Have been watching for any news developments before I commented.
"The report has now been has received. The original capacity of the plant when making bauxite proppants was 10,000-12,000 tons per annum, and LWP was hopeful that by implementing its manufacturing processes for fly-ash proppants, the upgrade could increase capacity to 20,000 tons per annum. However, the independent experts concluded that 15,000 tons per annum should be used. This report now facilitates the completion of the conceptual engineering design for the Pune plant upgrade, another important step in the plant’s future commissioning."
Today has probably released information that may explain why the Canadians pulled the plug a few years ago. It "may be" possible that with the existing kilns the plant will be too costly to retrofit with any new technology and 15000 tonnes a year is not enough to make profit and return good results for the s/h base. "Future commissioning" may also be a nice way to say that the experts have advised that LWP will not make money here, and like the Canadians "may" close this door. It appears, ON THE SURFACE, as a good OPT OUT statement..just IMO.
Withdrawing from the APPEA Conference in May could also be to further reign in costs and avoid negative shareholder sentiment / questions at their pavilion stand.
"and funds from the ongoing and measured sell down of our equity investments provide LWP with the financial flexibility to advance our operations"
This could indicate, from the last CR, that they are not confident to raise funds through the s/h base and are liquidating investments to keep the flame burning whilst holding out for the return of the Tax R&D funds. IMO. Need to keep the company liquid to make sure they can trade and not operate through any INSOLVENCY period.
"While LWP continues to invest in the protection of its proprietary technology and discussions with potential licensees and manufacturing partners in the United States is continuing, some negotiations to date have become protracted. Interest in the Company’s low cost proppant technology remains strong, however, securing the quantum of investment required to establish a Greenfields US manufacturing facility requires significant due diligence and modelling by interested third parties, and the timing of any possible agreement cannot be determined by LWP at this time. "
As the share price has not risen and languishes around .001 with continued line wiping, and despite any bad media, this will remain and be a significant reason, IMO, why companies are not confident in signing on with LWP. I think if I was a CEO I would want to know that the company I was buying technology from would be around within the next 12 months. Current observations of the companies performance do not BODE WELL and does this possibly cast doubt now on the future operations of LWP, as a ticker???
If so, what are their options? Withdraw from PUBLIC LISTING and go it alone with interested financial backers?? or ??????
Considering the recent Broker data figures on SELLS & BUYS a very HIGH RISK investment now, me thinks. GLTAH.
Expand
