Ann: FY23 Annual Report, page-27

Hey Stocky,

I've seen you on the HC pages of a couple of other stocks I hold I wouldn't use the word lies myself, but there's definitely been a gap between what DEL has said and what has transpired. In terms of the worst being over, I haven't seen anything to suggest that. The hole they've dug is as big now as ever before. That million dollars they hold will rapidly disappear.

They've stated they won't need to raise cash, but they've stated many different things before that have not materialised. I wouldn't be putting too much confidence in that statement, or any others coming from DEL's announcements. None of the timelines published over the past two years have been adhered to.

The $5m grant, as Spider says, might be six to nine months away (at least) and will not help with cashflow. QLD1 has been as much a pipedream as the other coloured icon sites on their map.

You wrote that the board is no dummies. Maybe. But I lost confidence in their ability to act in the best interests of shareholders and to deliver on their promises. There have been too many inconsistencies, and evidence of not being forthcoming with timely and accurate information.

Yes, I agree a lot of the details have been ironed-out on the projects over the past few years. The BOOM projects must be as ready now as they ever have been.

It's pretty obvious why the directors haven't been gobbling up shares! I've read that Gerry Harvey has been buying a lot of Harvey Norman shares in the past few months. Long term directors of good businesses have no hesitation to take advantage of short term market pessimism. None of the DEL directors have been similarly motivated to buy.

Palisade Impact obviously realised the numbers didn't stack up; and/or they had no faith in the DEL management. That's the reason for their lack of involvement. Their alleged offer to help find someone else to fund the projects is simply a last-ditch attempt to protect their $5m convertible note investment, without the desire to put more money in themselves. If DEL becomes insolvent, that $5m investment is lost. The only people who have put money in over the past two years has been: 1) shareholders, via the 17 cent capital raise; 2) Roadnight, via the 24% loan; and 3) Palisade with their $5m con. note.

I bought DEL as part of the stocks I hold to take advantage of the long term electrification theme. Thankfully, It was a very small holding.

If I may suggest a few other ideas I am keen on in this area: There is a major Australian bank (not part of the Big 4) which is becoming globally significant in providing renewable energy financing. Large cap, diversified miners have general exposure to the metals required for electrification (copper, manganese, zinc, nickel, aluminium, silver, etc.). Small junior explorers and miners are growing their resource in specific metals and are out-of-favour at the moment. I'm keen on mining engineering companies which help plan and develop the mines which will be needed, in abundance, to produce the metals required for transmission networks, e-vehicles, batteries, wind farms, etc. There are companies which provide software to the mining industry. And finally, construction companies which do civil engineering should be very busy building these new transmission networks. I suspect a lot of cement and building supplies will be consumed too. The ASX has a lot of profitable, large and small companies with this type of exposure without mentioning specific stock names.

What I still can't understand is why DEL is in this predicament when anaerobic digestion plants are profitable in Europe, despite the feed stock being crops grown for the purpose of being digested and producing energy. Conversely, DEL's sites run off waste products which DEL should be getting paid to accept. I can't understand how the economics don't stack up, but presumably they don't -- otherwise, after two years of searching, there'd be a queue of financiers knocking down their door and fighting each other to provide finance. I can articulate where everything went wrong for DEL and how, but the why still has me baffled. I'm as keen on the energy-from-waste thematic as ever before, but like most investors here, the past two years has been very disheartening.