ESI has of course been a very frustrating ride over the journey in response to YP in the other thread that has since been closed down. I have invested in ESI over a long period of time as the tech when it finally comes into play and moves to commercialisation will see a very good re-rate here. Yes there have been numerous failures and stumbling blocks along the way which for me the biggest being the ALDP failure. We all know that ESI was a better tech than some that won it and since those others have not used the award anyway with our Chinese competitors the first to pull out and really show how wrong our government's choices were at the time. Right now we might have a commercial plant in the LV if the govt made the right choice with the ALDP. Secondly we have had fed and local governments push to close coal power plants which haven't helped ECT as well as really stuff up the power supply. So now we see a change with ECT beginning a feasibility study in the LV as pressure builds with the possibility that through our BM endeavors the doors are beginning to open again in the LV which will add significant value to ECT as developments move forward.
The main game though and the reason we all kept faith here was managements ability after that ALDP failure to push and link us with 2 majors in the coal and steel industries in India. What i think we all including management underestimated was the slowness that deals are done in India but more so our partners are govt owned making the task harder and longer. This though has been explained by management and examples even given by them through Austrade of the lengthy time frames to finalise deals in Inida but in doing so the strong business relationship that is formed in the end. I believe ECT will forge an amazing relationship with NLC and NMDC which will benefit the company, the huge potential that Coldry/Matmor offer India and the globe but also us shareholders. Yes i am frustrated as any but have stuck around and through 4 entities within the top 40 hold more than i ever have with a recent top up of 10 million units. Why? In my opinion i believe we are coming to the pointy end and our MD would not have moved to a position in India which consumes his time over there for lengthy periods if we were not getting closer to the prize and heading towards a signed MPA and a move to construction. His commitment to that move after the years of frustration that he would have had to put up with as we all have suggests he is readying himself for the move into construction phase as he is the main driver of out techs to the Indians and has been the main man on the ground in India for the past few years. Will be interesting to see the set up of the ECT India board as it grows.
From my perspective alone i always diversify which helps when a stock has its down time as developments almost always take longer than anticipated. ECT has yes taken way longer than any of us thought but someone once described doing a deal in India to a marriage with a strong bond required but once it has the business will be a long and lasting one that will see significant growth. India we have all been harping on about going through a significant growth spurt with that appearing to now gather some serious steam and ECT is seriously in the right place at the right time. I have has some incredible success with lithium stocks over the past few years due to right place right time as the move to EV's and lithium demand steps up and i believe ECT in India will generate similar success. Matmor is a game changer for India and can unlock major commercial benefits for our partners NLC and NMDC. Does anyone out there think NLC/NMDC would still be awaiting a govt body NITI Aayog's financial review if they didn't want a slice of this pie that Coldry/Matmor offer. The NITI curve-ball has been a double edged sword with it dragging out the process but also showing us the potential here that our partners referred the MPA to it as it sees the deal as an important part of India's energy/infrastructure9steel industry) security to refer it. Our board has stated in the last announcement on the 11/9 that ECT must stay at arms length in the review process and let it run its course and that both NLC and NMDC are highly motivated and committed to working through the review and finalise the MPA. So in an ASX announcement ECT are making statements that NLC and NMDC are committed but some out there believe this is fluff and this deal will not happen. The MPA will happen and i sense that we are getting close with our MD's commitment and move to form a board in India.
Yes this has been frustrating but i am still here and have topped up and hold more than ever. Companies in the spec end trying to push technologies to commercialastion dont usually find an easy journey with plenty of failures and time blow outs. ECT has experienced many set back but i believe our Indian partnership with 2 PSU's will come and deliver a strong tie up that will benefit shareholders as out techs grow in India while also making moves back in AUS in the LV. 1 must remember our biggest shareholder an ex director plus another ex director converted huge $$ numbers of oppies even large numbers of ESIOB's at 1.5c recently. I do not believe they are stupid and would have a good understanding of what lies ahead in India through their time involved. I understand that patience has worn thin on many but i believe now is the time to hang on.
ESI Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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