Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
No evidence of Tern Investment on Lucid's Co's House returns nor Tern's. I suspect Franky is simply an idiot.
Clearly you have never sold a company - I have. If you keep reverting to NAV you just show yourself to be a fool.
I'm not unhappy with the deal all things considered. I posted yesterday that I thought a sale was already in process and that it would be a partial purchase with further payments based on Revenue milestones. I'd hoped both the percentage and price would be greater of course but re-reading the RNS has calmed my nerves a little. A few things I can think of -
i) RNS Figures (14.8M) show that the DA book value has risen c.15% since end of June - so a decent annualised growth rate.
ii) The growth is likely to accelerate with Venafi and Thomas Bravo behind the company.
iii) following on from accelerating growth - normally further investment OR sale would be at a higher price assuming Revenue or growth targets are achieved (although none of us know what has been agreed in the rubric of the deal).
iv) The Capital Structure change both simplifies the share structure making a company sale easier and also gives shareholders a bigger stake in a sale of DA (ironically a bigger stake that's worth less after todays SP movement).
v ) No more DA funding for at least a year.
vi ) No warrants are exercisable until DA is sold for over $50M so the new structure dictates a minimum of 36% further growth before warrants can be activated and I'm sure all warrant holders and signatories to the deal anticipate that being easily achieved to put them in the money.
As kat' pointed out the deal will be at a deep discount and Venafi won't anticipate losing a cent on it so I'm not selling up as I believe this is now oversold and I expect SP recovery by early in 2022 and fast growth of not just DA but also Wyld, FVR and INVMA during next year.
Expectations need to be lowered but this is still a share I believe will show great growth next year - just not a 10 bagger early retirement type growth..
These are Convertible Loan Notes ie they will be converted into Shares on a sale or IPO - why would TERN want them paid back in cash when they may become more valuable if converted to DA shares shortly before a Sale or IPO?
Might be wrong I personally believe a partial sale is already in process of c.20% (approx the same percentage as the recently deferred shares). Full price will be dependent on DA hitting revenue milestones over the coming months.
....and it's not 2 years away - HUI say mid 2022 so circa 9 months.
COP26: Powerhouse Energy, HUI target lowest-cost hydrogen from waste plastic with Linde deal
Author James Burgess
Editor James Leech
Commodity Coal, Electric Power, Energy Transition, Natural Gas, Metals, Petrochemicals
HIGHLIGHTS
Targeting Eur1.50/kg hydrogen as byproduct
Turns waste plastic to syngas via pyrolysis
Modular system to produce 1,000 mt/year hydrogen
Powerhouse Energy and Hydrogen Utopia International plan to bring low-cost hydrogen and syngas to industrial gas customers in Europe using waste plastics as a feedstock, signing an agreement with industrial gas and chemicals company Linde at the UN Climate Change Conference.
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Register Now Linde has signed a framework agreement with HUI to use the plastic waste-to-hydrogen technology across Europe, starting with a plant in Poland, HUI said in a statement Nov. 12.
The modular system converts waste plastic at high temperatures to syngas and hydrogen through pyrolysis and cracking of hydrocarbon chains into gases.
Linde Engineering will supply the technology to clean the syngas and extract and process the hydrogen, while HUI will build the waste-to-hydrogen system, HUI said. The project is subject to EU funding approval from the Just Transition Fund.
Each unit is can process 40 mt/day of waste plastic that can't be recycled, producing 14,500 mt/year of syngas and 1,000 mt/year of hydrogen.
HUI has an agreement with Powerhouse to develop the technology in Europe, outside of the UK.
Under the Linde deal, Linde Engineering has a five-year exclusivity option to supply HUI plants in Poland, Hungary and Greece, where HUI has the exclusive rights to the Powerhouse DMG system.
"We're talking with Linde at Eur3/kg ($3.50/kg)" for hydrogen supply without opex subsidy, Howard White, adviser to Hydrogen Utopia on behalf of Powerhouse Energy, told S&P Global Platts in an interview Nov. 11.
"If we wanted to drop the price of hydrogen to Eur2/kg or Eur1.50/kg, we could," he said.
S&P Global Platts assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur10.14/kg ($11.60/kg) Nov. 11 (Netherlands, including capex), based on month-ahead power prices, though prices based on power purchase agreements are much lower.
Blue hydrogen production by steam methane reforming (including carbon, CCS and capex) was assessed at Eur5.03/kg.
Soaring feedstock power and gas prices have pushed calculated hydrogen production costs dramatically higher in recent weeks, though anticipated production costs for green hydrogen are significantly lower based on falling costs of renewable power generation.
Flexible system
The Powerhouse system has advantages over other low-carbon hydrogen production pathways, White said.
"Our intention is to create the lowest-cost hydrogen available," he said. "The technology enables this because the hydrogen is act
https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/111221-cop26-powerhouse-energy-hui-target-lowest-cost-hydrogen-from-waste-plastic-with-linde-deal
Oil company interest
The initial focus is on a project in Konin in Poland, but HUI has plans to expand, and is in talks with large oil and gas companies over an agreement.
"If we make a deal with a major energy company, I would expect to roll out in the second half of 2022," HUI founder Aleksandra Binkowska told Platts in an interview.
HUI raised GBP2.2 million ($3 million) in a pre-initial public offer funding round on Sept. 9, and plans to raise a further GBP5 million to GBP7 million in an IPO on the Aquis Growth Market in November.
The company is to use the funds raised to build its first syngas system, to be deployed around the middle of 2022.
I do wish PHE would correct the press comments that say, 'the first plant in the North West being opened in two years'. As I understand it HUI only need to get to Syngas stage with Linde then cleaning that and producing Hydrogen. I recall they said that would be by start of H2. Even the slothful Peel Protos development should get to that stage within a year!
Valuation it is - apologies just sen you'd already made the paid out of taxation comment.
How many MPs pensions are linked to Fossil fuel? None - they are the lucky minority wholly funded by the taxpayer with index linked pensions paid for out of the bottomless pit which is the public purse. A bit political for a Sunday!
Yeh - the revised accounts shows the addition of a Creditors note (Note 7) detailing the breakdown of the Creditors due within one year. It clearly shows that the large increase was from Convertible Loan Notes - so will be repaid in Shares and not cash.
PS Trading while insolvent is an offence under the Insolvency Act 1986 and Directors who should reasonably have known can be held personally liable - I don't see Darren worrying unduly.
Antelope - the 5.5M you ask about is impossible to identify precisely what it is. It's clearly a large sum in the context of DA Ltd. They could for instance have accrued (non cash) management fees yet to be invoiced from Alsopp which will be paid on exit. They could also be Intercompany costs from DA Inc which would cancel out on consolidation ( Debtor in DA Inc Creditor in DA Ltd Co) As Tim said they may be non cash entries so you can't read much into unconsolidated abridged accounts although what is clear is it is a large chunk so something is happening. What is also clear is that TW doesn't have a clue and is erroneously advising people that DA Ltd is insolvent when he clearly doesn't have the information to support his view and neither does he appear to have the professional skills to comment on a set of accounts. A rank amateur.
Not much can be read into Abridged Accounts but on a cursory reading Trade Debtors increased by 200K which would usually imply increased Sales. If terms are 30 days then possibly a turnover increase of c.2m if 60 days poss an increase of c.1M
Other big moves Short term Creditors (usually trade invoices, accrued costs etc)up 5.5M repayable in less than a year and same amount 5.5M has hit the P&L and the loss has increased by 5.5M. Now since they only have 10K in the bank what fool would let them have 5.5m worth of goods or services with no prospect of the invoice being repaid within a year? Hmm.
Somebody posted a briefing from HUI a few days ago announcing their imminent agreement with Linde in which HUI stated they would have the DMG in place end of H1-2022 or start of H2-2022. I don't know whether this has been made possible as they need to only get to the Syngas stage after which Linde will clean the gas to produce H2 whereas Protos completion includes all stages to production of H2. Happy that TY's 2023 AGM comment isn't going to hold the FOAK back anyway!
That's where Linde come in isn't it? Taking the Syngas from HUI DMGs and using their own tech to clean it and produce H2.
That's where Linde come in isn't it? Taking the Syngas from HUI DMGs and using their own tech to clean it and produce H2.
Hi Mr Rascal
I understood that H2 production was the final milestone at which point the project would be considered complete? H2 production seems to be what HUI are claiming?
Interesting that HUI say first production will be in 2022 whereas TY published 2023 in the AGM. I wonder whether 2023 was just a backstop date to take pressure off the project and allow PHE to over deliver. The AGM announcement was a pretty big deferment after all.
ITM up c. 21% in a month, Nel up nearly 8% in 5 days (admittedly from a 52 week low) - I believe what is currently causing upward momentum in the share price is a combination of the imminent COP26 meeting, Government pronouncements on Hydrogen strategy and particular to Powerhouse the fact that Financial close is now next month. COP26 will float all renewables boats and we may well see a spike to 10p before settling back as per earlier this year. So Swazers charts could easily be telling the truth.