I wish I could give this contribution two "Great Analysis" light bulbs. I can't believe you've spoken personally to the farmer at the VIC1 site. That is beyond impressive. All I can offer is my respect. You've gone above and beyond the long thinking-out-loud discussion posts I contribute. Real analysis and valuable opinion. Well done.
There is probably so much more involved in developing a single site than we can even imagine. Also operational issues like: where the feed source comes from, how digestable it will, what chemical additives are needed, and locking-down supply agreements for it; and who takes the digestate afterwards. Trucks, forklifts, electricians, welders, environmental laws.... So many pieces of the puzzle. How it will be constructed, and by which contractors. The permits and approvals of layers of government. It's mind boggling. Imagine assembling a team to do all of this. Which is why I will never understand why our 2nd and 3rd sites were in rural SA and NZ. If QLD1 is listed for FID towards the end of 2023, I hate to think how far away from FID some of the other sites on the pipeline graphic are.
It's why I've said before, that there's some organisational learning that adds a type of value to DEL. Also, that for another company to set itself up in competition, they would have a tough road ahead. It's a moat of sorts. It would be far easier to start up a tech company or mining explorer. The complexity of our projects is huge and beyond what I imagined when I first purchased shares. In Europe, apparently bioenergy is 10% of the overall fuel mix. We are doing something from scratch that nobody else has touched yet, and the total addressable market is maybe 5-10% of the Australian market.
Absolutely spot on that the directors have a nice lifestyle with their salaries. They put their hands in their pockets for the 17 cent cap raise (unbelievably the share price briefly rose after this raise!) but have not bought since. You'd think they would have been buying. Maybe it's like you said and there's a blackout period of sorts. I wouldn't mind a salary like theirs; especially with the share price so far in the red and shareholders under water, yet to keep getting that money month after month regardless. For all we know, they are working 80 hours a week to address the countless issues we've identified. They probably don't have the time for conferences and self promotion.
Daily volume is so small. You'd think someone at Planum, Delorean or Palisade (even the receptionist or office cleaner) would be buying furiously after looking at the business plans. Yet I haven't noticed any excited buying. I'd love to be a fly on the wall in their office for work experience for the day and see just what DEL are up to.
Spot on -- they are learning on the job. Shareholders are paying for it. Some of the material released to market trumpets "extensive proven experience in building of development of bioenergy assets" (I just made that up, but you get the idea) etc. It reads like the puffery you find on most LinkedIn profiles, where colleagues of mine sound like they have been running Fortune 500 companies and I'm thinking "c'mon, dude, seriously...". They had built ONE plant in Jandekot behind them, NZ and BLM were not completed and I was reading of their proven experience building plants across Australia.
We've got the financing and have hopefully learnt a lot about getting these sites built. Maybe there is a point where we will look back on NZ1 & BLM as expensive but necessary learning exercises.
@Axed made a couple of great points about branding Palisade's other renewable energy (wind and solar) as "Delorean" for re-sale in a revitalised Retail division. Also, that we were doing $40 million of revenue in an energy re-sale business with zero marketing. It's impressive. I can't help but think how in-demand our energy will be, by 'hungry gas users in hard-to-abate sectors', once we've got energy to sell. I'm sure it will sell at a premium.
Thankfully, the sharemarket is forward looking and not backward looking, or I hate to think where the share price would be!
DEL Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
