Eco Investor Update

A Weekly News Update for Environmental Investors

22 October 2012 - No 103

____ Core Securities ____

ASX 100

Sims Metal Management
Sims Metal Management's annual report contains its annual sustainability report detailing its energy use, carbon emissions, water consumption and waste generation. All four fell between 12 and 24 per cent during 2011-12 compared to 2010-11. (ASX: SGM)

ASX 200

GWA Group
GWA Group said continuing weak new dwelling construction and renovation, low consumer confidence, the strong Australian dollar and increasing import competition have resulted in first quarter sales falling 12 per cent. Trading earnings before interest and tax fell 41 per cent on the corresponding quarter last year.

However, it does not expect this decline to reflect the group's full year performance, it said.

We do not expect any recovery in new building to flow through until late in 2012-13, despite the recent easing of interest rates and government packages to improve new housing construction, said managing director, Peter Crowley.

"Building fixtures and fittings products supplied by the GWA Group are usually sold as buildings approach completion. Given the time lag between dwelling approvals to commencements to completions typically a 6 to 8 month period it is unlikely that sales for GWA will recover during the 2012-13 financial year."

"As a consequence of the sharp deterioration in earnings, GWA management is taking strong action to review operating costs and focus on cash generation over the balance of this financial year. The objective of this review is to improve and protect GWA's margins, while maintaining the company's strong financial metrics."

As part of the review, Les Patterson will take on the role of chief executive of the GWA Bathrooms & Kitchens division, replacing Neill Evans who has left the company. Mr Patterson was most recently chief executive of the GWA Heating & Cooling division. (ASX: GWA)

Hastings Diversified Utilities Fund
Hastings Diversified Utilities Fund's securities touched a new four year high of $2.74 on 16 October.

UBS has moved to 10.2 per cent of HDF.

HDF will be removed from the S&P/ASX 200 Index as APA Group's cash and scrip takeover is now unconditional and it has received greater than 70 per cent acceptances. (ASX: HDF)

Qube Logistics
Perpetual has increased its equity in Qube Logistics from 5.4 to 6.4 per cent. (ASX: QUB)

Emerging Companies

Energy Action
Energy Action managing director Valerie Duncan has indirectly sold 500,000 shares, Steven Twaddell has indirectly sold 250,000 shares, chairman Ronald Watts has sold 200,00 shares and Edward Hanna has sold 50,000 shares. All trades were at $2.20 each. (ASX: EAX)

ERM Power
Directors Trevor St Baker, Tony Iannello, and Philip St Baker participated in ERM Power's dividend reinvestment plan. (ASX: EPW)

Interest Rate Securities

APA Group Subordinated Notes
The $100 APA Group Subordinated Notes are trading well and rose to $101.88 on 19 October. (ASX: AQHHA)

____ Satellite Securities____

Emerging Companies

CBD Energy
CBD has completed the purchase of the Taralga Wind Farm with partner, Banco Santander. CBD has retained 10 per cent of the project and received its initial development fee. It will manage construction and operation.

CBD said the Taralga transaction is a new business model for its wind projects and coincides with its retirement from its AusChina joint venture.

The company's 2011-12 annual report is now less than two weeks away, but CBD is also reviewing its 2010 and 2011 financial statements to meet SEC standards before its proposed NASDAQ listing.

The review is focusing on asset carrying values, particularly deferred tax assets, development assets at Emerald and Bowen in Queensland that are in a joint venture with Buildev, and its graphite storage technology patents. (ASX: CBD)

CMA Corporation
Peter Lancken has resigned as a director of CMA Corporation. Mr Lancken was interim managing director and interim chief executive during the early phases of CMA's restructuring strategy, and was appointed deputy chairman in August 2010. (ASX: CMV)

____ Pre Profit Securities ____

ASX 300

Ceramic Fuel Cells
Ceramic Fuel Cells has appointed Andreas Ballhausen as commercial director to lead business development, sales and customer service in Germany.

Mr Ballhausen was previously with German energy utility EWE, where he has held various senior management positions since 1996. He has extensive experience with fuel cells and micro combined heat and power products, having led EWE's project to evaluate, install and operate fuel cell products from a number of suppliers over many years.

EWE was Ceramic Fuel Cells' first customer in Germany, and has been testing and operating its products since 2006. (ASX: CFU)

Micro Cap Companies

Australian Renewable Fuels
Lignol Energy Corporation has increased its stake in Australian Renewable Fuels from 11.2 to 14.8 per cent. (ASX: ARW)

Nanosonics won the Emerging Exporter Award at the 2012 Premier's NSW Export Awards for sales of its environmentally friendly medical sterilizer, the Trophon EPR.

Nanosonics' disinfection technology made inroads into global markets in the past year. An exclusive partnership with GE Healthcare aided the first full year of sales in North America, which saw Nanosonics' annual revenues grow nearly 300 per cent. In 2011-12 Nanosonics' exports were 88 per cent of total revenue compared 30 per cent the previous year.

Nanosonics is now a national finalist in the 50th Australian Export Awards managed by Austrade. These will be announced on 27 November in Canberra. (ASX: NAN)

Orbital Corporation
Deutsche Bank has taken a 6.9 per cent interest in Orbital Corporation. (ASX: OEC)

Phoslock Water Solutions
Phoslock Water Solutions recorded a solid period of sales in the September quarter with its US and European distribution arms completing a number of application programs, said managing director, Robert Schuitema.

"Our growing footprint of successful applications around the world is boosting credibility and international industry acceptance of Phoslock as a leading treatment for phosphorus management and blue green algae problems," he said.

"We are continuing to draw significant attention from lake managers and local authorities worldwide, and as a consequence, we are increasingly becoming the 'go to' solution for phosphorus management and blue green algae contamination problems."

"With a deliberately well stocked inventory, we are strongly positioned to immediately act on these leads - whether it is a supply contract or active application program."

Revenue in the September quarter was $605,000. The company recorded a net operating cash flow of $61,000.

Phoslock chairman Laurence Freedman has indirectly acquired another 40,000 shares at 4 cents each. (ASX: PHK)

Patrick Mackey has resigned from the RedFlow board.

RedFlow has now received the handy $3 million from the tax office under the 2012 Research and Development Tax Incentive. Receipts from customers in the September quarter were a mere $80,000.

The company received a query from the ASX when its share price moved from 7.1 cents to 13 cents on increased volume, but said it was not aware of any information not already announced. (ASX: RFX)

WestSide Corporation
WestSide Corporation wants to receive any firm takeover proposals before its annual general meeting on 22 November.

WestSide has had discussions with LNG and its associated parties, and other parties invited by WestSide's advisors, Moelis & Company, to consider potential change of control transactions. Some of these parties were also invited to do due diligence.

Executive chairman Angus Karoll said "Discussions with interested parties and the due diligence process have developed into a lengthier process than the board initially envisaged. However, the board had decided to explore all potential transactions with a view to maximizing shareholder value and been reluctant to set deadlines which might have hindered the board's ability to fully explore any potential options."

However, uncertainty remains as to whether any binding proposal will materialize, hesaid. (ASX: WCL)

____ Pre Revenue Securities ____

ASX 300

Orocobre and Toyota Tsusho Corporation (TTC) have signed their joint venture agreement to finance and build the Olaroz lithium project in Argentina.

The capital cost is US$229 million including a US$22 million contingency. The production rate has been increased to 17,500 tonnes per annum of battery grade lithium carbonate.

A low cost and comprehensive debt financing package will be provided by Mizuho Corporate Bank, and debt guarantees by the Japanese government's Japan Oil, Gas and Metals National Corporation (JOGMEC).

Construction will commence by the end of October with initial commercial production anticipated in the second quarter of 2014.

The Olaroz Project equity is Orocobre 66.5 per cent, TTC 25 per cent, and JEMSE 8.5 per cent.

TTC and Orocobre will each contribute project equity of US$82.8 million, about 30 per cent of the maximum project funding if the project financing facility is fully drawn.

Orocobre chief executive and managing director, Richard Seville, said "We have come to a point where we are ready to build the Olaroz lithium project, the first new commercial brine project since FMC's Hombre Muerto project in 1994." (ASX: ORE)

Micro Cap Companies

Actinogen has reduced its laboratory staff, which will comprise only Scientific Director, Dr David Keast and one other scientist in the Actinogen laboratory at QEII medical centre in Perth. (ASX: ACW)

Dyesol has put two videos about its dye solar cell technology on its web site.

In September Dr Damion Milliken, Dyesol's R&D Manager, was invited to give a presentation to nanotechnology students at his alma mater, the University of Wollongong. His presentation, "Dye Solar Cells: Biomimetic Nanotechnology", provides an overview of dye solar cell technology.

The presentation covers: Global Energy Use and Global Energy Sources, Dye Solar Cells: What are they?, Dye Solar Cells: (nano)materials, and Industrialisation of Dye Solar Cells.

There is a shorter 28 minute version and a one hour full and technical version. (ASX: DYE)

Earth Heat Resources
Shares in Earth Heat Resources fell to a two year low of 0.6 cents on 17 October. (ASX: EHR)

Eden Energy
Noble Energy now holds 47.9 per cent of Eden Energy, up from 22 per cent, following on market buys, the rights issue and sub underwriting the rights issue. (ASX: EDE)

Greenearth Energy
Greenearth Energy's shares fell to an all time low of 3.5 cents on 17 October. (ASX: GER)

Kimberley Rare Earths
Kimberley Rare Earths said further soil geochemical assay results for its Malilongue strategic metals project in Mozambique confirm the project is highly prospective for lithium-tantalum-tin mineralization.

Two further prospects have been identified along strike from Chigaio, a significant pegmatite occurrence announced on 17 July this year. These prospects have similarities to the world-scale Greenbushes lithium mine in WA, it claims. (ASX: KRE)

Liquefied Natural Gas
PetroChina Australia has received confirmation from the National Development and Reform Commission of China that it approves of its acquisition of Molopo Energy's Queensland coal seam gas assets. Liquefied Natural Gas said this is an important development for its own proposed 3 million tonne per annum Gladstone Fisherman's Landing LNG Project in Qld.

PetroChina Australia and Liquefied Natural Gas have a non binding Letter of Intent to secure gas supply for the LNG Project. (ASX: LNG)

Lithex Resources
Lithex Resources has completed its placement of 6,987,000 shares at 5 cents each, raising $349,350.

Every two shares came with a free option exercisable at 8 cents by 31 December 2015.

The placement was managed by CPS Securities. (ASX: LTX)

Metgasco working with the Pacific Intermodal & Logistics Industrial Park project to facilitate natural gas supply to its proposed industrial estate in Casino. The industrial is expected to attract new business and jobs and grow the regional economy.

Metgasco said its immediate and first priority for gas distribution is to Northern Rivers businesses, such as the proposed new industrial estate in Casino.

Providing locally produced gas is also seen as a priority for the NSW Government.

The site could use 3 4 terrajoules of gas a day or over 1 petajoules per year. (ASX: MEL)

Petratherm's shares fell to an all time low of 2.6 cents on 15 October. The company has again extended the closing of its rights issue, to 25 October. (ASX: PTR)

Strategic Elements
Strategic Elements reported strongly anomalous rare metal mineralization in panned concentrate samples from the first rare metal focused exploration program conducted in the Hohonu Range in New Zealand.

The company said it is targeting a rare type of intrusion that occurs in the Hohonu Range called a 'peralkaline intrusion'. Peralkaline intrusions have been shown to host large multi commodity rare metal deposits that are particularly enriched with a mix of the most rare and valuable metals.

New Zealand government and academic work has proved that the Hohonu Range contains multiple types of peralkaline intrusive rocks. The exploration program is seeking to hone in on an area where rare metals have been concentrated.

Two panned concentrate samples have a strong association with peralkaline mineralization through their mix of enriched rare metals and a high percentage of heavy rare earths at 29.6 and 18.4 per cent respectively.

The exploration team will now concentrate on the peralkaline intrusive anomalies around the location of one of the samples, 5501. (ASX: SOR)

Eco Investor Update






Search Eco Investor