Renewable players - any thoughts on whether CFU can really challenge CWR for its Fuel Cell Crown?

Link to CFU's Homepage -

http://www.cfcl.com.au/

Positive Update and newsflow should boost the shares in the coming months. Im buying In.

CERAMIC FUEL CELLS LIMITED


TRADING UPDATE FOR QUARTER ENDED 30 JUNE 2006


Ceramic Fuel Cells Limited ('CFCL') announces its trading update for the fourth
quarter 2006.


Key Highlights:


Receipts from customers for the full year up 377% due to increased field
trial activity;
Final conversion of convertible notes to shares, reducing the company's
debt to zero;
Net cash outflow for the quarter down 5.2% and down 21% for the full
year;
Two further patents issued for the company's solid oxide fuel cell
(SOFC) technology;
Two senior management appointments.


Financials


Receipts from customers for the full year were up by 377% to A$953,000
(381,000), compared with A$200,000 (80,000) for FY05. The increase in receipts
relates principally to the Company's field trial programme of its Combined Heat
and Power (CHP) demonstration units. The Company expects to receive further
revenues from these trials, particularly following the announcement on 29th June
when the Company signed a further contract with EWE, the fifth-largest German
multi-service energy company. Under this agreement, CFCL will supply EWE with
ten NetGenTM units for further field trials as part of a collaborative project
to develop commercial-ready micro CHP products for the European market. This is
CFCL's most significant contract to date, taking the company within striking
distance of its target of selling 12 NetGenTM units by the end of 2006.


During June 2006, the balance of the convertible notes (A$8.2m / 3.28m) issued
in August 2005 were converted into 16.4m shares, reducing the company's debt to
zero. This means that the Company can use all of the funds raised at the time of
its flotation on AIM in March 2006 for its commercialisation activities, rather
than repaying these notes.


The net cash outflow for the final quarter was lower by 5.2% (A$2,466,000 /
986,000) compared to the third quarter 2005 (A$2,600,000 / 1,040,000). Higher
staff costs for the final quarter were offset by the interest earned on invested
funds. Net cash outflow for the full year was (A$12,208,000 / 4,883,000), down
21% compared with FY05 (A$15,226,000 / 6,090,000).


Capital expenditure on assets during the fourth quarter increased significantly
to A$540,000 (216,000) compared to A$75,000 (30,000) in the third quarter. The
Company expects capital expenditure to continue to increase as the company
upgrades its Australian production facilities and invests in its European
specialist ceramics powder manufacturing plant and fuel cell manufacturing
plant. Otherwise, underlying operational costs were in line with previous
quarters.


The Company's cash position at the end of the quarter was A$86m (34.4m)
compared to A$5.3m (2.1m) on 30 June 2005.


Technical


The Company is delighted to announce that it has been granted two further
patents for its solid oxide fuel cell (SOFC) technology.


The first patent has been granted in the USA for a zirconia window frame, a
structure which enables anode supported SOFCs (connected by metallic plates) to
be flatter and easier to seal, thereby improving the performance of the cell and
making them easier and cheaper to manufacture. The Company has already been
granted patents for the same invention in Australia and South Africa and has
applied for patents in Canada, Europe and Japan.


The second patent has been granted in Europe for an electrically conductive
metal surface treatment for a ceramic-metallic SOFC design. The patent has
already been granted in Australia and the USA and the Company has applied for
patents in five other countries. This technology of coating the stainless steel
used in a fuel cell stack with oxide, allows the plates to be more conductive
and hence produce more efficient power.


CFCL now has a total of 50 patents in 28 patent families, each family
representing a single invention covered in multiple jurisdictions. These patent
families cover inventions relating to SOFC materials, cell and stack
configurations, fuel processing, stack thermal management and system control
technologies.


These two new patents are examples of the Company's broad experience with a
range of fuel cell designs and materials, having successfully designed, built
and operated both all-ceramic and metal-ceramic composite kW-size fuel cell
stacks.


This broad experience gives the Company a wide range of expertise and background
knowledge to continually improve the Company's fuel cells rather than
specialising in just metal-ceramic or all-ceramic designs.


The Company looks forward to announcing further technical improvements over the
coming months.


Management Appointments


In July 2006, two senior managers joined CFCL's UK office, a reflection of the
Company's increased focus on commercialising its technology and scaling up
production, particularly in the European market.


Mike Atkinson joined the Company in a new position of Manager, Capital Projects
and will report to Brendan Dow, Chief Executive Officer. He will also form part
of the Executive Management Team. Mike will be responsible for managing CFCL's
capital works projects, in particular its new powder plant and the fuel cell
manufacturing plant. Mike has had extensive international commercial and
engineering experience in managing major capital projects in high technology
industries. He joins CFCL from six years at Johnson Matthey where he was
responsible for managing the construction and commissioning of Johnson Matthey's
dedicated fuel cell manufacturing facility in the UK, from site selection and
factory construction, through to equipment procurement and commissioning and
factory operations.


Simon Howard joins the Company as Powder Manufacturing Engineer. Simon is a
specialist ceramics engineer with 17 years experience in engineering and
technologist roles in ceramic manufacturing companies, including Morgan Electro
Ceramics, Fairey Industrial Ceramics, Wedgwood, and Twyfords Bathrooms.


ENDS

Nice 180,000 Buy above the ask today.

all quiet now

860,000 sell barely moved the sp yesterday, interesting play over the coming months. Could move rapidly when orders from EWE received.
Where is GD Potts?

the australian price is doing nothing either

Until serious news comes about this one will sit just like previously with Ceres - positive results and still definately one for the 1 - 3 year high risk portfolio.

its headed for a breakout in aus

Hope so, bought in on Friday.

From a post on AFN is seems CFU is the main SCSW tip from this weekends monthly update.


rogerl - 7 Oct'06 - 12:03 - 235 of 235

Main SCSW recommendation today - "speculative buy"

heard a few rumours too that CFU could well be ahead of the game - perhaps a switch over from Ceres holders to CFU is likely - going to bet a large chunck of my porftolio on either These, SEO or GTL tomorrow just waiting to see.

Profit Watch (part of Fleet Street Publications) is tipping these in a comprehensive report over the last couple of days after extensive research on their part.

Not seen the report but understand CFU is well ahead of the game with their CHP SOFC.

Also understand that there has been an alternative energy conference in London yesterday at which details of CFUs progess would have been made known.

I hold these shares.

Some largish sells shown at the days end, anyone know if these were actually buys??

what sp did you get in?

GDP: 28p

I'm in at 28p after reading the SCSW because they stated that CFU should be moving into high gear in the next couple of months. They also added that potential newsflow could set the SP on fire!

closing trades: All buys!

Trades for 23-Oct-2006
Time Volume / Share Price
16:37 1,000,000 @ 29.88p
16:32 500,000 @ 29.88p
16:31 250,000 @ 30.00p
16:31 250,000 @ 30.00p

GD Potts: Can you put this link to CFU's website in the header to this thread please:


http://www.cfcl.com.au/

There you will find a copy of the Annual Report and other supporting documents.


Also: CFU launched its prototype micro fuel cell system 'NetGen' for domestic applications at the Ninth Grove Fuel Cell Symposium in London in Oct 06.

As well as providing , hot water, heating and electricity to homes, it will also supply excess generated elecricity back to the grid and can be monitored on the internet. (See Smart Power News Letter on CFU's website)

Net Gen is about 40% of the size of the previous demonstration units.

Lots of news today:

Quarterly summary of Cash Burn.

Grant of Options to Board Members

Yet another Patent granted.

Ceramic Fuel to build plant in Europe; moves towards commercialisation UPDATE
AFX


(updates with details of new patent)

LONDON (AFX) - LONDON (AFX) - Ceramic Fuel Cells Ltd (CFCL), a manufacturer of solid oxide fuel cells, said it will construct a plant in Europe to produce high quality ceramic powders, which are a key component of solid oxide fuel cells, using its patented technology.

The powder plant is scheduled to be commissioned in the first quarter of 2007.

In a trading statement, CFCL said it is 'now at an advanced stage of development, and is moving swiftly towards commercialization'.

CFCL posted a negative cash flow of 4.4 mln aud during its September quarter.

In a separate release, the company said it has been granted another patent for the use of aluminium-iron alloys for fuel cell system components by the European Patent Office.

The alloys, which are highly corrosion resistant and inexpensive to produce, will allow CFCL to continue to reduce the cost of commercial appliances using solid oxide fuel cells, it said.

Patents have also been granted for this invention in Australia and South Africa and are pending in other countries, the company added.