CLQ 3.17% 30.5¢ clean teq holdings limited

From what I can tell not one of the other potential companies or...

  1. 16 Posts.
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    From what I can tell not one of the other potential companies or projects is within a bull's roar of where Cleanteq is with Sunrise. You just have to consider the amount of money outlayed by CLQ to get an understanding of the cost to develop certain projects - CLQ has outlayed about $200M of shareholder funds from capital riases into Sunrise to get to this point. Not one of the others is even close to 1/4 of that level of investment.

    That being said, I am bearish on CLQ for a number of reasons.
    1, it would appear CLQ have wasted money. Time over runs and missing market expectations seem to be standard with CLQ. I will be surprised if this PEP meets the markets expectations re timing. What is the difference between FEED and PEP anyway. Sounds like jargon. 2 years of work (and perhaps rework - MCC then Fluor Corp?) and re-cutting estimates to get something they can sell? Would not be surprised if the capital increased to more than US2,000,000,000. These type of plants are very costly so no shock in that, but if the capital increases that is likely to erode some of the project value.
    2, the project is ramping down from what my connections tell me - this explains the change in capital structure notices that come up now every month or so. The lapse of options and performance rights is what was allocated to staff that have departed CLQ through redundancies. Looking on Linkedin there seems to be a lot of past staff and from what I gather so that does checkout. Not many staff moved to site either which tells me that construction isnt happening anytime soon either. Q: If you are expecting to go to construction then why let staff go?
    3, Fluor Corp has demobilised and redeployed resources onto other projects.
    4, the Macquarie partnering process doesn't have anyone willing to put in the money it appears. 12 months. No result. No shortlists. The illusion of partnering serves a process but eventually the facts need to be considered in the cold light of day. 16 days until the end of June.
    5, covid. I find it challenging to consdier if that there hasnt been a party already on the hook for investment in sunrise, then now, no one is investing that much on a laterite project during a covid pandemic.

    So no doubt I will have everyone looking to attack like a Trump supporter at an antifa rally, but I for one have no interest in being a monday morning quarterback. My position is clear. I'll hang back and have a look once the covers are revealed on this so called PEP and await the board announcement on progress. Looking to pick up sub $0.10, and this will appreciate when the nickel rally eventuates. If I am wrong, so be.

    But CLQ is still a better buy than AUZ.

    Chuck


 
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30.5¢
Change
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Mkt cap ! $227.6M
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Last trade - 16.10pm 18/09/2020 (20 minute delay) ?
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Last
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