http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

we're all guessing as to why the strike price was set where it was

i offered a suggestion, which could well be garbage, as could be the intimation that the directors have done something untoward

StockMarketWire.com
AFC Energy's operating losses rose to GBP3.8m in the six months to the end of April - up from GBP2.9m a year ago - and the group reports a post-tax loss of GBP3.46 million against a profit of GBP1.73 million last time.

In the period, the company continued to recognise grant income under the European Framework Programme 7 for Laser-cell, POWER-UP and Alkammonia projects. Direct labour and material costs associated with these projects were recognised in cost of sales. Cost of sales rose by £0.92 million to £2.07 million (30 April 2015: £1.15 million) as work neared completion at the POWER-UP site at Stade in Germany and fuel cell cartridges were manufactured for operations at Stade, but administrative expenses remained static, reflecting tight control of costs.

There was a financial loss of £0.15 million (30 April 2015: £4.47 million gain), mainly arising from the final settlements received in respect of the Lanstead equity swap which terminated in April 2016.

Over the full life of the equity swap, which commenced in October 2014, a net gain of £2.5m was realised.

The net cash inflow in the six months to 30 April 2016 was £1.08 million (30 April 2015: £0.97 million net outflow) as a result of the Company's careful control of operating and capital costs, the monthly settlements received from Lanstead, and the successful placing and offer for subscription which raised a total of £3.60 million net of costs. The cash balance at 30 April 2016 was £2.84 million (30 April 2015 £3.89 million).

Chief executive Adam Bond said: "During the period we advanced our alkaline fuel cell technology to demonstrate power output of 204kW, at the Stade industrial facility in Germany. Following this success, we committed to a demanding work program and further milestones in 2016, against which the team is making sound progress in relation to technical/operational targets. In parallel, we are progressing the development of further strategic and technical partnerships for new power projects in our target markets."

StockMarketWire.com
AFC Energy has received a net cash payment from the European Union's Fuel Cells and Hydrogen Joint Undertaking of €2.052m after taking into account net cash payments to other project partners within the POWER-UP programme.

These funds are related to the POWER-UP project for the period ended 30 June 2015; a further claim for the period ending 30 June 2016 is due to be submitted shortly.

StockMarketWire.com
AFC Energy says design and basic engineering of the company's new 10kW fuel cell system, including accompanying balance of plant, has been completed ahead of schedule.

Completion of AFC Energy's 10kW system design and basic engineering included the conduct of a thorough examination of all safety aspects and functions of the system using the Hazard Operability methodology for process hazard assessment.

The HAZOP was conducted at the Company's Dunsfold offices in the last week of June, with participants from AFC Energy, plantIng GmbH and independent fuel cell and hydrogen expert consultancy Efficientics, which chaired the proceedings.

Detailed engineering & procurement will now commence, ensuring the system will be deployable within 2016 as articulated in Milestone 4 of the Company's Strategic Milestones.

Project management, process engineering, procurement, design and construction management are all within the remit of plantIng's engineering team, closely supported by AFC Energy's staff in accordance with the two companies' strategic partnership agreement.

The Company also issued an update on progress relating to Milestone 5, AFC Energy's larger 1MW scale system. This work is progressing to schedule with the initial conceptual design phase completed by plantIng in the last week of June and now subject to AFC Energy's internal review.

The concept engineering phase will help establish the design and operating principles of AFC Energy's new large-scale system and is a necessary pre-requisite for the system's basic design and engineering. The product, which could be sized up to 1.2MWe across a containerised and modular system, is designed to be scalable dependent on customer specifications and is suitable for multi-megawatt installations. The design of this system builds upon the extensive experience accrued by both AFC Energy and plantIng during project POWER-UP and AFC Energy's previous systems earlier this year, as well as from the BETA and KORE modules.

Chief executive Adam Bond said: "We continue to hold discussions with commercial parties interested in the whole range of fuel cell systems currently being developed by AFC Energy, including this 10kW system. Delivery of the small-scale system's basic engineering in such a tight timeframe is further validation of the decision to collaborate with our strategic partner plantIng and moves the Company further along the path towards commercialisation."

KEEP an EYE

AFC 15.875p ( 15.50 / 16.25p )

Large volume yesterday were I suspect the overhang was cleared, has since move forward with some large trades some delayed and again rising volume.

at the moment, i'm just keeping it in the drawer with a few other dogs that still await to have their day :-)

Well I bought some earlier this afternoon as the volume was building up, was looking at them this morning but was holding coz the spread was large, eventually had to pay higher price

not your style i know, but i think the technology has definite promise, and as long as the company stays afloat, i dare say it will do very well in time - but that may still be 2/3/4 years away

BREAKOUT

Breaking out of the 3 month intraday high with volume very important on those cases

19.125p +4.625p

The breakout is working wonders for the share price as 100K buy paying premium and gets the offer at 20p

Perhaps the rise is down to the sudden decision to delay Hinkley Point.

I did hear a rumour that yesterday AB had talks with Andrea Leadsom the new energy minister, IF ONLY!!!!

We could find out in a while how useless those massive wind farms are if these type of company gets some decent press and orders .

20.75p +2.75p

They are moving further up on good volume already

A couple of large buy trade earlier on and both paying premium meaning above offer price 19.25p at the time
and finally bid goes to 19p to fill the book for the buys

15:49:22
19.75p
132,500

14:42:20
19.50p
200,000

With a closing bid of 18.5p and offer of 20.5p the mid price is obviously 19.5p. but not so where MoneyAm are concerned.

Sometimes they show the bid price same as the bid price and other times they don't.

It's no use querying this as with many such faults, no long term fix appears.

For a far more accurate close price as well as portfolio value I always now use another site.

RNS.

Just looking at the countries where De Nora have interests with more than one location in several of these countries makes ones mouth water.

Japan, Germany, Brazil, China, India, USA, Abu Dhabi, Singapore and the UK.

And as De Nora produce water filtration systems for the oil industry and emphasise the importance of this, a combination of an energy system with pure water as the only by-product looks an excellent idea for oil installations. Now if only there was such a technology!

Oh there is and many of us were the first to see what the benefits of this could be..

Whilst I appreciate that investors and wanting that all important contract to start the race to full profitability, surely this RNS must hike the SP upward several points whilst putting AFC more firmly on the radar of both investors and potential customers.

StockMarketWire.com
AFC Energy, the industrial fuel cell power company, has signed a joint development agreement with the Italian company Industrie De Nora.

The collaboration is targeting technological enhancements to AFC Energy's fuel cell system and to further accelerate commercialisation of AFC Energy's technology platform.

Subject to satisfactory progress, it is the intent of the parties to widen the collaboration to develop new product offerings combining the AFC Energy fuel cell system with De Nora's systems and provide a vehicle to open new markets for mutual benefit.

De Nora is a multinational leader in sustainable technologies, that offers energy savings solutions for several electrochemical processes; in addition De Nora manufactures commercial electrodes for alkaline water electrolysis, chlor-alkali, galvanic processes and is a recognised global player in water and wastewater treatment, disinfection and filtration for marine, power, industrial and municipal markets.

Profit taking lowering sp, but my bet is that by close today the sp will be up.

AFC's Italian deal rubber stamps technology - 14:46 05 Aug 2016
proactive investors

The broker Peat & Co reckoned the joint development agreement with Italy's Industrie De Nora provided “real, independent and objective validation of AFC’s technology”.

AFC Energy plc (LON:AFC) has signed a joint development agreement (JDA) with an Italian firm called Industrie De Nora designed to “accelerate the commercialisation” of former’s fuel cell technology.

The pair plan to widen the collaboration to develop new products based around AFC’s technology subject to the “satisfactory progress” of the initial collaboration.

The tie-up follows “extensive technical discussions between the two parties over recent months”.

According to AFC chief executive Adam Bond De Nora is “arguably the world's leading designer, manufacturer and supplier of electrodes”.

“The relationship and the proposed program for collaboration will significantly build on the recent successes of AFC Energy and will no doubt materially de-risk and speed up AFC Energy's path to commercialisation,” he added.

“I am delighted that AFC Energy will now be working closely together with De Nora and its world class team."

VIDEO: Boss gives his insight on deal
IN DEPTH: Major milestone passed ahead of schedule
AFC specialises in an alkaline fuel cells that use hydrogen to generate electricity.

Its KORE system uses three components, an electrode, cartridge and balance of plant, to make one cell, which are then stacked into a unit of 101 cells to make a cartridge, which can be replaced like a battery when degradation starts to occur.

Last year (2015) it successfully tested the 101 fuel stacks, completed most of the milestones of the Power-Up Project and began signing up partners.

It now has a 50 megawatt (Mw) project development agreement with Samyoung Corp and Chang Shin Chemicals in South Korea, a 10 Mw heads of agreement with Bangkok Industrial Gas in Thailand and a 300 Mw outline deal with the Dubai Carbon Centre of Excellence.

AFC’s systems runs on hydrogen and it reckons that the excess of the gas generated by the chlorine and caustic soda industry could support over 3,000 Mw of capacity, providing nearly 20% of the industry's power needs.

The company’s own target is to have 1Gw (1,000 Mw) of capacity installed by 2020 and recently reaffirmed its confidence in achieving that objective.

Shares up 42% in the last month
The shares, up 42% in the last month, paused for breath. At 2.30pm they were changing hands for 19.2p, valuing the business at just shy of £60mln.

Cantor Fitzgerald analyst Adam Forsyth, reiterating his ‘buy’ advice on the stock, reckons AFC is worth 77p.

“We see commercial traction as the key risk with funding and technology risks also present. We think the JDA announced today goes a long way to minimise the latter,” he said in a note to clients.

Objective validation of the technology
The broker Peat & Co reckoned the deal provided “real, independent and objective validation of AFC’s technology”.

It also pointed out the development agreement is a legally binding, unlike some of the other, looser deals “which the market has perhaps been a little under-whelmed with in the past”.

Peat reckons De Nora a world leader in electrode manufacture. It has teamed up with Thyssen Krupp to form the world’s largest provider of electrolysis technology to the chlor-alkali industry, which should provide AFC with global market access.

“It probably goes without saying that there are huge opportunities for joint knowledge sharing and technical de-risking of AFC’s technology platform,” Peat said in a note to investors.

“De Nora already have multiple commercial applications which they will consider integrating AFC’s technology into, opening a range of new markets in the process (for example potential access to the water treatment market)."
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According to a Bloomberg article AFC and De Nora SPA are to combine their technologies to create new products for the Automotive industry...

bloomberg -afc-energy-partners-with-industrie-de-nora-for-fuel-cells

StockMarketWire.com
AFC Energy, the industrial fuel cell power company, has launched a new brand identity reflecting its ongoing transition from an R&D-focused technology company to a commercial company providing large-scale industrial applications. The company's new brand identity includes a new logo, which made its first appearance on the 2015 Annual Report & Accounts, as well as a new website which has been launched today.