Member Info for Computer909

"Ignore the share price,"

Very difficult to ignore the share price when the company has exposed us to the shadow of impending equity raise in order to pay off the loan repayment, a dilution that now would appear to be much more dilutive as it would have been if the company had simply placed at the end of march at around 1p

"What odds on the first debt repayment being settled with equity ?"

Absolutely guaranteed, but we wait to be amazed !

A drop from 2.8p to 0.6p doesn't do anything for the confidence (Amati obviously concerned)

Unfortunately the company only seems to have bad news to release at the moment, and we can expect any announcement regarding Deeside to be in the same vain, so we hope that the market has already factored in a further delay with that.

If you liked it at 0.8p you have to love it at .....

0.65p trade at 8:15 this morning is the lowest point for 12 months

Makes the 1.88p-3.00p performance benchmark price from the recent loan look rather whimsical at the moment, silver lining is we wont have to pay any performance fees !!

https://eqtec.com/eqtec-momentum-is-all-in-the-right-direction-proactive-investors/

All but the share price it would appear at present.

“I'm sure some that cashed out back then will return when the news flow starts proper?....”

I listened to the AGM and got the impression the BoD were frustrated at the current market perception and valuation of the company, but had no way to address it, other than waiting and hoping it all comes good if and when the plan comes together.

Not sure the market shares DP’s vision of EQT as an IT company just yet.

"DP then said something along the lines of they have been testing the eqtec gasifiers for over 10 years."

Perhaps its time to actually move from "testing" to "delivering"

Listening to the AGM, same rhetoric and confidence, but very short on actual detail and delivery, DP name dropping Amazon and Tesla as companies that struggled early in their evolution was a bit cringing. One thing i did take from it was that there didn't look to be much confidence in getting Deeside or Billingham over the line any time soon, and that the updates on the website regarding North Fork was incorrect.

BoD can definitely talk the talk, but it's time now they started to walk the walk.

The issue seems to be that the time to deliver any of these projects is so long that the ecosystem around financing, subsidies and political opinion changes and makes the project unviable in its current guise, so they go round and round "Optimising" whilst never actually delivering.

"But EQT are far advanced from that, don't you agree?"

A 40% drop in the share price in a little over 7 weeks is an uncomfortable watch for anyone, (Unless you were in Terra/Luna in which case a drop of only 40% would be tremendous!)

DP can talk about being +7 or +9 years ahead of the rest but at the moment we are struggling to stand out in a market under pressure, he was supposed to be the financing expert that the business model pivoted around, we are not seeing much evidence of that expertise at present though

"EQT plants don't require subsidies either, they'll pay for themselves."

Would like to see the colour of the money rather than DP's bluster though, It's the shareholders that are subsidising the plants at present.

Yes the market is crappy but failing to deliver any meaningful news will see the drift continue, and once again it looks like Amati aren't quite finished offloading yet

PWB will no longer qualify as counting towards Member States’ renewable energy targets, with a number of exemptions: bioenergy produced at installations smaller than 7.5 MW heat input, installations with BECCS technology, and electricity-only installations less than 20 MW in the EU’s just transition regions.

Important statement is number of exemptions : "installations with BECCS technology" (Bioenergy with carbon capture, use and storage)

"do you think there will be another placing shortly?"

With the bid below the 12month low, lets hope not, We still wait to see how they deal with the first payment from the recent loan

Not really much news to offset the Amati selling, we look towards the end of June for a Deesside update. (Not holding much hope that will be good news though)

"God almighty is this share dead?"

Approaching the all time low, just a month after a massive JORC update, looks like we will just have to ride it out and hope the PFS stirs some interest, because flowcom are the worst PR company I have come across, i get the impression its ran out of someones back bedroom!

I just hope they are managing the cash-flow appropriately so we can see out the current market issues

@Aandi: Things change in business all the time, if you continue to chase rainbows that are just over the horizon, you run the risk of running out of steam before you get there. Sometimes you need to just need to commit to a delivery and deliver on time, on spec and on budget.

What is the next thing to be used for justifying deferring financial close ?

@Alcoops : The only concern for me at the moments is the finance and cashflow, The lack of financial closure on projects last year means we are exposed to the worst financial markets in over a decade, just when we need to be securing large investment.

Billingham has been turned from approaching financial close to a bit of a science project in order to be able to join the Hydrogen bandwagon, but have we given up a market leading position to do so, could we have closed out that project in its original guise and in doing so secured the company's finances for a while ?

Wood group has its own issues at present and are unlikely to be splashing the cash anytime soon.

DP is supposed to be the financing wizz kid, but we haven't seen much of that as yet.

Am i still confident in EQT growth potential, yes, am I concerned that some of the decisions made by the company in the last 12 months have introduced greater risk to the investment, yes.

Am i getting concerned that this gold plated Rolex is being valued as a cheap plastic Casio, yes.

@Trytrytryagain : "C909 continues to quote people in an attempt to intimidate"

The quote is because its a response to a particular post

"but still had added nothing"

You add nothing positive or negative to any discussion but rather attack the poster

Your motive is unclear, and highly unoriginal.

The motive is to discuss the company warts and all, so as to better understand what is happening (or at least get other peoples opinions)

"First payment is due in 3 months and 20 days. Let's see what transpires between now and then."

All eyes towards the end of June and Deeside update in only 35 working days

"The BOD adressed this also, did you miss the multiple memos?"

I didn't miss the update, and whilst the financing is not technically a CLN, ie Riverfort cant decide to take the option of equity, and it is EQT decision to make, its absolutely nigh on guaranteed that at least the first repayment will be accompanied by issuing additional equity. Smoke and mirrors may hide the true nature, but the result will be the same.

"tell us that the share price is massively undervalued"

Why is it massively undervalued is the question ?

"take out a loan as financing so as not to dilute share holders"

Yet, and if the SP continues to fall when they do settle the payments with shares (as the will) the dilution will be worse than if they had placed at around 1p

"It's an opportunity to buy cheaply!"

whilst I agree, Why don't Amati?

"Most of the revenue is being reinvested in more projects, growing the company rapidly."

If they want to continue to utilise equity based financing they do however have to show some attention to the share price, it has to be a two way street with investors seeing a growth in their investment, not paper loss after paper loss, no one wants to see a continual drop in their investment via SP reduction or continued dilution, even if the company owns a mythical share of numerous pipeline projects.

Reach for the stars approach is fantastic, Over-Reach for the stars not so much !

"The annual report 2021 can be found here. It shows that most of the cash has not been burnt but moved into assets:"

This is the million dollar question with EQT, what on earth is the business model, were they forced to invest more into the SPVs last year than they wanted (and ended up having to raise more cash for GWC).

If there is one thing that is a concern with EQT its the cashflow and whether they are far too eager to extend themselves on the back of raising additional cash from shareholders rather than generating revenue. 400% increase in revenue should be applauded but are they managing the finances wisely.

In a recession based market they will find it more difficult to raise finance and with the BID now 50% below the last placing price how many investors are going to commit more cash unless we get a turn around in the SP quickly, but do they have any news that can turn it around in the short term. It looks like 0.8 is a strong support level but where do we end up if Amati are actively looking to jump ship?

Again this morning we get Nuclear, Wind and Solar mentioned in the news (laws being brought forward in the queens speech), where is the PR around other clean energy technologies, that seems lacking other than a few tweets now and again.

"They only reduced their position from 6.79 to 4.98 earlier this year"

We don't know they aren't baling all together, if we get a notification of below 4% that could be an indication of their true intention

I Suppose it depends on just how many of the remaining 429M shares Amati are looking to offload, and what price they are happy to take.

At the moment it looks like EQT have very little short term news that can be used to counter such a determined seller.