Eco Investor Update
A Weekly News Update for Environmental Investors
January 2013 - No 114
Sims Metal Management
It relates to changes in the assessment of the net realizable value of some stock and to book to physical adjustments. Preliminary findings indicate it may be due to control failures and potentially fraudulent conduct by local and regional plant management responsible for technology and downstream processing systems.
A board committee has taken responsibility for the investigation now underway. Their immediate priority is to determine the amount of the adjustment and the impact on the accounts.
Independent of the inventory valuation issue, the company said it expects there will be recognition of goodwill impairment in the first half results but gave no further details. (ASX: SGM)
Interested parties can make submissions on Infigens ability to meet the AERs criteria. (ASX: IFN)
Clean TeQ Holdings
The Air Division is currently delivering the greatest number of projects in the companys history across mostly municipal clients for air quality management.
The projects are in most States around Australia, and include compact turnkey BioFilters for local pump stations and large BioTrickling Filters to control the air emissions from large wastewater treatment plants. The largest projects are valued over $2 million and all use Clean TeQs OdourTeQR biological air treatment technologies.
Clean TeQ said that given the number of plants in construction, it is clearly the market leader for odour control in the Australian marketplace.
The Divisions increase in number and size of projects has created a demand for additional working capital, as most payments are made on the completion of operational milestones. The company is entering into short term debt funding facilities.
Clean TeQs 50:50 water treatment joint venture with Nippon Gas Co, Associated Water Pty Ltd, recently completed the construction of its demonstration facility at the Wambo feedlot, near Dalby, Queensland. The plant removes the salt from coal seam gas (CSG) water, making it suitable for livestock and irrigation.
The plant is treating CSG water from one of the gas suppliers in the area. Early results are in line with the expectations that the plant will provide the required level of water quality for beneficial use by the landholder.
Clean TeQ said numerous interested parties from the gas companies, engineering consultancies, delivery businesses, and regulatory bodies have visited the site to see how the technology can meet the environmental and economic needs for treating CSG water.
The CIF technology recovers 90 to 95 per cent of the water, which minimizes by product streams. Many of the by product salts can be used in agriculture, it said. The current outcome is being achieved with the operation of only Clean TeQs CIF technology with no requirement for microfiltration, ultrafiltration or reverse osmosis.
The CIF technology is low energy and can be powered by solar or other renewable energy, a major advantage for remote locations.
Once the demonstration of CIF for this application and the verification of the economics are finalized we expect to see it become the technology of choice for many within the industry, said executive chairman, Greg Toll.
We are currently investigating the best approaches to roll out the technology, and expect to begin this phase in conjunction with a major global engineering delivery business initially focusing on mobile and modular scale plants. (ASX: CLQ)
Micro Cap Companies
Chief executive, Stone Wang, said the result was achieved in an environment of falling prices and reduction of government support for the solar industry.
As part of the companys plan to rebuild solar revenues it has entered agreements with two regionally based solar installers in NSW who will partner with AFT Corporations subsidiary, Artemis Building Systems Pty Ltd, to provide commercial solar installations that can be lease financed.
The company plans to partner with a further eight solar installers across Australia in 2013, he said. (ASX: AFT).
Australian Renewable Fuels
On the same day the company extended the closing date for its takeover offer for Wentworth Holdings from 1 February to 15 February. It currently holds 40.1 per cent of Wentworth. (ASX: ARW)
Clean Seas Tuna
Kathleen Watt has also become a substantial shareholder with 6.1 per cent. (ASX: INL)
Orbitals chief executive and managing director, Terry Stinson, said The small unmanned aerial systems market is an emerging market for Orbital and we are extremely pleased to receive this latest order for SUAS engines. (ASX: OEC)
Vmoto produced about 7,000 scooters for PowerEagle in 2012 and at 31 December had delivered 6,300 units.
It put on double shifts to ensure production targets. It also installed new assembly lines on the manufacturing floor of its Stage 2 Manufacturing Facility as larger space and more assembly lines are needed to meet increasing production, with 42,000 scooters predicted in 2013.
The company continues to produce its E Max series electric scooters in its Stage 1 Manufacturing Facility and forecast production is unchanged.
Manufacture of the E Tropolis electric scooters is on course to commence by the end of March 2013.
The company expects its financial performance for the six months to 31 December will be in line with market expectations.
The new exclusive distributor for The Netherlands is B.V Nimag, which also import Suzuki cars, motorcycles and marine vehicles plus sports cars and began distributing electric scooters in 2011.
B.V Nimag markets its electric scooters business as Nimoto and branded electric scooters from Vmoto as Nimoto Pro Powered by Emax.
General Manager for B.V Nimag, Robert Landman, said We see many opportunities for the electric scooter with regard to mobility programs and leasing. The market for electric mobility is increasing and the market for electric scooters has enormous potential. The Nimoto dealer network will be expanded to over 100 outlets in the Netherlands. (ASX: VMT)
The test confirms the wells production potential of 1 million scf/d, validating long term project economics.
Pending further field development including the installation of compression facilities, Dart intends to continue to flow gas from the well for on site electricity generation at the capacity of the local grid which is about 100,000 scf/d.
Dart Energy International chief executive, John McGoldrick, said We have invested significant capital in this area and are proud to be the first company to generate electricity from coal bed methane (CBM) natural gas in Scotland.
During our Airth 12 well production test we have achieved sustainable and continuous flow rates significantly higher than any other CBM well production in Europe.
This test has provided us with continued confidence as we move forward in developing the PEDL133 project. In particular, test results indicate that flow rates per well of one million scf/d are attainable, without the need for any fraccing. (ASX: DTE)
The Jiangsu Plant is on track to recommence operations in early February 2013. (ASX: GXY)
Micro Cap Companies
Advanced Engine Components
The company said the acquisition will enable it to expand its existing China business by incorporating the vendors heavy duty LNG dual fuel engine conversion technology, and in Australia to supply, install and operate micro LNG plants at low volume stranded gas production fields.
Subject to due diligence and shareholder approval, the acquisition will be funded through the issue of 261.63 million shares and $250,000 cash. The vendors will have two board seats.
The vendors will arrange a capital raising of $2.33 million through the issue of 116.28 million ACE shares, to be undertaken in two tranches. An initial placement of 29 million shares to raise $580,000 must be fully committed within four weeks from signing the Term Sheet.
A further placement of 87.28 million shares to raise $1.75 million will be completed following shareholder approval of the recapitalization.
The placement funds will mainly be used for working capital and to settle third party creditors.
The recapitalization also involves the forgiveness by related party lenders of a minimum $9.5 million owed by ACE, which has inprinciple agreement from all related party lenders/ creditors that if the recapitalization proceeds they will work with the board to restructure ACEs debts so the voluntary suspension of ACEs shares can be lifted. (ASX: ACE)
The parties will consider the technical and commercial feasibility of deploying the DiCOM solution under licence in India. AnaeCo would manage the design and commissioning of the facility and Brisanzia would have project management, construction, operations and maintenance responsibilities.
India is experiencing unprecedented growth in volumes of waste and we are pleased to be able to offer AnaeCos world leading solution to address this burgeoning issue. AnaeCos innovative technology provides municipalities and waste management companies with a sustainable solution for waste management, said Ziaul Hasan Rizvi Director, Brisanzia. (ASX: ANQ)
However, Eden had no explanation other than encouraging progress it has made on its projects that was announced on 18 January, and the announcement by Linc Energy on 23 January about the potential of its South Australian petroleum licences and licence application (PELs/ PELA) in the Arckaringa Basin which adjoin Eden Energys PEL 183 and PELA 243. (ASX: EDE)
The presentation is on Geodynamics' web site. (ASX: GDY)
The licence has a 30 year term and is to exclusively develop and commercialize the geothermal energy in the license area. The minimum tariff is 23.9 vatu/ KWh or about 25 cents, and is CPI adjusted each year. KUTh also has the right to earn carbon credits from the project.
KUT said that on completion of the power purchase agreement (PPA) with the utility, UNELCO, it is committed to a program of exploration and development that will lead to the commencement of construction of a geothermal power plant within 36 months of the signing of the PPA.
The company will need to finalize terms with landowners once the resource has been delineated and the location of production drilling and power plant construction is identified. In the interim, it will agree terms with landowners for exploration drilling with options for long term lease if successful.
The 8 MW project will replace diesel power and produce revenue equivalent to a 50 MW fossil fuel plant in Australia, said managing director David McDonald. (ASX: KEN)
Liquefied Natural Gas
The announcement of the US$2.2 billion LNG export facility plans follows the Companys announcement on 19 December that the company had secured a position in the US LNG market.
The company expects to make a final investment decision in late 2014 after it secures permits and completes financing. The mid scale LNG facility would be located on 90 acres and produce 4 million metric tons of liquefied natural gas per year. Construction would begin in 2015. (ASX: LNG)
Water Resources Group
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