Member Info for David1951c

RNS underlines both the potential and range of applications. Alongside the collaborations and licence agreements already in place this represents another big step forward. It would be good if vague expressions like "near future" could be more meaningful but I guess we have to wait and see. Hopefully "near future" means within 12 months and the partners will work to accelerate the development to produce better outcomes for patients in many areas.

From the RNS 17 December "the cost of the initial production phase to the joint venture is USD 2.2 million. Bluebird is actively having discussions with regards to non-dilutive debt funding in order to fund its 50% share of the required". The amount required is not huge and hopefully there will be news soon. If a loan can be obtained at attractive terms and avoid dilution then this has a lot of potential.

Investors interested the future of medicine and investing in small companies with a lot of potential should read today's RNS.

Following the good news in today's RNS the muted SP response must be very disappointing for the company as well as shareholders. The potential from collaborations is there and the investment case looks promising so why is there seemingly little interest. Revenue is substantially higher and a lot of activity and progress is expected in 2020 but It is still difficult to see what this means in terms of valuing the company.
AIM has fundamentally changed in the last 18 months and expectations have to be different as investors are looking for more immediate returns with a greater emphasis on trading. It seems that it no longer pays to hold a share even for 12 months especially where there may be dilution due to fund raising as happened here in 2019.
R&D costs associated with collaborations are being covered but does that mean there is enough cash to see the company through to real earnings from licences? At least two of the deals potentially involve significant amounts in the future but there is no clarity on when this will be earned.
Hopefully there will be further agreements and existing ones will accelerate. Looking forward to further updates and especially with the results announcement in March.

Funding is still the big issue as it is unclear when meaningful revenue will be earned. The timelines for revenue in Italy are later in 2020 which could be some time away. El Romeral would bring income but acquisition of stake needs to be funded. With a Mcap of only £2m this could be a good investment but the risk of further dilution cannot be ruled out. I have held shares since 2017 and believe it could come good but I am reluctant to add while the funding issue is unclear.

Having held these for some time, I needed to decide whether to sell or add. Having re-read the RNS 18.10.2019 and the updates since on the LG Chem and Daewoong collaborations, this company has many separate initiatives with the possibility for material progress in 2020. The funding issue is there but if the various milestones are reached sooner then income should cover costs and accelerate developments. Given the low Mcap of £30m and what is happening in the sector, this could be a very successful company. I have added and will add more when funds allow.

July RNS See below), mentioned the interest from Japan which has been evident since 2018. If this were to develop the value of the company would rise greatly. Let's hope for some news!

Japan Ministry of Economy Trade and Industry strongly endorses DMG Technology

PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to receive a letter of support from the Japanese Ministry of Economy Trade and Industry (METI).

The formal letter follows many months of engagement and review of the DMG Technology. The letter includes commendation from the Ministry that they consider the DMG as having many environmental advantages, and they view it as a major competitor within the low-cost production of hydrogen and incredible value to the promotion of energy transition and decarbonisation process around the world.

Powerhouse Energy looks forward to the future development of opportunities arising from this positive engagement in Japan, but notes there is no immediate commercial benefit from this letter of support.

Excellent news even if it has taken longer than hoped for. One reason for the SP not increasing could be that some investors see earlier potential gains in other companies. Use of lazy or vague expressions such as "in the coming months" for the prospectus and "in due course" for updates do not give a great sense of speed that the business plan is being implemented as speedily as it might. With the delay in completion, I was hoping the next steps would move more quickly to make up for lost time. Probably a lot is happening and will happen in 2020 so investors need to be well informed. With previous timescale expectations not having been met perhaps there is more caution on dating future milestones. The October presentation is worth re-reading for the potential future of the company. Looking forward to the news and hopefully the debt terms (Accugas) can be improved with the greater financial strength of SAVP.

Good news and progress in Egypt and Morocco continues to add value. However, on the information given it is difficult to calculate the financial impact and benefit to SDX. Also it will take more time for production and income to rise. Current Mcap looks low but at the moment what is it worth? The company has a good base and should built further next year. Undoubtedly it will be worth more by the end of Q1 2020 when production levels are more certain. In the meantime I prefer the more immediate prospects in SAVP, Rockrose and Serica so will defer adding to SDX holding.

Although there is dilution a large part of the raise significantly increases the %age held and the potential future value. I dislike dilution as much as anybody but in this case the additional investment could be rewarded numerous times over.

RNS is positive and if the board deliver then the future is brighter but it will take some time to become cash flow positive. If the company are to succeed then they will probably need to raise more funds. I am invested here but will not add until the funding position is clearer as I don't want to suffer further dilution and a lower SP. At least the board are quite heavily invested with over 50m shares which should be a comfort.

It may be that II and particularly Cavendish selling is holding back the SP. RRE has made a significant contribution to their funds' performance and the Opportunities fund would be quite poor without RRE. They may not be in a desperate hurry given the potential for a further SP rise with the next news. It is a pity more IIs are not taking an interest but there seems to be a lot of risk aversion to this sector. Cavendish AIM fund is an exception with Serica and others held.

but a pity the SP continues to fall as IIs have no solid grounds to stay invested. With the number of agreements in place increasing and with increasing income it ought to be possible to have some indication of the expected total without breaching the terms of individual commercial agreements. Without more clarity the SP decline may continue. The moment income covers costs and the possibility of more funding / dilution is removed, the business case is not made.

A further collaboration announced but as usual the financial side is unclear probably for commercial reasons. I bought some more but it is still unclear if and when a further fund raise might be required and on what terms. Agreements include milestone payments and research costs contribution. However it is not possible to work out when more funds will need to be raised as total costs seem to exceed income by possibly quite a margin. More clarity would greatly help the investment case.

I am disappointed in the placing price and drop in value of my holding. If this is such a good investment why couldn't a higher price be achieved. It is good that most of the raise is to increase the %age of the asset held and that should mean greater value and higher SP eventually. What may happen is that IIs will reduce their holdings when SP gives them a nice profit (also to reduce their investment risk) as has been seen on other O&Gs recently. This will constrain SP during that sell down period.

Significant news on the granting of Gubong permit and hopefully not too long until news on Kochang. The costs of the initial construction phase mentioned in June prospectus are not large at about $1m for BMV's share. However it is unclear if the funding required will lead to further dilution or if there will be loans or grants to support development. There is great potential and further updates on plans and timescales to reach production are eagerly awaited. The fact that management have such a large shareholding and commitment augurs well for a successful outcome and gold and silver production in 2020.

In previous RNS the company mentioned the target of 20k bopd by mid 2020. This is very ambitious but what would I3 be worth then. Current Mcap is just over £50m and even at £1 would give Mcap less than £100m. Established companies with that level of production are worth a multiple so there is a long way to go potentially.

Thanks. Work on 3D seismic acquisition programme up to $1.5m for 50% does not appear SP changing. Hopefully it will be sufficient to get the job done and potential evaluated. Any appraisal well costs would come on top of that. In trying to understand the possible reasons for the drift down in SP, the lack of significant news is one reason. Possibly it is just expectations being to high. Anyway I have held shares for only two years and obviously want RBD to be a big success.

OK but it seems that 50% has been given up for only appraisal work and only up to $1.5m. Does that seem like a good deal?

more than 2 months ago RNS stated "We expect to have the Top Drive system ready for transportation to Azerbaijan within the next 14 days. Drilling operations will commence as soon as this has arrived and has been installed.
I am confident that a positive result in C-37 drilling operations will be transformational for Zenith shareholders. I look forward to announcing the start of drilling activities, together with providing further updates as we progress."
That drilling has not started suggests issues. It cannot be much longer now so I too keep haging on.