Member Info for observer842

Maybe the BoD are planning on quarterly updates? It's the 26th on Friday - 3 months to the date since the last update. lol! ;-)

"Prepare annual accounts for a private limited company"
https://www.gov.uk/annual-accounts/penalties-for-late-filing
===[
The penalty is doubled if your accounts are late 2 years in a row.
]===

Might be double what I said. Double sigh.

That's my understanding @dougal. I think it's increasingly likely there is something in the Ltd accounts they don't want made public just yet - be it good or bad, impossible to second guess really! But whatever the reason we appear to be willing to take the (likely) fine on the chin. £750 if not published by end of September, £1,500 afterwards by my reckoning.

Shareholders deserve an update - regular updates in fact, regardless of whether it is in the interests of the BoD to provide one, which as we have previously discussed it may very well not be due to their potential CLN conflicts of interest. Sigh.

Ob.

I dug out my spreadsheet based on the Sonora BFS. For a @5% discount, $3,400 per tonne LCE post-tax cash flow to KDNC from our JV using "Table 16.2.2: Mine Production Schedule", I made the discounted total as: $34,999,758.27. Which is suspiciously close to $35m... Anyone fancy confirming my numbers?

Here is some CROE analysis to be taken with a healthy pinch of salt.

Conservative: 8%, $2,000: $13m
Realistic: 7%, $3,000: $22.8m
Optimistic: 6%, $4,000: $35.4m
Euphoric:: 5%, $5,000: $51.5m

I believe this is just a taster of the true value to KDNC of the Sonora Lithium Project. If (when!) the mining rate is increased beyond 35ktpa a significantly greater proportion of our JV will (surely!) be required.

One final point, I'm uncertain where my initial $3,400 came from. It appears to be the cash-flow per tonne required to assign a discounted 8% after-tax total of $802m to BCN from their LV + 70% of the JV. i.e. $3,400 is potentially the fairest toll rate KDNC could be expected to receive according to this methodology. Though when was business ever fair!? ;-)

Ob.

Just waiting patiently, very patiently for the next bit of news which should multi bag us from these lows if unquestionably good!

Unquestionably good. You hear that JG? ;-)

Time for an update. Also, ramping up the PR machine wouldn't go amiss to counteract the drip of holders bailing...

Ob.

Oh I wouldn't be so sure about that... Admittedly JG's silence is deafening! News really must be imminent... And yes, the longer without news the more imminent it becomes! ;-)

Surely by the end of this month - 3 months since the last product update which was full of promise, but lacking in substance.

Come on JG, spill the beans on what's really going on.

Ob.

But your contribution was so much more intelligible @Frankie!

08 Jun 2019: Compulsory strike-off action discontinued for Inspirit Energy LTD as "Cause has been shown why the above company should not be struck off the register"

"Company accounts guidance" (Updated 22 October 2018)
https://www.gov.uk/government/publications/life-of-a-company-annual-requirements/life-of-a-company-part-1-accounts

DYOR

13 Jun 2016: Align report: http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf
16 Aug 2016: Collaboration agreement with CIBSE
3 May 2017: Discussions with Argentarius to raise up to £2m through asset backed bonds
18 Jul 2017: Electrical efficiency improved from 3.0kW to 3.2kWe
21 Aug 2017: Argentarius arranged funding apparently falls through
14 Nov 2017: Accelerated redemption of all securities related to Argentarius by year end
28 Dec 2017: CIBSE ongoing collaboration confirmed
06 Feb 2018: Inspirit Energy Consultancy Incorporated
29 Mar 2018: Increased efficiency in the regenerator allows commodity grade stainless steel derivative to be used
12 Apr 2018: CIBSE ongoing collaboration confirmed
04 May 2018: Issue of £845k of Convertible Loan Notes raising £530k in cash, the balance converting existing debt
28 Dec 2018: In discussions with a European company that may carry out the certification process; CIBSE collaboration not confirmed; $2,600,000 of debt facility available
29 Mar 2019: Continued discussions with a European company that may carry out the certification process; CIBSE collaboration not mentioned [now assumed to have concluded]
26 Apr 2019: Facilities moved from Sheffield to Poland in collaboration with a European engineering group. Collaboration with a UK based University on new applications. New composite materials awaiting classification. Cost savings. Can start off grid. Peak electrical output doubled to @6.4kWe, same @15kWt [unknown steady state system efficiencies] during a running cycle of 2,000 hours. Height reduced to 80cm. Schematics for new applications: Inspirit Marine - currently in discussion with a large car/marine engine manufacturer to develop a unit for the shipping industry with current output of 11.68kw; Inspirit Solar; Inspirit Cooler; Inspirit Motor/ Generator
08 Jun 2019: Compulsory strike-off action discontinued for Inspirit Energy LTD as "Cause has been shown why the above company should not be struck off the register"
16 Jul 2019: Inspirit Energy Consultancy Dissolved

So in terms of near news events:
- Announcement of the name of the European engineering group/company
- Announcement of the name of the Inspirit Marine manufacturer
- Confirmation of start/end of certification process and outcome (I doubt we will hear if we fail)
- Conversion of CLN's: The maximum number of new shares if converted at the minimum conversion price of 0.07p is 1,207 million shares. These can be converted even when the share price is below the minimum share price.
- Likely placing/issue of additional CLN's using the 650m shares authorised last summer
- Funding for commercialisation, assuming we don't use the debt facility
- AGM

Ob.

13 Jun 2016: Align report: http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf
16 Aug 2016: Collaboration agreement with CIBSE
3 May 2017: Discussions with Argentarius to raise up to £2m through asset backed bonds
18 Jul 2017: Electrical efficiency improved from 3.0kW to 3.2kWe
21 Aug 2017: Argentarius arranged funding apparently falls through
14 Nov 2017: Accelerated redemption of all securities related to Argentarius by year end
28 Dec 2017: CIBSE ongoing collaboration confirmed
06 Feb 2018: Inspirit Energy Consultancy Incorporated
29 Mar 2018: Increased efficiency in the regenerator allows commodity grade stainless steel derivative to be used
12 Apr 2018: CIBSE ongoing collaboration confirmed
04 May 2018: Issue of £845k of Convertible Loan Notes raising £530k in cash, the balance converting existing debt
28 Dec 2018: In discussions with a European company that may carry out the certification process; CIBSE collaboration not confirmed; $2,600,000 of debt facility available
29 Mar 2019: Continued discussions with a European company that may carry out the certification process; CIBSE collaboration not mentioned [now assumed to have concluded]
26 Apr 2019: Facilities moved from Sheffield to Poland in collaboration with a European engineering group. Collaboration with a UK based University on new applications. New composite materials awaiting classification. Cost savings. Can start off grid. Peak electrical output doubled to @6.4kWe, same @15kWt [unknown steady state system efficiencies] during a running cycle of 2,000 hours. Height reduced to 80cm. Schematics for new applications: Inspirit Marine - currently in discussion with a large car/marine engine manufacturer to develop a unit for the shipping industry with current output of 11.68kw; Inspirit Solar; Inspirit Cooler; Inspirit Motor/ Generator
16 Jul 2019: Inspirit Energy Consultancy Dissolved

So in terms of near news events:
- Announcement of the name of the European engineering group/company
- Announcement of the name of the Inspirit Marine manufacturer
- Confirmation of start/end of certification process and outcome (I doubt we will hear if we fail)
- Conversion of CLN's: The maximum number of new shares if converted at the minimum conversion price of 0.07p is 1,207 million shares. These can be converted even when the share price is below the minimum share price.
- Likely placing/issue of additional CLN's using the 650m shares authorised last summer
- Funding for commercialisation, assuming we don't use the debt facility
- AGM

Ob.

It doesn't surprise me that retail interest in INSP is almost non existent @dougal given the dearth of news. News to drum up interest really must be imminent - but even if good, it might not be in the interests of our BoD to drum up the PR machine if we don't need to raise money to progress to commercialisation off of the back of it. Perhaps because we have other sources of funding in the pipeline. And as discussed it would suit the CLN holders if they can convert at a share price at, or just marginally above 0.07p.

Ob

"Germany could have 7.5 GW power-to-gas capacity by 2030, say gas grid operators" (18 Jun 2019)
https://www.cleanenergywire.org/news/germany-could-have-75-gw-power-gas-capacity-2030-say-gas-grid-operators
===[
To reach ambitious climate targets, natural gas increasingly has to be replaced by synthetic, renewables-based gases. Using renewable electricity to produce hydrogen and CO2-neutral methane could solve some of the [energy transformation's] toughest challenges. Making gas with wind and solar power could also provide carbon-neutral fuel for heating and transport and pave the way for large-scale seasonal energy storage.
]===

mCHP is a very attractive proposition to convert the stored gas back into heat and power at point of consumption, both conveniently and efficiently.

The time for the Inspirit Charger is now.

Ob.

Cheers @CHRH! This is a key point to me @ivybush & @jimb2 from the Ganfeng announcement:

"Proposed Strategic Investment by Ganfeng Lithium" (20 May 2019)"
https://polaris.brighterir.com/public/bacanora_lithium/news/rns/story/xl5dj3w
===[
Strategy would be in place to ensure project timetable of first production in 2021
]===

It will be a wake up call to the market if the deal goes through and it sees a contract that is sufficiently punitive against Ganfeng or other third party delays to the agreed timetable of first production in 2021.

If the project makes it to production, we should be able to reduce the discount rate applied to our cash flow streams when calculating the net present value of our JV from that used in pre-production calculations of 8-12% (risked) to around 5% (de-risked). This benefits exponentially the more further out you discount.

Of course we don't know exactly how our JV's will be treated, though I'd hazard a guess that the details will likely be sown up in the Ganfeng deal - whether or not we'll get to see them is another matter altogether. We should.

Less than one week to find out...

Ob

is currently targeting 35ktpa LCE. I wonder if we'll see this increased in the next week or two, likely bringing our JV's into play sooner. A 100 year mine plan is under development, presumably @35ktpa, but I take that as analogous to 50 years at @70ktpa should the demand and off-take be there. I posted this on the BCN board the other day:

===[
Cheers @tomcat. So in summary the current reserves support approximately a 100 year mine plan @35ktpa (81.42% of which is attributable to BCN), which means the reserves support a 50 year mine plan @70ktpa and a 35 year mine plan @100ktpa. And then there is about the same again with the potential to be converted to reserves should the need arise - and it might according to some forecasts of lithium demand! ;-)
]===

It's possible we'll be gone from Sonora as part of the Ganfeng deal. If the price isn't right and we don't sell, and BCN re-rates on the deal, I'll be very surprised if we don't too. Nearly 19% of those 100 year reserves are ours...

Ob.

As well as the current 30.95% of INSP, JG also owns 52.89% of OCT.

A reminder of recent history:

13 Jun 2016: Align report: http://www.alignresearch.co.uk/wp-content/uploads/2016/06/Inspirit-Energy-Align-Research-13th-June-2016-Final.pdf
16 Aug 2016: Collaboration agreement with CIBSE
3 May 2017: Discussions with Argentarius to raise up to £2m through asset backed bonds
18 Jul 2017: Electrical efficiency improved from 3.0kW to 3.2kWe
21 Aug 2017: Argentarius arranged funding apparently falls through
14 Nov 2017: Accelerated redemption of all securities related to Argentarius by year end
28 Dec 2017: CIBSE ongoing collaboration confirmed
29 Mar 2018: Increased efficiency in the regenerator allows commodity grade stainless steel derivative to be used
12 Apr 2018: CIBSE ongoing collaboration confirmed
04 May 2018: Issue of £845k of Convertible Loan Notes raising £530k in cash, the balance converting existing debt
28 Dec 2018: In discussions with a European company that may carry out the certification process; CIBSE collaboration not confirmed; $2,600,000 of debt facility available
29 Mar 2019: Continued discussions with a European company that may carry out the certification process; CIBSE collaboration not mentioned [now assumed to have concluded].
26 Apr 2019: Facilities moved from Sheffield to Poland in collaboration with a European engineering group. Collaboration with a UK based University on new applications. New composite materials awaiting classification. Cost savings. Can start off grid. Peak electrical output doubled to @6.4kWe, same @15kWt [unknown steady state system efficiencies] during a running cycle of 2,000 hours. Height reduced to 80cm. Schematics for new applications: Inspirit Marine - currently in discussion with a large car/marine engine manufacturer to develop a unit for the shipping industry with current output of 11.68kw; Inspirit Solar; Inspirit Cooler; Inspirit Motor/ Generator.

So in terms of near news events:
- Announcement of the name of the European engineering group/company
- Announcement of the name of the Inspirit Marine manufacturer
- Confirmation of start/end of certification process and outcome (I doubt we will hear if we fail)
- Conversion of CLN's: The maximum number of new shares if converted at the minimum conversion price of 0.07p is 1,207 million shares. These can be converted even when the share price is below the minimum share price.
- Likely placing/issue of additional CLN's using the 650m shares authorised last summer
- Funding for commercialisation, assuming we don't use the debt facility

I personally want to hear more about how the 6.4kWe peak electrical output was achieved, but significant substantial news before another fund raise would be more welcome! ;-)

Ob.

Take a watch of:

"Inspirit Energy - Product Overview" (21 Jun 2016)
https://www.youtube.com/watch?v=LZerJ7BsIFI
===[
Nick Stevenson of Inspirit Energy presents a 3 minute overview of the Inspirit Charger a new generation heat and power boiler designed for an energy efficient future.
]===

Clearly we stalled in 2016 for whatever reason. We've improved on the model shown in the video since according to various RNS's and in particular the most recent one. Fingers crossed 2019 is the year we take that final step towards commercialisation!

Cheers @tomcat. So in summary the current reserves support approximately a 100 year mine plan @35ktpa (81.42% of which is attributable to BCN), which means the reserves support a 50 year mine plan @70ktpa and a 35 year mine plan @100ktpa. And then there is about the same again with the potential to be converted to reserves should the need arise - and it might according to some forecasts of lithium demand! ;-)

Absolutely @dougal - something has to give imminently. This company has always been a bit of a "trust me" share, but never so much as now. Do we trust JG to deliver? Clearly not everyone does otherwise the SP wouldn't be languishing so low! Only time will tell whether we were right to or not... It's certainly a bit of gamble - one I'm surprised more aren't taking advantage of with a punt at less than HALF of the MINIMUM conversion price of the CLN's.

Perhaps news next week or the week after since our year end is end of June? It might be good - it might be bad. Who knows!? ;-)

Ob.

Indeed @dougal. Of all the likely friendlies, DL is the favourite in my book, due to him once being involved with the company and knowing its great potential at the time, never mind the stated improvements since he left. He'll also be able to claim that when (if!) this comes good it's not that he didn't try alerting us retail investors to the potential via the occasional tweet.

And if it isn't all lies, smoke, hot air, plate spinning, mirrors and what have you - this share should be worth 10's of millions in time. Like you said the other day, I wouldn't be surprised if a Trade Sale Exit were on the cards - I'd accept a decent offer, and would be expecting at least a ten bagger from here in return for the continued risk and opportunity cost we've endured in supporting the company. 0.5p will see me gone at this stage - otherwise I'm here for the duration. 1p and beyond! ;-)

Ob.