Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I prefer Ledzeps perspective, as a corporate recruiter.
They will only appoint internally if their initial prospect is a No.
So if they appoint internally I would expect it to be interim and be a negative.
Time will tell
Having a pipeline shows belief in the product and it’s commercials.
Still expect some price turmoil until the day traders move on, this is a long term hold, although there is opportunities during this period of volatility, depending on your attitude to risk.
The process is targeted at specific sector of waste, with low recycling values, due to cost and low return.
You’re correct there are other options, some that are operational. None however provide the scale ability or energy recovery levels of the PHE system.
The only question is when to buy?
I think there will be a five year period on cash burn, and at least 10 years before any cash is returned to shareholders (with the exception of preferential shares).
The story here will be how many projects are reported, how frequently, and of course Protos.
Realistically I don’t expect them to commission the first plant until 23/24. Comparing Eqtech’s projects and timelines, most slippage is because of third parties. So PHE can be as on point as possible, but they haven’t sufficient influence to drive the process within the current SPV/JV sphere. Most infrastructure projects involve SPV/JV frameworks, hence my thoughts on time line.
I have 10k on this at 3.12 average, and will wait out my 10 years.
Relax, it’s only money and time.
Build won’t start on the new site until September, should see site management arriving end August.
Based on job boards attached to the site contractor posted on chat videos, and there ramp up in the local postcode.
Completion of the internal works, that’s the billion dollar question?
Only funding this time?
As with Protos, the developer looks to cover a large percentage of initial development, pre development. So for a FOAK, it’s understandable that a funding injection in exchange for a quicker build is in everyone’s favour.
With other projects, if the opportunity arose to provide funding in exchange for faster build, would they take the same option?
Also how much does it cost to build a DMG? Add in the multiples of units being commissioned, lead times; couple that with license fees(my understanding is PHE own the Conversion chamber and license it annually, while charging support fees), they are on a cash burn until X amount of units are commissioned.
As all future projects are multi venture developments, thus far, it’s in their interest to support early projects financially, because it’s the quickest route to X as long as there is investor support.
Once X is hit, it should be a nice little earner.
Each site needs front end funding, for long lead manufacturing .
Of course with such a world changing technology you can have you 70 new chemical conversion chambers in no time? And the rivers of gold will flow, then why have a PLC?
A further fund raiser for Scotland/Poland has to remain a possibility, particularly if it brings revenue streams online quicker, as the Protos fee won’t fund the next two JV’s, so probably is my thought. Three fees, plus service bolt ons still won’t be enough to self fund, less so if the sales and delivery pipeline increase, and the money has to come from somewhere?
Just over 2 10ths on volume - nothing, but a 2% reduction in actual value, factoring in the option value, or am I missing something?
Last week this was going sub 4 based on that calculation. I would expect further dilution, but may like the opportunity to partake, rather than reduce my %.