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Paul Drennan-Durose - Chief Executive Officer appointment was not on my radar as I had been hoping for a more established and well known CEO with masses of contacts via one of the worlds top companies. At first I was a little disappointed with the announcement but on reflection I think he will be a very good fit for PHE as the appointment of Gill Weeks NED was.

My reasoning behind this is that his background at Heliex:

'The Heliex GenSet harnesses saturated process steam and generates low cost electricity that can be used onsite or sold back to the grid.'

'With no disruption to your plant production, our system is easy to install, provides tailored outputs from 70 to 630 kWe based on your specific requirements' and pays for itself in less than three years.

The DMG will produce excess heat that could be used in many applications. However the Heliex Genset may be ideal for adding an extra income stream into the DMG output process. Converting a water source into steam obtaining electricity by effectively reducing the flow rate/pressure but ending up with a output similar to the input to be used in more conventual income stream possibilities. This is real added value with claimed capital payback in under three years.

https://www.heliexpower.com/technology-products-services/the-technology/your-steam-system/

https://www.heliexpower.com/industries/district-heating/

PHE benefits by the ability to increase its licence charge due to any additional project profitability. Also Paul will already have a working relationship with Heliex partners but also its biggest investors BP Technology Ventures Limited and ESB NOVUSMODUS LP. That connection with BP interests me. Heliex is winning contracts, that indicates to me that PHE can benefit from a winner at the helm.

The other recent appointment of Gill Weeks as a NED was far above my expectations. She will have brought with her a level of expertise relating not just to UK permitting and waste management but also knowledge of the application of WM permitting across the EU. She will understand potential bottlenecks in the permitting /planning waste system and how to get around them and hopefully work with and influencing the EA and similar bodies to fast track site permitting for the DMG. PHE and Peel will need this knowledge and contacts to ensure any fast DMG expansion plans within the UK. It should also help alter the potential mindset and ensure that the DMG process is not lumped into the incineration category. Just as important may be the ability to ensure that the feedstock range increases and high gate fee items such as medical waste could face less onerous permitting if the DMG is to be used.

Great appointments!

These are my views only and do not represent investor advice.

Wolves

Dr A
I would be happy to see the existing contract with Peel terminated if they are unable to complete with the currently extended deadline. This inertia has gone on too long. If PHE was to withdraw then Peel would either have to renegotiate or find an alternative. Peel has been involved with PHE for a long time but the expectation of multiple planning applications has not materialised. PHE's BOD need to be pro-active and have that plan B ready. Having a Peel person as NED may originally have appeared to be a good thing but now I'm not so sure.

Could PHE's decision to be a licencing company rather than its own technology implementer now be holding the DMG role-out back? I think so.
Where is the notice of a new CEO? Maybe its impossible to find anyone with energy and sufficiently dynamic who can take PHE to where it should be. If so, I would try a bit harder because there are people with these attributes out there.
Have PHE missed the opportunity to raise additional finance to fund the first DMG themselves? Could they still do it?

My biggest concern 'Peel Pace'. Is the apparent drag that currently appears to exist going to be the model of the future. A slow torturous journey of complex plastic waste parks? Taking PROTOS as an example, couldn't the DMG have been built with an interim solution regarding waste feedstock. The front end was proof of DMG working, the other parts are add-on's.

My take re UK first DMG implementation is that so much could have been achieved, but so little has been achieved. BOD, energise please and justify to your shareholders the remuneration you are receiving.

Wolves

bertmonkey post 17:07

Exclusivity agreements are fine if both parties hold mutually beneficial positions that are sustainable and include the correct controls and balances. Where they all go wrong is when they have been poorly worded, incomplete or an oversight has occurred. Penalties for non compliance is a must have, along with timescales. The ability to review and where necessary legally extricate oneself from the agreement is also important. Agreements should be time limited with reviews built in to assess progress.

The best time to enter these agreements is from a point of power and strength. I don't believe PHE will have that power until the DMG is fully operational. I will be very happy if no further exclusivity agreements are entered into prior to that first DMG becoming operational.

I can understand that some other investors may wish to maximise the number of DMG's in the short term but being in this for the long run, I would rather put longer term potential riches as a higher priority compared to short term crumbs.

Wolves

Val Post 11:28.
I believe your post is a bit misleading. Yes at 7.5p, c.£30m would be the HUI valuation on paper only. As there was a pre IPO fundraise and now an actual IPO, up to c.24% of the shares may be in third party hands (this includes any HW purchased.) I am assuming that £4m is raised in IPO. This implies that the original investors who staked £600k have on paper increased there value to £22.5m and maybe more if they participated in either two additional fundraises. This represents a c.£22m increase in value to the original investors only if it is realisable by selling their shares at 7.5p.

How the markets will value HUI with its, c. £4-5m in current assets, c. £.3m in intangibles and the potential that DMG represents is anyone's guess, I suspect short term and long term may be very different. Is this the last time the door will be opened to PI's?

DYOR

Wolves

I'm sure the BOD have this in hand and we will know by Christmas. Which year though I can't tell you.

Wolves

Dr A

Thanks for posting.

Page 11 of the brokers notes:
Column's 2 & 3 look as though there may be a little formula error compared with column 1.

Wolves

This should be good news for PHE.

'Under the PGH Exclusivity Agreement, HUI will pay Powerhouse a further €325,000 by the end of 2021, when the formal intellectual property licence for the DMG® technology is anticipated to have been granted to HUI.'
Money in the bank, just in time for the new year!

And then:

'a further €300,000 to be paid 12 months later.'

Wolves

Thanks Dr A.

Wolves

Hi Dr A

Thank-you for coming back to me on the questions I raised.

Are you able to clarify if the Intangible assets of £384,862 is made up predominantly of the two licence costs paid or payable to PHE for the exclusivity in Poland, Hungary and Greece?:
1. The licence payments already made in cash terms (£125,000).
2. The £325,000 due to be paid by the end of this year but remains unpaid in cash terms to PHE?

If it doesn't include either or both of the above, what other activities/costs does it represent to be capitalised in this way?

Many thanks

Wolves

Hi Dr A

Thanks for putting this presentation out there for us all.

A couple of questions that I hope you can help with.
1. The intangible assets £384,862 - Are these the licence payments made to PHE for exclusivity in Poland, Hungary and Greece? I understood that £125,000 was paid initially with an additional payment of £325,000 due by the end of this year. What else could have been included to make up this value? Has the £325,000 actually been paid yet?

2. Am I correct in assuming that the reported 344,320,000 existing ordinary shares (0.1p nominal value is the number of shares issued after the Pre IPO fundraise took place?

Wolves

Hi Sharesport

I have absolutely no doubt that there has been a lot of interest in HUI IPO by PHE shareholders. Me included. Expressing an interest however is significantly different to actually buying the share to be issued in the IPO. I have set money aside to buy but the shares will have to be at the right price and for an acceptable proportion of the company. Each of us will have different parameters for what is acceptable. I would rather my money go directly into funding HUI but not at just any cost. The valuation has to be realistic.

Regardless as to whether I buy shares in the IPO, as a PI I would like to thank Aleksandra and Howard for the opportunity to participate. It would probably have been so much easier for them to have gone to a small number of large investors only.

Wolves

Hi Sharesport

Just to add one relevant point. In theory PHE is targeting c 7.531 billion people with its DMG. If you combine Bulgaria, Greece, Hungary and Poland populations they come to c 65m. That is less than 1% of the worlds population. On Friday PHE's Market Capitalisation ended at c. £186m. I don't believe you can compare the market value of the two companies by looking at target market size there are far too many other variables to consider. A most simplistic example of this is tonnes of waste plastic produced by size of population, often associated with wealth and a throw away culture. It is very uneven across the world. Therefore all target markets are not equal.

IMO the potential of PHE and HUI is massive, but it remains currently unrealised potential. HUI look as though it may have an opportunity to change all of that, I very much hope it is successful.

I look forward to others responses.

Wolves

Sharesport, thank-you for your reply Fri 22:29.

Without access to the accounts of HUI the baseline valuation I have estimated at £2.5 - 3.0m. This is the cash from the pre IPO fundraise. All other costs for company set up etc I regard as sunk costs and irrelevant to any valuation.

The next stage is to value the other assets of the company. There are probably few physical assets so I have taken this to be nil.

There is potentially value in the signed contracts with PHE being a sol partner in designated countries, Poland, Hungary & Greece. Correct me if I am wrong but I'm not sure if Bulgaria has been licenced yet. The value I have applied at this stage is £1m per country. Say £3.0-4.0m in total.

Linde contract for exclusivity has a zero value for me. However entering into contractual arrangements with HUI de-risks the company as you would have expected them to have undertaken due-diligence. This is worth to me £2m.

The energy of the BOD of HUI but allowing for the risks allows me to apply goodwill of between £1-3m. (I accept that some may think this is rather light, but I don't. With the model that appears to be followed there may be a dependence on EU grant moneys plus local contributions or matching. What happens if these grants are pulled due to EU cash flow issues or political /military risks?)

I therefore have a pre valuation of between £8.5 - 12.0m.

I have not included an allowance for the expected returns for the projects as at this stage they are a WIP and I believe there is a lot to do before they become a reality. Current risks are not just HUI's they start with PHE and the DMG working as stated.

Moving on to the IPO, the offer price, the number of shares to be issued and the percentage of the company they represent are highly important to me.

IPO for £7m -8m for c. 50% of HUI. My valuation after IPO c.£15.5-19m. Provides funding for 2-3 years.

IPO for £20m for c.70% of HUI. c.£30-35m. Would provide general funding but also enough to buy a DMG if other sources of funding are lost ie. EU Grants.

IPO for £30m for 80% of HUI. I would expect this to achieve a valuation of c.£45m as the cash is sufficient to see the project through to completion and probably leave some spare in the bank.

All the above are my own projections and in no way should they be taken as offering any financial advice to others. They are specific to my thought process only and I will be very happy to have them analysed by others and discussed/rubbished.

Please however include for others whether you already have shares in HUI so comments are transparent. I currently have no shares in HUI.

DYOR

Wolves

Sharesport re post 20:08

Based on your view of reasonableness relating to a market value stated by Moggy1 post 19:22 today:

Do you already have money invested in HUI either from its original/post set up and/or from the pre IPO funding round?

Wolves

Gunst

It really depends on the number of shares to be issued and the percentage of the company they represent. Until we know that it is meaningless.

Wolves

mjallen

My MP was interested until he realised PHE was based outside his constituency. He couldn't see further than that, ignored the fact that it had real potential in the County and Country for beneficial plastic waste disposal. When wishing to write to an MP that is not your own, just hope they are a member of a government department and you can contact them by writing via the department. I normally get a response that way.

Good luck

Wolves

With the news that

'In Greece, the subsidiary of Hydrogen Utopia, Plastic Gold, has signed a letter of intent with the Mayor of Florina, Vasileios Giannakis, a city in West Macedonia to deploy a DMG system initially designed to generate electricity'

as per

https://ceenergynews.com/hydrogen/powerhouse-signs-binding-agreement-to-deploy-its-clean-technology-in-poland-greece-and-hungary/

Has anyone found more information on the subsidiary Plastic Gold? If there are any Greek speakers/readers reading this, please can you search to see if this was reported in the Greek press and if so what was said?

Wolves

A paper for Boris to read from the Principality.

https://gov.wales/sites/default/files/consultations/2021-01/hydrogen-in-wales-consultation.pdf

Be ambitious

Wolves

Baz

It may give Alba some quick cash but it is unlikely to maximise the real value of this gold. As we know already, Welsh gold is special, it also has probably one of the worlds most famous brands associated with it, the UK Roy....al Fam......ily who we are told have used it for wedding rings.

I would suggest that the first kg of the gold is marketed at the very high end jewellers throughout the world. To be distributed/supplied on the basis of client (Jewellers orders from customers ) call-off orders. This end of the jewellery trade has very high margins that could be tapped into, the rings are often made to order and are crafted for the specific customer.

Another product that can be marketed in a similar way is commemorative coins, the Royal Mint and some of the other Mints produce collector coins all the time. It is big business. Jersey, Gibraltar and others use the Queens head on one side of their coinage. Good processing producing a quality product will sell at a premium. It is all about identifying your markets and with gold targeting the high margin activities/products/businesses.

Obviously there is an additional cost accessing these business areas but once the links and contacts have been created they are then there for the future kg's of gold that hopefully Alba will be producing.

They've got to mine/extract that 1st Kg of gold, by doing so they open up a whole host of opportunities. I really hope that the company takes a long term view and that it looks for niche markets with high margins, uses it advertising advantages to the maximum and targets those who want a prestigious product.

Wolves

Alfreddie

I disagree with you regarding BOD giving their view at the current time. They have done the sensible thing and given an update as to what NRW has indicated to them. I would rather know facts than an of the cuff view. Experts in their fields are being employed to advise Alba and I expect them to take the appropriate actions based on the advice given.

Whilst the dewatering is currently a negative, this is only one part of a much larger project, plenty of targets, plenty of opportunities, actions can be shuffled around and reprioritised. I'm looking forward to a factual announcement from the BOD as to how they are going to resolve the current issues.

This is mining and this should be just another obstacle to overcome. I would expect NRW to work with Alba to look at potential remedial actions. NRW will be working within their remit, fulfil their criteria and tick, away you go.

And then you have Greenland.............

Wolves