Last checked at 3 Sep 2018 07:00
3 September 2018
SIMEC Atlantis Energy Limited
("SAE" or the "Company")
General Newport Update
SIMEC Atlantis Energy, a diversified sustainable energy generation company, notes the announcement on 30 August by Liberty Steel that is has begun a planned £15m investment in new and upgraded equipment at its Newport steel facility.
The move is part of its continued drive to win bigger UK market share for products such as hot rolled coil, used in industries such as construction, automotive and pipe manufacture.
Liberty Steel, which owns the Liberty Steel Newport facility that is located adjacent to Uskmouth Power Station, is a member of the GFG Alliance, along with SIMEC Atlantis' largest shareholder, SIMEC Energy. SIMEC Atlantis has signed a 20-year power purchase agreement to sell electricity from its Uskmouth power station to SIMEC Energy.
Planning work and front-end engineering is also continuing at Newport for a much larger investment involving the installation of an electric arc furnace and casters for liquid steelmaking and slab production at the site. These processes will be powered by renewable energy under their GREENSTEEL strategy, with power to be provided from the 220MW Uskmouth Power Station that SIMEC Atlantis is currently converting from coal to 100% waste-to-energy pellets.
News of this upgrade comes on the back of the recent operational update issued on 13 August 2018 by SAE which reinforced that this world-leading conversion project in Wales remains on plan and on budget.
The Company is also in collaboration with its largest strategic shareholder to establish SAE as the developer, owner and operator of sustainable energy generation projects, worldwide. Further updates will be provided as and when appropriate.
Sanjeev Gupta, Executive Chairman of the GFG Alliance commented: "The Uskmouth Power Station conversion is tackling the big issues of non-recyclable plastic waste management and baseload energy generation in the UK. This project is a blueprint for the future conversion of coal fired power stations worldwide and, when completed, we look forward to purchasing power for the next 20 years to underpin the growth in production volumes at the Newport facility."
"It is our intention to continue work with the management team of SAE to grow this Company rapidly via organic growth and acquisitions, and we are working on an exciting deal pipeline."
Tim Cornelius, CEO of SAE commented: "We are delighted to see the GFG Alliance continuing to invest in the British economy and SAE will undoubtedly benefit from the vision and energy Mr. Gupta brings to everything he is involved in. It is management's view that SAE is currently materially undervalued and can see no plausible justification or rationale for recent share price behaviour. The Uskmouth Conversion and MeyGen Tidal Stream projects will deliver considerable value for shareholders and the possibility of future acquisitions of SIMEC Energy hydro, storage, onshore wind and bio-fuel projects place SAE on a trajectory of rapid growth, with the ambition of transitioning swiftly into a cash generative, yield growth and equity value growth Company of scale."
Enquiries:
Atlantis Resources | via FTI Consulting |
Tim Cornelius, Chief Executive Officer |
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Andrew Dagley, Chief Financial Officer |
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Cantor Fitzgerald Europe (NOMAD and Joint Broker to Atlantis) | +44 (0)20 7894 7000 |
Rick Thompson Richard Salmond David Porter |
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Macquarie Capital (Europe) Limited (Joint Broker to Atlantis) | +44 (0)20 3037 2000 |
Rob Mansley Nick Stamp | |
FTI Consulting | +44 (0)20 3727 1000 |
Ben Brewerton Alex Beagley James Styles |
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