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Atlantis

UncleEbenezer
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Re: Atlantis

#104044

Postby UncleEbenezer » December 14th, 2017, 8:40 am

We seem now to be into full-on empire-building. The debt-fuelled bull cycle.

I guess this kind of thing is what happens when you invest on AIM? How would it work if the shareholders say No to the acquisition?
https://www.investegate.co.uk/article.aspx?id=201712140705063344Z wrote:Trading in Atlantis's Ordinary Shares will be suspended this morning, 14 December 2017, with effect from 7.30 a.m. The suspension will be lifted upon the publication of an Admission Document concerning Atlantis (as enlarged following the acquisition of SUP) in accordance with the AIM Rules.

UncleEbenezer
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Re: Atlantis

#140358

Postby UncleEbenezer » May 21st, 2018, 1:46 pm

https://www.investegate.co.uk/article.a ... 700106510O

Very much empire-building. And no regard to shareholders, though presumably the institutional ones will have their say if they're stumping up another £20m.

And a date for new shares to start trading: June 15th. So just the six months in limbo.

IronPyrites
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Re: Atlantis

#159541

Postby IronPyrites » August 14th, 2018, 2:37 pm

Hi All

I am interested in what current thoughts are on Atlantis which has morphed into Simec Atlantis and now seems more focussed on a waste to energy project at Uskmouth though MeyGen plods on.
The sp has steadily slipped back to 27p
There is a new ticker - SAE

To summerise the state of play at the moment:

Atlantis underwent a reverse takeover with SIMEC Uskmouth Power Limited ("SUP") extending its interests into a bigger range of renewable energy projects and hence the name change.

Their website divides these projects into 3 areas:
https://simecatlantis.com/

Waste to Energy:
Taken on Uskmouth project in Wales – a coal fire power station and converting it to burn waste pellets (50% biogenic, 50% non recyclable plastics). Planned to be up and running by early 2020 and to be the first of many such conversions.

Tidal Stream:
Continues with MeyGen – turbines in place and working above expectations. Next stage of commercialisation needs board sanction.

Tidal Range:
Also in negotiation with the Duchy of Lancaster as its preferred developer for the proposed Wyre Valley tidal barrage and flood protection project.

Price weakness has probably been influenced by the liquidation of Irish tidal energy company OpenHydro by its French parent due to a “deterioration in the market” and a “lack of commercial prospects in the long term.”
2017 had been a particularly challenging year for the Irish group. During that period, the group, with operations in Ireland, Scotland, Canada and Japan, sustained about €160 million in losses.

https://www.irishtimes.com/business/ene ... -1.3577586

Ocean Energy Europe (OEE) chief executive Rémi Gruet said that although the liquidation was “disappointing news”, closures are “part of pioneering and innovating in a brand new industrial sector, on the road to commercialisation”.
“Today, numerous tidal stream projects are consistently producing power around Europe,” Mr Gruet said.
“Costs are coming down fast with every new project, and the EU has set targets for tidal to reach 10€c/kWh by 2030, well below offshore wind costs only five years ago,” he said.


https://www.investegate.co.uk/simec-atl ... 00061994U/

The turbines on MeyGen are undergoing inspection currently:

-plan to retrieve two of the Andritz Hammerfest Hydro ("AHH") turbines during this month for inspection and maintenance by the turbine supplier following diagnosis of a generator fault by the on board monitoring systems.

The four turbines, when in place, are producing power to the grid:
https://www.investegate.co.uk/atlantis- ... 00046478K/
The completion of the construction of Phase 1A combined with the ongoing production and reliability levels achieved help to progress the viability of tidal stream energy as a clean and predictable energy source.

Revenue from power sales on the Meygen project of £0.3 million in the year relates to power generation post commissioning of the individual turbines late in 2017. The entire Meygen Phase 1A project entered the 25 year operating phase at the end of Q1 2018 and as a result power sale revenues are expected to significantly increase in 2018.

From the Annual Report 2017:

In Europe, only the UK has more tidal stream resource, and with over 500MW of seabed options awarded to the Group we are also well positioned to continue to grow in the UK. In the 2017 auctions for contracts for difference we submitted an application to enable construction of a further 80MW of capacity at our MeyGen site. The price we submitted was significantly below the administratively set strike price for tidal stream projects, and represented a reduction in subsidy support of two thirds versus that awarded to the first phase (Phase 1A) of MeyGen under the Renewables Obligation (the previous mechanism for supporting development of renewable technologies). However, on this occasion the vast majority of the available contracts were awarded to large offshore wind projects, and our application was unsuccessful. We continue to engage with the UK and Scottish Governments to ensure we can build on the success of MeyGen Phase 1A, and we anticipate participating in the next auction rounds in 2019.

So it looks like another year before any further increase in capacity at MeyGen?

From the June results:

https://www.investegate.co.uk/simec-atl ... 00046373R/

Group loss of 10.3m in 2017
Cash at December 2017 was 5.6m. Since then
4.1m was raised in May17 (new shares)
5m was raised in July17 (bond)
5m was raised through second bond in April18
20m was raised by equity fund raising

So that makes around 40m in hand less recent costs.

Uskmouth power station was acquired for 49.99% of Atlantis shares in June 2018.
https://www.investegate.co.uk/atlantis- ... 05063344Z/
The converted Plant, which is intended to enter commercial operations in 2020, will sell all its power under two 20 year power purchase agreements ("PPAs") to GFG Alliance companies (GFG Alliance is a multi-billion dollar global presence in mining, energy, metals and engineering) and will receive fuel under a proposed 20 year fuel supply agreement ("FSA") with a joint venture company.

The CEO TIM Cornelius now seems focussed on the new project and quite bullish about its prospects: https://www.youtube.com/watch?v=67vc19rvCrE

Thoughts appreciated.

Regards
Iron

UncleEbenezer
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Re: Atlantis

#159769

Postby UncleEbenezer » August 15th, 2018, 9:52 am

IronPyrites wrote:Hi All

I am interested in what current thoughts are on Atlantis which has morphed into Simec Atlantis and now seems more focussed on a waste to energy project at Uskmouth though MeyGen plods on.

Yes, seriously disappointing to see them taking up dirty energy.
Waste to Energy:
Taken on Uskmouth project in Wales – a coal fire power station and converting it to burn waste pellets (50% biogenic, 50% non recyclable plastics). Planned to be up and running by early 2020 and to be the first of many such conversions.

There's nothing "green" about that, except insofar as it deals with plastics that should be dealt with at source. With the world's attention on plastics (including new ways to recycle), that source should be a diminishing one. And biomass is the worst of all: it's just accelerated fossils.
Tidal Stream:
Continues with MeyGen – turbines in place and working above expectations. Next stage of commercialisation needs board sanction.

Tidal Range:
Also in negotiation with the Duchy of Lancaster as its preferred developer for the proposed Wyre Valley tidal barrage and flood protection project.

We have renewable success stories on a modest scale in solar and wind energy. That happened because governments and venture capitalists helped by subsidising them through what was essentially an R&D phase, as the technologies were developed.

Tidal should be on a similar trajectory. And the UK should be taking a lead: our geography means tidal energy should be a higher proportion of our overall production than anything else - in contrast to wind and solar which had leading champions elsewhere. Sadly our government is too short-sighted to take an interest, and VC backing isn't remotely near the scale of California.
Ocean Energy Europe (OEE) chief executive Rémi Gruet said that although the liquidation was “disappointing news”, closures are “part of pioneering and innovating in a brand new industrial sector, on the road to commercialisation”.
“Today, numerous tidal stream projects are consistently producing power around Europe,” Mr Gruet said.
“Costs are coming down fast with every new project, and the EU has set targets for tidal to reach 10€c/kWh by 2030, well below offshore wind costs only five years ago,” he said.


Let's hope someone's making real progress there. I've no idea where Rémi Gruet stands on a scale of Panglossian to Realistic.
From the Annual Report 2017:

...

The CEO TIM Cornelius now seems focussed on the new project and quite bullish about its prospects.

A strong sense of déjà vu. Both in the report, and Cornelius's bullishness.

I was happy to hold when it was a speculative punt on tidal energy. I still hold, but I'm much less happy now that it's soiled itself with dirty energy. For a mixed bag I hold SSE, which redeems itself with a strong dividend and a modest capital gain.

IronPyrites
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Re: Atlantis

#159845

Postby IronPyrites » August 15th, 2018, 2:09 pm

Thanks UncleEbenezer

I too hold a few of these. I am inclined to keep them for the moment despite the recent change in direction as I feel the sp will improve from here, if somewhat slowly.
Have you any thoughts on SAE as a financial investment apart from your dislike of their move into 'dirty energy'?

Best regards
Iron


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