Has DEL personally signed an EPCM agreement and delivered a single one of these cashflow positive anaerobic digesters in Europe? Has management got the experience to carry through with a complex scientific process to the fullest biological efficiency, therefore reaching profitability? Joe Oliver appears to be the manager in charge for these important areas his vague experience is from Monsal (acquired by GE for 15m pounds, 2014, UK) and Farmgen (N/A valuation, microcap?, UK). I ask these questions to help investors do their due diligence and to not accept the spin/waffle from management.
Just because you can buy all of the components of an AD and put it together (engineering), doesn't instantly mean you have the scientific expertise to run the facility in a profitable way (biomedical/biotechnological engineers). An example of DEL risk mismanagement is that they are using feedstock streams that have never been done before in Europe, or in a largescale way that has been shown to be doable, let alone profitable (Blue Lake Milling feedstock). This is a display of scientific ignorance by assuming a scaling-up scenario is as simple as "it worked once in a small scale experiment, surely just make everything bigger and it'll work again, right?". Let's see how long the advanced stages of commissioning for Blue Lake take and hopefully management put some large margins of error to control feedstock risks in the EPC contract.
The RichGro site and YVW are much safer with scientific evidence for largescale profitability.
DEL Price at posting:
5.8¢ Sentiment: None Disclosure: Not Held
