Super impressed, too many highlights within that update to do them all justice but I'm a little surprised more holders haven't appeared on this thread making lots of noise about VPR going cash flow positive (yes that's maiden earnings) in the Dec Qtr which is a massive milestone for a micro cap and considering the long and painful road here it's well worth savouring IMHO.
A good amount of positive cashflow too - without any Govt handouts to prop it up. Great result.
I've previously highlighted my single concern regarding VPR - too many SOI and the need for a consolidation IMHO - so I won't dwell on that but several positive things jumped out at me:
1. I didn't realise the BHP Wescone contract was 5 yrs x approx $1.4 mill revenue per year. Their crusher products seem like a no-brainer for at least 1-2 more of our larger miners taking up similar arrangements given the proof of concept established with BHP. I agree the notes re: the court case indicate that settlement has been rejected, I've always thought VPR will prevail in this claim. Will they receive enough cash to grow the company & avoid another CR?
2. Hire rate of the Eco-quip towers (about 50%) seems disappointing - COVID affected or just not effective marketing? Years of slog and trial periods (17 months with BHP!!) finally look like they will yield good business outcomes, but honestly I have to scratch my head - how have these towers not been taken up more aggressively?
Just reading the summary of all the benefits these towers have over diesel powered... in a nutshell costing the end user about half what the diesel towers cost, it beggars belief that the hire fleet is only 50% utilised. Surely the time is now upon us that one of the big miners will move first to scoop up a deal to eliminate all of their old fleet/units and require hundreds of Eco-quip towers for the green credentials alone. Fleet growing from 45 to 65 soon.
3. ATEN... holy cow don't get me started on this technology which I'm fairly sure Moses began developing shortly after he noticed heat escaping from chimneys in ancient Egypt. Christ almighty does anyone dare suggest that VPR will roll out one of these things before hell freezes over? Again I scratch my head - just looking at the benefits of ATEN over all of the other power generation options available, it doesn't make sense that nobody has jumped on it.
Who is this new Australian power generation mob that have done their due diligence on the Eco-quip towers & are now discussing an arrangement to promote & push them out? This could be the catalyst that will propel these towers towards much bigger dollar revenues.
VPR Price at posting:
0.3¢ Sentiment: Hold Disclosure: Not Held
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