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A few thoughts on one thing from the trip called "May," haha. Nothing brand new, but important to remember. It seems that Capital Trust Holdings AG is "taking the place" of Rudana (or IS Rudana). Capital Trust is based out of ZUG where Rudana was, and is controlled by roughly the same people. Hany Salem is on the CTH Board, and heck, even our former CEO Olivier de Vergnies was a director once.
Back to that ol' 8-K.
"The company expects to enter into an agreement with Capital Trust Holding AG (“CTH”)..." and they will help 3Power with pretty much EVERYTHING related to moving the business forward. CTH has already been responsible for "initial strategic alliances and recruiting our highly qualified senior management team and introducing the Company to prospective customers."
This means the people behind CTH knew at least two of our directors Valentini and Conte from CR&P Holdings (our $50 mil) and brought them on board. Then there's the compensation: "...management services fees of $25,000 per month to CTH," and they will also get "8% of the total transaction value of any merger or acquisition."
Before recognizing the CTH/Rudana connection, my first thought was that CTH would help facilitate the acquisition of Seawind International. But $25K/month seems a little high for an acquisition that doesn't sound like a top priority yet. 3Power "may, in the future, assess the possibility of an acquisition or merger of Seawind International."
But when I realized CTH = Rudana, $25K a month plus 8% isn't too bad for what's likely $5 BILLION in projects that may already be generating revenue. And Durrant just told us the Albanian projects are a "key area of development" and that "significant progress in the acquisition of this pipeline" has been made. Let's give our boys a little more time to do some work.
All that being said, I'm not looking for news of the ENTIRE transfer of Albania projects. I'm expecting an update on the PROGRESS (license acquisitions, ERE contract awards, HPPs connected to the grid, even specifics on what CTH is doing to help). And of course, there's all the updates to expect on the Chile/Ecuador projects and everything else to be acquired by the end of the year...just my opinion and thoughts on a slow day :)
Wow, sounds like you've got good things going on, thanks! The more eyes the better, as long as there's no circus pump to go with it haha, cause we've had enough of that. Name of the firm? :)
Gosh, I hope those who sold have loaded back up. What I wouldn't give for a few thousand more shares here...Anyway, I think I'll post a little DD review to snack on later since I can't join in and buy any more cheap shares. That and work is slow, haha.
You can have a few of mine at $4 and the rest at $10.90 :) That would pay off all my student debt and my fiance's too plus interest AFTER cap gains tax. But I guess we'll have to hold $1-2 first...
Haha thanks Plano! Just following old father Choi's footsteps when I can :)
DD'ing over lunch, and I found a connection with Power Andina Limited. Since Seawind has had previous projects in Chile, it was easy to guess that the agreement with Power Andina Limited is either based on Seawind's existing relationships, or is an extension of previous projects.
Energia Andina SA (Power Andina Limited) was created and 60% owned by the copper mining company Antofagasta PLC. The other 40% is owned by the Chile power provider "ENAP"/Origin. Antofagasta just happens to be in a JV with Barrick Gold to form a 50/50 JV with Tethyan Copper Company, both of whom are previous Seawind customers (stated in the S8-K and Seawind website).
http://www.antofagasta.co.uk/home.html
http://www.reuters.com/article/2011/04/15/idUS70501+15-Apr-2011+RNS20110415
Is this a coincidence or a surprise? Of course not, I just had to find the link :)
most definitely, sir! :)
Mike, I've decided to stick with with long plays, undervalued investments. Can't afford to risk anymore than I have in PSPW now that I've got my loans and my fiance's loans to help pay. But I used to do short swings and bounces when I was still single and in college.
Hey all, just wanted to stop by and say hi! Great stuff going on here, with great minds and experience :) I've been reading and trying to keep up, just don't have any more time or cash for these plays. GLTYA!
Woah, I totally missed this agreement for the 58MW Chile project with Power Andina Limited. It was in the 8-K/A and I overlooked it. Thanks for bringing it up tiso. PSPW
Do some research on the timeline for energy developments in Albania. It seems there can be up to a couple of years lag between concession agreements (the go-ahead for companies to draw up plans for construction and operation) by the ERE and when news of contracts awarded or construction activities actually begin. Looks like a RFP -> submit bid/proposal -> contract award sort of process.
My point is that we don't yet know the status of the hydro projects we're getting. Are they fully completed and operational and 3Power is just obtaining the licenses to sell the power? Or are they in the midst of construction? Or have the concessions and/or licenses been granted for new projects and the engineers are just doing their thing?
Either way, the total power of these projects will be up to 1GW :)
Possible Connection in Albania
Not sure if this is directly related since we haven't heard any mention of it so far, but we may have access to the Vlore port (or port project) on the Albanian coast. Rudana considered a partnership with Zumax AG for the port construction. I doubt it would be used in power production since its a port for container ships, but it could be used in transport. And from what we know about Seawind/Seawind Marine subsidiary (and their past offshore projects), this could prove to be something useful.
Feb 16, 2010
"Swiss construction company Rudana Investment Group expressed interest to launch projects for the reconstruction of major ports in the country. According to the executive director Hany Salem, Rudana mulls joining forces with UK-Swiss company Zumax AG, which has already presented a preliminary project for the construction of a container terminal and an industrial park in Vlora. Moreover, Rudana plans to cooperate with Dubai Port Authorities for this purpose. The Swiss investor expressed interest in participation in reconstruction of Durres port. Salem briefed PM Sali Berisha in a meeting, adding that Rudana considers also local energy sector as attractive field for investment."
Google this link and view the full cached version: http://www.securities.com/googlenews.html?pc=AL&doc_id=253853024
http://www.alacrastore.com/storecontent/ISI_Intellinews/IntelliNews_Today-AL253317328
March 1, 2010
Zumax AG won the concession worth 1.18 billion Euro for the port construction. Not sure if its completed, but the goal is for it "to serve as a transshipment hub and transit port to the region."
http://www.zumaxag.com/index.html
http://www1.ijonline.com/infrastructurefinancenews/preview?articleid=53732
Then, less than 2 months later on April 22, Rudana signs the $5.35 billion hydro power agreement with the Albanian government.
A useful connection for PSPW? Time will tell I suppose...
*EDIT* Apparently, the port was mentioned in the news release of the hydro project signing as well. "...a new town may be built and a port in Vlora or the denationalization of the existing one."
Would be cool to check it out! My dad is still in Rome and doesn't have a lot of time for extra stuff. Wonder if any of "our boys" are attending...
Thanks, my anal retentive mind won't let me keep things uncovered. It knows there are connections and clues, just have find them haha. And I appreciate your insight too!
I think 3Power is currently in the "license acquisition" approval process with the ERE in regards to Rudana's projects. Could be wrong if they're getting licenses in another way, but seems to fit.
"Prohibition of Transfer of Assets
1. No licensee may transfer his license or any of its assets used for carrying out the licensed activities through sale, mortgage, leasing, exchange or otherwise, without written approval of the ERE."
http://www.ere.gov.al/doc1/Power_Sector_Law_No_9072-_amended_on_10.12.2009.pdf
Started some digging into Albania's hydro projects before going to sleep last night. I'm searching for any new license grants by the Energy Regulatory Entity (ERE) as well as new/existing hydro projects (HPPs). My goal is to cross reference new plants and projects with Rudana's contract signing last year. And of course, find the 3Power licenses as they are given. I'm having a blast trying to put the pieces of this monstrous puzzle together! :)
I was able to find a list of the current licensees for energy providers through the ERE, but the document has no contracts awarded after 2009 on it. I did find a news article from just a few weeks ago on May 6 about the ERE granting a license to Ashta Power for a HPP, so I'm not sure why I can't find updated info on the website.
ERE: http://www.ere.gov.al/mat.php?idr=202&idm=258&lang=EN
Ashta HPP: http://www.swiss-cooperation.admin.ch/albania/en/Home/ressources/resource_en_200904.pdf
A mini gold mine would be a list of these "Fifty-one small hydro power plants that operate in Albania at present and are owned by 19 companies." From a small blurb dated May 6 as well. http://www.hydroworld.com/index/display/news_display.1412370433.html
riolui,
not sure if you saw my post on this the other day. Calculating an accurate rev estimate depends on the consideration of the capacity factor, which varies on location, climate, and equipment used. Since there is no historical data from Seawind that I can find to estimate the capacity factor, we can use factors from projects in similar regions of Chile.
Basic math shows we can expect roughly between $20-40 mil annually once the project is up an running.
See post# 32410
Yeah, I don't know my German very well either haha :) Oh yes, I am very much around and plan to be for ahwile
That was also on May 20th, not today. Stuttgart and Frankfurt have the highest volume for PSPW on the German exchanges, so I normally look at them.
Right,
there were not specific answers in regards to Rudana the company. He did provide basic but acceptable information in my opinion. I wasn't expecting anything mindblowing because I know he can't do that.
I would like complete answers as much as you, but I emailed him with the expectations of continued transparency. And nothing about his responses or the company and their communications has led me to believe otherwise.
I hope some of these small "gaps" will be made public in the near future - PRs, filings, etc. He has already showed us he is willing to do this - remember the special meeting? "Due to investor inquiries about the agenda of the meeting" or however he put it.
T-Durrant's word has been golden thus far - I for one am not questioning it now. PSPW!
My Email to Toby Durrant, 5/20/11
Mr. Durrant,
Thank you for speaking with me a couple of weeks ago (I was the American shareholder that called on May 3rd around 10:30am EST). I understand your time is limited so I will try to be as brief as possible while maintaining clarity. As always, I understand not to expect a response disclosing any "new" information that is not already public knowledge.
First, I am thrilled to have the initial Seawind acquisitions and subsidiaries under the belt, and to see the project acquisitions move forward as well! I speak for many shareholders when I say that the thoroughness of communication and disclosure is much appreciated. Of course I have full confidence that we will be updated on projects and events as they continue to progress - you and your team have made that quite clear with the level of communication so far.
However, I did want provide a shareholder perspective on several pertinent items. There are a few questions that many shareholders have yet to find the answers for through filings, PRs, and extensive research available on the internet.
1). Rudana's Current Involvement - Since Rudana is not listed as a beneficial owner, I must assume Bank Julius Baer either bought their shares, or is a creditor that acquired them through Rudana's bankruptcy. (Also, is Viewpoint Investment Rudana's "alter ego"?) Furthermore, can we have a full account of Rudana's original shares? Prior to any news of the anticipated merger, the filings showed Rudana in ownership of 27,716,208 shares. As of the April 14 8-k, Rudana's ownership totaled 20,498,638 shares. Where did those 7,217,570 shares go, or what were they used for? I have heard rumors that perhaps those shares have found their way to the open market due to Rudana's foreign status (Reg S, no registration or company consent needed to sell shares) as I believe this occurred under FOUR as well. This issue is a little muddy, and hopefully I have not missed any numbers or filings that would clear it up.
And based on the PR from May 19th, it appears that Rudana's hydro projects/assets in Albania are still in the mix since "license acquisitions" are progressing even with Rudana in bankruptcy/dissolved. This is great news, but continued clarity of these hydro projects would be appreciated. Also, are all of the projects from the $5.35 billion deal that Rudana signed with Albania included in their entirety, or just a portion? Of course, previous filings stated that these projects were to be contributed prior to the merger completion, but they have not been included in any disclosures thus far.
2). Investor Relations or PR firm - I take great confidence in the fact that I can email or call and you will interact with me in a timely manner. However, I would also expect that in efforts to uplist to the NASDAQ exchange, the plans that have been mentioned for an IR/PR agency or firm will be implemented shortly. That would obviously support a full focus of your time and efforts on tasks MUCH more important than reading this email :) Is there a time frame that can be provided in regards to investor relations/company contact and NASDAQ uplisting? I realize there are specific requirements that have not been met yet for the uplisting.
I do apologize for the length of my inquiries here, as I know I have asked a lot. I understand that I may have to accept certain gaps in my knowledge that may never become fully public. I can safely assume, however, that all information needed for investors to make clear decisions will continue to be disclosed when the time is right. And I have no doubt that you and everyone at 3Power have been working tirelessly and will continue to do so as further progress is made. Thank you.
Sincerely,
Dave Duarte
Yeah, I'll just copy the text instead of a pic...
Coltsfan,
"Dear Mr Durate
Thank you for your email. Bank Julius Baer is the nominee bank holding the shares on behalf of various shareholders. I do not believe that the shares you refer to have found their way into the open market as they are restricted shares - the shareholders also remain fully committed to the business. With regard to the Albanian projects, this is a key area of development for us and, as announced in last week’s Press Release, we have made significant progress in the acquisition of this pipeline and look forward to updating our shareholders shortly. With regard to the investor relations, we are in discussion with a potential firm and expect to engage their services very soon. Finally, with regard to any move to a more senior exchange, this remains an important goal for the company which we will continue to work towards. We cannot give an exact timetable at present as there are various requirements that need to be met first.
Best regards,
Toby Durrant"
Thanks all! Just wanted to share what I found :)
Well according to the PR yesterday, "...and has made significant progress on the license acquisitions in Albania." IMO, this shows they are working on the formalities to get assets, projects and/or the rights to both before they can proceed and concurrently update the shareholders.
My guess: The transfer has taken longer than expected either due to goings on with Rudana (the bankruptcy thing), or the elections and governmental changes that just happened in Albania.
As I have stated before, I trust the company to update us on these things in a timely manner, whether good or bad. This track record of full disclosure and complete communication has been spot on since T Durrant has been on board. I have no need to question it now. PSPW
Thanks! Just wanted to have some realistic numbers to chew on as this thing continues forward :)
Yes. Higher b/c a 24hr/365day time frame can be used for the calculation as long as an accurate capacity factor is used. Or so it seems based on how the U.S. would calculate it. Thanks jj50!
*REVISED* Realistic Rev Estimate for 58MW Chile Project
So I received a PM from someone who works in the electric utility industry (thanks!). It seems that since the capacity factor already takes into account the variability of wind, a 24 hour calculation could be used rather than a reduced number of hours per day. This is how the calculation would be made here in the U.S. at least.
The S8-k states 3Power expects the "first power-to-grid will be achieved in the first quarter of 2012" for the two projects totaling 58MW. So we should not expect revs in 2011 for this particular wind project. Might be connected before Q1 '12, but lets stick with what the company says. According to a news agency in March 2011, the average cost for 1MW in Chile during Feb 2011 was $242.70 USD. The previous year's average during Feb 2010 was $181.50. I'll use both figures in the calculations.
Conservative Estimate
58MW *.20 (below average capacity factor) * 24 hours * 365 days = 101,616 x 181.50 = $18,443,304 per year
Moderate (Above Average) Estimate
58MW * .35 (above average capacity factor) * 24 hours * 365 days = 177,828 x 242.70 = $43,158,856 per year
This is based on the 58MW project in Chile ONLY. If we can find out how much electricity costs in Ecuador for the soon-to-be acquired 47MW project, we can estimate those revs as well. I think it is unrealistic to just take 300MW (the total power of projects to be acquired in 2011) and use an average cost per MW because of the potentially vast differences in cost per region and country, as well as the volatility (Chile's price per MW increased 75% in just one year, but I'm sure it will drop as well).
As it was pointed out here already, this 58MW project is only roughly 2% of the projected 3GW over the next 3 years. PSPW!
Chile's Price: http://en.mercopress.com/2011/03/05/energy-prices-for-chilean-business-the-highest-in-three-years
Capacity Factor: http://www.ceere.org/rerl/about_wind/RERL_Fact_Sheet_2a_Capacity_Factor.pdf
Realistic Revs from 58MW Chile Project
S8-k states 3Power expects the "first power-to-grid will be achieved in the first quarter of 2012" for the two projects totaling 58MW. So we should not expect revs in 2011 for this particular wind project. Might be connected before Q1 '12, but lets stick with what the company says. According to a news agency in March 2011, the average cost for 1MW in Chile during Feb 2011 was $242.70 USD. The previous year's average during Feb 2010 was $181.50. I'll use both figures in the calculations.
Conservative Estimate
58MW *.20 (below average capacity factor) * 15 (hours per day) * 365 days = 63,510 x 181.50 = $11,527,065 per year
Moderate (Above Average) Estimate
58MW * .35 (above average capacity factor) * 18 (hours a day) * 365 days = 133,371 x 242.70 = $32,369,142 per year
This is based only on the 58MW project in Chile ONLY. If anyone can find out how much electricity costs in Ecuador for the soon-to-be acquired 47MW project, we can estimate that as well. It is unrealistic just to take the 300MW and use an average cost per MW across the board to estimate revs because of the potentially vast differences in cost per country, as well as the volatility (Chile's price per MW increased 75% in just one year, but I'm sure it will go down too). Have a great evening, all! PSPW
Sources
Price: http://en.mercopress.com/2011/03/05/energy-prices-for-chilean-business-the-highest-in-three-years
Capacity Factor: http://www.ceere.org/rerl/about_wind/RERL_Fact_Sheet_2a_Capacity_Factor.pdf
Report on Chilean Wind Energy: http://web.ing.puc.cl/~power/paperspdf/WattsJara2011.pdf
just an ammendment
pro forma fins!
I think we are still incredibly under the radar for what's all taking place. IMO, that's why it is so important to get an IR firm rolling to help disseminate the goodies and promote awareness for NASDAQ uplisting to GET the big boys. PSPW
MERQ looks shorter than crap right now haha!
What a summer and roller coaster ride this is going to be, right? :)
haha yeah, how bout now?
"significant progress on the license acquisitions in Albania."
Sounds good to me!
BOOM! 58 MW! PSPW
Could the bear raid really be over?
Not since May 3rd when I called him. I have sent 2 emails, received 2 timely replies, and spoken on the phone with him (for 6 minutes haha) throughout the last 3.5 months.
I may send him an email asking about the appointment of an IR/PR firm if we don't here about it soon, since they really need one. T-Dog has been responding to calls/emails himself and we need him doing lots more important things! So I'll give him a little time to update us first. PSPW!
That number will get you the Seawind House (or at least it did before the merger was complete).
I previously spoke to Mr. Durrant on his direct line: 011 44 203 318 2995.
I doubt it. I meant they just tagged that news article wrong. IMO, it has nothing to do with us.