Symphony Environmental Technologies plc’s (LON:SYM) investment case and results are discussed by Zeus Capital’s Research Analyst, Robin Byde, in an exclusive interview with DirectorsTalk.
DirectorsTalk asked, “How would you describe Symphony Environmental in terms of an investment case?”. Robin said, “I think there’s probably six points to make here:
- I think their products are very well aligned with health and hygiene priorities. The result of COVID is that health and hygiene has risen up the agenda for every government, I think COVID has demonstrated that single-use plastics cannot feasible be banned and therefore governments and agencies have to seek a way to manage the usage and the wastage of plastic. I think the d2w product is perfectly aligned for that changing landscape.
- I think the second point is that this is market leading technology, I think the two products are now becoming very well established and more widely accepted.
- I think a further point is that this is nicely, flexible business model. The company owns the recipes for these technologies and uses a global network of distributors and third party manufacturers so it’s an asset-light and quite flexible operation, it can be scaled up quite quickly.
- I think the fourth point is that commercialisation which is demonstrated in this announcement today is accelerating. Over the last 3 or 4 months, if you look at the RNS statements, you’ll see that they’ve been signing up some big customers. It’s early days with many of those customers but they are big customers, potentially leading to a ramp up in revenues and profits.
- This leads into my fifth point really, the financials are improving, profits are still quite thin but I think they can rise quite sharply now, the big phase of capex and R&D is behind the group, products are there to be rolled out. So, I think the squeeze on margins is temporary and I think the investment in the platform will now yield better returns.
- The final point I would make is the company attracts the London Stock Exchange Green Mark and it has a very strong ESG credentials. If you think about their target markets, the d2w product is obviously addressing quite nicely the issue of waste plastic and plastic pollution and the antimicrobial/antiviral products are addressing health and hygiene concerns which we‘re living with every day at the moment”. Click here for the full interview.
Ilika plc (LON:IKA), a pioneer in solid-state battery technology, has provided an update on the implementation of its Stereax manufacturing plans, its miniature solid-state batteries designed for industrial wireless sensors in hostile environments and medical implants.
Further to the company Half-year Results on 14 January 2021, IKA confirmed continued progress with the implementation of its manufacturing scale-up plans for Stereax, including the below milestones being reached:
- Completed a lease on a 1,650m2 facility (FAB) within four miles of Ilika’s headquarters
- Awarded outfitting contract for the construction of the cleanroom facilities within the FAB to house the Stereax manufacturing line
- Completed fabrication of the industrial evaporator, previously referred to as “Tool 1”, with which Ilika will deposit Stereax battery cathodes, pending successful completion of the impending factory acceptance tests
- Progressed on-track fabrication of the multi-wafer sputterer, referred to as “Tool 2”, which Ilika will use for deposition of the other active layers in Stereax batteries
The Company continues to expect installation of Stereax manufacturing equipment in its FAB to commence in the first half of calendar year 2021, enabling commissioning and process qualification to be carried out in the second half of 2021. This will result in a 70x increase in Stereax production capacity by the end of 2021. Following product qualification, initial product sales continue to be expected in the first half of 2022. Click here for the full interview with Ilika’s CEO, Graeme Purdy.
Cadence Minerals plc (LON:KDNC) has noted that Hastings Technology Metals (ASX:HAS), Cadence’s joint venture partner at the Yangibana Rare Earth Project in the Gascoyne region of Western Australia, has received commitments to raise $100.7 million through an equity placement. The placement’s net proceeds will be used to advance development of the Yangibana Project in the Gascoyne region of Western Australia. Cadence owns 30% of 3 Mining Leases, 6 Exploration Licences which form part of the Yangibana Project, Hastings holds owns 70% of these leases and licenses.
- Hastings has received commitments to raise $100.7 million (before costs) through a two-tranche placement priced at $0.19 per share.
- Placement funds will be used to advance development of the world-class Yangibana Rare Earths Project.
- Strong institutional demand reinforces confidence that Yangibana will become Australia’s next rare earths producer.
- Upon settlement of both tranches of the Placement, the Company will have a cash balance of approximately $120 million (before costs).
- As previously announced to the ASX, the equity component of the Yangibana Project’s capital cost is $124 million.
Gresham House Energy Storage Fund PLC (LON:GRID) has today announced a dividend of 1.75p per Ordinary Share for the period from 1st October to 31st December 2020. The dividend will be paid on 26th March 2021 to Shareholders on the register as at the close of business on 5th March 2021. The ex-dividend date is 4th March 2021. This dividend completes the 7.0p per share dividend target for 2020 and the Board is pleased to confirm its commitment to delivering a 7.0p per share dividend for 2021.
Gresham House Energy Storage Fund plc owns a portfolio of utility-scale operational energy storage systems (known as ESS) located in Great Britain. The portfolio has a total capacity of 395MW. The Company is managed by Gresham House Asset Management Limited under the leadership of Ben Guest. The Company was admitted to trading on the London Stock Exchange (Specialist Fund Segment) on 13 November 2018 having raised £100 million of gross proceeds from investors. Including issuance under the Placing Programme, it has now raised a total of approximately £358 million of gross proceeds from investors.
The Gresham House New Energy team has a proven track record in developing and operating energy storage and other renewable assets having developed 234MW of Energy Storage Systems and approximately 290MW of predominantly ground-mounted solar projects. Gresham House Asset Management currently manages approximately 232MW of solar and wind energy projects.
Cadence Minerals plc (LON:KDNC, OTC: KDNCY)
- CEO Kiran Morzaria joins DirectorsTalk Interviews to discuss the macro picture for commodities and Cadence investments, EMH,BCN, Lithium Australia and lithium price going forward; the effects of the macro environment on in BCN and EMH, progress made, plans for the JV with Lithium Australia; iron ore and the drivers; interest in Amapa and what catalysts we should be looking out for. Click here for the full interview.
- Bacanora Lithium (LON:BCN) has commenced initial site activities at the Sonora Lithium Project, located in Mexico. This milestone follows the Company’s successful US$65 million fundraise last week, which, in combination with existing cash and the undrawn portions of its debt financing facility, will finance Bacanora’s 50% share of the capital cost required for Stage 1 of the Project. Bacanora is building the Project together with its partner, Ganfeng Lithium Co., Ltd., the world’s largest lithium metals producer. Both parties are working towards a development timetable for Sonora, with scheduled production of battery grade lithium products in 2023.
Bacanora is a lithium exploration and development company. Cadence holds 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which form part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico. Click here for the full article
- has noted that Macarthur Minerals (TSX-V:MMS) (ASX:MIO) has signed a Memorandum of Understanding with Southern Ports Authority which provides a pathway for agreeing a potential access and operating solution for the export of Macarthur’s high grade magnetite iron ore product via the Port of Esperance. The MOU with Southern Ports is non-binding. Click her for the full article
- has provided an update on its investment in the Amapa Iron Ore Project, Brazil:
Settlement of Bank Creditors
In early September 2020, we announced that DEV Mineração S.A’s, Cadence and Indo Sino Pty Ltd agreed in principle to the settlement terms proposed by the secured bank creditors. Detailed discussions and drafting of the legal documents continue, and we look forward to updating the market once binding documents are executed.
The execution of a settlement agreement with the Bank Creditors would represent the satisfaction of Cadence’s remaining major precondition to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapá Project via our joint venture company, which will own 99.9% of DEV.
Update on Court Petition to Commence Iron Ore Shipments
In April 2020 Commercial Court of São Paulo ruled that DEV., owner of the Amapa Project could commence the shipment of the iron ore stockpiles situated at DEV’s wholly owned port in Santana, Amapa, Brazil.
After this and as announced in August and September 2020, the Bank Creditors filed and had an interim order approved by the State of São Paulo Upper Court. Yesterday the Upper Court rejected the Bank Creditors appeal, and once the Ruling is effective (up to one week from the date of publication), the interim order is annulled, and DEV’s original petition is valid. This will allow the recommencement of port operations and the shipment of iron ore stockpiles.
Details of Approved DEV Court Petition
DEV is permitted to export sufficient iron ore to realise a US$10 million profit from the Amapa stockpiles at the port (after the deductions of all logistical, regulatory, shipping and sale costs). The first portion of the net revenues shall be used to pay historic small and employee creditors (~US$2.5 million) after which approximately US$ 6 million of the net revenues will be used to begin recommissioning studies on the Amapa Project and to start maintenance and monitoring of the current tailing dam facilities. The remaining net revenues with be used to provide working capital for the operations and for a payment against the outstanding amount due to the Bank Creditors. A certified translation of the Upper Court ruling is available here. Cadence Minerals state that further announcements will be made concerning both the Settlement Agreement and the outcomes from the Ruling once available.
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