Member Info for Muktass

The previously quoted figure for capacity at Meygen is 400mw and Alderney race is 3gw

Increase in cash is very welcome. Looking at the notes for current payables, it appears there is quite a bit of cash to pay out relating to restructuring (£170K) and contract liabilities but hopefully no further nasty surprises from the retrofit that went wrong. Company should be profitable at a lower level of sales in the second half. Big unknown is the amount of a new train build going forward or whether the company will take on any retrofit work. Can't see what is going to move the share price though unless bid comes in or the company starts a share buyback, both unlikely in my view.

It is definitely the outlook that has caused the drop. I think the long lead times between sales leads and firm orders is normal and understandable in this industry. Looks like the future beyond year end is bright and the shares are looking very cheap for a company with no obvious funding worries.

No Mention of the Equitix investment announced in November 2018 - 'Atlantis has signed Heads of Terms to sell a 25% shareholding in the 220 MW Uskmouth Conversion Project in Newport, Wales ("Uskmouth Power") for £32.9 million in cash to leading UK infrastructure fund manager Equitix'.
That values Uskmouth at £131m which is presumably lower than the current implied value and so I presume that is not now going to happen. The biggest obstacle to financial close on Uskmouth would appear to be the need to sign a power purchase agreement. Other than that looks promising.

You will need to register to read this.
https://www.investorschampion.com/downloads/cocomments/Atlantisresources20200821a.pdf

There don't appear to be any recent dealings, here are the current holdings:
Name Type Amount Holding %
Mr. John Mitchell Neill CBE - 377,501 0.103
Timothy James Cornelius - 84,041 0.023

With BXP the only maker of a generic version of Remdesivir, the worldwide shortage will hopefully give sales a boost.

£180m-£200m is mentioned in the Proactive interview and £180m was the figure mentioned before that. 18 months to construct, planning decision due by mid October and so you are looking at the end of 2022 to complete. Once operational, annual EBITDA is supposed to be in the region of £30m-£50m per annum.

Old research piece but a good summary
https://www.investorschampion.com/channel/blog/simec-atlantis-energy-trading-at-a-fraction-of-independently-assessed-net-a

I don't agree that a large equity raise is imminent or necessary. The cost of debt for offshore wind is now lower than it is for oil and gas companies. More likely they will raise £10m or so in new equity and bring in another partner.

The adoption of the financial reporting standard IFRS15 'Revenue from contracts with customers' in 2018 appears to have significantly increased revenue and profits for that year and then the company realised that costs were going to be much higher on two projects and so revenue and profits already recognised in 2018 had to be reversed in 2019. Obviously the failings in project management are a concern but it seems it would be best to take the two years together to smooth out the effect of the reporting change. On a positive note cash has increased from £827k at year end to £1.4m as of 31st May. Trade receivables increased £1.25m during the year but some of that must have been due to the £1m of R&D tax credit (now received). There are £875k of borrowings due for repayment this year. I am more positive that there seems to be increased focus on cash and cost control. I wouldn't want to make any predictions for the current year though.

New covid 19 treatment is manufactured by Beximco

https://beximcopharma.com/products/odeson.html

Regarding a holdup. The RNS stated 18 months but it looks like it is going to be Q4 2020 before all the necessary approvals are in place, so about a 6 month delay.

I would also assume that Uskmouth development will be financed by debt assuming all the hurdles are successfully negotiated. The further development of Meygen might be a bit more problematic and require some new equity to be raised.

As far as I am aware there is still £32m to come from the equity stake in Uskmouth sold to Equitix. Part of RNS below:
20 November 2018
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis" or the "Company")
Atlantis signs Heads of Terms to sell 25% shareholding in the 220MW Uskmouth Conversion Project to leading UK infrastructure fund manager, Equitix
Highlights
· Atlantis has signed Heads of Terms to sell a 25% shareholding in the 220 MW Uskmouth Conversion Project in Newport, Wales ("Uskmouth Power") for £32.9 million in cash to leading UK infrastructure fund manager Equitix
· This implies an equity value of £131.5 million for Atlantis' current 100% shareholding in Uskmouth Power

The CEO has been saying it is undervalued for years. Must be something brewing.

All housebuilders were up strongly yesterday, those that have fallen the furthest are obviously rising the quickest.

One has to wonder why five weeks after year end do the management only then discover that a couple of projects have gone badly awry, coupled with having burnt through a load of cash when they predicted that product investment was nearly finished and the cash would start flooding in. Can’t see this company staying independent for long, which is a shame as there is value in there.

Nice one Troajan

https://www.telegraph.co.uk/investing/shares/questor-aim-stock-tip-year-antibody-firm-strong-antidote-competition/