Member Info for Simms45

i really like Simec and can see its non visible turbines with predicable tide based energy really really striking a chord with those that consider sea based turbines an eyesore and where wind turbines are prone to changing wind. The technology, if that is what it is, to link multiple turbines together through to the power generation makes complete sense and potentially has wider sales opportunities and their repurposing of a power plant as a pellet powered power plant also makes huge sense. The value of the company is £42m so that seems extremely low but there are some concerns also. The maintenance and depreciation on the subsea turbines looks to be more than the electricity generated so that needs some refinement in scaling up probably to make the economics work , the power station is a massive project and will is prone to delays because of external factors and is a one off highly capital intensive project. I do wonder if they are not focusing perhaps as much as they should be and try to scale one of the 3 main technologies and become a global powerhouse. Lets hope the Equitix investment comes in for Uskworth to finish that project but there is clearly some great projects but hope that transpires into shareholder value. Often companies that focus on too many opportunities often lose out to more focused competitors and i would like to see their sea turbine being that full focus. Therefore I would hope Simec sell the Uskmouth project at a profit and go all in on the subsea turbines and get it right as if they can do that it would compete with wind energy then its a huge win.

Eqtec is pretty much in the perfect sweet spot right in the middle of a global change post Covid to double down to make companies/regions/countries deal with their own waste environmentally acceptably. while carrots have been used regulations are forcing the issue and some companies want to demonstrate to their clients their environmental credentials. Gasification of waste to syngas if i understand correctly creates no combustion and no air pollution and EQ Tec have spent a long time perfecting the technology with many proven plants operating. I am not sure who are the biggest competitors of EQTec but my hope is they focus on the selling the technology and working with 3rd parties as i am sure that is the biggest revenue and margin and let local 3rd parties use their contacts to secure sales. If Eqtec can confirm some of the £100m or more contract quotes how can Eqtec be worth £18m? That is almost ridiculous and if that stays for long someone will make an approach to leverage the technology. Some say the hold up has by Ebioss selling down its stake and if they were a forced seller then i probably cant disagree. The stock you are able to buy in the open market is huge so there is a still something going on as the price is rising steadily but the amount of stock being bought would normally have precipitated a large spike if stock was limited. also would be nice to see their loans paid off to reduce dilution in the future.

Nice timing. You probably helped create that small squeaky bum moment the day before the RNS when shares fell 10p and behind the small rise today when you got back on the pony :) Anyway long-term the buy out price will be worth the wait and 18 months is tops in my books but that will depend when we hit the £1.50 goldilocks price. i am sure Mark/Ross/Jim are all eyeing the exit as i am sure they never thought they would be here 12 years later. I have only continued to add over the last 2 years as you just cannot be sure when the next RNS will strike. several coming up though for sure.

i see a 30m sell just gone through so could be profit taking?

Nice buy at 236,986 shares at 10.29 so things should be shaping up. Definitely a little indigestion going on from previous rights issue but once we get over that we will motor ahead. we are in social distancing of some good news.

just received a plethora of emails from BA and Iberia announcing they are back in the skies and that probably precipitated the rise towards the end of the session. The upshot is a need to use a face covering end to end and that is basically it. Nothing more onerous and suspect that will not last very long once either Covid is long forgotten or a vaccine is announced. Expecting strong push this week on the back of this action today by BA and general news flow. That V shape recovery might be a bit more U shaped but still i suspect a good deal further to rise in the short and medium term.

is there a holdup as that RNS was over 19 months ago so not normal for any agreement to take so long? Also on their website they talk of lots of cost cutting so sensed a cash crunch scenario and they put most staff on Furlough so just checking where things are as if that sort of money was coming in they would be talking about it in recent RNS but cant any.
"To support the Company and preserve liquidity through the current period of uncertainty, the Chairman and all Non-Executive Directors will take a 20% cut in their fees and will defer payment of the remaining fees with immediate effect and the Chief Executive Officer and executive team will take a 20% salary deferral. Management are also actively implementing additional cost saving measures across our business including further reductions in project, overhead and people costs in order to preserve cash and provide the business with maximum flexibility. "

this is a fascinating company that caught my attention and i am keen on renewable energy companies as they seem to be now at the cusp of change in many cases. My question is not the tech and potential but more a question that the company raised £5m last March 2019 but it is losing more than than that. This year will they need a further rights issue to cover the forward period of investment? I can see income from its tidal project that will increase revenue but wondered what the general consensus was as the current market cap of £47m is potentially low for this company but i suspect some of the problems it has faced historically is the constant need to raise money. is that not the case?

I at least think once land ownership is 100% Condor with gold resource surely that is classified as an asset that could be pledged into the loan? I only mention as another gold miner has largely pulled that off as part of a finance package, albeit some other investors are injecting cash to the order of 15%. I personally sense a few weeks of no new news as its too close to recent raise and then boom we are off to the races :)

Covid is running for the doors so fast it has taken everyone by surprise. Would not be first knee jerk reaction. Hilarious articles people sending in swabs or fruit juice and shows up as Covid. Tests are inaccurate and asthma suffers and others all being picked up. All getting very embarassing. Spoke to friends in Majorca and everything is practically normal, just masks in shops but apart from that no social distancing. Spain being smart and hard lockdown and full steam ahead. Hopefully Johnny come lately will smell the coffee and open up faster. Get ready for relaxation of airlines restrictions and hello £3 for IAG very soon. Could be a burst of activity this week if get the confirmation of air bridges (whiff of total waffle if you ask me) but allows Priti Patel to fudge something that is basically BAU territory .

Final one today but good article for the gold enthusiast looking at gold prices. Some might think that once Covid is over gold will fall while many might consider the negative interest rates being a strong factor, alongside many others.

https://citywire.co.uk/funds-insider/news/managers-of-soaring-gold-funds-say-rally-far-from-over/a1361952

Condor will have its time in the sun and i suspect knowing MC it will not be too long, maybe just long enough so that all those shares and warrants offered are forgotten about and Condor bounces towards £1 in the not too distant future. Do i sense we might have just seen the final load up by management before the BiG reveal :)

Also one thing i noticed with another goldie i invested in is they put in the 30% equity of the debt based on historical investment and no fresh cash requires. The argument is that Condor have invested £60m in this project over 12 years and the land acquisitions etc can be used as equity on the loan, just as you do when building a new build. Once you own the land and having planning banks lend you 65% of the final build value so no more to invest. If one gold miner can do that i am not sure why Condor cannot and seems relatively sensible way to leverage its assets, namely massive land package and $2bn gold with planning in place. All for the princely sum of 50-£100m depending on approach. Seems a good deal? The land values now owner (90% or so apparently) have massive value together with the planning in place so cant a finance be done on this basis?

I bang the drum but that toll deal was close with Calibre testing their mill with our rock and falling off their seat as the gold quantity and 98% recovery. If that happened no need for dilution as it would find all equity. Ross and Jim were apparently against on going alone but they have now trousered more cheap shares and warrants so maybe they have had their fill and perhaps MC can fight the pis corner. really given the faint whiff of grabbing stock on the cheap and diluting pis and i think they need to now press the button and show lths they have not been abandoned.

I have a holding but all i am saying is that Altair cant really convert their debt today of £1m to equity without making a bid offer as they would be over 30%. Therefore adding 10% interest we get to £1.1m due 31st June 2021. How will Altair keep their ownership under 30% to also allow EQTec to remove this debt obligation as rolling a 1 year bridging loan over every year is costly and not where you want to be investing cash. Therefore i suggest a likely way out is a 30% rights issue as that conveniently allows EQtec to raise more money and dilute Altair and hence allow them to convert the remaining debt to equity and stay under 30%. To me this seems most logical this year assuming .375p is achieved. of course for this rolling over of the debt we paid a further 10% fee or £95k just for the pleasure something the CEO would have liked not to have done surely as that is money out the window. The Riverfort debt stands at $1.8m and keeps 12.5% interest. again Eqtec paid a nice 10% fee just to roll this bridging loan and will pay a further 8% fee at the redemption. But its worth remember this text where
"If EQTEC closes a third-party fundraising prior to any of the repayment dates, 20 per cent. of the gross proceeds of such fundraising will be used to settle the relevant portion of the instalment of the Riverfort Loan due on the next repayment date" so Riverfort are recognising the likelihood of a right issue just as anyone would between now and the end of the year. With only £230k of cash that is a tiny amount in the pot and while money is coming in there is also a lot going out as investment in machinery is highly capital intensive and r&d will continue. Clearly the CEO is a lot better than before but you can see that the CEO will probably be eyeing a rights issue later in the year as clearly it is the simplest way for him to clear the decks of the previous management and probably give directors an option to buy in. i note directors have not bought in recently so it is just my opinion and hope to be proved wrong.

Really great and valuable info so thank-you because when it looks too good you need to probe a little and be suspicious as something is always lurking. Certainly i can see previous management burnt a lot of goodwill and rights issues are always painful as they always seem to just fall at a low point so pis are diluted to kingdom come while management and strategic investors stock up. Seen it too many times sadly and pis are treated badly. I am sure they are not unique in the market place so interested to explore their USPs against competition. Certainly at £10m market cap for a decent forward earnings looks interesting and if those patents have value could help protect their position but the future for this sort of tech is pretty big, just a case of whether Eqtec will be a market leader or part of the bunfight along with the also rans.

Badshah13 could not find that investor presentation but can see i think Altair are the lender and they own 30%. The issue there is that its clear a debt for equity is on the cards to clear that but i think if they did that as they would have 30% they would need to make an offer or divest that shareholding. Anyway anyone know more about the £2m + interest loan repayment end of July would be good go know how they will navigate as they will not have enough i suspect to pay it off as margins on sales are not so high.

The other thing is that there is a massive number of warrants that are triggered at .25p so the bigger issue is that those warrant holders triggering and selling their warrants.

They also handed then out like Candy to contractors who will no doubt have day to day need to sell those shares and probably explains to me why this share is stuck.

“The Company also announces that it will issue, in aggregate, 80,070,440 Ordinary Shares (the "Conversion Shares") to certain strategic service providers (the "Strategic Providers") providing Engineer, Procure and Construct ("EPC"), Business Development and Advisory services to the Group, who have agreed to receive shares in lieu of cash fees. These shares will be issued at an agreed value per share of 0.25p, a premium of 100% to the Subscription Price, thereby reducing the Group's creditors by €232,763.”

Each of the Strategic Providers has entered into an agreement with the Company whereby they have agreed not to dispose of any Conversion Shares for a period of six months following Admission.

It was last financial accounts but see they raised £.8m but thats not enough to cover £2m due end of July. Therefore my assumption is they need to restructure that £2m or do a rights issue or probably a bit of both as cash levels must be pretty low as the £.8m was raised middle of last year.

“As at 31 December 2018, the Company had net debt of €5.5 million (31 December 2017: €2.7 million) including cash balances of €0.4 million (31 December 2017: €1.8 million).
As announced on 28 June 2019, the Group has agreed to restructure €3 million of its existing debt through a debt for equity swap, resulting in a significant reduction in the Group’s debt obligations. Following the debt for equity swap, the Group has €2.1 million of debt which is payable in full, plus accrued interest, at the end of July 2020. In addition, the Company also announced a placing of €0.8 million, which will significantly strengthen the Group’s cash position and provide additional working capital.“

Totting it all up best part of £9m in the kitty, 1.1m ounces of gold ($2bn gross) to shovel out the open pit and down to the gold exchange and market value of £40m? Thats £31m taking out cash in the bank. Surely now the gloves come off now that preferred investors have had their fill and let the good times commence!

Last few days buys are outnumbering sells 2 or 3 times and price is rooted. My assumption is off exchange or MM but anyone else have a thought?

Sold Value £41.85k
Bought Value £114.70k

Seems to me only a matter of time before the Genie is let out of the bottle.

I have two questions and maybe someone can answer. There is £2m debt due in July but EQT has virtually no cash and even though they did a debt for equity last year for £3m do we have an imminent cash need? Secondly latest RNS talks of a rights issue and given market cap is low and price is likely to he heavily discounted what is the view on this. If anything i am saying is incorrect please correct me as i like EQT a lot but just checking a few matters as those pesky financials supersede the great potential?