Eco Investor Update
A Weekly News Update for Environmental Investors
October 2012 - No 100
At 26 September its interest plus its institutional acceptance facility totaled 45 per cent. (ASX: APA)
DUET Group said its subsidiary Multinet Gas (MG) will re hedge the base interest rates on most of its debt portfolio to match the Australian Energy Regulators cost of debt allowance. As a result, Multinet Gas interest expenses are expected to be significantly lower in 2013 17 than the current regulatory period which ends on 31 December 2012.
MG provides gas distribution services to 675,000 customers in Victoria. (ASX: DUE)
Hastings Diversified Utilities
Qube said it remains committed to the development of the Moorebank precinct into a major intermodal terminal with logistics activities and will continue negotiations with the DoD and other stakeholders to facilitate the development.
In the interim, the property is generating reliable rental income which is expected to increase following a market review in March 2013. (ASX: QUB)
The increase includes more than a 65 per cent increase in the working capital component of the facility. It provides ERM Powers electricity sales business with additional funds to support its growth in the commercial and industrial market and its recently announced expansion into the small to medium enterprise market.
ERM Power has become a substantial shareholder in oil and gas explorer Red Sky Energy Ltd with a 9.49 per cent interest. (ASX: EPW)
Ceramic Fuel Cells
Mr R Kennett said he instructed his broker to subscribe for shares but due to an administrative error the transaction was not completed, and that he will purchase shares on market.
In total, directors holdings come to 1.1 per cent of the company. (ASX: CFU)
Micro Cap Companies
Phoslock Water Solutions
Po Valley Energy
Bezzecca is in Po Valley's Cascina Castello concession area, east of Milan, which contains the Castello production field. Po Valley has commenced preparation for a two phase development program. The first phase is connecting the completed Bezzecca 1 well to the Castello surface gas plant via a seven kilometre gathering line. The second phase, following the start up of gas production, includes a second development well, Bezzecca 2, to be drilled in 2014.
The Castello surface gas plant has enough capacity to process production from the single Castello well and both Bezzecca wells.
Managing director Giovanni Catalano said Bezzecca will become Po Valleys third producing field. This will increase Po Valley's proven reserves by 10 per cent to 8 billion cubic feet (bcf) and proven and probable reserves by 46 per cent to 13 bcf. (SAX: PVE)
However, the company posted a net loss of $7.8 million for the year. This was a $1.6 million improvement over the $9.4 million loss in 2010-11.
Chief executive, Dr Julie Beeby, said WestSide will continue to focus on increasing production and reserves to underpin the execution of new gas sales agreements, and on improving efficiency and reducing costs.
Meridians gas production can be expected to generate increasingly significant cash flow for WestSide as production rises toward our initial 25 TJ/d target and revenues benefit from anticipated price increases beyond 2014, she says.
WestSide generated $5.94 million in revenue from its share of Meridians gas sales up 8 per cent on 2010-11. (ASX: WCL)
The injunction application is part of an application seeking a judicial review of the June 2012 decision of the Minister of Innovation, Science and Technology to affirm the approval of the TOL.
The Kuantan High Courts interim order suspends any new action under the TOL until the hearing on 4 October. Lynas said it is not expected to impact its planned schedule because the first feed to kiln is scheduled for 4 October. (ASX: LYC)
Orocobres project partner, Toyota Tsusho Corporation (TTC), is to acquire a 25 per cent stake in the Olaroz lithium potash project in Argentina.
Project finance will be provided by Mizuho Corporate Bank and the debt guarantees by Japan Oil, Gas and Metals National Corporation (JOGMEC) with a debt to equity ratio of 70 per cent, an increase from the 60 per cent previously indicated.
The expected annual production is 17,500 tonnes of lithium carbonate, an increase from 16,400 tonnes in the feasibility study.
The final project ownership will be Orocobre 66.5 per cent, TTC 25 per cent, and JEMSE 8.5 per cent. (ASX: ORE)
Micro Cap Companies
The time line for Shoalhaven One is in the hands of certification services company SGS, but he is hoping to have a report by the end of the year.
He said it is hard to say how long it may take to get board approval, select a site and complete the feasibility study for the Lufthansa project.
We have some venues in mind but door opening, depending upon jurisdiction, may take time, albeit facilitated by Lufthansa. The feasibility study, as we have now completed almost three, is the shortest of all to complete. We will know more by end of October, he said.
La Jolla Cove Investors has converted another 967,118 shares at 25.85 cents each. (ASX: AEB)
The waste facility would be owned and operated by Bioverse. Bioverse proposed the AnaeCo system as the core part of its offering for an expression of interest it submitted to the City of Rockingham on 26 September.
The solution would leverage the design principles of the DiCOM system at Shenton Park with differences in scale facilitated by the systems modularity.
We are committed to developing clean, commercially sustainable, renewable, assets that will provide positive long term global climate benefits. AnaeCos innovative DiCOM solution aligns perfectly with Bioverses core strategy. Their world leading technology provides a sustainable solution for the ever increasing amount of municipal solid waste, said Bioverse chief executive, Steve Burns. (ASX: ANQ)
The sites, a mine site, a city power station and an industrial plant, represent different types of applications for Enerjis Waste Heat to Power Solutions (WHPS). Negotiations with these prospective customers are at advanced stages, it said.
The customers are paying fees to Enerji for professional time conducting the inspections and report/ proposal preparation and covering travel and other expenses.
Enerji is nearing completion of construction of its waste heat to power Opcon Powerbox system at Horizon Powers Carnarvon Power Station. (ASX: ERJ)
Origin Energy has the right to maintain its full 30 per cent participation in the joint venture prior to the end of the financial year through a buy back provision, or dilute its ongoing interest beyond 2012-13.
Geodynamics said it has sufficient funds to carry out the FY2013 capital work program at Habanero and will meet continuing commitments through its own financial resources and by drawing down funds under the $90 million Renewable Energy Demonstration Program (REDP) grant as milestones are achieved. (ASX: GDY)
Kimberley Rare Earths
The company said it is responding to significant change in the rare earths sector; positioning itself for growth through project development and production; and aiming to preserve and then grow shareholder value.
Since KRE listed in May last year at a time of an unprecedented spike in rare earth prices, the rare earths sector has changed significantly and prices have fallen markedly. The company is reseting its business strategy in response to these movements, said chairman, Jon Parker.
The change reflects both the diminished prospectivity of the light rare earths sector and increasingly accessible market opportunities beyond rare earths.
In May 2011, KRE listed with a 25 per cent interest in the Cummins Range Project a modest sized resource with significant exploration potential.
However, the number of non Chinese rare earths deposits has since risen from 12 to 44 and defined resources increased to around 400 years of current annual rare earth global demand. High prices led to demand destruction via substitution and efficiency gains, particularly for light rare earths, he said.
Since the July 2011 price peak, light rare earths forecasts have moved from under to oversupply, prices have fallen by 70 per cent and continue to decline.
The Cummins Range project is technical viability, but is modest in scale, and its near term commercial development is not practicable, while long term development depends on factors beyond the companys control.
The company has identified several M&A opportunities. The target sectors include precious metals, base metals and strategic minor metals.
KREs Malilongue project in Mozambique is highly prospective for heavy rare earths, lithium, tin and tantalum, and it will continue its exploration, said managing director, Tim Dobson.
The company has cash of $11.3 million. (ASX: KRE)
The reason given is specifications which have been revised. KUTh said cancellation notices have been sent to other renewable energy projects that have passed through the request for proposal stage.
KUTh said the latest cancellation notices confirm its concerns that renewable energy tenders with Intent to Award Contract notices issued by the CUC have been affected by recent political events.
Despite multiple efforts by the company over the last three months to seek clarification from the CUC and the Government of Saipan, we have received no responses to our enquiries until the receipt of the cancellation notice dated 21 September 2012, which in itself contained very little information.
The company is currently being advised on its rights in this matter, it said. (ASX: KEN).
Consideration for the merger will be 660 million shares issued at 0.6 cents each.
The proposed transaction is subject to shareholder approval at the annual general meeting.
RCL seeks high yield investment return by investing in growth companies using high return convertible note facilities. RCL currently has five convertible note and loan assets of $2.258 million excluding the funds invested in and loaned to MediVac and forecasts it will earn significant interest and capital gains on these.
RCL has already injected $154,572 at 0.6 cents per share in MediVac, and has provided a $350,000 loan facility with a commitment to provide a further $400,000 in October.
RCL has also pledged support to raise up to $5 million for the merged businesses. Up to $2 million will be raised shortly after the proposed merger is approved, said MediVac executive chairman, Paul McPherson.
As a result of the merger, MediVac intends to focus on its core MetaMizer business and the soon to be acquired RCL investments. RCL will expand its portfolio of high return convertible note facilities where opportunities are presented, said Mr McPherson. (ASX: MDV)
Metgasco is also offering shareholders a share purchase plan for up to $15,000 of shares each at the same price.
The funds will be used for Metgascos planned work program, which includes lateral CSG wells and license well commitments. (ASX: MEL)
In 2012, Gryphon Partners, a corporate advisory group where Mr Martyr is a partner, was acquired by Standard Chartered Bank. In accordance with the banks policies, Mr Martyr is unable to continue on non related party boards. (ASX: PAX)
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