SHAREHOLDER VALUE and the KIDSTON STAGE 2 SOLAR (270MW)
I started a thread, SHAREHOLDER VALUE ADDED SINCE AUGUST 2022 OFFER FROM SKIP CAPITAL, on 6 March. This was done because, after watching Simon Kidston very actively promote the legally flawed/challenged 25 cent offer from Skip Capital, I wondered whether full and fair market value, likely in excess of 30 cents, was secondary to achieving a sale of the company and the liquidating of shares.
There were four key components in the development put forward in the prospectus for creating Genex Power Ltd; Kidston Pumped Hydro, Kidston Solar,Kidston Wind and the associated Transmission Infrastructure.
This led to me giving further thought to the issue of value added since August 2022. Upon reflection I realized that the Board has long failed to provide shareholders with any meaningful information about Kidston Solar. Kidston Solar was a key factor behind the granting of the $610 million concessional loan from NAIF.
Kidston Solar was conveyed, in the IPO, as being an integral component of the Kidston Pumped Hydro; the power produced by the PV would comprise a large component of the overall energy consumed to fill the upper storage dam. Control over the use of the power generated, as will be the case for that being produced with the current 50MW project, will be more valuable to GNX when it is not forced to curtail production or supply the grid?
The 2022/2023 Annual Report contains virtually no information about the development of the Kidston Solar project. In an Investor Presentation, (ASX Announcement), dated 31 October 2023, there was information saying:- “Status - Feasibility ''.
Given all the past investigative work it is disturbing that shareholders have not been informed of the CURRENT STATUS of the proposed 270MW expansion of Kidston Solar. This is especially so given that it was on 12 December 2017 that GNX announced that UGL had been appointed as its preferred Engineering, Procurement and Construction (EPC) Contractor to delve into this integral component of the overall renewable energy scheme.
Given the intervening period, from 12 December 2017 to now, it is disturbing that all shareholders learn from the last Annual Report is that the status of Kidston Stage 2 Solar is classified, by the Board as, “FEASIBILITY”.
There have been substantial technical gains with the efficiency of photovoltaics since the first 50MW was completed, (at the end of 2018), including for the technology employed by the photovoltaics supplier, First Solar. The following link provides up to date information about First Solar Thin Film technology:-
https://www.firstsolar.com/en/Technology/CadTel
While GNX shareholders appear to have been and, I suggest, are kept in the dark about the CURRENT STATUS of the Kidston Stage 2 Solar (up to 270MW) it is clear that J-Power is totally informed.
This withholding of information means that for all GNX shareholders know, the Kidston Stage 2 Solar could be ready to go; at least to the point that little notice is required to purchase the required PV panels and support/tracking mechanisms? Some of the current workforce, (including the Indigenous component), would, presumably, be available to move into solar construction after completion of the Kidston Pumped Hydro, later this year?
GNX shareholders have virtually no knowledge of efforts to source further funds. Perhaps a superannuation fund, like the Commonwealth Superannuation Corporation, (CSC), or a member of Industry Super Australia Pty Ltd has been approached and expressed interest in funding this significant component of the taxpayer supported Kidston Pumped Hydro development? Again, if this has happened, J-Power would be totally informed.
I have written to the Chairman, the CEO and Simon Kidston, (see below), asking if the company will advise shareholders of the CURRENT STATUS of Kidston Stage 2 Solar (up to 270MW) AND if the company has sought financial involvement of an Australian super fund; as a 19.99% shareholders AND/OR equity participants in Kidston Stage 2 Solar.
I have also asked for information about the financial impact of Kidston Pumped Hydro becoming operational. Questions have been raised concerning shareholders having access to the Goldman Sachs report and if a statement of cash flows at the Boulderscome Battery will be provided by 2 April.
I will post the response; if one is received.
As stated I did not, in the 6 March thread, refer to Kidston Stage 2 Solar; basically because there were not any ASX Announcements made by the company that provided any significant information to alert me to what I think is an important issue.
Knowing the CURRENT STATUS of the Kidston Stage 2 Solar (up to 270MW) might give weight to this question about SHAREHOLDER VALUE? It seems other shareholders have doubts about the existing value of the company and the value likely to have been added since August 2022.
The omission of a “full disclosure” update on the Kidston Stage 2 Solar project and the financial outcomes for the Boulderscome Battery may be significant factors in ascertaining if a fair market value for the company is in excess of 30 cents?
"SHAREHOLDER VALUE and the KIDSTON STAGE 2 SOLAR (270MW)
Dr Ralph Craven
Chairman
Genex Power Ltd
Mr Simon Kidston
Director
Genex Power Ltd
Mr Craig Francis
Chief Executive Officer
Genex Power Ltd
Dear Sirs
As a shareholder and a HotCopper participant I am emailing you to ask four questions of the company.
1.Will the Board of Directors of Genex Power Ltd make an ASX Announcement to inform shareholders and other interested parties of the CURRENT STATUS of the Kidston Stage 2 Solar (up to 270MW), before the expiry of the NBIO from J-Power?
2.Will Genex Power Ltd, by the close of business 2 April, provide shareholders, (by way of an ASX Announcement), a detailed statement of cash flows into and out of the Boulderscome Battery from 12 December 2023 to 31 March 2024, (the period when all 40 Megapacks and the Tesla Autobidder Offtake were operating?
3.Has Genex Power Ltd approached any Australian superannuation funds, (perhaps through Industry Super Australia Pty Ltd), with propositions that they take up a 19.99% interest in the company, (the only ASX listed renewable energy company), through the purchase of newly issued GNX shares AND/OR take an equity position in the Kidston Stage 2 Solar (270MW) component of the company’s operations?
4.Will GNX shareholders have access to the Goldman Sachs report to the so called “Independent Committee” to, among other matters, see if estimates have been made by Goldman Sachs of:-
A.the annual NET income to be generated by the Kidston Storage Pumped Hydro versus the annual repayment of the $610 million NAIF concessional loan, once commissioned; later this year?
B.the annual NET income that could be generated by the Kidston Storage Pumped Hydro versus the annual repayment of the $610 million NAIF concessional loan and repayment of necessary further external funding, after Kidston Stage 2 Solar (270MW) were to be constructed and commissioned?
Yours sincerely
H L P
16 March 2024"
(20min delay)
