I thought I'll repost my AGM notes again to reiterate ESI's plans.
re: agm (SP3) Code: ESI - ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED (Google ESI) Post: 2338091 Reply to: #2337667 from rupert downunder Views: 189 Posted: 29/11/07 22:06 Sentiment: Buy Disclosure: Stock Held From: 58.178.xxx.xxx
New Post Post Reply Thread View Back << Previous Post Next Post >> I am about to make a major call. I intend to significantly thin down my Uran holding over the next couple of months(check my Uran posts over the past 12 months to see how bullish I am wrt Uran) so I can load up on ECT. I have no hesitation that ECT will deliver results within the next 3-6 months and within 12 months it has the potential to become a 5-10 bagger stock from current levels.
Reading announcements is one thing, but hearing about the future plans in person is completely different. This team is highly professional, extremely confident about the company's future, and most importantly, determined to increase shareholder value. In particular, Galtos Junior who heads the Commercialisation area of the business is extremely talanted and highly credentialed to move the company forward. I am sure everyone at the meeting today would agree with my sentiment.
The were about 45 shareholders today at the meeting - which I thought was a good turnout.
Here are some of the highlights IMO:-
The Board needs to be commended because they now realise that the company is moving into the next phase of its growth strategy and will require a new set of skills at board level. As a result, John McMullan resigned at the last board meeting and tendered his resignation today, and the Chairman, Murray d'Almeida will soon be retiring as well. They stated that they are currently interviewing candidates (for Board positions)who have the right skills to take the company to the next level.So expect some further Board changes in the near future.
The main customers they are initially targeting is Electricity Generators. They appeared very confident that at least 3 Power Stations in the Latrobe Valley (Victoria) will come on board. In Junior Galtos's own words..."3 Power Stations in the Latrobe Valley are actively looking at our Coldry technology...now, without saying much more...read between the lines".
ECT has no plans to acquire a brown coal mine. They are mainly interested in setting up licensing arrangements with Power generators and collecting royalty fees. They strongly believe that their business model they have developed will enable ECT to build production plants (under licensing arrangements) with low capital outlay (and hence very little dilution to shareholders). The payback to ECT could be as little as 12 months according to the figures they presented.
They are very confident that the Coldry technology has many benefits for Power Generators. Power stations that will consume Coldry pellets will immediately gain tradable and emission savings without doing any modifications to their infrustructure. Should they introduce the Coldry technology (with minimal modifications), they will have access to increased water supply, as well as efficiency and financial benefits.
The composition of Coldry pellets is equal to, or if not, better than black coal for power generation.
ECT's technology is at least 3 years ahead of any competitor in the coal drying business.
ECT will always have a supply of brown coal to convert into Coldry pellets (via these lisensing arrangements) to export to places like India - who apparently are running out of brown coal.
They were extremely confident that any MOU signed so far, will result in signed contracts.
Senior Galtos stated that coldry pellets will become Victoria's biggest export in the future.
They stated that a typical plant could produce about 150K tonnes of coldry pellets per year. It costs about $3 per tonne to extract brown coal about %50 per tonne to produce, which has the potential to be sold/rxported for around $90. With the existing power plants, ECT will earn about 2% royalties, just for the usage of the the technology.
ECT could very well be earning in excess of $500M per annum based on their business strategy and targets they have set over the next 6-12 months.
The focus of the presentations was about the Coldry process. In regards to the Matmor process, they stated that once the trials were finalised, they will release more information.
They also mentioned that the election results did not affect the future plans of the company.
Con Galtos appears very approachable and would answer any questions frpm shareholders. I urge everyone to contact Con and share your concerns if you have any.
ESI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)