Member Info for Computer909

‘Those timelines are difficult to pinpoint as they span over months and that alone affects confidence in the business.’

It’s becoming farcical that when we get any news it is inevitably regarding further delays, Each RNS now seems to have its own paragraph setting out previously unobtainable dates

‘To facilitate this transaction, Deeside WTV and Logik have agreed to further extend the longstop date specified in the share purchase agreement they signed on 7 December 2020 (as amended on 6 December 2021, 1 April 2022 and 30 June 2022) (the "SPA"), to 28 February 2023 (the "Long Stop Date").’

They need to take a long look at their delivery record and pull their act together!

Northern Graphite (https://northerngraphite.com) with a current MCAP of £52M is a more realistic “Rival” comparison.

Orom-Cross is a big as all NGC projects combined

Looks like Mike is finally switching on to what the markets need to hear in order to drive the share price upwards to somewhere near where it should be.

Sort the DFS funding by the end of the year with zero/little equity dilution and we should realistically be somewhere north of at least 6p where the boards options were set, or hopefully closer to 8p where RAB’s warrants are.

Looks like we have hopefully seen the back of this ludicrous valuation as investors wake up to the value of the projects as it becomes more and more derisked.

"but walking away from a project and letting it fail would not have been a good look would it?"

True if it actually gets into production, but if it actually now fails and gets a wind up order we have lost an additional $2.8M and (on top of the original equity stake), would be likely to only see back less than 7/10 of the unsecured loan ($1.9M), that then looks like mismanagement.

That is turning out to be a massive roll of the dice DP took with cash we didn't have, baring in mind that the additional cash we splashed on this charity case was close to the total amount we raised in the July 2022 placing.

We wait to see the outcome.

"We do currently own 49% and there is the possibility it could change"

49% of a net liability of $3.4M, and amazing return on the millions of dollars and years of manpower expended !

The issue with Chapter 11 filing is that the whole financial situation of the entity is laid bare for all to see, and inevitably its never pleasant reading.

"Walking away with our reputation in tact would be a result!"

Which is what we should have done in October 2021 before ploughing $2.8M more into the project and exposing us to a $4.5M unsecured loan !

"$20m worth of assets when running in Q3 '23 and we currently own 49% of the project"

https://www.rkc.llc/post/northforkcommunitypowerllc

Summary of Assets : $24,338,720.14
Summary of Liabilities : $27,823,740.78 (of which $17,415,500.00 is secured against the property asset)

EQT's stated non-secured claim is $2,770,467.98 (based on the Equity Holder Loan)

Worst case being the charity case gets wound up and we are in the unsecured creditors pool of $10M against a remaining asset pool of $7M, and all the equity we placed into the project is gone.

Best case is the reported pre-negotiated financing is enough to take it to production and we can recover what we put in.

Walking away with our reputation in tact would be a result!

"we currently own 49% of the project"

"Company will remain as an equity shareholder in NFCP with the final shareholding being determined during the legal process"

But @TryTryTryAgain knows better than what is released in the RNS, of course he does !

As with everything EQT we wait to see what materialises.

"The third-party funding has been agreed as part of a pre-negotiated petition filed by NFCP for relief under Chapter 11 of the US Bankruptcy Code"

Everything changed with that filing, we now know nothing of what the state of EQT's holding in North Fork is, whether we will see the loan repaid, what was "negotiated" in order to secure the funding.

As with every EQT RNS it leaves us with more questions than answers.

‘49% of a $20m plant potentially online next year has cost us a net $600k (if the loan is repaid) or zero (if the loan is repaid with interest over a few years)’

But we no longer know what percentage share we own, we now need to wait for the legal proceedings to conclude, it could be more than 49% but equally as they were obviously in financial dire straits it could be worth next to nothing, we could have to take cents in the dollar of our investment, depends what the charity case management had to offer to secure the loan, we just don’t know now .

Glad to draw a line under the charity case..

but we have invested over $5M in North Fork and we now have "...the final shareholding being determined during the legal process", That is two "partners" that are in financial difficulties which isn't a great look for the pipeline of pipelines !

And EQT's financial situation is now so poor that we see the undrawn $1.5M as a big win !

It's really going to interesting when we get around to this years accounts when these non-cash assets that were reportedly worth many millions disappear from the balance sheet, I wonder if DP will still be spouting the company is worth multiples of what it was when the auditors need convincing.

With all the de-risking activities the company has been forced to do since the Riverport loan debacle, the company balance sheet must have been worse that we thought.

Let's hope we are now in a much stronger position for cash flow, as I don't think anyone is expecting much revenue from any financial close this year.

"Just hope for once he delivers on time ."

Take a minute to go back over the last 18 months worth of RNS's, and ask yourself honestly how many of them have contained good news, when did you read an EQT RNS and think "now that is good news", even the ones that are reportedly positive are clouded in complexity and contradictions.

The problem being when a company has failed to deliver as often has EQT have over that period , it becomes easier and easier to brush off the failing as the norm, failure becomes systemic in their behaviour and somehow acceptable.

The UK project RNS's are a classic example, the first half of each RNS is used to outline how many times the agreements have been delayed or deferred.

DP is so full of s**t, its surprising a local farmer doesn't try and spread him on a field !

25% of the Orom Cross resource (NPV of c$500M on only 2% of the resources, average US$100M EBITDA p.a over 14 years on that 2%)

In reality it's worth as much as someone is willing to pay, if the graphite shortages do playout as we are led to believe then BRES negotiating hand should be be as strong as it gets.

"This is Aims Market, not the main market."

Just because the company is listed on AIM, that is not reason for the management to operate with contempt for the shareholders, in reality these companies that continually draw on shareholder funds should look to pay more attention to the shareprice and the general mood of the shareholders because they rely on them to survive/thrive.

DP's arrogance with throwing EQT cash at North Fork, and now MNRG in the current climate, should not go unchallenged from the shareholders who will be inevitably asked to foot the bill.

"Raising £9m at say 3p = 300m Placing shares."

Mike has stated that they were looking to finance Orom-Cross at a project level rather than a corporate level, so they wouldn't be issuing more BRES equity but rather offering a share in Orom-Cross as collateral.

With the numbers we are talking about with regards to getting anywhere near production then project based finance is the only option as we aren't in a position to raise $62M against a current mcap of around £6M

We wait to see what the outcome of these negotiations with the chinese are, and the details of the DFS.

If the required production capital has been reduced by $10M with not requiring a pilot plant then the we need to raise approx (from the PFS) $52M initial capital investment against an projected EBITDA of $100M pa. over the initial 14 year lifetime.

Realistically IMHO, we need the chinese to commit to the $50-$60M for an ownership share in Orom-Cross of less than 25% for this to start to re-rate towards some of the target figures that the brokers are mentioning, but at the moment this is well off but definitely possible, and all we need is another interested partner (in the west) with deep pockets to want to secure their graphite supply for the next decade for this to take off exponentially.

In their RNS this morning the MNRG CEO stated

"Rolf Gerritsen commented, "we are very grateful for EQTEC's ongoing support and continue working with them in a positive manner".

What he actually meant was "we are very grateful for the EQT shareholders support through their mug of a CEO, so i can continue to suck MNRG dry with an overinflated salary, poor management skills, and failing to deliver anything"

We have North Fork that we are supporting as a charity case, now we seem to be propping up MNRG whilst their spiral into oblivion continues, Who next of the quality EQT "partners" will we need to bail out ?

FFS, When I read yesterday's news i thought, seems to be strange offloading assets at the bottom of the market, but surely a good reason, even if it's just strengthening our cash flow position, But now we find out its Megalomaniac DP playing fast and loose with the company assets again.

So MNRG are at a point where they have exhausted the pre-approved blood letting of its shareholders this year, so we have to step in and bail them out with our assets as a guarantor of further financing for them.

So let us just examine the the so called strategic alliance with Metal NRG that DP got us into.

£295K worth of shares that we have now had to give up for £100K and we now have zero control over that asset.

If their shareprice continues to fall then any equity raise or IPO is going to mean they are issuing worthless confetti, if their shareprice goes up we get less shares for our cash, as for the warrants at 0.45p over the next two years they are basically worthless based on the MNRG performance (they issued share this morning at 0.076p), and to top it off our £100K support of that sham "Partner" didn't even clear their GIS obligation, their death spiral continues unabated.

DP the "master financier" has pulled another master stroke again, just when i thought he had turned a corner and was reacting to the market, tightening the belt to protect the EQT cash flow situation and in turn protect us from further dilution he turns round and does something like this !!!

"I guess making £70k disposing of the shares hasn't inspired the market when the original share swap was for £500k of their shares"

Likely to be because most people are asking why now, what is so urgent/desperate that they need to offload these shares at the bottom of the market, and once they have exhausted this firesale, there is always only one place to come to in order to raise cash, us again, and with anyone who supported them in the last placing just months ago now down over 40% it's not a good look.

There was a major question over the EQT accounts last year and how much they calculated the non-cash assets to be worth, looks like those concerns now look to be well founded.

DP and the gang must surely be on fragile ground if we get to the end of the year having disposed on these assets for a fraction of the worth they were reported as, with little cash, reduced revenue and very little tangible progress?

How many more of these firesale activities are EQT going to have to undertake before they get a grip on the finances and cash flow, Is this the idiot CFO desperately raising cash in order to make this months Riverport payment ?

Unfortunately we seem once again to be falling into a position where we get a continual 5% drop on a daily basis, it's clear now the market feels that the green energy industry has had its day in the sun and failed to take the opportunity, combine that with DP's megalomaniac spending over the last 24 months, and the CFO clearly not having a clue. The question now is where will the bottom be?

Will we get any news on Deeside in november or will that get kicked to february or beyond?

The reputation of the management team is trashed, they seemed clearly unable to grasp the situation that was unfolding over the last 12 months, and now the panic has set in as the bills start to roll in, How much are these so called "partners" demanding for their activities, more than we can afford ?.

How long before we see more shares issued in order to settle suppliers/partners bills or to pay the next energy bill?

Shambolic, just Shambolic.

"I can see them raising cash again at a ridiculous discount to the current SP."

I don't see that, even DP must know that he can't do an equity raise at these levels and expect the BoD to keep their jobs. I think what we are seeing is the prelude to some external financing where the financier has carried out due diligence and told EQT they need to offload these massive liabilities that are due, whether that is Riverport enforcing that on the next draw down of their loan agreement or someone else we will need to wait and see.

The most important thing is DP's megalomaniac spending seems to be have been reigned in, at least in the short term.

Then again what does anyone know, they could be lining up a placing with the new broker as we speak and are more than happy to shaft the current investors simply to keep paying their salary every month.!