It seems a lot of people are new to the ESI threads, and are...

It seems a lot of people are new to the ESI threads, and are having trouble putting a valuation on the company.

So for those people, I'll rehash one of my previous posts. This is all researchable history.

Some very relevant history on SP's for this technology is to be found by looking at White Energy (WEC). It's an interesting case study.

Unfortunately today's WEC is not very relevant, it is largely a coal company. The part of the WEC history that is relevant to ESI goes back a few years. It takes a bit of research to dig it out, but I recall it well, so I'll summarise it here.

Way back in May 2008, WEC commissioned a demo coal drying plant at Cessnock, in the Hunter Valley. At the time, they had around 110,121,019 shares on issue, and they were trading at about $2.50, giving a market cap of $275 million. They were also looking for a CSI (BHP bought in), and they had some minor assorted interests in coal deposits.

Based on the demo plant, WEC began work on the Indonesian project in Tabang.

By mid Oct 2010, the Tabang coal drying plant was ready for commissioning. WEC ended up being a 51% owner, in conjunction with a local Indonesian partner. At that time, the WEC share price was $4.27, with 307,225,811 shares on issue, or a market cap of $1.3 billion.

As we all know, WEC had some trouble with that plant. There were technical issues that took years to overcome, and the SP slowly fell away as the market lost interest.

WEC eventually changed it's focus to a straight coal company.


The fact remains, however, that at the time, the market saw the potential and pushed the value of WEC to $1.3 BILLION. And that was only based on a coal drying technology. And in my opinion, the ESI drying technology is simpler, cheaper and more efficient.

Compare WEC at $1.3 Billion, to where ESI is now ($45 Million), and the potential is huge, and that is just based on the drying technology.

PLUS - we have the added Matmor technology, which again, is a game changer for the steel industry. As we know, steel making is not exactly an environmentally friendly operation, and as economies grow, the old steel mills will be squeezed out, with more and more emphasis on cleaner industry - it's ESI's time all over again.