strongly in the past due to (what I perceive as) promises not fulfilled, but also acknowledge that the company has progressed significantly in product (Power Tower is a real Tangible demo of this) and in commercial partnerships. Also, beefing out of commercial team in particular should support him in the key thing that will make this move, which is sales, so I expect Mark Bailey, Tom Pollard )and any new additions to the team) to start making their marks imminently as there are actually products available to sell now, supported by a manufacturing team and process.

I don't think there's really any one else you're going to bring in at this stage who knows the product, positioning etc better than AB. He has done a good job with Exe (raising profile) adopting the fuel flex strategy and also I think in pausing to prioritise the Solid systems. As frustrated as even I was at the lack of delivery to Juelich / Acciona, looking at the power tower, i think it may have been a smart allocation of what are limited resourcs, but we will see.

I'm really hoping that with the power tower, we are now looking at a 'when' not 'if' scenario, as ever news flow will underpin this but I am encouraged about how the share price has been steady and rising in recent weeks - and also seeing the images of the power tower. DYOR.

JGBB why are you getting your knickers in a twist? We get it, you can't make it. That's fine. People will report back what they saw and you can read their updates.

Doesn't mean that those of us who are going can't get excited about it and discuss it. I don't think anyone has been gloating that they can make it vs those that can't. I'm looking forward to seeing the power tower in person and asking a few questions. But whatever. Don't understand what your problem is.

Will you be going haggis?

No major concerns here, I will be attending.