Greenpower from listing has been full of promises and exuberant claims in their announcements released to the ASX trading platform. These announcements form part of a person’s investment thesis on whether to invest in a company based on that content, but it is also with an understanding that because companies are governed by the ASX and their listing rules the said content would/should always be factual. I do also understand the nature of the beast and the headings of announcements are designed to attract the attention of the market investor, a bit like newspapers competing for your $1 – do I buy the Herald Sun or the Age type scenario based on how much the headlines grab you.
The plethora of enticing content in announcements has unfortunately left Greenpower with the stigma of continually over promising and under delivering, hence where the share price is currently at today.
The core business of Greenpower was originally their pursuit of Coal Seam Gas (CSG) with conventional gas reserves declining (particularly on the Eastern Seaboard in the Cooper and Gippsland basins) and a shortfall predicted from as early as 2011. https://www.asx.com.au/asxpdf/20090206/pdf/31fxwq9h7bc95l.pdf
Although the disclaimer from the presentation has reverberated continually in their Modus Operandi and ASX released announcements “ ..(sic).. Although Greenpower believes that the expectations reflected in such forward – looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct…(sic)… “
Fears of global warming and the need to shift to “greenhouse” friendly fuels was the driver for Greenpower and is still a key driver and a core principal, as per the web site home screen. https://www.greenpowerenergy.com.au/
As early as March 2011 the idea of the Coal to Liquids https://www.asx.com.au/asxpdf/20110303/pdf/41x6js2r9nx2v1.pdf
After sourcing suitable processes for CTL, in August 2012 Greenpower signed an agreement with GE Technology Ventures Group (a subsidiary of General Electric Company) for its New Gen technology for utilisation of their brown coal resources in the Latrobe Valley.
Remember in this announcement, it was slated that the plans to construct the “Pilot Plant.” https://www.asx.com.au/asxpdf/20120821/pdf/4284gm6blsy3yb.pdf
Although they were still pursuing CSG, Geothermal activities and GE CTL, in March 2013 they signed a MOU with Thermaquatica to develop Coals to Liquids Technology. https://www.asx.com.au/asxpdf/20130305/pdf/42dg5ccpwvkvzx.pdf
Which was followed with Investor briefings highlighting Dr Ken Anderson OHD processes with an abundant of uses including uses in the Polymer cycle. https://www.asx.com.au/asxpdf/20130313/pdf/42dm91x40dmn46.pdf
And the 2013 General Meeting presentation, to which the previous projects of CSG and Geothermal seemed to have vanished but highlighted the shift in direction to GE CTL and Thermaquatica OHD. https://www.asx.com.au/asxpdf/20131112/pdf/42ksq3h1fn47xt.pdf
The chairman’s address to shareholders in 2014 partially mentioned their Perth Oil and Gas it was indicated that after 5 years of scouring the world for the most suitable processes for the conversion of coal VBC in particular as as such we concentrating all our efforts and resources on the OHD process. https://www.asx.com.au/asxpdf/20141127/pdf/42v2jsn9y76y4b.pdf
I guess at this point I would mention that it is apparent that this is their first (and hindsight proven) of a change of focus chasing a project that could deliver shareholder value, also bear in mind that up to this point they had failed to garner any interest or support (Placement or Credit Rises) in their projects and was basically funded through loans from King. In the meantime, they were also funded by the disposal/selling/farm-in/relinquishing of their/our tenements/rationalisation programmes and the odd 1 or 2 government grants.Footnote 1
Stepping back a little, May 2013 and Greenpower with its inferred resources in the Latrobe Valley signed a Licence Agreement with Thermaquatica, committing an initial $2M to the development of the OHD process. https://www.asx.com.au/asxpdf/20130528/pdf/42g4ff3b6cjds2.pdf
December 31st Activities report and the Thermaquatica PDU had been commissioned and was testing VBC https://www.asx.com.au/asxpdf/20140131/pdf/42mdxtglpz2xw8.pdf
Trials continued in 2014, and in the Activities Report 30th Sept 2014 were in talks with industry experts/stake holders and Thermaquatica in view of accelerating the development of the technology. https://www.asx.com.au/asxpdf/20141029/pdf/42t92vk4613tlt.pdf
With the period ending 31st December 2014, a conceptual design for a “Pilot Plant” with an input capacity of 20 tonnes/day was completed!!! https://www.asx.com.au/asxpdf/20150129/pdf/42w7trqd07xy4s.pdf
In July 2016, Alan Flavelle resigned from the Greenpower board, the board wished to thank Alan for his service and in particular over the previous 7 years in identifying Coal to Liquid conversion technologies.
The board also regretted that the current investment climate had not enabled the funding of the complete development of the current CTL project, which has lead the company to search for additional investment opportunities to provide value for shareholders. https://www.asx.com.au/asxpdf/20160705/pdf/438c3dzsz7scys.pdf
A short 3 months later and GPP announced following an approach by investors that it agreed to a placement raising $675,000 with the proceeds to further progress the evaluation of its mineral permits and to auger working capital. https://www.asx.com.au/asxpdf/20160729/pdf/438xgldqllrsv4.pdf
2 months following the placement, a trading halt, followed by an announcement and GPP “Signs a Binding Heads of Agreement to acquire the Guyana Lithium and Tantalum project. Footnote 2 https://www.asx.com.au/asxpdf/20160920/pdf/43b9lfnjv23ljn.pdf
Something sounding familiar??? Fast forward to recent chain of events and we have:
6th June, the company announces a placement/capital raising, to which funds are to be used for exploration activities including phase 1 of Kopang, continue the Morabisi program and review OHD. https://www.asx.com.au/asxpdf/20180606/pdf/43vl2rbx2x0nsm.pdf
5th July, announcement and yep, its sounding familiar with GPP to acquire Ion Minerals. Footnote 3 https://www.asx.com.au/asxpdf/20180705/pdf/43w9r8ppw02ln8.pdf
The promises or exuberant claims or just plain fluff……. The list is far from everything but it is enough to rekindle memories of the current board over promising and under delivering.
August 2012 – Plans to construct the 20 tonne/day “Pilot Plant” Jan 31st 2014 – Thermaquatica’s PDU commissioned (31st Dec 2013 Activities report) 14th Mar 2014 – The company and Thermaquatica were trying to accelerate the development for the design of the “pilot Plant” for years end as well as all the trials performed as expected and VCB can be routinely processed by the PDU with the output product range repeatable. Footnote 4 June 2016 – The company can only make use of the OHD process if it can build a pilot plant to demonstrate the process works at a commercial scale, and then it can carry on the business selling the liquid so produced. To do that the company will have to raise the equity portion of sufficient funding to build the plant. The company is now actively seeking investors as either JV partners or as investors in the company, to fund this step. Footnote 9
Sept 2016 District scale Lithium/ Tantalum and REE – GSM/GPP agreement
After careful analysis by GSM, led to the conclusion that the Morabisi area has the high probability of identification of a district scale Lithium deposit
King “a move into the lithium sector is a logical next step for GPP because it keeps the company’s core business in the energy sector. This transaction positions the company to take advantage of an exciting new opportunity”Footnote 5
Oct 2016
OHD usage confirmed to increase crop yields by 49% and reduce fruit rot by 53%
OHD Bio-Stimulant 1/10th the cost of traditional Bio-Stimulant fertilizer
OHD to target disrupting $8 billion Australian and NZ market – due to low manufacturing cost advantage
Design, capex and opex estimates for the 20 tonne/day pilot plant completed, engaged HRL technology to verify the plant design.Footnote 6 HRL will present all costings and a financial model before the end of the year District scale Lithium and Tantalum network identified
Project size rivals Pilbara Pilgangoora hot zone
Morabisi Project covers 950,000 and is conveniently serviced by existing power and road facilitiesFootnote 7
Guyana renowned as a mining friendly jurisdiction whose commitment is evident Footnote 8
King “Greenpowers ability to leverage itself to what may become a district Lithium and Tantalum province…..(sic)..
King “..(sic)… closely resemble the Pilbara Pilgangoora and Greenbushes areas….(sic) ..
Spodumene identified during the review of the historical data is in a different location to the known Spodumene occurrence and reinforces the view that the Morabisi project may well be a district scale Lithium and Tantalum project.
We also had, unsolicited, confidential, non-binding and indicative proposals from parties looking to acquire the OHD project rights, Greenpower commercial IP and Aust/NZ distribution licence. Maybe they should of pursued this for all the good they have done.
Over the past 2 years, GSM has undertaken a substantial amount of work in terms of identifying areas within Guyana which are prospective for Lithium and Tantalum – including compiling, interpreting and undertaking desktop work. Footnote 10
Nov 2016
Potential for district scale Lithium and Tantalum (I love this gem) King “Given the size of the district scale opportunity Morabisi represents and coupled with competition for this type of highly prospective acreage package in Guyana by other international firms…(sic)..” Update: maybe someone actually did look, now we have conveniently serviced roads and planned power.
Greenpower is fully funded for the Morabisi project (remember them words)
Feb 2017
OHD confirmed to increase wheat yields by 300% - Footnote 11
Production of OHD Bio-Stimulant 1/10th the cost of traditional bio-stimulant fertiliser manufacturing
GPP fielded approaches by offshore and national grower groups seeking off take and partnering opportunities March 2017
King “(sic) … the results to date confirm the importance of partnering with a competent in-country team …(sic)… “ Footnote 12
OHD and Monash Trials – Greenpower Energy has been alerted to public commentary regarding its projects made via social media which it considers to be incorrect and misleading. Oh yeah, and we have funds to pursue misleading, slanderous and false commentary being posted, GPP board reminds commentators ill informed nonsense posted publicly that act to harm the company will not be taken lightly Footnote 13
PFS nearing completion and expected to be released to the market this quarter
June 2017
All the blurb about tomato and wheat trials was just that “blurb” = pffffffft = fluffy stuff
The PFS was progressing with results of the hydroponic trials assisting to further understand the potential of the OHD grower market. Footnote 14 As well as the scheduled broad acre field trials.
July 2017
GPP hoped to release the now title Commercial Plan in the previous quarter, but the results of the recent hydroponic trials and subsequent understanding of possible access to this growing market need to be fully understood and included in the plan, once the market scope has been completed GPP will advise shareholders of the results of the Commercial Plan. Footnote 15
August 2017
The new GPP COO was identified, and in the fullness of time Trench (the EXPERT) will be taken on the board in this KPM role. – not even worth a footnote for this load of fertiliser!!!!
REE – Major discovery puts GPP’s deposit of niobium from surface sampling in the best 4 of the world, with even higher grades expected at depth near bedrock – guess not eh!!!
October 2017
High grade Lithium results – suggesting a zone of Li pegmatites greater the 90m in true width
Initial trenching results greater than those encountered in the Pilgangoora.
Marketing plan final stages and anticipated this quarter
More “fertiliser” about field trials and building our own PDU, assessment for the marketing study near completion and was needed for the commercial plan BUT throw in we now need to finalise transport/site of plant etc (you know that thing they were nearing completion in May) before completing the Commercial Plan – thank goodness that we got the EXPERT in Trench to help speed things along, NO WAIT!!! The were almost complete in May and have now gone backwards, go figure!
King “ Greenpower’s OHD project is a major driver for all shareholders and the Company …(sic) … tested product to market that is capable of disrupting the agricultural and fertiliser markets.”
Watts, GPP’s consultant visited Guyana and stayed at the Morabisi site. The time on the ground proved to be extremely valuable in terms of understanding the topography, the work completed to date and agreeing on the current program. Footnote 16
Nov 2017
Well it doesn’t look like the Lithium is going so great, lets buy some more dirt (JUNGLE) enter Kopang, and once again it is the regular MODUS OPERANDI coming to the for, we can’t manage what we have but hey, we need to do a credit raise so lets get something to justify it……….
December 2017
Failed grant notification, that was known to some 2 days before it was announced to market, so more fertiliser about seeking approval from consultants before making a “price sensitive” announcement. Their excuse is somewhat an insult to shareholders intelligence and if they acted in the interest of all shareholders a trading halt should have been called as soon as they were aware of the outcome. Not to mention the truckloads of fertiliser they dropped when they were asked to explain by the ASX.
King “Receipt of positive results provides further encouragement that Morabisi may in fact be a world-class Lithium discovery ..(sic)…”
More fertiliser – Tomato field trials started
February 2018
Indication of district scale – ho hum
Foot notes: Rinse and Repeat Modus Operandi
1: Up till the end of 2015, GPP had already secured grants through different government bodies, which makes their current status as needing consultant assistance to prepare grant submissions quite laughable!
2: A placement to progress the evaluation of its mineral permits and to auger working capital (auger working capital basically meaning we are going broke and need funds) but followed by an acquisition
3: RINSE and REPEAT – say no more
4: What happened between the end of December 2013 and current, that Thermaquatica’s PDU had design limitations/down time/validity issues/technical issues that we need to build our own??
(Other than the cost constraint)
5: Hmmm, OHD isn’t cutting it, lets go look for something, (light goes on) LITHIUM, that’s hot right now!!
6: HRL are the same company that were doing the design review for the PDU2
7: WAIT didn’t King say it was virtually unexplored jungle??? Maybe when the went to Guyana, they should of actually gone and had a look at the tenements rather than sitting in the airport waiting room for a return flight!
8: Yes, really evident with the extended delay in the signing off of the Kopang licence
9: But 2 months later, the company acquires Morabisi but can’t fund its principle core business? Go figure!!!
10: King on completion of drilling at Turesi “…(sic)..may be considered extraordinary when one considers that the 900 square kilometre tenement was all virtually unexplored jungle, with the only clue being a long disused tantalum mine, where a long ago passing reference to Spodumene had been made.”
So what did the geologists at GSM do that King himself said had spent 2 years of substantial work, sitting on a couch, eating donuts and looking out the window … yep, it’s a jungle out there!!!!
As well as, the continuous claims and assertions GPP made that they had a district scale Lithium project that was going to rival Greenbushes and the Pilgangoora regions!!!
11: GPP to date (after the latest trial debacle) have not confirmed that all the trials completed prior, were not affected by Monash’s / Thermaquatica / GPP bungling of supplied oils for testing – no response to an email I submitted to them either.
12: That basically has confirmed we have discovered a JUNGLE
13: So, the ill informed shareholders are now informed that the GPP board could be in the exact same category with the “fluff” announcements, the late release of information in regards to the failed trials and the project not progressing as they were leading us to believe, shoe is squarely on their feet now for being guilty of what the were trying to defend. Unless GPP confirm that the previous trials were unaffected by any mix ups in oil, then I will be of the opinion that they are all flawed.
14: Maybe they should have concentrated on making the oil instead of writing fluffy announcements!
15: Still waiting for the market Study and Commercial Plan
16: Watts fails to mention to King, it’s a JUNGLE out there!!!!
From Jan 2017 until the first lot of Turesi hole completed announcements (when GPP stopped mentioning we had this “rival to Greenbushes and the Pilgangoora”) they included in their announcements the word/wording of:
Discovery confirmed - twice
Major REE discovery - once
Rival/Scale/District Pilgangoora & Greenbushes – fourteen times
Substantial/Encouraging discovery or encouraged – seven times
World class – once
Cheers
All the above is either IMO or taken from their encouraging of fertilising announcements
GPP Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
