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I have the same quandary. BUT......
1. If the redeployment was successful why is there not an RNS?
2. What's happening with the debt restructure?
I still think/hope there is a fantastic long term future for Simec but it's still all up in the air as far as I can see.
So how much does this redeployment matter in the scheme of things?
The cashflow (while very welcome) is not massive. Is it more significant that the redeployment goes smoothly and increases shareholder confidence in the future prospects for the company?
I presume that the biggest suppressing force is the renegotiation of Abundance loans. If we get some news on that then we would be in a great place. But should this be such a major hurdle? Although it is rather worrying that in such a high growth/risk industry they made such a mess of their capital requirements and contingency arrangements.
However what I really don't understand is that the market is not valuing the potential of this business. The AR2000 will be a huge stride forward and with proven technology surely the rest of the Meygen can now move apace? It just needs finance. The only other issue I can perceive is that revenue from these turbines is insufficient for the costs. But they were pushing ahead just fine before electricity prices skyrocketed.
Any other thoughts out there?....
That's an interesting question. The obvious (as you say) is Lithium-ion. But this is Simec which does radical things!
However this can't possibly be a site for gravity storage (can it!?) Start-ups such as Gravitricity see the future in repurposing disused mine shafts. Do we have anything suitable here?
As far as I'm aware compressed air hasn't yet reached viability either. I can't see them having the funds to embark on another project requiring huge R&D so I would bet on Lithium.
I read this as the contract is worth £1.2m and as it is of benefit to shareholders, is therefore, essentially £1.2m net disposal proceeds. I certainly can't see it being a £1.2m cost to Simec as the statement would be misleading if this were the case.
Sorry - you've got that entirely wrong but appreciate there's no way I'm going to convince you. I'm not a doomsayer. I thought Earl was claiming this is going to fail. I'm not that pessimistic. Indeed if GFG stand by Simec (which I believe they will) then I'm betting on this doing very very well - but in the long term. We need Simec to be at the centre of tidal energy and to build on its recent successes. Japan gives me great reason for long term optimism. So it is a 'hold' for me. But I'me expecting to be holding for years and not months. And for the record whilst there is risk I think 3p is way undervalued given the potential upside. I'm also conscious that the price of this stock has been very jittery and the price has been moving on silly speculations. Hopefully we'll get more news soon that translates into tangible gains for the company and the shareholders.
I've just found this very useful board and the discussions and as I've a small stake in this company thought I would add a few thoughts.
1. Clearly Simec has made mistakes which potentially could be disastrous. Uskmouth was a bad decision which they now seem to be salvaging something from.
2. They have grossly overestimated their capital requirements both in terms of amount and timescales.
3. They have been over diversified for their resources
4. The technology is standing up and gaining increased support. A cfd win is obviously what is really needed next though.
5. I can't see GFG letting this business fail without a good reason. They have the resources to pull it through difficult times until they get a return on the investment.
I'm not into trading for short term wins but for me I'm sticking with this one. I don't want to put anymore into it (although I obviously hope that 3p is underpriced). So for me it's a 'hold'