Eco Investor Update
A Weekly News Update for Environmental Investors
October 2012 - No 102
DUET's independent directors unanimously recommend the proposal, which will be put to a vote on 23 November. (ASX: DUE)
GWA directors William Bartlett and Darryl McDonough participated in the company's dividend reinvestment scheme. (ASX: GWA)
Hastings Diversified Utilities
The Fund issued 30,323,086 securities at $2.615 each to its responsible entity as payment for incentive fees for the six month periods to 31 December 2011 and 30 June 2012.
The manager, Hastings, will sell these securities to APA Group under APA's takeover offer, which is now unconditional. (ASX: HDF)
Mr Ryan said Tassal has achieved strong growth over the past five years while maintaining a strong commitment to the environment and sustainable practices. "Tassal has a focused and long term strategy to further develop our business that is underpinned by sustainable practices," he said.
"Our plans to expand on the west coast are an important part of this overall strategy. Through operating a clear and transparent consultation process, Tassal has clearly demonstrated that we continue to work with any environmental or community group that wants to work with us."
Mr Ryan said the industry had worked closely with the Tasmanian Government and the West Coast Council for the past two years to explore opportunities for expansion in Macquarie Harbour.
"Tassal invests significantly in research collaborations and works closely with regulatory bodies to ensure all activities meet or exceed best practice environmental management and legal requirements. We are proud of the cutting edge science and modeling we have done and are committed to a comprehensive and ongoing environmental management program." (ASX: TGR)
Unlisted Share Funds
Australian Ethical Smaller
The Trust achieved a return of 22 per cent for the year to 30 September and 10.3 per cent over 10 years, beating its benchmark, the S&P/ASX Small Industrials as well as the S&P/ASX 200 Index.
The Trust combines a motivated portfolio manager and a high conviction approach, said Lonsec, which also retained the trust's investment grade rating when it reviewed the responsible investment sector.
"As the Global Facility remains in cash sweep, our focus will be on sustaining surplus operating cash flow to maximize debt repayment,' said Mr Hutchinson.
Managing director, Miles George, writes that production in the US and Australia is expected to improve on the 2011-12 outcome. Prices could also rise.
"There are a number of factors that are expected to lead to upward pressure on wholesale electricity prices in the medium to long term. These include reduced investment in new electricity generation capacity and continuing retirement of ageing coal fired power stations in the US, and liquefied natural gas (LNG) projects coming on line in Australia. The prospects for LNG export opportunities are expected to lift domestic gas prices towards much higher export parity prices."
Selected projects in the company's development pipeline are being progressing "in anticipation of improved market conditions beyond the 2013 financial year". (ASX: IFN)
Unlisted Investment Companies
"Our universe of green equities has diminished since we moved away from the more speculative green investments and any company associated with coal seam gas (Origin Energy etc)," said managing director, Damien Lynch.
"Instead we have invested more in value dividend paying equities which are ethically 'neutral'. These include M2 Telecommunications, Technology One (computer services) and McMillan Shakespeare (Employment services).
"We remain on the outlook for green investments which also provide value for investors."
Micro Cap Companies
Nine note holders converted their Notes. The interest on the Notes was $111,940. (ASX: AEI)
Australian Renewable Fuels
The company said the fundraising is in conjunction with its proposed dual listing on AIM, and it expects its entire share capital including the placement shares be admitted to AIM on 9 November.
The placement is to meet its current order book including the PowerEagle Strategic Cooperation agreement, expand its product range, expand its distribution base, increase its workforce, improve quality control and after sales service, and complete the fit out of Stage 2 of its manufacturing facility in Nanjing, China.
finnCap acted as the nominated adviser and broker on AIM.
Following the capital raising, Blair Sergeant has resigned as non executive director to focus on his external commitments with Lemur Resources.
A new Australian based director is being sought. (ASX: VMT)
The SMSL wants a judicial review of the Minister of Innovation, Science and Technology's decision to dismiss an appeal against the award of the TOL.
The High Court will deliver its decision on 8 November. Until then the status quo remains and the target date for Lynas' first feed to kiln will be delayed. (ASX: LYC)
The second US$21 million tranche was payable on 30 September. As Dart Energy International was not listed, Dart Energy has chosen to pay a mixture of cash and shares. It will issue Greenpark with up to 110.8 million shares with 43.4 million issued immediately and the balance after approval at the annual general meeting.
Greenpark could end up holding up to 16 per cent of Dart.
Dart Energy International, as part of its AIM listing, has agreed to repay Dart US$12.6 million within three years. (ASX: DTE)
The test involved pumping brine from the production well at a constant rate and without faults or blockages over a 30 day period. Pumping brine to solar ponds is a critical part of a lithium brine operation. When the brine evaporates, the concentrated lithium brine is harvested and processed into lithium carbonate.
The test well pumped 16 litres of brine per second. The consistency and rate of flow will be used as base assumptions in the Definitive Feasibility Study now underway and expected to be completed in the first quarter of 2013. (ASXL GXY)
GMP's research report is on Orocobre's web site. (ASX: ORE)
Micro Cap Companies
The company received a letter from the ASX querying its $20 million loss for 2011-12 and limited cash.
AnaeCo replied that it has said it intends to raise $15 million. (ASX: ANQ)
The company is looking for a replacement as chairman.
In the meantime John Ellice Flint will act as interim chairman of the Board and Rodney Cameron has been appointed deputy chairman.
Dr Paul Massarotto will retire as a non executive director on 15 November. (ASX: BUL)
BluGlass director George Venardos has indirectly acquired 5,000 shares at 9 cents each. (ASX: BLG)
Carnegie Wave Energy
The new legislation provides annual cash refunds of 45 per cent on qualifying R&D expenditure.
Carnegie will continue to benefit from the new legislation in the current and future financial years and from 1 January 2014 Carnegie will become eligible for quarterly refunds. The new legislation also allows for R&D work to be carried out overseas under certain circumstances, it said. (ASX: CWE)
The $100,000 deposit from Mr Groden has been received. The balance of the purchase price, $1,054,929, is to be paid within two years and is secured by an interest over the acquired shares.
Island Sky retains 25 per cent of ISC, which holds the intellectual property rights to develop and market air to water machines.
The board said it is still reviewing a number of investment opportunities for the company. (ASX: ISK)
Kimberley Rare Earths
Consideration is $350,000 by KRE to NAV.
The move reduces KRE's expenditure commitments by $6.8 million.
KRE said it has cash and is pursuing M&A dealings. (ASX: KRE)
"Regrettably for shareholders, it is evidenced by languishing share prices for KUTh and all our peers. To be totally transparent, KUTh's share price on the last trading day in June 2012 was 2.2 cents compared to 5.1 cents one year earlier: without naming names, other companies have seen reductions from over 30 cents to about 12 cents; 12 cents to 4½ cents and 3 cents to less than 1 cent.
"This reflects that Australian projects have been difficult to prove the "hot rock" concept not only technically but absolutely commercially: they remain very expensive to evaluate and develop and adequate funding sources are simply not available.
"One of our peer companies has stated clearly that it has no intention to commit any funds to its Australian assets unless there is a substantial commitment of funding from the Australian government towards developing Australia's significant geothermal resources," he said.
KUTH's Tasmanian project at a drill ready stage but awaiting capital, and the company continues to focus on the Pacific Islands, with its priorities Vanuatu and Fiji.
Vanuatu is the leading opportunity. "I remain confident that this project will go ahead and will deliver value to KUTh shareholders but it requires constant attention and effort," said Mr McKay. (ASX: KEN)
The placement will be conducted by Cunningham Paterson Sharbanee Securities Pty Ltd or CPS Securities, which has also underwritten the $1,339,175 non renounceable pro rata entitlement issue.
Robert Lacey is no longer a substantial shareholder in Lithex Resources. (ASX: LTX)
CNC will provide regulatory and environmental expertise and OSD will provide engineering support.
Managing director, Peter Henderson, said "Metgasco is pursuing a range of local domestic sales, with pipeline sales to the Richmond Dairies and other Casino businesses, compressed natural gas and micro LNG supplies to Northern River's industries and power generation sales. CNC and OSD will provide important assistance in preparing the range of environmental submissions and engineering plans to support development approvals and production licence applications.
"We have identified local market opportunities in the range of 5 to 10 petajoules per annum. These local gas sales are a key part of our initial growth strategy and should help local business by providing energy that has a lower and more stable cost than imported fuels.
"We already have enough 2P reserves to supply much of the Northern Rivers industrial market for around 80 years. Natural gas is recognized for its outstanding safety and environmental record and we will be delighted to be able to offer gas to businesses in the Northern Rivers," said Mr Henderson. (ASX: MEL)
The loan is unsecured and will be repayable from future revenues or from the proceeds of any future equity raisings and subject to not materially prejudicing the company's ability to repay its creditors.
The loan is a related party transaction but is considered to be on terms that are fair and reasonable to the company and significantly more favourable than available from any arms length financier, said Papyrus.
The loan is for working capital. (ASX: PPY)
Petratherm has extended its rights issue a week to 25 October. (ASX: PTR)
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