Ann: AGM Results, Chairmans Address, Operations U, page-4

re: Ann: AGM Results, Chairmans Address, Oper...
The AGM helped put everything in perspective. i think it gave shareholders (including me) a better understanding of how, despite the disappointment of the REDP decision, nothing has changed in terms of the future plan (that sentiment has more merit to it than even i thought and isn't all spin)

Here's a few things I took from the meeting:

* The French govt is EDF's largest shareholder.

* EDF is itching to get projects on the go in the northern hemisphere.

* Ottaviano speaks with Investec frequently, they are very interested in CWE's plans, have a global reach and could be involved in any future sites. CWE's preference is to sign project specific deals, and Investec could definitely be part of one in the future (the REDP deal was just one specific one).

* The REDP money was only important for a large scale first site in OZ. Overseas, such a grant will not be needed to make a site economic (despite the fact they still might still get substantial govt support overseas).

* Reunion Island was mentioned many times, and Ireland was emphasised as well. It also has a mandated marine energy target and is seeking developers like CWE "very aggressively".

* An international site will be announced in the "near term" and may include financing details (or that may come in a subsequent announcement).

* WE WONT BE EXCESSIVELY DILUTED!! There are no plans to raise the money for Garden Island in 2010. They wont spend any such money until 2011 so wont be raising it at these low prices.

* No cap raisings will occur before CETO III is successfully proven. That will be the most important announcment CWE will likely ever make and should lead to a re-rating of the SP.

* CWE dont have to go ahead with Garden Island if that is not the best option. EDF is very keen to get projects of a similar size moving and CWE "might just let them". (i.e Aussie govts had better lift their game or they wont be able to compete.)

* The new govt renewable energy centre (which should be legislated into existence during the coming sitting) will have $150mill to put into renewable energy, including wave energy.

* Aussie sites are still important in the longer term. As the CETO III wave farms acheive scale and get cheaper, there will not be the need for govt grants to make them cost effective in Australia, so they will keep doing work on the great sites they have currently secured and will continue to foster good realtionships with those state and fed govts.

* The bouyancy accuator (BA) safety release mechanism is proven and will only allow the force of 4m waves to affect the CETO III unit. Anything above this will "wash over" the bouyant accuator. So freak 10m waves wont damage the devices. This is important as all the components, from the BA down (the tether/pump etc) only need to be engineered to defend against that level of force, substantially reducing the costs. The massive supporting structures that other wave devices have, like the Oceanlinx device, need to be over engineered because they cant shed off the excess power of the waves. We wont ever see a photo of the actual shape of the real BA (the ones in the photos arent the final design) or the storm relief mechanism as they are key parts of the IP

* Ian Fisher, the departing director was there at the AGM chatting to people.

* Disappointed by the REDP decision. Have not had a de-briefing as to why, will do so soon but probably wont be able to talk about it to shareholders. No due diligence was done on the proposals and there is absolutely no way that anyone could say a comparison was done of the two technologies. The Defence department, who are very technically literate have engaged in substantial due diligence on CETO and have increased their support.

If i remember anything else i'll jot it down later.