Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
It also says (I quote):
Braid Ulster Unionst Cllr Robin Cherry MBE asked if the new equipment would be able to work with hydrogen.
Kyle McMullan, of NIE Networks, indicated that the company is currently at a stage of appointing a contractor. He explained the final decision of the type of gas has to be confirmed and the type of gas and equipment will be decided by technical needs and will be for a “design life of 40 years”.
The application was approved unanimously.
That's anathema for Consuella and friends. They are nimbys with conspiratorial aspirations and they are doing all they can to stop projects such as this. Just look at their previous posts. They are anti green, anti eco and anti H&W because of their own misguided self interests. It's time for common sense to prevail so such projects can progress.
"Given a 10% chance of a 100 times payoff, you should take that bet every time." — Jeff Bezos
"The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
"In investing, what is comfortable is rarely profitable." — Robert Arnott
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." — Robert G. Allen
"Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off." — Carlos Slim Helu
"The biggest risk of all is not taking one." — Mellody Hobson
"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." — Paul Samuelson
"Wide diversification is only required when investors do not understand what they are doing." — Warren Buffett
"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." — Peter Lynch
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." — Warren Buffett
Carefully reading the Mirror article that Stokey linked, towards the end the article says:
“Promises over UK workshare must be enforceable and binding and promises made on investment in Belfast must be honoured, if not increased.”
For me, that implies a grudging acceptance of Team Resolute. Further, perhaps it implies that they might push for increased investment in H&W Belfast. Hardly bad for the future of H&W.
So how might one value a business and establish a mcap? There are lots of ways including turnover based valuations. Have a look at https://www.cruseburke.co.uk/how-do-you-value-a-business-based-on-turnover/#:~:text=It%20is%20one%20of%20the,weeks%20in%20a%20financial%20year for an example of doing that.
For those who are risk averse let’s do a very risk averse valuation, a sort of worst-case scenario using very approximate numbers. To keep it simple and worst case I’m only including the FSS contract – no Islandmagee and no other contracts. In a recent post FormerFD says ‘that’s £140M+ per year coming in because of FSS’. Ok he stirs somewhat but it’s as good a starting estimate as any. If we then assume a conservative sector average of 25/50 that then gives a x1/2 mcap valuation of some £140M/2 or£70M) ie a share price of around 45p. So as a bottom line, about double what it is now.
What’s a best-case valuation? Support and maintenance can often be worth a lot more than the original contract. Sometimes it’s even worth doing contracts (especially defence contracts) at cost just to get the support and maintenance (that will run for 20, 30 and sometimes many more years). And then, Islandmagee, other contracts in the pipeline, local regeneration, renewables, cruise and ferry, commercial, more defence work … Best case it’s very much higher, it’s huge. In my opinion, the current share price grossly undervalues the business. Do your own sums and decide for yourself what the share price should be and what it might rise to.
Note press releases today at https://www.marketscreener.com/quote/stock/HARLAND-WOLFF-GROUP-HOL-4007667/news/Harland-Wolff-01-November-2022-Unaudited-Interim-results-for-the-six-months-ended-30-June-2022-42166194/
Same at https://www.publicnow.com/view/DAFCEFAC30A77A33D4FDFBAB1F03AFAE8172657F?1667311117
News on yahoo!finance (https://uk.finance.yahoo.com/news/rough-gas-storage-faces-deadlock-171016841.html). The article starts with
"The owner of Britain’s largest gas storage site has warned that it is unlikely to be operating at full capacity in time for next winter amid a stand-off with ministers over funding.
Chris O'Shea, the chief executive of FTSE 100 energy giant Centrica, said the company would need some form of government support to fully reopen the Rough storage site.
He added that the previously mothballed facility, in caverns under the North Sea, is now operating at about 20pc of full capacity for this winter and will be able to supply about 1.5pc of peak winter daily demand.
But to ramp it up next year and for longer term use, the company is seeking support similar to that available to electricity interconnectors, where risk and reward is shared with consumers.
After months of talks with the Government, Mr O'Shea said he believed a deal in the short-term was “unlikely” and it was unlikely the site would be at full capacity for next winter."
To put things into perspective:
Before the RNS there were some 163M shares. After today's RNS plus AFTER the warrants are exercised the shares will be diluted by some 18M shares. That's a long-term dilution of about 11% which in the scheme of things isn't that great a dilution. You need to weigh the dilution against the benefits of today's action. It's also now in Riverstone's interest that the share price goes up. Looks positive to me.
The link to the doc is https://www.phoenixnaturalgas.com/assets/documents/13810.001-20pp-Pathway-to-Net-Zero-WEB.pdf
Pages 11, 14 and 16
But Consuella & Friends are always preaching death, death, death to H&W. Can I therefore conclude that they are anti offshore wind and anything long term green? Isn't that the only logical conclusion?
It's very sad that nogascaverns think that trashing H&W will stop Islandmagee. Unfortunately for them it doesn't and Islandmagee will continue regardless of the fortunes of H&W. Islandmagee can/would/will be passed onto a different owner in a worst-case scenario so all the trashing of the H&W sites gets them nowhere. Worst case it trashes people's livelihoods but it doesn't stop Islandmagee.
I've just had a really worrying thought. With the share price being such a snip, if Consuela & co dip into their back pockets they can buy enough shares so as to become the major (controlling) shareholder. They could then do some real damage. The stuff of nightmares!
So to summarise, Consuela and cronies are anti energy security, anti national economy, anti local economy, anti build anything to do with green fabrication, anti green investment and only has her own interests at heart. Wow!
For those who haven't read the full post, it continues with:-
As part of the visit, Mr McKee toured the yard, met with apprentices and new employees and observed the ongoing work as part of the contract awarded by Saipem for the fabrication and load-out of wind turbine generator (WTG) jacket foundations.
The visit showcased the recent investment and improvements that we have made to the yard’s facilities including a new maintenance shop, purpose-built Rubb shelter and a pipe profiling machine which boasts a load capacity of 18 tonnes – an unrivalled UK capacity.
Since we acquired the yard in 2021, employees have risen from 27 to 300+ with 20 apprenticeships offered this year.
Ivan McKee, Minister for Business, Trade, Tourism and Enterprise commented: “It was great to visit Harland & Wolff in Methil today to see the significant investment in the site. It was fantastic to meet the workers and new apprentices and hear about the innovative work at the yard which is providing local and wider economic benefits.”
John Wood, Group CEO of Harland & Wolff commented: “It has been fantastic to welcome Ivan McKee today and to show him the significant investment we have made into not just our site, but to the local and wider economy. This was a great opportunity to share the Harland & Wolff heritage, ethos and vision as well as our plans for the future.”
So why would Consuela and friends keep trying to trash all of that??? They have not invested in any shares but they do have a dark agenda.