Haven't held these since 2013 but recently picked up a swag when I noticed the turn around, looks poised for a decent move
- New management gone, experienced board now in-place
- Litigation settled with $700k payment expected
- Brisbane pilot plant commissioned and should start manufacturing next quarter
- First tranche of shares paid to Ecoprop for acquisition
- 708M shares on issue, market cap at 1c is only $7M (at close of 0.5c worth just $3.5M)
- Cash balance is circa $1.7M ($600k last quarterly, $400k placement, $750k settlement payment). Another $1M+ is expected from the SPP. What I like is they did the placement at 0.32, so there isn't going to be anyone selling at 0.003. The only place to profit from the placement and SPP is to sell at 0.4c, but at that price point it is dirt cheap
Ecoprop have created a pretty smart Fly Ash proppant that seems to dominate that of competitors and offer huge cost savings to frackers of between 25-50%:-
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If they can prove the technology works next quarter it is going to be company making news. The fracking industry is big business, and if the cost savings are correct, it converts to $M's in savings for the majors. I can't think of a more welcomed tech for the O&G industry when the price of oil has tanked, they will be looking for cost savings wherever possible. $400k-$1.3M / well is a massive saving
Next quarter they will be inviting majors to the plant and be holding licensing discussions. I particularly like they are going after the US and have earmarked the appointment of a US Corporate Advisor
At 1c this is worth less than $7.5M. It has every chance to bag a few times from here and has what punters like, big catalysts due in the S/T.
I think the price to grab this is around 0.4/0.5 as I can't see many of the SPP holders selling as most would have averaged of 0.5-1.5c and be using this to average down, not many would be in profit at current levels so it is a nice play for new investors
Latest company presso is well worth a read - next quarter is going to be big for these guys
