POW 0.00% 0.8¢ protean energy limited

Ann: Commencement of Trading on ASX and Company Update, page-38

  1. 171 Posts.
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    From memory the 30 units to be deployed in Bunbury will cost ~$500k (already funded before capital raising) so that makes the cost about ~$16,667 per unit.

    Assuming the Bunbury wave farm testing is successful, which is a trigger for the Maldives project, you'd think the sell price of a unit would be around the $40k - $50k mark. Let's say around 200 are sold in the Maldives and you're looking at revenue of ~$10m just for this project. This doesn't take into account any maintenance and replacement costs and is purely an assumption based on publicly available information. If my assumptions are correct, you don't really need that many projects to start generating some serious cash.

    I can understand why the Bunbury units haven't been deployed yet as the capital raising was the major factor in acquiring the wave technology. If the capital raising wasn't successful and the $500k was already spent on manufacturing the buoys then you'd look pretty stupid paying this amount of money to manufacture something that wasn't yours. It sounds like deployment is a few weeks away and you'd think you'd be capturing data almost immediately so the wait doesn't sound like it'll be too long.

    I agree with the comments regarding the grant. Especially with the Turnball government championing innovation, you'd think an invention such as this with prospects in numerous countries would be worthy of a grant. Perhaps a grant wasn't pursued under the ticker "SHE" as the main activities were still the Korean assets, which may have caused confusion and therefore limit any grant the company may receive. Now that the nature of the company has changed to wave technology and it is implied in the name, hopefully the grant application forms have been sent. Imo it would be counter-intuitive to apply for a grant as SHE in case the acquisition fell through and therefore no wave technology, which would have been the basis of the grant application.

    Not the best start for this stock after relisting but I think the first couple of days trading were some frustrated shareholders who needed cash since the stock has been locked away for months. When you look at it, there aren't that many sell orders in the way.

    If the Bunbury trials are successful I think the company will have a good trajectory as it is just a matter of selling a proven product. I think this is far more preferable than to be in the mining game hoping (rather than being in control of your product) for good grades and commodity prices, then you've actually got to get the stuff out the ground and find customers, which costs millions.
 
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