Capitalism needs Captains

Mortal Mindy's picture

Having watched the Sirius/York Potash story unfold over the last few years some research into 'capitalist' structures eg Companies listed on AIM and other fledgling  Corporations, it has been quite interesting to follow one or two other companies to compare progress, ethics and performance.  Apart from Igas and Gabriel Resources, the only other company that touched a nerve was and is Active Energy Group (AEG).   This interested me mostly because of its political context, seeking growth within the Ukraine and of course as an alternative energy source. (not forgetting the bio-mass plant at Doncaster)

Whilst many of the fracking companies have been beseiged by the anti-frackers, envrionmentalists and concerned communities,  and joined by the anti-capitalist, occupy, anti-govt, anti-trident, anti anything and everything mob (hurrah might I add)  the predominantly anti-capitalist message seems to be emerging louder than anything else.  So, this begs the question (for us mere mortals) is Capitalism and are all Captains of Industry the true scourge of the Earth?  

Active Energy Group is in the business of supplying wood chip for the MDF market in Eastern Europe and also developing bio-fuel and 'forrestry asset development'.  http://www.active-energy.com/.  Run by a 'three man' band the Executives of AEG have had to react and be pretty flexible and dynamic in adapting and securing their business base line in seeking new resources.  Anyhow it has been a rather un-interesting twelve months watching this Co and nowt much seemed to be going on until a couple of days ago when the share price leaped over 140%  (from 3 p to 9p) on news of a £ 300mil offer for a piece of land; and then quickly fell the next day following rumours of an investigation into the 'offer'.  One investor thought it prudent to ask CEO Richard Spinks a few canny questions; and his response republished here makes for some, imo, interesting and heart-warming reading:  (Nicked from LSE :-)

"The RNS stated there were ‘three conditional offers, in aggregate amounting to approximately $300 million’, which is causing confusion. Did that mean three separate offers each covering the entire 108,000 hectares, or three separate offers covering parts of the 108,000 hectares?

THE STATEMENT IS AS WORDED, IN SO MUCH AS THE COMPANY HAS RECEIVED, FOLLOWING IT'S PRE-MARKETING ROADSHOW, THREE SEPARATE OFFERS WHICH WHEN TOTALLED ARE CURRENTLY VALUED AT APPROXIMATELY $300M. WHETHER THE COMPANY, BEING KAQUO, NOT AEG, OF WHICH AEG IS A SHAREHOLDER (45%) AND HAS THREE BOARD SEATS (OF 7), WILL ACCEPT AT THE FIRST OFFER STAGE WITHOUT FURTHER NEGOTIATION, I WOULD SUGGEST IS VERY UNLIKELY. YOU MIGHT REASONABLY EXPECT US TO FURTHER NEGOTIATE A STRONGER POSITION ON BEHALF OF ALL OF THE STAKEHOLDERS OF KAQUO AND THEREFORE THESE CONDITIONAL OFFERS SUBJECT TO NEGOTIATION ON BOTH SIDES AND FURTHER DUE DILIGENCE MAY CHANGE OVER TIME. THIS IS BY DEFINITION A MOVING FEAST AS IT IS A NEGOTIATION. I AM UNABLE TO SAY MORE AT THIS STAGE BUT WILL MAKE TIMELY ANNOUNCEMENTS AS REQUIRED.

I, and many others, are finding it difficult to understand why three separate offers for the same property would be added together to get the headline figure of $300 million.

I AM NOT SURE I UNDERSTAND YOUR QUESTION, HAVING BEEN SITTING HERE SINCE 2.30AM WITH JETLAG AND WORKLOAD,  BUT I WILL ATTEMPT TO COMMENT. THE RNS WHICH WAS ISSUED WAS ISSUED IN ORDER TO ENSURE THAT OUR SHAREHOLDERS, NONE OF WHOM ATTENDED THE KAQUO ECONOMIC DEVELOPMENT CONFERENCE HERE IN EDMONTON ON TUESDAY, HAD THE SAME LEVEL OF KNOWLEDGE AS THE PEOPLE WHO DID ATTEND THE CONFERENCE BEING FIRST NATIONS AND METIS LEADERSHIP, IN A PRIVATE VENUE, WITH RESTRICTED ACCESS FOR THE REASONS OUTLINED ABOVE.

THERE WAS NO ATTEMPT OR DESIRE ON THE PART OF THE COMPANY TO EXCITE OR ENCOURAGE ANY KIND OF CONFIDENCE OVER AND ABOVE THAT WHICH MAY HAVE EXISTED PRIOR TO THE RNS, HOWEVER, WE MUST ENSURE EQUAL KNOWLEDGE OF POTENTIALLY PRICE SENSITIVE INFORMATION AND NOTWITHSTANDING TIME ZONE ISSUES, WE DID OUR BEST TO ENSURE THAT THIS WAS THE CASE AND ARE MORE THAN COMFORTABLE THAT THIS IS THE SITUATION.

REGARDING THE 3 OFFERS/1 PROPERTY QUESTION, IT IS POSSIBLE THAT YOU ARE READING MORE INTO THIS THAN NEED BE. WE WERE IN AN ENVIRONMENT, AT THE SUMMIT, WITH OUR ABORIGINAL GROUPS AND OTHERS FROM ACROSS CANADA WHO WERE AT THE CONFERENCE TO SEE WHAT KAQUO WAS DOING AND HOW IT MIGHT BENEFIT THEM ALSO AND WERE NOT ABLE TO BELIEVE THAT ANY KIND OF FUNDING WOULD EVER BE AVAILABLE TO THEM AS ABORIGINAL GROUPS."

BASED ON THAT I DECIDED TO GIVE, WITHOUT DETAILS OF ANY KIND, REASSURANCE THAT IN FACT THEY COULD HAVE HOPE AND CONFIDENCE THAT WITH OUR HELP THERE WAS A FUTURE FOR THEM AND THAT WE HAD REPRESENTED THE METIS INTERNATIONALLY AND TO INTERNATIONAL FUNDING ORGANISATIONS AND RECEIVED INITIAL OFFERS TO THE VALUE HEADLINED AS YOU DESCRIBE IT.

WE RELEASED IN THE RNS THE INFORMATION TO ALL SHAREHOLDERS AND POTENTIAL INVESTORS, THAT WAS DISCLOSED IN PRIVATE WITH ABORIGINAL GROUPS IN CANADA, AT THE SUMMIT EVENT, IN VERY SUBJECTIVE TERMS, IN A CLOSED ENVIRONMENT WITH PEOPLE WHO ARE NOT INVESTORS AND VERY MANY OF WHOM IN FACT MAY NOT YET HAVE REGULAR ACCESS TO INTERNET, OR MOBILE TELEPHONE SIGNAL; AS YOU WILL BE ABLE TO SEE FOR YOURSELF, ON THE VIDEO RECORDING OF THE ENTIRE CONFERENCE WHICH SHOULD BE UP ON THE AEG WEBSITE WITHIN THE COMING TEN DAYS, SOMETHING THAT AGAIN, WE WERE ABSOLUTELY NOT REQUIRED TO DO, BUT OUT OF A DESIRE TO BRING OUR SHAREHOLDERS ALONG WITH US AS WE GROW, I INSISTED UPON MAKING POSSIBLE; I AM SURE IT WILL FASCINATE YOU WHEN YOU SEE IT.

Any clarification you feel able to give would be much appreciated and I would be most grateful if you could confirm whether your reply can be shared with other shareholders on bulletin boards or whether you would wish it kept confidential. I have no wish to cause you embarrassment by passing on any comments you might make without your express permission.

I APPRECIATE YOUR ASKING FOR PERMISSION TO SHARE MY COMMENTS. I AM NOT AVERSE TO THIS IF IT IMPROVES TRANSPARENCY AND IS EITHER QUOTED VERBATIM AND ATTRIBUTED TO YOUR HAVING CONTACTED ME TO ASK QUESTIONS AND GIVEN THE CAVEAT THAT ANY INFORMATION GIVEN WAS ALREADY IN THE PUBLIC DOMAIN AND THAT I WAS NOT WILLING TO GIVE ANY INFORMATION THAT WAS NOT ALREADY AVAILABLE IN THE MARKET. IN ADDITION THAT I GAVE YOU SUCH PERMISSION BASED ON YOUR DESIRE AND MY UNDERSTANDING TO GAIN CLARITY ON WHAT IN HINDSIGHT COULD BE A DIFFICULT RNS TO UNDERSTAND WITHOUT FURTHER CLARIFICATION.

You have my extreme sympathies. Business was starting to pick up nicely in the Ukraine and the Russians decided to invade the Crimea resulting in the loss of your home. Then seven years of hard work in Canada seems threatened by a couple of complaints. Might I respectfully suggest that you do not buy lottery tickets any time soon.

I ONLY BACK MYSELF AND MY TEAM AND ON THAT BASIS LOTTERY TICKETS AND CASINOS ARE NOT REQUIRED, OUR PEOPLE ARE OUTSTANDING AND THEIR COMMITMENT CANNOT BE MATCHED IN MY EXPERIENCE BY ANY GROUP OF PEOPLE WITH WHOM I MAY HAVE HAD THE POORTUNITY TO WORK IN THE PAST. I CAN BUY ANOTHER HOME, AND MY FAMILY, FOR NOW AT LEAST ARE SAFE AND I VERY MUCH VALUE YOUR KIND WORDS ON THIS SUBJECT; THANK YOU.

Nothing worthwhile comes without a struggle and your shareholders appreciate the great efforts put into the company by you and your team.

THIS IS THE MOST IMPORTANT THING OF ALL, OTHERWISE, WHY BOTHER.

KIND REGARDS,
RICHARD

https://www.youtube.com/watch?v=hTWKbfoikeg ;-)

a little bit more :-) https://www.youtube.com/watch?v=-oNMJyimD-w

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23 Comments

Captain Qahn's picture

Geopolitics & Captain Spinks

http://active-energy.com/sites/default/files/files/Richard%20Spinks%20Mo...
"Spinks still lives in Ukraine and has large business interests there. He says the country is not an easy place for many people to do  business. “In the early days of Landkom, I spent half my time dealing with people who came to me claiming that their equipment, money and crops had been stolen.” Prospective entrepreneurs also need to deal with large currency fluctuations and sudden political changes"

Mortal Mindy's picture

Spinx or Hi Jinx

Mortal Mindy's picture

Minco

Is it a mouse, is it a cow, is it a killer whale? Nooo .... its Minco!!!

Fascinating.... 'tis better than Dallas:

http://www.mincoplc.com/fileadmin/user_upload/minco_news/2015/MIOMDAJune...

Erm, OK, Page 8, ... am I reading this correctly? ...  so they know naff all about mining but are still minting ... Eh?  Must be a parallel universe... 

https://www.youtube.com/watch?v=kAHYftmwY0U

Ya, OK, I threw a few buttons on it ... purely for the giggle ... owts better than Corry.... Neant nothingness ... ah yes Nenthead

Must get out more ... Zinco !

http://www.mincoplc.com/

Hmmm... is that a frack pad?

Mortal Mindy's picture

Active Energy on Eggborough Closure

http://www.active-energy.com/sites/default/files/files/rns-aeg-coalswitc...

"On 14 September 2015, the Group announced that it had entered into a joint venture agreement with Biomass Energy Enhancements LLC and had formed a new company, AEG CoalSwitch Limited, to exclusively commercialise a revolutionary new clean energy Biomass fuel which can be utilised in traditional coal-fired power plants as a direct ‘drop in’ replacement for coal.... The announcement has generated considerable international interest from coal-fired power plant owners and operators, as it enables them to greatly reduce carbon dioxide (CO2) and greenhouse gas emissions, as well as other hazardous air pollutants, without having to either invest huge sums in converting their power generating facilities to comply with increasingly stringent emissions standards and carbon tax regulations, or be forced to close their plants as the cost of conversion is uneconomic. As evidence of that, the owners of the

Eggborough power station in North Yorkshire have cited carbon taxes and EU emissions standards as the primary factors behind their recent decision to close the plant in March 2016; and an EU sponsored report from July 2014 named 30 European coal-fired power plants - the ‘Dirty 30’ - whose CO2 emissions are endangering the entire EU policy on climate, energy and air pollution, which is intended to significantly reduce the major causes of climate change."

"Eggborough power station is just one of several power plants in Europe, North America and the Middle East with whom the AEG CoalSwitch team have been in communication regarding their new coal replacement Biomass fuel; as it could potentially enable them to reverse their closure plans, save jobs, and maintain their current electricity generating capacity while complying with clean air regulations and emissions targets."

darn it,  eggs in the wrong basket ... Ooops. Buttons!

http://www.active-energy.com/company-news-archive/2015

 

Captain Qahn's picture

Vale & BHP 'very busy'

http://www.mining.com/vale-several-years-to-recover-from-brazil-mine-dis...

"Another joint venture with Glencore, Antamina, Peru's biggest copper and zinc mine, will also come under scrutiny. BHP and Glencore each have 33.7% stakes with Canada's Teck Resources holding 22.5% and Japanese conglomerate Mitsubishi 10%. BHP could consider moving to a structure typical in the oil business where operation is left to a party separate from the owners."

Capt. 'Bob''s picture

Drax Omissions

http://business-reporter.co.uk/2015/10/27/power-point-sustainable-biomas...

"...the facility is undergoing a transformation to integrate sustainable biomass, which consists of materials including sawmill residues, pulpwood and low-value parts of harvested trees that cannot be used for other commercial purposes.

“We believe there is a very strong case for biomass,” says Drax Group chief executive Dorothy Thompson, and the statistics certainly seem to back her up. Two of Drax’s six generating units have been converted so far, with a third currently being modified to burn “a high percentage of biomass with some coal”. When all three units are converted the station will save 12 million tonnes of carbon per year.

Although more carbon dioxide is released during the production and transportation of biomass, overall it generates 86 per cent less carbon emissions than coal because the carbon released during combustion is that which the trees absorbed during their growth.

The transformation could also save the UK money as it seeks to move to renewable energy. By converting existing infrastructure, Drax’s project avoids some of the costs of other projects like the construction of offshore wind farms. It is also a constant energy source, not requiring a backup plan for when there is no sun or wind."

https://www.youtube.com/watch?v=weOmLbOYWFY

Mortal Mindy's picture

National Grid - Back Up Plan

http://www.bbc.co.uk/news/business-34723259

http://www.theguardian.com/business/2015/nov/05/national-grid-spent-more...

"They went through three of their safety nets, so they certainly would have been nervous,” Peter Atherton, an energy analyst at stockbroker Jefferies, said. “Their big danger would have been when it got dark and there was no wind around. If [Britain’s biggest power station] Sizewell had suddenly gone down, that would have been your nightmare scenario. It takes a while for power stations to fire up, you need a few hours notice.”

Labour’s energy spokeswoman said the government’s energy policy was increasing the risk of power cuts. “National Grid has now begun using emergency measures to prevent blackouts,” Lisa Nandy said. “The chopping and changing of energy policy under this government is creating an energy security crisis. It is preventing investment we now urgently need to keep the lights on and it could cause household bills to rise. David Cameron should step in and end the policy vacuum to get new power stations built as quickly as possible. Energy analysts said while a cold winter might not greatly increase the risk of power cuts, because most heating is supplied by gas, it could pose further problems for National Grid. If the company issues another NISM, it could be charged high prices that would eventuallyimpact on household energy bills.

The supply issues faced by National Grid on Wednesday were also likely to have affected small energy companies, many of which buy power at short notice. Market watchers said energy prices surged nearly tenfold after National Grid issued its warning, from £55 per megawatt hour to £500."

Erm, thick moment : What about the electrification of the trains ?

http://www.networkrail.co.uk/North_West_electrification.aspx

Steam.

 

 

Mortal Mindy's picture

The Big Freeze

Snakes on a train or Snow on the lines?  

http://www.thenorthernecho.co.uk/news/13947471._Devastating__news_for_70...

Hmmm  Railwaygrafter seems to be a know it all :-)

Oi !!! Would Snow on the Lines stop electrific trains?

Cart Horse Cart Horse ....

Ah, stoopid question aside but as a matter of fact the Met (for a small fee) used to  produce weather reports for the construction industry ... to be used as 'evidence' on contract over-run & cost disputes.   Weather forecasting is an important job for all longterm construction projects ... hint ... as I stick my finger out of the window :-)   (I gotta be good at somin ;-)

http://www.metoffice.gov.uk/research/weather

Just don't mention effing 'leaves' at the 'Awl ... 'scrutiny?'  screwtiinyyyminds  !!!! still fuming ... https://www.youtube.com/watch?v=dRM9lI7n-44

 

Captain Qahn's picture

Tai Chi or Rosa Lee

http://www.bbc.co.uk/news/business-35068463

" ... some of the difficulties the private enterprise had faced over the years doing business in China. He said when China's banks were all state-owned that it had been hard to secure long-term loans."

Amid the skating witches, hoverboards, floating mannequins and rescued hamsters ...  Fosun to alternative energy:  http://www.bbc.co.uk/news/world-europe-35074848

Now't changed.

Mortal Mindy's picture

Salt & Sunshine = Steam

http://www.bbc.co.uk/news/science-environment-35498592

Oh.

"The equivalent of 35 football fields full of moveable mirrors are pointed to the sky, so they can track the sun throughout the day.

Once complete, the plant will be able to provide energy to one million people.

The plant is part of Morocco's pledge to get 42% of its electricity from renewable energy by 2020."

Oh well:-)

http://www.northyorkmoors.org.uk/visiting/whats-on/dark-skies-festival

https://www.youtube.com/watch?v=god7hAPv8f0

Capt. 'Bob''s picture

Project Greenglow "Gravity Shields"

http://www.bbc.co.uk/news/magazine-35861334

"In science there exists a uniquely potent partnership between theory and engineering. It's what's given us atomic energy, the Large Hadron Collider and space-flight, to name a few of the more headline acts.

The theorists say: "This is theoretically possible." The engineers then figure out how to make it work, confident the maths is correct and the theory stands up.

These camps are not mutually exclusive of course."

"... If it was possible to make gravity push instead of pull, they would have a potentially infinite - and free - source of propulsion...."

"Of all the forces we know in nature, gravity's the weakest"

 

Benefitz Betty's picture

The National Grid

http://www.bbc.co.uk/news/business-36557065

"...The UK needs clean, renewable power, but it won't be built if it's too costly or difficult for generators to connect to the electricity grid," said committee chairman Angus MacNeil.

"Distribution networks have been overwhelmed at times by the challenge of integrating small-scale renewables."

The Independent System Operator (ISO) system advocated by the committee is used in the US. An ISO oversees the electrical power system in one or more states. The committee would like to see it adopted for energy transmission at a national level, while regional operators would control power flows locally.

"The Independent System Operator model has worked in the USA. It is time for it to be brought to these shores," said Mr MacNeil.

National Grid, a private company listed on the London Stock Exchange, rejected the committee's findings.

"There is little evidence that an Independent System Operator model would provide any benefits that would justify the cost to households, potential disruption to much of the energy sector, and the risks to security of supply such uncertainty could create," a spokeswoman said.

aka Mr MacNeil is talking bollox.

http://media.nationalgrid.com/