Member Info for Piltick

"Is this possible to ever reach over £1?"

It really depends on how quickly the company can reach around 400-500 DMG units. Some numbers to throw into the melting pot:

Assuming no more shares are issued, so say 4 billion shares.
Let's assume 500 DMG units, with licence fees of £500k per annum each.
So annual revenue £250 million.
Costs: Not a huge amount, no operating costs so basically just admin/corporate overheads. Call it £5 million just to put a number into the mix. OK, let's up that to £10M.
So Net Profit £240M.
Tax, let's keep it simple at 20%. So After Tax Profit £192M.
Assume a PE ratio of 20, so MCAP of £3,840M
That's equal to a SP of 96p for 4,000M shares.
OK, not quite £1, but install another couple of DMGs and we're there!
So it seems very possible, but no idea how long it might be before we have 500 DMGs up and running.

I entirely agree IWTO, I couldn't have put it better myself!
TBH I don't mind if we have had to knock back the sales by about a year if it comes about because AFC have developed a much superior product in the meantime that will take the market by storm, giving us a stronger competitive edge for a longer period in the future.

The last announcement Im aware of is that the FOAK is scheduled to be operational and generating electricity towards the end of this year, and fully operational producing hydrogen sometime next year. I also believe that construction is scheduled to start in the summer, whatever month that might be!

DW, I thought AFC's fuel cells produced electricity from hydrogen, not the other way around?

1LEO, the reason I say there is a connection is because Peel's application includes waste plastic recycling facilities, which will be supplying the non recyclable plastics as feedstock for the DMG facility on Plot 10B, and in time the DMG facility will be supplying hydrogen to the hydrogen re-fuelling facility on the Protos site. So all of these facilities are inter-connected, and clearly Peel will want to mange the construction and development of all of them so that they all come into production at the most appropriate time.

ILEO, I know that, but there is a connection. It is likely that Peel does not want to develop 10B until they have permission for the waste management and hydrogen facilities included in the application I mention.

Plot 10B has been fully permitted for some time.

Still waiting for permission to be granted for Peel's planning application which was submitted on 7th October. It didn't come up at this latest meeting, so perhaps the next one on 5th April.

https://pa.cheshirewestandchester.gov.uk/online-applications/applicationDetails.do?activeTab=summary&keyVal=R0LO1ITE02A00

OK, thanks Doc. It's obviously a much larger operation than PHE at Protos, and it seems that PHE's FOAK will be operational before Covanta.

Dr. Anomaly: Do you know, how does Covanta's technology work and how does it differ from PHE's technology?

Here's a link to their web site. Interesting video of their construction progress. The web site says it is to be operational in 2024.

https://info.covanta.com/protos?hsLang=en#communityengagement

More strength to the Board.

I agree Val, but sadly I'm not sure that PHE management are in a position to do that.

Although PHE has (presumably) put funds into the SPV by way of a loan, when I look at the SPV details at Companies House (Protos Plastics to Hydrogen No.1 Ltd.) I see that there are 4 directors, all from Peel and none from PHE. So the SPV is clearly managed by Peel, and they manage the timeline as well. I'm not even sure if PHE management know what the timeline is!

Dr.A. I'm inclined to agree with your last statement. It certainly seems to me that Peel have been dragging their heels on this, for whatever reason, and judging by the comment in today's RNS it seems that communications between PHE and Peel have not been clear for some time.

Perhaps PHE needs to try to set up a DMG with a waste management company or a local authority. I strongly believe that PHE needs to retain the right to do that whenever they can, and not give Peel exclusive rights in the UK. So Peel can have exclusive rights to develop on their own sites, which are many, but PHE should have first shout elsewhere.

My understanding is that it is the repayment date for the loan that has been extended, not the drawdown. As far as I am aware, the drawdown took place months ago, to enable the SPV to place orders for long lead items.

"Upon taking the helm, Powerhouse Energy’s new leadership has been quick in engaging with Peel NRE, and this has secured a mature open culture, and focused level of engagement. "

Is this suggesting that there has not been a close engagement with Peel until now?

We really need more details of the timeline. In particular, are we still expecting to be producing syngas this year, and hydrogen next year. There is an unfortunate vagueness about this RNS, I think we deserve better than this.

That is very interesting. Perhaps that's the main reason that Putin is so keen to capture it.

Yes, and it's a jet engine, not a propeller job.

The Energy Recovery Plant in Lerwick is operated by Shetland Isles Council which burns over 23,000 tonnes of waste per year and generates 7MW of energy providing heat and hot water for the Lerwick District Heating System which is operated by the Shetland Heat Energy and Power Ltd
https://wikiwaste.org.uk/index.php?title=Lerwick_Energy_Recovery_Plant_(Shetland_EfW_Plant)&mobileaction=toggle_view_desktop

My thoughts also!

Good point MJ. I'm sure I heard VP mention the DMG in one of his rants!