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Markrops : Friday 12:31
I agree with much of your post but disagree with your comment on 'Exclusivity'.
Exclusivity is not the problem, it is the way that any contract for exclusivity is structured. If the DMG is proven, and this creates a significant world wide demand for the DMG, then non UK contracts can be negotiated on the basis of payments to Powerhouse for the rights for exclusivity. It can contain minimum numbers of DMG's to be installed each year with penalty payments and compensation agreed if the targets are not met. Risks are therefore placed on the exclusive partner and the penalties incentivise the partner to get DMG's installed and running. Inbuilt rights to terminate the contract by PHE for contractual failure should always be an option etc.
In my view P..L got almost a freebee in the UK as they were in the driving seat. The terms of the contract are unknown to us PI's. Is the contract specific to just plastic waste or all types of waste? Is the contract specific to the current DMG or does it cover any future innovations that PHE may have? Does PHE benefit from any future output improvements from new R & D on the DMG? There are so many more questions to be raised........... If anyone on this board has seen the contract then please spill the beans, better still maybe PHE and its UK partner could publish it here for all to see.
Lessons can be learned from the UK experience, but a contractually working DMG No1 is the key to implementing either exclusive or non exclusive contracts in PHE's favour worldwide.
I thought TY had a few PHE shares that could be flogged?
The purchase of W2T certainly altered PHE's shareholder power balance. The reduction in goodwill in the last set of accounts suggests that there was a very generous settlement for W2T shareholders, either that, or PHE has been performing less well or has poorer prospects than at the time of acquisition.
I was unable to attend the AGM but one of my questions aimed at each of the BOD of PHE would have been:
What added value have you brought to PHE during the last year and how do you justify your overall remuneration against any added value you personally have contributed to the company over the last financial year? The same question could be levied at PHE's main consultant ('s) as well.
I agree with your post today 11:28, especially re grants etc. However, its is still very difficult to get UK Gov't to open the doors for this. As a PI, I have been trying to promote the DMG technology to DEFRA, DTI my MP, Local Council (and other councils) and whoever I feel can make a difference. Gov't knows the tech, knows the company but still PHE can't get funding! I have been chasing this on and of for the last 4 to 5 years. It has really been frustrating to have a technology that could lead the world, make a lot of money for the UK whilst actually making a difference worldwide. The closure of the car plant in Swindon would have been the perfect opportunity to have had mass scale production of DMG's for domestic and overseas exports. But then I am just a PI and what do I know?
Lets hope that the above changes and that the Gov't actually takes more of an interest. Lets see Gov't take greater opportunity risks or maybe it is the civil servants that are holding back this vision!
If the DMG's work as designed, then IMO a sperate company should be set up with an opportunity for current PHE shareholders to take a stake in new projects using the DMG technology. I suspect however it will prove difficult as a PI to lever oneself into a potential lucrative JV.
I agree with a number of your points but I have not lost confidence in the product. I suspect that the Peel contract has not worked out as the PHE BOD had anticipated regarding timelines, saying that, I wonder if they had any other realistic options?
Having been at an AGM several years ago I asked KA how much he needed to produce first DMG. He said £7m. That was stage one. I'm under the impression that £25m would be the cost of stages one, two and three c. £24m. Still a lot more cash than the original £14-15m. I don't believe additional infrastructure costs were ever included in these totals nor inflation. The longer the drift, the more expensive this may become but that additional cost should be the clients rather than PHE. Any postponement to the DMG represents a loss of income to PHE, both cumulatively but also compound. I hope the PHE BOD have a catch up plan after FOAK is proven. I also hope that the BOD will review and learn from the Peel contract and ensure that PHE has a good level of control relating to build and installation on all non UK contracts.
A quick thank-you to those who have sold bringing the price down to this level. I never thought I would get the opportunity to buy again at these sort of prices. IMO the man in the know is HW and I've been looking back at his previous interviews. I am peeved at the delays and for me the information relating to the contract with Peel and also the financial completion is very unsatisfactory. This has not effected me investing more, the question is when will the rabbit be pulled out of the hat?
Good to see you posting on a regular basis again.
Openness would be for PHE BOD to publish the Peel contract in full. Lets see all the caveats and exclusions that apply. In the UK is Peel the only option? Is there no escape from this contract if PHE wishes to go in a different direction? Is the BOD constantly reviewing all UK options or is there tunnel vision and the current path is the only path? Are the ties with Peel to close?
I'm not implying there is a better route to commercialisation than the current direction of travel, but is it the only feasible, and timely option?
Every day that passes is a day where PHE may loose its commercial advantage to a similar or different technology. What is the reason that Peel has not managed its financial close on the 1st DMG? Is it a failure to attract sufficient funds? Is it a business tack tick because maybe Peel has different timelines for its own commercial on-site infrastructure? If so were they open about this when the contract with PHE was signed or did things change afterwards? Was the DMG not at a commercially ready stage, hence the delays?
Lots of questions but unfortunately I was unable to attend the AGM this year.
I really hope that the BOD do not award themselves any share options until the 1st DMG is fully operational. Target timescales after target timescales have been IMO missed. Share options should be awarded for success and as an incentive, not for achieving what should have been achieved long ago.
I am very much against any additional fundraising unless all shareholders have an equal opportunity to participate. Why would PHE need any additional funds anyway with its current cash balance unless..........?
I believe the DMG has a massive future but only if the dilly dallying ceases and us private PI's have trust in the BOD. It is up to the BOD to ensure that they retain shareholders trust.
I can't comment on pictures of the samples.
Regarding your explanation on Welsh mines I suggest you do a lot more reading around historic extraction of Welsh Gold and how the gold in that area was formed.
IMO todays RNS, accounts and update were very positive. For me at least it indicated a clear pathway to maximising mid term shareholder value and enabling Alba to fund it's jewel in the welsh crown. This appears to be a well thought out strategy and I believe the new board members are starting to pay their way. Greenland was always going to take a chunk of money to develop, money that Alba hasn't got and unlikely to get under its current level of project diversification.
There is bound to be dilution of our shares in the new company and as a PI I would like the opportunity of a first hit at any IPO.
Smart move to plan on exchanging historic cost of assets to a real market value, when the value of those Greenland assets are stated to be so undervalued.
Very happy with this news as always DYOR.
I will continue to remain a LTH and will be adding to my holdings with this news.
There are generally 4 different kinds of medical waste: infectious, hazardous, radioactive, and general.
Dr AP employed since December 2020 by PHE. AS previously mentioned some medical waste streams have very high gate fees for disposal. I just wonder if things are moving a little quicker behind the scenes regarding future planning and scope of operations than I had anticipated.
Dr Andrew Physick has an interesting skill set which I believe is very complementary to the needs of PHE. Not only for the more recent work regarding waste to energy but maybe also for the less discussed recovery of trace valuable metals and chemicals depending on feedstocks. There may be real value in that talc!
To overlook the rest of his areas of activity would IMO be a mistake, the real question for me at least is, are PHE already starting to look at widening its markets and potential products and income streams?
All the above is IMO only. In fact I am a little bit excited by this news (under the radar?) as Dr Physick skill set exposure ties very nicely into my vision of PHE from about four years ago or more.
As always, DYOR.
Dr.A & JL - Thank-you for your replies. I was wondering if participation in the JV would be more lucrative but that also comes with increased risk. Would JH be tempted? Could he be invested in L O? Reading the L O company website, it refers to transport and hydrogen. Maybe a de-risk play but still having a significant finger in the pie?
If anyone knows for sure, please share on this board.
Dr.A - Have you any insight as to why John Hall may have sold what at face value appears to be his complete holding in PHE?
Peter Jones looks as though he has reduced his holding by 50% compared to the shares held at the time of W2T takeover. De-risking?
Your thoughts would be appreciated especially regarding JH.
ps. LedZep - Have you been buying back in?
Hi Stumbler, I share yours and operastar's frustration regarding the time it has taken to get to the current stage PHE appears to be at. PI's have had to undergo a significant dilution of shares but if this comes good it will have been worth it. Research is normally the key and IMO there is still plenty going on with PHE and it's connections. I am still very positive but that is a personal view and should not be taken as investment advice.
Dr.A , I only partly agree with your post 22.06 today. I certainly haven't read a contract or RNS which states that it is purely Peel's money. The terms of any JV have not been published, I certainly don't know if the financial close will result in a JV between PHE and Peel or any number of additional partners. Another unknown to me is if the £10m will be used to fund long procurement items in PHE's name only until the Financial close is agreed, or in the JV name and if the £10m represents a loan to the JV, a bond held in an escrow account for suppliers or an actual share in the JV? As this is the first project, if profits are to be shared, will any contract identify that the share of costs do not correspond to the percentage share of reward?
PHE may not have any option but to take Peels terms in any JV. I hope however that whatever the outcome it is fair to PI's. What options exist to PHE if Peel decides not to complete on the PROTOS site. Are there any escape clauses for PHE and how/when can they be triggered? Does PHE have a plan B? Just a few points to mull over!
I seriously want to see that financial close, contracts in place and some action on the site to confirm it is all going ahead. End of March, I hope so.
Sorry if already posted but maybe of interest to some:
Are these another few pieces placed in the jigsaw?
Coal was mentioned at an AGM several years ago. At that time KA stated that PHE would not be going down that route due to environmental concerns. It appeared a definite no, that doesn't mean thinks haven't changed though.
I've always wondered if there is a future in exploring and cleaning up the old **** heaps from our industrial past. The link below provides an example where the spoil heap contains up to 17% coal.
I expect recovery cost are pretty high and maybe more suited to processes more akin to PQE & QFI technologies.