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Another spin off from Kibo is KAT. And another scam. After 5 years of listing it has a valuation of £1 million.
From MAST, LSE Board:
“ I think i did say previously a fundraise in my opinion was distinct possibility before year end for Kibo, Kat and Mast..
Within podcast they mentioned the following we do not like the word dilution prefer financial raise fundraise or something like that and then at end added or placing..
I would like to add all placings are placings but some are also dilution as well ... Does not take a rocket scientist to realise all previous raisings of Kat, kibo and mast have been dilution to date the admin costs of Louis companies have been too high, followed pipe dreams, debt, no projcts have really come to fruition and created positive Roce and during this time multi millions of losses just scroll back through Kibo, Kat, Mast history of losses and write down of assets in some cases to zero, prices achieved for sales less than they paid invested etc etc....”
So how accurate were the Broker forecasts that were put out for EU30 million sales earlier this year based on discussions with EQT and making allowance for the poor forcasting in 2021? What if this new projection is like all of the recent rest?
Kibo is involved in financial engineering and unlimited quantities of BS, Anyone who looks at their MAST spin off last year will run a hundred miles from this latest wheeze which likely will never get off the ground.
It's about timing of funds paid to the company as well as projected sales. Sales that are booked next year eg for Deeside won't be part of the EU 10-12 million. Just 0.5 million. All the other projects with possible billable revenue may or may not happen at all or may complete next year. North Fork is another project completely skint and should have been written off long ago as it's been nothing but trouble from the get go - what 5-6 years ago. Instead EQT just continue pouring their cash this year into this bottomless pit.
The fact that EQT are entertaining Kibo shows their complete desperation.
But they are in good company as both companies are skint. Let's see EQT:
at 30/6 £2 million cash less £5 million owed to Riverfort = net cash of minus £3 million.
Cash raised 14/7: £3.75 million less expenses. net cash £0.5 million.
Salaries for 6 months EU1.7 million.
I make that EQT are probably in the red right now.
They have 3 months to save themselves from disaster they have brought on themselves
Tech wizards. Financial dunces.
Projected sales: EU 30 million down to the latest EU10-12 million.
What if this also doesn't happen?
What then for EQT?
My interpretation of Friday's RNS is that Scott Bros are getting very tired of Eqtec wanting to buy and develop their land at Haverton but not paying for it. This has been going on for 2 years now and no sale has been completed. No money has been paid save for a small deposit paid by EQT. So now their is an option of a lease agreement. If EQT do not find a partner with funds and willing to enter into a contract by 23/12 which is likely given the uncertainty surrounding the project then they are on the hook at the minimum to pay the rental for the land until liability can be shifted to someone else to buy or lease.
Please don't mention Kibo. Kibo (Mkt Cap £6 million) are a joke company with a 10 year record of never completing any project, having no cash and a latest scheme of spinning off part of the 'business' - none of which actually exists atm. Why do you think EQT did not RNS its Southport deal with Kibo last week? Because it would have knocked the sp even further.
Dow 29,725 (-500). Down 8 of the past 9 trading days. US markets being propped up by PPT intervention to prevent panic and stock liquidations on most days. Crash coming?
EQT is not operating in a vacuum. It needs to be very careful here. It started the year gung ho expanding into a looming global recession and European war but has come unstuck. All holders have been slaughtered for maintaing trust in this company. Have they come to their senses too late? We will find out in the next few months.
The ramifications of underestimating inflation’s persistency are huge for financial markets, creating the potential to add further losses on top of the trillions of dollars of destruction in U.S. wealth that has already occurred in 2022.
It’s been the worst September for U.S. stocks since 2008 through Thursday’s close, and financial markets are on track for their worst year in at least a half-century.
The ordinarily safe world of global bonds fell into its first bear market in 76 years this month, as traders and investors brace for a period of continued rate hikes by central banks.
And the dollar — the undisputed winner of 2022’s extreme volatility — is at 20-year highs, leading to speculation about whether an intervention might be needed.
*** Finances are balanced on a knife edge. Touch and go with the income generated in the next 3 months critical. ****
The FY accounts for 31/12/22 will have to be audited and receive a going concern statement.
This may mean a further cash raise to satisfy the auditors.
>>> "astonishing that there is no qualification from the auditor"
EQT's Interim accounts were not audited. This is the standard practice for all LSE listed companies AFAIK.
Loss before tax: é2.3 million
Cash at 30/6: é2.2 million
Plus Funds raised 14/7: GBP3.75 million (before expenses)
Admin incl Directors salaries: é1.7 million
This is an albatross around the neck of the company. £5 million drawdown of this Riverfort loan (plus interest) to be repaid in the next 6 months by 29/3/2023:
"On 29 March 2022, the Company announced that it had agreed an unsecured loan facility ("Loan Facility") of up to GBP10 million with Riverfort Global Opportunities PCC Limited and YA II PN, Ltd (together, the "Lenders"). The Loan Facility may be drawn down in multiple instalments with the Initial Advance of GBP5million (net of a commitment fee of 2.5% of the aggregate amount of the Loan Facility) that was received on 29 March 2022. Each instalment of the Loan Facility will have a maturity date of 12 months from the date of advance with repayments of principal made on a monthly basis, as set out in a closing statement to be agreed at the time of each advance. The Loan Facility will accrue a fixed interest coupon equivalent to 7.5% of the Initial Advance and of any further advance, payable on a quarterly basis."
This is a recent red flag of just how tight are finances:
"On 01 September 2022, the Company announced that it is issuing, in aggregate, 20,100,000 new Ordinary Shares (the "Supplier Shares") to certain strategic service providers providing business development and advisory services to the Group in satisfaction of fees due to them"
" i do not see why Eqtec are not capitalising on this"
Because it takes 2 to tango.
What PI's who post here don't understand is that companies have a lock on their purse strings because of the recession (here, the EU, US, worldwide) that is only going to get much, much worse.
DP has been throwing our money around with gay abandon but not so his partners or funds or institutions or anyone with any financial acumen.
If they won't commit and sign contracts what is EQT supposed to do about it?
This is the macro climate we are in and there is not a lot that we or DP can do except batten down the hatches like everyone else ....
No. No more fund raisings sub 1.5p.
The company should start to live within its means.
It has a great product but is being brought down by foolish spending, running up debt, and trying to drive expansion that is not responding at the speed the company would like.
Money is tight everywhere and it's going to get an awful lot tighter.
Many companies will go to the wall.
EQT is way out of order and if it doesn't change now it could be one of them.
The company has entered a new phase. Instead of frequent project updates on Twitter there is radio silence except for a few general postings. Is this due to Summer holidays or more likely a fundamental change of approach?
Maybe DP has finally seen the light that he can not recklessly pursue growth into the teeth of a recession, raising funds 3 times in just over a year at an ever lower sp then spend, spend, spend like there is no tomorrow. The market has now imposed a dicipline on this company that the management failed to impose on themselves. There can be no more fund raising at these sp's because the dilution now is penal!
This means the company has to change gears from 5th to reverse instantly. No new spending, staff expansion in the New Year cut back, salaries trimmed, projects either self funding or put on the back burner. Parterships where partners, not us, pay upfront.
DP has made the wrong call at the wrong time and is responsible for the present catastrophic valuation of the company. He should be on a diet of humble pie for the forseeable future ....
Saab. Overall AISC may be within guidance. I was not commenting on that. Pallancata AISC will likely increase significantly from $22.80 last year because the costs will be set against a much reduced production from 4.4 million SEO oz to 3 million. HOC expect each mine to be self sustaining and profitable. Pallancata is about mined out from existing ore reserves. HOC has been exploring in the general area for a number of years to find new commercial deposits which would extend the life of mine but to date has been unsuccessful.
San Jose is not material. Grades can go up and down quarter on quarter. Production overall has to increase by 2 million SEO in H2 on H1 just to get to the 26 million SEO that is the lower end of guidance.
On the HOC conference call this week the CEO warned that Pallancata may have to close at the end of this year. This would be a year ahead of recent planning which was for the mine to run to at least end of 2023. There are no additional permits pending that can affect the issue. The issue is profitability. Current mining is from the edges of structures which is delivering grades below estimates and below economic operation of the mine.
Pallancata.
Grades of both silver and gold are continuing to fall this year as reported in Q2/H1 production stats and highlighted by the company.
Last year production was 4.4 million SEO at AISC of $22.80 oz.
H1 this year production is 1.5 million SEO which gives FY outcome of likely c.3 million SEO. There is no high grade as the mine is at the end of its life.
Implications:
HOC will struggle to meet overall production guidance as the shortfall at Pallancata has to be made up by the other 2 mines in H2 to get to the low end of guidance of 26 million SEO. H1 output is 12 million SEO.
Costs for the mine are rising significantly as a result of fewer oz produced to support full operation of the mine and plant. We can expect FY22 outcome AISC to be at least $30 oz and thus loss making even allowing for the silver hedge (if still in place) of $26.90 this year.
It seems this is why the company is giving advance warning of the possible ending of operations at Pallancata at the end of this year.
Wood's H1 trading update:
"Proceeds from the sale will provide the financial flexibility for us to deliver on our strategy to be a leader across energy security and sustainability."
This is a broad statement but fits continued partnership with EQT, alignment of interests and maybe a direct investment. ....
Wood net debt to reduce from $1.7 billion at 30/6/22 to approx $100 million on sale completion in H2. So any direct investment in EQT could come following completion of this sale and start up of EQT's Italian MDC.
Re: Sale of Built Environment Consulting
On 1 June 2022, we announced that we had signed an agreement for the sale of our Built Environment Consulting business to WSP Global for an enterprise value of $1.81 billion, representing an EV multiple of 16x (including expected standalone costs). The transaction is subject to various conditions, including Wood shareholder approval and certain regulatory approvals.
Good progress has been made towards completion and we expect this transaction to complete in the second half of this year. A circular will be issued to shareholders imminently.
The net cash proceeds from this sale are expected to be around $1.62 billion after estimated working capital adjustments, tax costs and transaction costs.
Proceeds from the sale will provide the financial flexibility for us to deliver on our strategy to be a leader across energy security and sustainability. We will set out our strategy in more detail at a Capital Markets Day in late Q4 of this year.
hTTps://www.woodplc.com/news/latest-press-releases/2022/trading-update-for-the-six-months-ended-30-june-2022
Re partnership with Wood:
EQT has been meeting with Wood several times a month since announcement in November.
Included is a formal meeting once a month with Wood for 3 hours where they review a joint business plan that has a pipeline of projects.
Almost 20 opportunities in this pipeline across the UK, US, France and Italy.
EQT have visited Wood's Vesta technology HQ which is in Milan.
Wood have just visited EQT's Barcelona offices in the past week or two for detailed technical planning sessions on specific projects.
EQT hae now announced Wood's participation in the Southport project but this is not likely to be a one off as other projects are coming along as well.
Beyond Wood we have a range of Tier 1, typically multi national technology partners but also delivery partners and we will be announcing these. Hopefully as early as next week or in the next 2 weeks we hope to announce the next one.
And we should have a steady stream of announcements between now and the end of the year of new very exciting partnerships.
Some of these will be collaboration agreements with the intent to pursue projects but some of them will be announcements onto a project - as with Black and Veatch - followed later by a potential collaboration agreement.
We are beyond making good progress. We are accelerating our projects.
I doubt Kibo's involvement with Billingham is current. Coetzee is desperately trying to 'big himself up' after one failed project after another for 10 years. MAST like all the rest has produced nothing but was hyped up and then cratered .....
Anaergia has 13 plants worldwide in operation or under construction.
7 min video of their plant in Limassol, Cyprus, operating since 2017, with attention to how they deal with RDF waste sorting that will likely be used at EQT's Deeside plant:
https://www.youtube.com/watch?v=GXtjCm-abo4&t=23s
Andrew Benedek, Founder, Chairman and CEO of Anaergia, "Anaergia is the world leader in this space, technologically, and also it is time to be a major provider of this gas with its own facilities and I see literally no limit. Our limit is not opportunity, our limit is having the access to capital, and that's why we went public....
There's an enormous need, Europe wants to replace Russian gas. In Germany [which is most dependent on Russian gas], we have a company that was the pioneer of this technology, and Germany was the pioneer in renewable technologies in the years 2000 to 2015. They kind of slowed down in this area, and are coming back to it just now. The rest of Western Europe is actually moving quicker than Germany, which is going to accelerate.
All the policies are put in place now, and we will utilize our German base to expand quickly as these regulations become clear."
https://www.thesuburban.com/news/city_news/andrew-benedek-and-the-renewable-energy-revolution/article_40e2fed0-4232-5375-8f19-24a3b02ceb4d.html
This pipeline of 6 Anaergia's RNG plants going live this year in Italy will give confidence to the institutions who are looking at purchase of the SPV site for EQT's Deeside RDF project.
1/4/2022. "Ongoing discussions with development and infrastructure investors, as well as owner-operators for a minimum of £15 million sale of the Project SPV are progressing with a number of parties engaged at due diligence stage."
Anaergia says it's RNG production facility in Pontinia, Italy. is the first of seven RNG plants it is developing in Italy. A further five facilities will be commissioned later this year, with the final RNG plant due in 2023.
Company officials say adding more RNG to the Italian gas grid can help replace fossil fuels and assist the EU in achieving greater energy independence. Food waste is the third biggest contributor to global greenhouse gas emissions, and produces methane rather than carbon dioxide. Methane has a greater short-term impact in warming the planet than CO2.
"This new facility exemplifies a new and better way of dealing with waste," said Alessandro Massone, Anaergia vice president of sales in Italy, "We are moving away from the old approach of take, use and throw away and instead adopting principles of a circular economy."