Mickem Following are my interpretations from the PET AGM.
One of my key take aways from the AGM meeting was the speed at which Phoslock can address the Phosphorous removal. It was mentioned that within 48 Hours 90+% of the phosphorous is trapped and removed from the water source. This was stressed a couple of times and if you think of the problem facing these water bodies ( and now particularly in this political climate it will lead to some very quick wins for the Bureaucrats or Politicians. This means that an initial treatment with PET will very quickly show benefits and remove the build up of Algae - Then the challenge is to reduce the flow of new nutrients into the main body from the inflows. PET now have products and approaches to resolving these challenges as well.
1) The area in South West China - Kunming does have 9 lakes and it has been chosen as it is to be a key focus of China demonstrable action on Water Pollution restoration and a showcase of their ability to fix the problem. This one lake alone could generate in excess of $ 20+ million for initial treatment and then a million dollar PA maintenance program. So the mood is very buoyant.
2) Florida Wetland - Again a trial is underway the challenge here is that the wetlands which have stored Phosphorous for a number of years are now saturated and therefore adding to the problem . Again given the speed at which PET can remove the build up then this will have an immediate impact and this will suit the American Politician and the governor of Florida who you have provided links to his recent announcements.
3) Drinking Water treatment - This could be a real emerging opportunity as there are compelling driver for action. Having now proved this capability to treat Insitu is a real differentiator for PET and could provide some good short term revenue
4) The worldbank projects are indeed the one circled in Red on the worldmap and the Photo below are of the 3 projects in question. We were advise that these projects have budget allocated and are multi million dollar projects - Currently we are in trial at 2 of these sites and the 3rd is under consideration. If these trials are successful and there is no reason to believe they will not then there should follow contracts in the $ Million within the next 12 months - allowing for the Bureaucracy and allocation of the budgets. Sorry I have to run now as I have some other commitments for the day but I can out feeling very confident in regards to the future and confident that our connections into China and our Chinese Mgmt Team are great assets
And finally on the local front there was mention of a trail happening in the ACT on lake Bungerong so we might get something although nothing of the size of opportunities in China, Canada and Florida from our local politicians and the home of where this product was developed by the CSIRO. How ironic that we have to provide proof from overseas before we can get our local politicians to support.
PET Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
(20min delay)