Yes - why didnt ECT/Monash sort this out a month prior to the AGM? Get the resolution agreed on by ECT Board/Monash, sort out the various issues and visit the legals to bind it. Why always this "last minute" dash?
Should ECT ditch Monash?
Yeah right - there is no queue...never was. ECT have made that clear. Neil Youren has a solid reputation of delivering...hence the ECT perseverance.
Will Monash walk away?
July 26
"In the correspondence received from Monash Capital, Mr Neil Youren states, “We are naturally frustrated by the delays experienced in finalising our funding package. However, we reiterate our commitment to ECT and our written offer of 18 July 2012 to subscribe for up to 300 million Fully Paid Ordinary Shares (ESI) at $0.02 and 300 million Listed Options (ESIO)”
Neil - you were frustrated in July....imagine how frustrated shareholders are now??
Nov 29
"we are in receipt of a letter from them which states that the first tranche of $1.0m will be delivered to us during next week, and further tranches of $1.0m each will be delivered each fortnight until full settlement of the $6.0m is made. I can advise that the wholesale funding provider to Monash has confirmed the funding arrangements are proceeding and are unconditional."
Neil was frustrated on July 26 at the delays. Now he has the $$$ so no frustration there anymore...nice.
Some seem to think Monash will walk away. I dont think so given the above/below. Neil could have walked/played hardball after the $4m/1.3c fell over. He didnt - upped it to $6m/2c instead.
NY was at the AGM...if he wanted out I doubt he would have showed up. The feedback I received from folks whom talked to him there is positive. Sure Monash are under contract...and I have no doubt ECT/shareholders would follow the legal path (especially after the 9 mth debacle so far) if things went bad (which I dont expect). NY has an excellent reputation and no doubt wants to keep it.
I reckon the Govt is watching things here too. IMO the Govt's Pilbara is largely predicated on Coldry - repeating myself I know - but the "co-incidences" are glaring and worth repeating.
Feb/Mar ESI sp moves off 0.5c -> 1.8c... Feb 13 AGL ann 100% move...Feb 22 ESI ASX speeding ticket...Mar 15 Monash ann...Mar 21 Govt Pilbara ann...and there were other "co-incidences" I cant recall atm....but you get the drift?
And how convenient...the all important Arup DFT Engineering stage 1 was completed around Feb/March. Co-incidence ?
I notice the below quote in the Chairmans address - a quote used a few times recently. Remember Mr Fergusons comment re the Pilbara "beyond power generation" emphasis?
Nov 29
"Whilst details of any allocation process are yet to be advised, the government has stated that it wants the Victorian brown coal resource to be more fully utilised and it will support companies, which bring technologies that add value to this otherwise low value resource. Technologies such as coal gasification and the production of synthetic diesel, chars, tar and chemicals from brown coal will be encouraged as they add the greatest value to the resource. Generally, these secondary or tertiary process technologies cannot efficiently or economically process high-moisture, raw brown coal directly and ECT sees enormous potential in providing Coldry as a feedstock to these industries."
Coldry's "volatile retention" is imo the "tipping point" reason for the Pilbara.
"Shortlisted proponents will be provided with the RFP documentation on the 11 December 2012”
This is one date no one, even ECT/Monash, can mess with. A line in the sand and deeply material to ESI. Its such a significant definite material event...I reckon ESI should be in a TH on Tues until the result is announced.
Will the Monash situation be ann/clarified on Mon? No idea - we just want ECT/Monash to "get it right"...this relationship is for decades so a few more days negotiating is no big deal....but please tell us! Its been a week and yet another broken promise - so Mon would be an appropiate time for an update?
The Prize is enormous and the result of failure for both ECT/Monash is equally devastating imo. Bottom line for us - Monash now have the $$$ and are now flexing some corporate muscle prior to delivering the kick off $$$. A balance has to be struck where ECT dont give away the farm - and Monash whom are providing the risk capital, are comfortable to FULLY commit and drive Coldry/Matmor plant financing.
Next week will be the most decisive week in ECT's history so far. Shortlist Tues is unavoidable (ECT were invited to the ALDP launch - a solid indicator?) and Monash $$$ decision is also unavoidable short term. If both of these go our way - which imo is highly likely - ESI wont be a microcap this time next year.
Sure - alot of the above has been posted in the recent past...but given the justified frustration out there... imo its good to take a deeep breath and look at the big picture here...and hope like crazy sanity prevails next week!
tick tock...
ESI Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
