Member Info for Simms45

Good to see 1.8 breached. That pretty much confirms the contractor paid in shares is out. Just a little RNS could set the touch paper alight on this one but if we need to wait for the financial close in January thats ok as we should see a steady rise over coming weeks on expectation. If 11p is NPV then between now and 2022 we should head towards it and much more as Hawiah becomes closer to reality and gold is likely to go a lot higher after trillion dollar covid announced a few days ago.

CNE could and should take stakes in projects but agree on many levels not so outstanding investment as how Eqtec works but non electric cars will be with us for a very long time and only way to improve pollution is to move from E10 to E20 and the market has not even expanded yet. Alcohol not going anywhere and sanitiser is here forever. Bear in mind CNE has higher revenues and profits today than Eqtec and their margins are larger and orderbook bigger (if IPO is to believed). CNE equally has market leading IP but their inability to expand out of China is a concern but when you look at their website, their news, everything about them is very poor on sales and marketing but so easily changed and they could provide tech all over world. lets hope CNE see the cleantech march and make sure they position themselves as argubably they will have as much impact on the environment as 10% less fuel pollution and higher across all non electric cars is huge. anyway Eqtec has a long way to go. i suspect £500m valuation with a few more confirmed projects is not unreasonable and to think Eqtec and CNE were same valuation 6 months ago. I also agree CNE could work with Eqtec in China although Eqtec is not short of demand as i can only see it exploding. come on CNE learn and make your own mid cap.

Funding is essentially a series of events and while the big one is fully closing, investor cash in bank that will not happen until January so what i am more interested in is Harry getting the loan finance agreement as the rest falls into place. Essentially the loan in principle signed off by bank is what i would like to see. Investors will then pile in for the equity sometime in January. Until we get that bank finance everyone else is waiting to play their part.

My hope was CNE would be part of the cleantech uplift globally as you can see with the likes of Eqtec and PHE and CNE should and could be joining them if they were not playing dead. Market would jump on them if they stated engaging. Eqtec and CNE similar market caps but CNE now £15m and Eqtec £150m. On paper CNE is similar but a completely different BODs. Seriously the BOD simply defy me, to have built some great tech over 10 years but then hide under a rock while the world passes them by. Yes we can wait until March but only thing that will shift the share is a dividend as 70% ownership by BOD and friends, if correct, means the business has no value to anyone else as no one can take over and noone except for BOD can benefit as they can take salaries and bonuse. They look to be too late in all honesty as i am sure another more aggressive cleantech ethanol developer will grow vastly bigger. Btw if the recent news was important it had 0 impact on the shareprice. I cant believe the BOD make time to post R&D projects and not corporate agreements and what they have done with £8m IPO cash.

Re-reading 11th December RNS update again

“We have completed an intense due diligence work programme to serve the financiers' procedures for their respective approvals of the Project start-up.“

So i take this that due diligence is over and appears favourable but now waiting for approval? Given the site visit was week preceding the 11th then this would have been first week of December.

“We are on track for the principal outstanding Ethiopian Project financing-related matters to be completed in the coming weeks, with financial closing and the start of development planned for Q1 2021, leading to the continuing goal for the start of gold production during Q4 2022.”

The wording of “coming weeks” normally means 2-3 in my books but its open to interpretation but that should result in RNS stating bank approval of loan subject to equity etc. Based on this personally i think we should expect an RNS before the New Year and because of how banks work you might expect this week or nothing until mid January. We will see.

The fundamentals of CNE are strong but we just have to smoke out the BOD from their bunker and start engaging.m with the wider audience. They barely engaged with shareholders on AIM and blamed UK investors for not understanding CNEs value but surely someone has had a word in their ear now that it does not matter where your list your company it is all about supply and demand. If you dont engage with stakeholders you do not find new investors or insti confidence in those that are already invested to top up. Has 10 years of lacklustre share performance not taught them anything? Honestly i think the BOD should pass on the baton to a new CEO who can make a £250m company out of CNE rather than an absurb £15m business. Its embarassing to staff and sales leads that CNE are so lowly viewed but still the BOD cannot see the obvious. Literally 5 hours a month of board to make regular RNS and we would be on a different planet and looking at going on the offensive but today the laughing stock of Hkex and given they are now 70% below the minimum value of HKex i do wonder if they might be forced to delist if they dont get their act together.

With a nice tailwind of almost $1 trillion splashed by US congress certainly going to help with a little updraft for Condor. things are warming up nicely. https://www.independent.co.uk/news/world/americas/us-politics/covid-relief-congress-stimulus-checks-900-billion-b1775241.html

Eqtec has only just begun its transformational future. I am looking forward to the day when will be moving at a penny a time. i hope we get to that day but i have suspicions Eqtec will not be a standalone business as i sense suitors will start to run a ruler over Eqtec. The potential interested parties could be just as equally from oil and gas who are mandating a move to cleantech energy through to major infrastrature groups that can see the global market as there almost cannot be any future in new incineration plants or very strong objections when Eqtec can handle a lot of waste.

A little realism to some extent but i am pretty confident it will come together as economics speak for themselves and happy to wait it out a month or so but for Harrys sake he needs to deliver concrete RNS to give the confidence the market needs. Certainly when it comes 3p will come and go as market takes stock of the implication of a 190k gold mine and Hawiah copper behemoth in the making just as copper hits new highs and much easier options for cash raises as we move to have proper assets and cashflow. Been here was around .9 and topped up onwards as milestones hit. Certainly confidence was initially knocked end of October as was a good RNS but not the knockout but with all the backdrop of Covid etc it was probably realistic. However his whole team was in Ethiopia and ministry of mines in the mix gave strong confidence we are close. If a bank close is happening it would normally happen now or will be January but without the formal offer Kefi does not know exact equity needed. therefore i hope all those site visits recently has closed down any credit risk issues. Would be great if we got an RNS in next few days as if our seller has gone we can certainly get back over 2p.

Contractors would have put in the market to sell the lot at 1.6p and would have taken weeks to achieve but this sale looks promising. Lets hope Harry has a little present to give shareholders before christmas as his self imposed plan just a few weeks ago was to bring some of the threads together. Self imposed deadlines for such a big financial close is not easy and a little fool hardy but everything looked pretty good end of October and he would have known pretty confidently how close he was. would be nice to get bank finance signed off. For me thats the biggie for drawdown next year. If he plans a Q1 start then conceivably that could be March but for that he needs to have received cash from investors so its tight but like this sort of finance until everyone is all signed that money will not be released.

Well spotted dshox. I am pretty sure that is the £450k of contractor shares sold at around 1.6p-1.78p. I think they are all out now so hopefully with that cleared we can move onwards as we had good buying last 2-3 weeks and no movement but £450k would take around that time to clear.

We have hit a collective 5.5m of shares so 1% achieved. Need to get up to 29m or 5% so a little way to go before any collective power.

Has been a fantastic confirmation of Eqtecs business strategy to build its own waste to energy group with Billingham the biggest so far. Its a real testament to DP and confirmation to me that Eqtec are on the path to becoming a major unicorn company of the future. Billingham will be the first of many deals where Eqtec take a slice of the equity in projects and share in the bonanza of gate and feed in tariffs. looking forward to confirmation of the many other projects in the pipeline. The steady rise has been excellent allowing those to exit and new investors with longer investment plans and can easily see 5p being a landing zone over coming 12 months as things progress. With world class patented technology, a cracking management team and an unparalleled backdrop of vast energy towards a cleantech future Eqtec are perfectly poised. It will be a fantastic 2021 for Eqtec and hoping for steady controlled rise. like others have said we rose 20% in the week quietly and steadily and would much rather do that and hold that a spike up and down.

Will get all added alongside a few others but need some more to see hoe close we can get to 5%. No one will get a physical certificate. It is all electronic certificates. I was in close contact with a broker handling some of my holding and pretty much had first name dealings with HK and explained all shares are in electronic form were released. All brokers should have your shares in this form but sounds like each broker is still doing the admin. I have been pretty surprised just how slow some have been to sort as i probably had one of quickest turnarounds IB and slower end of the spectrum IInvest Direct but latter had amazing service and i had a personal named banker calling me with updates. Really first class broker for UK market.

Anyway as we have seen the impairment charges, presumably from clients not paying bills that CNE has fronted has risen and with my experience with Eqtec and others it is not an issue because at financial close of projects clients pay a deposit to get ball rolling. You cant really expect small companies to fund a clients project and take all the risk. Most small tech companies could not possibly find the cash in the first place. if the client then pulls out for any reason you are holding a massive impairment charge that is unlikely to be recovered. As it seems with CNE what happened in the past is they did not proceed with bigger projects as they did not have the money to do so and the IPO clearly states that the £8m was partly to help CNE secure bigger projects, obviously as long as clients pay this is recovered at the end. However as we are seeing we are shouldering financial risk for clients and this was one reason for lower net profits alongside IPO costs. Also i expect the £8m was needed to get the Mongolian project going. Anyway lets hope the CEO gets his update the HL have sorted their glitches and see if anything happens. Bear in mind i got a email from Ivy saying they were looking into financial PR months ago and i suspect they will be still looking when its a pretty simple process to get started. For me it told me the BOD were deliberately not looking to engage with the market and run company as personal fiefdom for the BOD. Would love to be wrong on this.

Also first half was 15.9m RMB £1.5m net profit. Not sure if your £10m is gross but i think even though second half should be better due to contracts under construction i cannot see such a large second half, regardless the company is worth a pathetic £13m today. Once you remove about £10m cash after IPO the company is almost valued at 0. i am personally hopeful a maiden dividend will be announced but if eoy is 31st december the earliest release will be mid feb and since last year was March it might well be March. Plenty can happen but even on £4m+ net profit say we are still mispriced significantly and the future of E10/E20 and santiser etc is pretty strong. We can be confident the underlying business considerably underpins current valuation but to unlock that the company needs to offer a dividend as if you say 70% is owned bu close associates and they are in no hurry to sell then shareprice is of limited impact. It would be nice for HK exchange to give CNE a kicking and even threaten them with removal as we are massively below the $50m market cap requirements. This would probably spur the BOD to actually do something. certainly if the share price is still this low in a few months i would continue to buy but surely those close to the action already would so what are we missing?

Can i just point out it is irregular how they fund projects. the key difference is CNE wins a project and CNE like most suppliers, Eqtec being one example, would normally get stage payments from the outset so that once cleared funds are received CNE provide equipment and installation. Payment in advance is more common in these scenarios as they sold and won the project. If you build a house the contractor asks you for money upfront to buy the materials at least. If CNE was taking an equity position in the project then you might think CNE would in this case provide the equipment upfront and take a hit but as far as i know CNE has no equity stakes in projects. What caught my eye in last financials was this line that i have to say triggered some alarm bells and i then went into more detail on the IPO document and one of the uses of the IPO £8m money was in fact to allow them to take bigger projects on because of the odd way they get paid in arrears. However the big disadvantage of this approach is what if the client cant pay or decides not to? We have already seen this affect net profits and its an early fear that i hope they resolve but my worry is the company is run by academics and not business people and worry they are not so financially astute to minimise these impairment charges. It may just be a Chinese business practise but i am surprised.
“The decrease of net profit is mainly due to the increase of RMB6.5 million in the net impairment losses on financial and contract assets in the current period.”

I would love to believe and if RB said that it has some credibility but at the same time It does not make sense to me. the fact a minority of brokers have been slow to allow shareholders to sell their shares is not a business matter. Anyone has been able to buy since the IPO and the worst case scenario has happened that those who would have liked to sell sooner have been unable to and have seen a 70% fall from the IPO placing. Surely the BOD you might think would have at least aimed for the share price to not go below the IPO price. For a large part of my shares i was able to trade 3 months ago to sell and actually bought a few more around .33. To believe somehow the BOD would effectively say nothing for the sake of maybe a few percent of shareholders to me does not stand up and to not release information that is material would be an issue. The fault lies with some rubbish brokers in the UK that have not got their finger out. I can hope your right but i am pretty sure that when IG or HL get their act together somehow the CEO will know this and release news. All share certificates were released weeks ago and if a broker is lousy it is their problem. also if you were right the shareprice would not be .29 as if you were right anyone buying today might see 3-4x on that purchase and would buy shares. Also i have had some minimal communication and if the information RB gave you was correct might they not say that more widely.

If i had an inkling all was well as CNE i would buy more shares. the total blackout and precipitous fall is disturbing for any shareholder as it paints a picture very differently than we think is the case. If anything is game changing it is for the BOD to engage with stakeholders and reassure the market as pouring more money into an R&D pit i am not entirely against when married with a strong performance that we can only assume is the case but people much closer to the business are not buying and market value of £12m is now absurb. If they so much as updated the market with status of order pipeline if it deviates from the IPO they should do sp. if they have withheld price sensitive information then i am sure they would be on thin ice with the HK regulators.

MC does appear to have nailed down most decisions now and is a case of executing the plan. The wry smile on the toll agreement point was great and now wondering just when that will surface? Could it be imminent as Mestiza is quite advanced and its clear he would prefer to minimise dilution and best option therefore is sign toll, crack on, and forward sell 40k ounzes which would cover the equity needed for the finance and side step dilution. Just needs to get that over the line!