Australia's largest stock trading and investment forum Australia's #1 stock forum

ETR

Click for more information

0.00%

0.7¢ entyr limited

The project completion section didn't turn out correctly, I have...

First 2 Last

Share
Profile

Follow
awertw24459km

8 Posts.

2

03/08/23

18:32

Post #: 69144327
Share

Originally posted by awertw24459km: ↑

Greetings everyone,

I've been carefully considering Entyr as an investment opportunity, and while the technology and value proposition are intriguing, certain aspects related to management decisions give me pause, despite the attractive low valuation.

I'm here to seek insights and constructive criticism on my analysis. Below are the areas where I've noticed some red flags:

Senior Personnel Changes:
Since Mr. Wheeley assumed leadership, there has been a significant turnover in upper management, including two CFOs in less than two years. While some changes are common, this level of turnover may raise concerns.

Includes time under Mr. Wheeley’s leadership

* Information gathered from ASX announcements and LinkedIn profiles

Senior Personnel Appointment:
Replacing the operations manager, who was praised for their extensive industry knowledge and experience*, with a person who’s only work experience is related to highschool education^ seems like a challenging transition. Going from an R&D plant to a commissioning plant without relevant experience could be difficult.

*Announced to the ASX 28/07/22
^ Information obtained from LinkedIn profile

Cost Control:
There appear to be fluctuations in operational and staff costs despite stable customer receipts, suggesting potential issues in cost control or overall strategy*.

*Data obtained from 4Cs

Crumbing Plant:
The crumbing plant investment (375k)^, the move to 24hr crumb production*, the contract from Bituminous Products ($750k/pa @$500/tonne)’, along with the projected $3.7m revenue pa seemed promising~. However, under Mr. Wheeley's leadership, volumes have decreased, and the situation seems unclear.

Graph from latest capital raise presentation dated 10/05/23

^ASX investor presentation 02/08/2021
*Announced to the ASX 29/10/21
‘ Announced to the ASX 31/08/20
~ASX investor presentation 02/08/2021

Compensation:
Mr. Wheeley's 2022 base salary of $425,000*, comprising 14.8% of 2022’s revenue ($2.87m), appears relatively high, and the lack of performance-based options adds another consideration. Mr. Wheeley’s compensation comprises a base salary and time-based options.

Assumed 2% increase in base salary per year

Option pricing and vesting dates obtained from FY 2022 report

*Announced to the ASX 01/12/21

Project Completion:
Entyr's leadership has encountered challenges in project completion, evident from the notable delays observed in the major projects since Mr. Wheeley assumed leadership, specifically in the projects named rasper, tank farm, and shredder

Rasper project started in June 2022
ASX Announcement Completion Date Change from original date
21st June 2022 End of July
28th July 2022 First week of August 1 week
24th August 2022 Middle of october 10 weeks
31st October 2022 In November 14 weeks (assumed middle)
31st January 2023 Commissioned in Dec 18 weeks

Tank Farm project started in Q4 2021
ASX Announcement Completion Date Change from original date
28th July 2022 In August
24th August 2022 End of August 2 weeks
31st October 2022 In November 12 weeks (assumed middle)
31st January 2023 Commissioned in Dec 16 weeks

Shredder
“Shredder project behind by approx. 8 weeks due to shipping and contractor delays”*

*Latest capital raise presentation dated 10/05/23

Processing issues
An observed divergence in the 15 and 30-day moving averages of tonnes processed, coupled with significant fluctuations in both, and the absence of April data, raises concerns about possible operational issues and machine reliability.

Graph from latest capital raise presentation dated 10/05/23

*Op manager start date from LinkedIn profile

Offices
It appears they have two sites: their primary location at U19/63 Burnside Road, Stapylton, Qld, which appears to have 2 office blocks on Google Maps, and another office situated in Ormeau, Qld, see below. While there's no explicit mention of them owning multiple offices or initiating a new lease, it's another red flag for me, especially considering the company's current financial status.

U19/63 Burnside road, Stapylton, Qld - Image from Google Maps
Entyr LinkedIn post

Conclusion
In conclusion, my analysis reveals several red flags under Mr. Wheeley's leadership, including personnel turnover, decision-making, cost control, infrastructure, compensation, project timelines, and operational performance.

I welcome your comments and insights, as I'm eager to see if there's anything I might be overlooking. However, based on the current situation, I find it difficult to invest in a leader with these concerns, and it seems recent share price movements indicate others share similar sentiments.

Expand

The project completion section didn't turn out correctly, I have reposted it here with clearer dates
Project Completion:
Entyr's leadership has encountered challenges in project completion, evident from the notable delays observed in the major projects since Mr. Wheeley assumed leadership, specifically in the projects named rasper, tank farm, and shredder

Rasper project started in June 2022

Tank Farm project started in Q4 2021

Shredder
“Shredder project behind by approx. 8 weeks due to shipping and contractor delays”*

*Latest capital raise presentation dated 10/05/23

ETR Price at posting: 0.9¢ Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

ASX Market Open: US inflation hits 3%; local futures indicate fresh all-time-high | 12 July 2024

AUG

Augustus sees imperial share rise on high-grade Cu and gold results at Ti-Tree

TLX

Telix jumps 11.6% as US government indicates proposed medicare changes won't affect prostate cancer drug

RNU

Renascor wins a funding boost given it wants to produce a critical mineral – but $5M award pales in comparison to some

I88

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

There are more pages in this discussion • 15 more messages in this thread...

First 2 Last

Add ETR (ASX) to my watchlist