Member Info for ProcessGuy

There have been a lot of musings on the capacity of the Lemu mask machine, quite a bit that is (charitably) ill-informed and some that is more mischievous in intent. There is clearly some misunderstanding of the differences between capacity, throughput and run-rate and the terms commisioning, operational and in production - I think this interchangable use of terminology was helpful for the previous BoD.

What we do know is that Lemu and Weber Ultrasonics (welding component) are not beginers at this, they are competent companies with a track record and reputation to maintain. Lemu have stated that the estimated production rate for the machine is 150 to 165 masks per minute.
However, to achieve this run-rate for a prolonged period of operation then we need to assume that this is post Performance Acceptance Testing, a fully optimised set-up, fully trained and experienced operatives available and with a mature maintenance program with all critical spares and wear parts available on-site, along with a readily available supply of raw materials. The new BoD have demonstrated that they understand this having now brought in key operational support; obviously this remains a work in progress.

So, lets look at a couple of scenarios:
1) Reaching production on a single 8 hour shift basis:
Lets derate capacity by circa 9% to the bottom end of the estimated range i.e. 150 masks per minute.
150 x 60 x = 9,000 per hour x 8 hours = 72,000 per day x 5 = 360,000 masks per week x 4 = 1.44 M per month.
Now making an allowance for planned and unplanned stoppages and maintenance etc. an utilisation rate of, say, 75% can be applied.
1.44M x 0.75 = 1,080,000 masks per month.

2) Reaching full production on a 24/7 basis:
Lets derate capacity by circa 9% to the bottom end of the estimated range i.e. 150 masks per minute.
150 x 60 x = 9,000 per hour x 24 hours = 216,000 per day x 30 = 6,480,000 masks per month.
Now making an allowance for planned and unplanned stoppages and maintenance etc. an utilisation rate of, say, 75% can be applied.
6,480,000 x 0.75 = 4.86M masks per month.

So, in my view, achieving a short term target of over 1M masks a month is feasible once the welding issue is resolved. Longer-term 5M per month is possible once the management and operatives have gained experience and put all of the systems and processes in place to run an efficient production environment. Obviously, individuals can apply their own utilisation rates etc.

Second link below has the video at the bottom of the article if anyone hasn't seen this yet.

https://www.nonwovens-industry.com/contents/view_breaking-news/2020-06-10/lemu-group-building-surgical-mask-production-line/
https://www.labelandnarrowweb.com/contents/view_breaking-news/2021-01-21/lemu-group-engineers-mask-making-machine/

Stonk:
".............they have not taken up the option."
Sorry, but that is not the same as "they've turned it down twice already" which was your earlier post.

Pennysworth; disagree that the 450k is a sell, as noted by others that was the full ask yesterday at 9.29am which is the trades timestamp - so its a buy.

Could the other two trades be a rollover ?

So the ear loops are a bottleneck from the interview, this from a Lemu PR piece about their machine:

https://www.nonwovens-industry.com/contents/view_breaking-news/2021-01-21/lemu-group-engineers-mask-making-machine/
"The machine features two welding groups, as well. The first welding group joins the different mask layers, while the second welds the mask’s ear loops. Lemu Group has partnered with Weber Ultrasonics to produce these German-made welding groups.

We have worked diligently to ensure the welding point of the mask’s ear loop can be adjustable,” explains Beaudoin. “Depending on the quality of the ear loop and mask material, this welding point can vary quite a bit, so is very important to have the material well-guided.The positioning of the masks in the welding system are servo-made, which guarantees that the position of the mask is accurate and eliminates positioning errors.

The machine is also equipped with a system to place the ear loops inside the mask, and the mask grouping system in each welding line is independent."

Torreaguas:

That's good news indeed, any chance that you'll tell us what price you get them from P2F for :) ?
Just so we can work out future revenue and margin projections for P2F.

MWILT (15:14):
From RNS 18th Feb 2021:

"Issue of Shares
The Company has agreed to issue Trevor Brown with 8 million shares in place of his remaining 14.8m options and the director fees that he would have been entitled to had Trevor stayed until the annual general meeting later this year, at which he had previously agreed to step down."

JHFH: spot on, patterns within patterns.

The significant shareholder list on the website has been updated today, this meets the minimum AIM Rule 26 requirement to update not less than every 6 months.

Last Septembers list and the revised holding list are both below. In summary the Directors have reduced from 7.77% to 7.55% (surely this needed a TR1 as they are PDMR's ?) and Hargreaves Lansdown, RWC and UBS have all reduced (HL from 3.87 to 3.05%, RWC from 3.63 to 3.49% and UBS from 3.57 to 3.52% - these reductions are below the 1% required to trigger a TR1).

2nd September 2020
LEKOIL
Shareholder No. of
Ordinary
Shares
%
shareholder
Metallon Corporation* 81,000,000 15.10%
Zion SPC - Access Fund SP 74,377,015 13.86%
Allan Gray Investment Management 48,947,765 9.12%
Directors 41,664,751 7.77%
IFM Independent Fund Management 26,987,000 5.03%
Hadron Capital 24,525,000 4.57%
Hargreaves Lansdown, Stockbrokers (EO) 20,772,654 3.87%
RWC Partners 19,475,088 3.63%
UBS Wealth Management 19,128,209 3.57%
*As announced on the 1st September 2020

3rd March 2021
Shareholder No. of
Ordinary
Shares
%
shareholder
Metallon Corporation* 81,000,000 15.10%
Zion SPC - Access Fund SP 74,377,015 13.86%
Allan Gray Investment Management 48,947,765 9.12%
Directors 40,504,751 7.55%
IFM Independent Fund Management 26,987,000 5.03%
Hadron Capital 24,525,000 4.57%
UBS Wealth Management 18,872,609 3.52%
RWC Partners 18,712,684 3.49%
Hargreaves Lansdown, Stockbrokers (EO) 16,362,634 3.05%
*As announced on the 1st September 2020

uxm484:

Re your 08.37 post, while tests and testing will be needed going forward (decades not years IMHO) no test has ever, or will ever, stop someone from catching a virus - a mask will and does!

Tottyman: Its an old project (2016 ?) rather than something new, don't know why they've tweeted it today.

https://www.sunriseresourcesplc.com/ridge-limestone-nevada

Strong volume again today, over 8M shares traded so far.

Sangster and Gray out, long overdue.

Goldtrig:
Honestly, you have completely misinterpreted the (19:55) post from Cnel91.

ARD, yes I would tend to agree you wouldnt expect the lab to down tools just because a notional date on a calender is reached. However, the question remains is it collaborative work or just Hemo cracking on alone? I expect its jointly pushing forward. I just think that with a little bit more effort the contradiction could have been avoided, something Vlad can, and needs to, work on.

ARD,

Whilst I agree with your post in general and also think that a deal will be reached the RNS isn't quite as clear cut:

"With the phase of the Agreement relating to the development of the antibody completed, under the Agreement, ...."

"the Company and GlobalCo will continue developing the CDX antibody asset."

These two statements appear to contradict each other.......development is complete/continuing development ?

Mark99999: re your 11.49 post and larger investers loading up:

I posted this a while ago but its worth reposting (IMHO):

"I expect that we will see an update of some description in two weeks time. The Significant Shareholder list on the Lekoil website requires updating at least every 6 months (AIM Rule 26), this was last done on the 2nd of September."

So, in one weeks time, we find out who's been buying and who's been selling; might even get a TR1.

Can anyone access the P2F website, is it just me or is it down at the moment ?

https://www.handbook.fca.org.uk/handbook/DTR/5/1.html

"Aperson must notify the issuer of the percentage of its voting rights he holds as shareholder or holds or is deemed to hold through his direct or indirect holding of financial instruments falling within DTR 5.3.1R (1) (or a combination of such holdings) if the percentage of those voting rights:

(1)

reaches, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100% (or in the case of a non-UK issuer on the basis of thresholds at 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75%) as a result of an acquisition or disposal of shares or financial instruments falling within DTR 5.3.1 R;"

See also below link for Takeovers:

https://www.thetakeoverpanel.org.uk/the-code/download-code

The full Code can be downloaded as a PDF - you never know we might need it :)

Finally had enough of your Captain Negative attitude............filtered.

Just gone (13.55) through at 0.357