I have read all the posts on HC over the last few week and the majority of posts have expressed a clear dissatisfaction from SH due to a lack of clear cut announcements on the progress of a number of projects (see below ) and a lack of disclosure on what income and profit (apart from grants ) that each project will generate for the company going forward , and completion dates.
Maybe the Company has experienced delays in some of the projects (especially when they are dealing with Governments - Federal/State & Local !), and logistic/technical problems , but I feel all the negative unsubstantiated comments/claims/and counter claims by the HC community is not helpful and feeds on itself in pushing the SP lower and lower.
Shareholders sell their shares in frustration and post negative comments which in turn fuels further selling by others , so on and so on.....
However , it would appear that the Company is not as social media savvy as they could be or should be by monitoring the HC posts and other platforms and thereby be more in touch with market sentiment and more efficient and in keeping the market ( and in particular its shareholders) better informed . Transparancy, clarity and promptness in keeping the market informed ongoing about any events (good or bad) with all of their projects is essential as it eliminates the uncertainty that tends to build in the HC community.
For example, the Company issues Appendix 4C every quarter and a lot of information is advised to the market quarterly rather than as events unfold, and in most quarterly reports the information is repeated from a previous reports , such as receiving payments from grants, which can cause a distortion.
Listed below is a number of projects that the Company is involved in and a list of questions :
1) CETO 6
- Is it a goer as of now or is the design and functionality still work in progress, and if so when will it be finalised ?
- The latest Appendix 4C states that "the updated design will be released shortly " ??
2) GARDEN ISLAND WAVE ENERGY PROJECT & DESALINATION
- Is it fully operational now and what sort of income (apart from Grants) will it generate for the Company going forward (PW/PM/PY ?)
3) NORTHAM SOLAR ENERGY PROJECT
- Company stated that the Project was to start mid 2017 and finish end 2017. but it appears not to have started yet.
- The CR of $18m was meant to fund CCE's equity share of the Project which was meant to cost between $15m and $20m. To the end of September CCE had cash of about $11m after spending approx. $6m during the quarter and it would appear that nothing was spent towards the Northam Project
- Hard to understand as to why a borrowing was required for this project when the CR of $18m was meant to fund that ?
- The borrowing of $7.5m would appear to be from a second or third tier lender and the interest rate was not disclosed, but it could be quite high ?
- Not aware if the Company disclosed the estimated/budgeted income to be derived (PA) ongoing from this Project
4) ALBANY WAVE ENERGY PROJECT
- In the latest Appendix 4C Report the Company stated that "Carnegie intends to transfer the common user infrastructure to the State following the completion of the Project operational period"
- What does this mean ? Who is going to own the asset and what net "profit" will the Company retain from the $16.5m grant from the State, and what income will the Company derive from the Wave Energy Project
ongoing, if any ?
MICROGRID PROJECTS
5) DELAMERE AIR WEAPONS RANGE (contract from Lend Lease)
-How much is "Multi Million " as stated by the Company ( $ ?) , and what sort of net profit is derived from this Project
6) MAURITIUS RENEWABLE ENERGY ROADMAP & DESIGN
- $900,000 funded by the Australian & Mauritian government, and Carnegie. What was the cost to Carnegie and what ongoing income will it receive ? OR did Carnegie lose on the deal ?
7) & 8) SCOTLAND WAVE ENERGY PROJECT & CORNWALL WAVE HUB PROJECT
- What is the latest on these projects -- are they still live or ??
SUMMARY
Carnegie spent $6m in the September Quarter and are budgeting to spend $6.6m in the current quarter which will leave a cash balance of $4.5m at the end of December and with the borrowing facility of $7.5m that will leave a shortfall of approx.$6m to $8m for the Northam Project.
Does that mean another CR in the early part of the March '18 quarter ??
Clearly the Company needs to explain to the company owners ( the shareholders) when will the Company start to make a profit from each project and ongoing ??
The AGM is on 15/11 and a lot of questions and answers will be the order of the day.
CCE Price at posting:
3.3¢ Sentiment: Hold Disclosure: Held
