RE: My letter to Tim Yeo and Dave Ryan16 Jan 2021 02:02
Dr A - Thank-you for writing to Tim Yeo & also providing his response on this BB.
On 4th December 2020 PHE published a notification of Directors Dealings.
https://polaris.brighterir.com/public/powerhouse_energy/news/rns/story/xjq0ygr
Tim Yeo & his wife added a combined total of 2,126,491 ordinary shares in PHE into their SIPP's to a value of £60,605. I asked myself the question, why would anyone wish to invest £60k in a pension, using up the LT allowance? Expectations of share price growth or dividends? My conclusion was that he has a level of commitment & confidence in the future of PHE.
In the recent placement, the White family also continued to show their support to PHE. Whilst the shares were at a discount to the market price, according to the published information, the White family contributed a further c.£2.6m of new/additional money to maintain their share percentage. The placement was over-subscribed, if the White family had wished to reduce their risk in the PHE they probably could have, but they didn't. For me at least that speaks volumes!
There will doubtless be some twists and turns along the way but IMO DR, TY and the White family are steering this company in the right direction. I don't agree with everything that has happened with PHE but I continually re-evaluate based on the future, with recognition to the past.
One aspect that attracted me to invest in PHE was the modular approach which enabled parallel units to operate at the same site. Whilst infrastructure and waste collection patterns may limit the number of units per site, it is feasible with the 25t scale approach that in some cases multiple units could be deployed in parallel. How much additional work & cost would be involved in multiple deployments to the same site depending on the consistent quantity of feedstocks available. My understanding is that each DMG can be tweaked so that a variety of feedstocks could be targeted & each specific to its own DMG unit to maximise outputs. Think of the increase income that PHE could gain from targeting these type of opportunities throughout the world. Whilst lower grade plastic feedstocks or even a completely different feedstock may be less profitable to run, at the same time it may make economic cense based on overall profit margins. The licence fee could be adjusted accordingly.
Another factor is that much is made of single life or end of life plastics as the feedstock. Unless there is specific government legislation to the contrary then plastic disposal is IMO more likely be based on economics so that even multi use plastics are diverted from the plastic recycling processing loops or ground fill disposal to be used as DMG feedstocks.
If the c.£10m placing money is used as collateral for orders & getting the build underway then I am all for it. PHE BOD must ensure that we don't end up with a pile of parts, no money and a 3rd party wanting to renegotiate terms and funding arrangements.
Wolves
Sign In
Follow the stocks
