Discussion with Bahay about the September Quarterly Report Highlights
PPS:
Question.Increaseddeal flow as a result of acquisitions and PPS start up, I asked what deals?
Answer.Theynow have BD folks in Darwin, Perth and Melbourne.Everything from equipment, to solutions and everything in between.More capability, means more sales, means more revenue expected.
Question. Tendering for range of industrial scale water transfer and treatment related applications.
Answer:Industrialscale is multimillions.Everything from small $50k upwards and into the millions.
Question.Secured small initial projects with several global mining and energy companies.Are these the same companies we are doingtechno economic studies for?
Answer:That’smultiple.Someof these are the same companies we are doing techno economic studies for and others.Hoping this leads to new tech and more workand sales ( my hope ).It’s important tonote these to the market not for their size but to show case that these companiesare developing more trust in a growing ( in capability, skill, experience, intechnology ) company.
Question.Collaborations with several previously announced industrial companies.I knew of only one, this has expanded nowto several?
Answer:MultipleIndustrial Companies. Even Water Treatment Co’s.These range across the spectrum from OEM’s,to EPC Contractors like Worley and others and EPCM Contractors ( like Worley ).
They are talking to Tier 1 and Tier 2 Co’s.As you can imagine it’s easier to signcontracts with Tier 2’s, but it’s worth signing up to Tier 1’s, you just haveto live with their internal approval and negotiation practices that taketime.I should know, I’m in the thick ofit in the industry.Lots of discussionaround iBC, so you have to think about the CSG space and this is coming to acrescendo. ( I think). These partnershipsare seeking to tie up market segments, geographies, certain tech.Bahay wants the best deal for PWN and it’sshareholders.We have to be patienthere.They will come.
All evaluations and negotiations are continuing, somemuch more advanced than others, no one has walked away. Mr M thinks we might getsome before Christmas or at least news about them and where they are at.
That original project that was being independentlyreviewed by a third party is still progressing.
Question:Is the third party review the two stage design contract they won earlier in the year? A third party ( probably the client’s consultant Owner’s Engineer ) is reviewing before proceeding to delivery/construction.
Answer:No, this is not that 2 stage design job, this is another Project.Awesome, a second job being peer reviewed. To me that means this is serious, the benefits are too good to walk away from and they want a second opinion to check it out.The firm I work for does this all the time.I get it.
Question:IMS – isthis preventing the scoping, Pre-FS and FS studies for new tech?
Answer:No, itwould definitely assist but it’s not a reason for not signing up.It helps with being approved or certified vendorsand for tenders.
Mawpump review:
·Operating business with potential to grow revenues with the addition of PPS, spares, equipment and enhancing Mawpump’s offering. This is going to grow quickly.
·Advantages are listed in the announcement, not going to repeat here.
·Quarterly sales don’t count Mawpump, $425k with Multiwet and now PPS.Bring in Mawpump, probably looking at $700k next quarter + (IMO)
My takeaway:Growing revenues across all three businesses, won’t give me a figure for next qtr but growing.
Parkway Process Technologies:
Question:iBC – Pilot Plant, paid for by grant funding.No cash burn.When will it be finished?Do clients need it to sign up?
Answer:Won’t commit to a time, don’t want to disappoint the market but all procurement is done. I think in the next couple of months depending on arrival of parts.Clients are not waiting on iBC pilot results to commit to PWN.It will just validate what they already know from the smaller plant.Cost not significant to create pilot plant.
Question:Commercial negotiations with a third party from Global Energy Sector for potential execution of projects with iBC. What does this look like?
Answer:Past deals/models is a good guide of where these are heading and what types of deals PWN are looking to make.PWN are covering all the client’s needs, from someone to build and operate to just an annuity and revenue sharing model, if we go back to previous presentations.The deal needs to capture and share in the value add.We are trying to de-risk these opportunities in the deals and for our clients.Some clients are willing to support opportunities by spending the money, not just asking someone else to fund the build.
Question:aMES – discussion with OEM with innovative products, looking at potential deployment of this new tech along with enhancing iBC and aMES.
Answer:Working with leading OEM’s with innovative products, working with global Tier 1 EPC and EPCM contractors. Tie ups that could benefit PWN for more reasons than just products.Some of these are strategic, impressive billion $ Co’s.
Parkway Ventures:
Question:Other Resource Projects – offering tech for royalty revenues of equity share including lithium brine projects.
Answer: Yes, looking at these. Think about this, hey Farmerr, lithium brines, that’s South America, so yes PWN is looking to support lithium brine projects in South America. Where there is an opportunity to show case the technology and not have to take equity by chipping in cash, we’ll consider the opportunity.
R&D Refund for FY21 due soon. Last year’s would be a reasonable guide on value of refund.
Question:Investor Relations Activities to follow the achievement of milestones in Calendar Year 21.
Answer:That tells me that these milestones are anticipated before 31 December. There is a lot going on with lots of companies and may of these are material in size and material in terms of the Companies that would warrant an announcement, so I am anticipating these. He won't specifically say what but states there is so much going on, on so many fronts and at some many stages of the negotiation lifecycle, he's excited, as am I.
Hope this helps. Keeps me happy. Trying to work out our face to face catch up, hoping for before the Christmas breka.
Here's to more exciting news very soon.
DYOR, GLTA
Mr M.
(20min delay)