Member Info for Mikemine

Dawsongroup are offering VFBs exclusively to their customers. No mention of offering lithium.

https://www.talk-finance.co.uk/economics/dawsongroup-to-buy-battery-storage-products-exclusively-from-invinity-energy-systems-plc/

This is a tough market in which to fundraise and to raise over £20mn in an OVERSUBSCRIBED placing speaks volumes. The key partner in Taiwan must have a bigger insight in to the company and the market than any of us on these BBs and they decided to take a strategic stake in IES.

I don't believe the SP was talked down to enable a placing but I am glad that IES won't need to borrow again whilst funds last. On that subject, with the additional $4mn, IES should have enough to fund through to around September 2024. That's a long time in business and politics and IES is in both areas because of Net Zero. I can quite easily see HMG introducing incentives etc. to make battery storage more accessible and needed in the UK. The Grid is already struggling and there is a long wait to get new projects connected to the Grid, over 7 years is common, so it makes sense to make the most of the generation capacity you already have.

It looks more and more as though Mistral will be the golden product for IES and perhaps VFBs in the West so I'm waiting eagerly for updates on that.

No investor likes to be diluted but that's life I'm afraid. I'm sure Schroders didn't hold a party but they came in big nevertheless. IMHO this placing speaks of confidence but now IES have only got this year or so to deliver.

I thought it added up to £25.5mn Genghis including the extra £4mn.

They seem comfortable about the cash and cashflow situation going forward to 2024. This concern by P/Is could be holding the SP down.

Well, the Americans liked the news. Trading well over there.

In this environment where cash is hard to attract, I think McC has done well to secure this amount. It's only my opinion but, when this really gets going, this will be but a vague memory.

Although I don't think FDA approval would have improved sales etc that much to date, it is obviously important to lots of investors. SP wise it has been a very decent week but when the approval comes I can quite easily see this getting £2.00 very quickly

Almost 2 years ago Larry and co must have seen that the price needed to come down and the world needed vast amounts of long duration storage. On came the Mistral project with Gamesea which Larry says will bring the cost down but getting on for 50% and the scale of the hardware will be of a large order. Thats called vision and IES's vision will see the company as the go-to company for long duration storage. I don't see any other VFB company out there that will be able to match IES for experience, expertise and product and in the meantime lithium is rapidly losing it's edge in the market.

From an investor's perspective we have to believe that Larry is being truthful of course. The risk is still there but it's getting much less IMHO and the rewards from here on in could be substantial. As always, this is only my opinion so DYOR.

Thanks for that Washerupper.

Why divide by 2?

There seems to be quite a difference between the US valuation and the one here.

Can't imagine they would have this guy from Gamesa there if it was bad news.

We must assume that Dawsongroup are not fools as they have built an impressive company that knows it's market. That being the case, they must think storage is an area that will grow but are being cautious and installing a unit to test the market for real. I don't believe that they will just let the unit sit in their HQ hoping someone will take an interest. There will be an active promotion of it with publicity etc. Their success or not will be very interesting and might be indicative of the storage market itself. I can quite see a company thinking of storage and hiring a unit or two to test before committing a large chunk of cash on purchases so Dawsongroup might be our showcase for the UK. In other words, I'm not thinking so much about how many units Dawsongroup might buy but the potential follow on from the people that hire.

Another interesting point here is how did this MOU come about? I don't see this Group as being a natural target for IES, I might be wrong there, so I see the initiative and contact coming from Dawsongroup. If that is the case then the question is why they chose IES and indeed VFBs over lithium. There are probably plenty of reasons but fire risk might be one of them.

Forgot to add, my daughter has been in the US in the healthcare sector for 20 years and nothing over here has changed.

Pollack, I wouldn't worry too much about not being accepted here. My daughter has been working in the US in the healthcare sector and has almost given up in making inroads here. One of her products would save the NHS £2bn, that's right £2bn per year, and the opposition, bureaucracy and turf protection was something to behold. Committees after committees, presentations after presentations all with no outcome. Absolutely nobody would make a decision. I'm not going to reveal what the product is but it was non invasive and just a simple piece of hardware that any nurse could have mastered in half an hour. It's doing well in the US.Her CEO on that one said if you closed down most of Whitehall nobody would notice.

No wonder the NHS is in the state it's in.

I've only got one word to say about the news "WOW"

Not the sale but the potential in Korea after this project.

He obviously left out South Africa( Bushveld) and Brazil who, although not as big as China and Russia, are big producers. There is also a fresh mine being developed in OZ. He's talking his corner but I don't think that IES would have got a look in in California if they sourced from China. As for producing batteries in Europe, you might have seen a recent story about Germany not be a viable place to produce Lithium batteries, I think BMW said that, due to high energy costs.

Aside from all that, lithium supply is getting stretched as EV sales increase. Hence the big increase in the price of lithium in the marketplace. I can quite easily see the quote from Larry being correct as it's been predicted for years that the rare metals needed for Net Zero will need to be multiple times current production.

https://www.nhm.ac.uk/press-office/press-releases/leading-scientists-set-out-resource-challenge-of-meeting-net-zer.html

Nice rise today.

To give some idea of the future need of the ability to balance the Grid, have a look at this site.

https://gridwatch.co.uk

You can see that renewables contribution during the day varies enormously. If the planned expansion of wind and solar takes place, the need to store electricity will be enormous and Mistral will be right in the frame to provide that capacity.

Larry related the gist of a conversation with a senior unnamed person in the Grid industry. What was said was that the grid will need enormous stabilisation capacity, balancing if you like, because of the huge amount of renewables planned. He recognised the batteries were going to be needed in large amounts and lithium would not be able to supply that capacity because of it's growing scarcity by being used in EVs.

I see that as being a big reason the Mistral project will be a highly significant revenue producer as vanadium will be the only advanced technology able to replace lithium. IES, via Mistral, will be way ahead of the competition.

I know it's an old subject but it still doesn't make sense to me. Why would anybody buy or sell single digit number of shares? There have been quite a few today. Can somebody explain please.