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Northland Capital Partners View on the City - Active Energy Group; Edenville Energy

Northland Capital Partners View on the City - Active Energy Group; Edenville Energy

ACTIVE ENERGY GROUP (LON:AEG)

SECTOR – RENEWABLE ENERGY

RATING – CORP*

MARKET CAP – £24.8m

CURRENT PRICE – 2.4p#

ANALYST – MIKE JEREMY

 

Year-end Dec

2016A

2017A

 

 

 

Revenue (US$m)

-

-

No forecasts provided

EBITDA (adj) (US$m)

(2.20)

(5.24)

Rptd. Net Loss (US$m)

(4.66)

(8.60)

EPS (US$c)

(0.48)

(1.87)

DPS ($c)

-

-

Net Cash/(Debt) (US$m)

(5.5)

(13.3)

P/E (x)

 

 

Dividend yield (%)

-

-

EV/EBITDA (x)

 

 

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited Acts as Nomad to Active Energy Group and therefore this information should be viewed as a Marketing Communication.

 

Update on Newfoundland forestry project application

 

NORTHLAND VIEW

  • Active Energy Group reports positive meetings held last week in the Province of Newfoundland and Labrador with the Minister of Fisheries and Land Resources, the Honourable Gerry Byrne, and Minister of Tourism, Culture, Industry and Innovation, the Honourable Christopher Mitchelmore.
  • The Ministries remain supportive of AEG’s application for a Forestry Management Agreement, as a result of which AEG reports that it is amending its application in respect of Forestry Districts 17 and 18 and development of one or more dedicated CoalSwitch™ plants. The company stated: “Active Energy has been given no reason to be concerned at the delay in the process and can confirm that it is encouraged by the positive and supportive approach by all Government departments to the questions presented and requests made.”
  • Richard Spinks intends to relinquish his Active Energy Board responsibilities in favour of his role as Managing Director of Timberlands, effective from 1 November.  Richard expects to focus specifically on developing the Group's Newfoundland and Labrador relationships and opportunities.

The decision by Richard Spinks to relinquish his position on the Board of AEG in order to focus efforts on securing the Newfoundland forestry opportunity indicates the importance of bringing efforts in the region to fruition, a process which clearly requires a dedicated presence.  

 

COMPANY DESCRIPTION

Active Energy Group (AEG) is an international, vertically-integrated forestry management and renewable resource energy provider.  The group combines management of forestry resources with the commercial development of a proprietary solution (CoalSwitch™) to the integration of wood-based (biomass) fuel into existing coal-fired thermal power plants. 

 

Edenville Energy (LON:EDL)

SECTOR – MINING

RATING – CORP*

MARKET CAP – £4.1m

CURRENT PRICE – 0.26p#

ANALYST – BARRY GIBB

                    DR RYAN D. LONG  

 

Year-end Dec

2016A

2017A

 

 

 

Revenue (£m)

-

-

No forecasts provided

EBITDA (£m)

(3.2)

(1.2)

Adj. pre-tax Profit (£m)

(3.2)

(1.2)

Adj. EPS (p)

(0.5)

(0.1)

DPS (p)

-

-

Net Cash/(Debt) (£m)

0.1

0.8

P/E (x)

-

-

Dividend yield (%)

-

-

EV/EBITDA (x)

-

-

 

SOURCE: Northland Capital Partners Limited estimates. #Priced at prior trading day close. *Northland Capital Partners Limited acts as Nomad and Broker to Edenville Energy and therefore this information should be viewed as a Marketing Communication.

 

Further coal supply contract signed with East African industrial group

 

NORTHLAND VIEW

  • Edenville Energy plc announced that it has signed a contract with an industrial customer operating in East Africa that is part of a global manufacturing group
  • Edenville has been working with this customer throughout 2018 to create a product specifically suited to its operations, supplying it with test batches of coal in order to perfectly match its needs. The upgrades currently being undertaken at the Company's Rukwa project site should ensure that this contract, along with other customer deliveries, can be met.
  • The customer’s initial contract duration extends to a period of two years, supplying coal with a gross calorific value of between 5,300 – 5,700 kCal/kg.
  • Pricing has been agreed and is based on local commercial rates; tonnage is variable but is expected to initially be between 300 and 500 tonnes per month.

 

The signing of a further coal supply agreement with a global group, that delivers products to various international industries, supports the view that Edenville is able to identify and satisfy strong medium-to-long-term demand for its output.  It is also seeking to deepen its client relationships and prospective interdependence by examining ways in which it might further assist this particular business in mining related tasks going forward.  Rufus Short, CEO of Edenville noted “I look forward to providing further updates on the progress of the operation as we look to expand and secure further contracts." 

 

COMPANY DESCRIPTION

Edenville Energy is moving the Rukwa Coal Project towards near-term production alongside advancing its Coal to Power Project.

 

 

1. Northland Capital Partners Limited (“Northland”) acts as Nominated Advisor and/or Broker to the company.

2. Northland) and/or its affiliates companies do beneficially own 1% or more of any class of the issuer’s equity securities, as of the end of the month immediately preceding the date of issuance of the research report or the end of the second most recent month if the issue date is less than 10 calendar days after the end of the most recent month. 

3. The authoring analyst or any associate of the authoring analyst does maintain a long or short position in any of the issuer’s securities directly or through derivatives, including options or futures positions.

4. Northland, its affiliated companies, partners, officers, directors or any authoring analyst of Northland has provided services to the issuer for remuneration during the preceding 12 months other than investment advisory or trading services.

5. Northland or any of its affiliated companies has performed investment banking services for the issuer during the 12 months preceding the date of issuance of the report.  

6. A partner, director, officer, employee or agent of Northland or any of its affiliated companies is an officer, director, employee or advisor of the issuer.  Disclosures are applicable for all companies

7. The authoring analyst, or any associate of the authoring analyst, has viewed the material operations of the issuer. 

8. The authoring analyst, or any associate of the authoring analyst, received reimbursement for travel expenses.

9. Northland makes a market in the securities of this company.

 

 

DISCLAIMER

This document is provided solely to enable clients to make their own investment decisions. It may therefore not be suitable for all recipients and does not constitute a personal recommendation to invest. It does not constitute an offer or solicitation to buy or sell securities or instruments of any kind. If you have any doubts about the suitability of this service, you should seek advice from your investment adviser. This document is produced in accordance with UK laws and regulations. It is not intended for any person whose nationality or residential circumstances may render its receipt unlawful.

The past is not necessarily a guide to future performance. The value of shares and the income arising from them can fall as well as rise and investors may get back less than they originally invested. The information contained in this document has been obtained from sources which Northland Capital Partners Limited believes to be re¬li¬able. The Com¬pany does not warrant that such information is accurate or complete. All estimates and prospective figures quoted in this report are forecasts and not guaranteed. Opinions included in this report reflect the Company’s judgement at the date of publication and are subject to change without notice. If the investment(s) mentioned in this report are denominated in a currency different from the currency of the country in which the recipient is a resident, the recipient should be aware that fluctuations in exchange rates may have an adverse effect on the value of the investment(s). The listing requirements for securities listed on AIM or PLUS markets are less demanding, also trading in them may be less liquid than main markets.

Northland Capital Partners Limited and/or its officers, as¬sociated entities or clients may have a position, or other material interest, in any securities men¬tioned in this report. Northland Capital Partners Limited does not provide recommendations on securities of firms with which it has a corporate relationship. More information about our management of Conflicts of Interest, Investment Research Methodology & Definition of Recommendations can be found at www.northlandcp.co.uk 

Northland Capital Partners Limited is authorised and regulated by the Financial Conduct Authority and a Member of the London Stock Exchange.

Published by/copyright: Northland Capital Partners Limited, 2013. All rights reserved

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