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As well as the provision of funding, a reminder of the potential value of this resource is perhaps worth mentioning; some extracts from RNS's:
"RNS 12/05/22
Study Demonstrates Exceptional Economics.
Base Case ungeared post tax internal rate of return ("IRR") of 56% and Net Present Value (using an 8% discount rate) ("NPV8") of US$155m, with a Upside Price Case IRR of 73% and NPV8 of US$235m
The staged development approach means that the funding requirement is $37.3m until the Project is self-funding compared to the total development capex of $81m
RNS 21/06/22
All drill results are from surface to a maximum of only 3.5m depth due to limitations of augur drilling, with an average depth of 1.5m. Sonic drilling at Komari in 2018 demonstrated the continuity of mineralisation to depth, with results of 14m at 26.3% THM and 8m at 26.6% THM returned.
RNS 21/03/24
… the Company has now received a formal letter confirming the GSMB's intention to process the Company's seven outstanding IML applications, which is expected to facilitate the granting of further IMLs to underpin the mine plan for the resource in the entire 47km2 EL168 licence area.
The Company is also in advanced discussions with the Coast Conservation Department ("CCD") to obtain a permit to mine covering all the CCD managed land in the EL168 area.
Final preparations are underway to commence both Aircore and Sonic rig drilling programmes in April 2024. "
Increased area of resource in current licence area + additional licences + further resource at greater depth = ?
As we await the 2023 results, I was reminded of an item in the 2022 results:
"Financial Highlights
· Revenues of $0.6 million (2021: $2.6 million). The decrease was anticipated and primarily due to the loss of pandemic-related sales to the meat processing plants as vaccinations became available."
If the contract with meat processing plants was worth say $2m, the potential revenues that could be generated from the range of opportunities that are now being developed must be significant. Even if the 2023 results disappoint some people, I am optimistic about the longer term outlook.
Hopefully, the Aircore and Sonic drilling programmes referenced in the 21/03/24 Project Development Update are progressing and these produce an increase in the Proven Reserve; to quote the RNS:
"Accordingly, a substantial resource increase is anticipated from this initial work programme, which is expected to subsequently motivate further resource confirmation and exploration activity."
I have been reflecting on the information provide by GROC over the last 18 months and relative to some other AIM companies, I believe they have done a good job. They are working through the stages of the project and the assessments that are required, and providing updates and information about the approximate delivery dates. Details about the licence extension showing the areas of high grade mineralisation have also been provided.
Until today's RNS, I was concerned about dilution, but the LOI shows that work is going on behind the scenes. They also secured a grant from the Advanced Propulsion Centre, which suggests to me that they are endeavouring to progress matters as efficiently as possible.
The SP clearly has the potential to be significantly higher, but positive news is key. Let's hope the company continue with the level of communication. The next big steps for me will be securing additional funding and the completion of the PFS.
"Points taken from 04/04/24 RNS:Ondine has a pipeline of investigational products in various stages of development.
Ondine's nasal decolonisation light-activated technology has a CE mark in Europe and the UK-CA mark, and is approved in Canada and several other countries under the name Steriwave®. In the US, it has been granted Qualified Infectious Disease Product designation and Fast Track status by the FDA and is currently undergoing clinical trials for regulatory approval. Light-activated antimicrobial products in development include therapies for a variety of medical indications such as chronic sinusitis, ventilator-associated pneumonia, burns, and other indications."
The outcome of the clinical trials for regulatory approval (presumably FDA) may provide a short term boost. Hopefully, the upcoming full year results will contain positive updates as well as reassuring financial data.
I am invested in both Destiny and Ondine.
There is regular and positive communication from Ondine, although a commercial breakthrough has yet to be achieved. A similar approach to the provision of information by Destiny would be helpful.
Wgumcd
You made reference to Steriwave being 50% effective, but the following extract from Edison states:
"In Q422, the company reported that its US Phase II nasal disinfection study met the primary endpoint of eliminating or significantly decreasing nasal Staphylococcus aureus in 86% of carriers. "
Here is the link to the article: https://www.edisongroup.com/research/steriwave-initiates-uk-pilot-study-with-nhs/32588/
Peterobert - I agree
For anyone wanting to listen to the 2 minute video by Prof Claire Hopkins here is the link
https://ondinebio.com/media/steriwave-prevents-sinonasal-ssis/?portfolioCats=68
I received the following information from Ondine following the release of the RNS:
"We are very pleased as this procurement authorization facilitates the ability for HCA clinicians across the HCA UK network to adopt Steriwave to prevent healthcare-associated infections for their patients and reduce unnecessary antibiotic use. HCA UK has built a world-class network of over 30 facilities in London and Manchester, with its latest venture opened in Birmingham in 2023. HCA is the largest private healthcare provider in the world and one of the leading private healthcare providers in the UK. HCA Healthcare UK, is the only private hospital group in the UK to have the highest level of critical care beds in all of its facilities, and it positively takes on new challenges in innovation and advancing critical care. We believe our clinical work to advance the use of Steriwave into ICUs will be leveraged by this key procurement relationship in due course.
The procurement clearance at HCA UK, following the recent news of our first NHS hospital deployments in Mid Yorkshire, we believe bodes well for our growth goals."
Whilst I agree pricing details would be useful to fully consider the value of the company, I believe they are making steady progress and their relationship with HCA appears strong and could provide the opportunity for significant growth in the US. An update on progress of the Phase 3 trial is awaited with interest.
Thanks for the words of welcome. I hope I can bring something to the group. There are certainly some usefule observations and thoughts.
The link to Investors' Chronicle, which gives a target price of 64p, is:
https://markets.investorschronicle.co.uk/data/equities/tearsheet/forecasts?s=ENET:LSE
Mickey -Thanks for the welcome. I wish I could exercise "good judgement" every time the need for a decision arises.
I am exercising "control" at the moment despite the very positive view of the analyst referred to at Investors' Chronicle.
The last RNS is a business update. I believe it is positive, but there is nothing definite. Here is a list of caveats that are used.
positive engagement
a number of potential new customers
indicated an interest
potential contracts
could lead to significant business
should they lead to contracts
could contribute
would likely lead to significantly higher revenues
Whilst there can be no guarantee
potential for future growth in sales
Although the following article relates to rare earths, it is interesting to note the measures that governments may adopt to protect access to resources.
"Japanese Template
...... Back in 2010, China threatened to cut off supplies of rare earths to Japan, threatening the viability of Japanese companies producing advanced technical equipment and forcing Japan to mount a rescue bid for a financially stressed miner, Lynas Rare Earths, by offering capital to complete mine development and a contract to supply future rare earths.
That rescue of the Mt Weld mine of Lynas led to the creation of the biggest rare earth business outside China......."
Link to full article: https://www.forbes.com/sites/timtreadgold/2024/03/12/nickel-rescue-plan-risks-starting-a-new-trade-war/?sh=6777846832e5
Steve305 - I think we should avoid trying to guess the reasons for a resignation. Personally, I believe we should consider the overall situation: the developments re the NHS trials, the progress towards the FDA phase 3 trial and the ramping up of production capability are worthy of a positive outlook.