http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Yes...quite a recovery going on here....

With the 1st opening day later this week, any sp effecting news available has to be released to the markets prior to that date.
So fingers crossed re another RNS today or Tomorrow.

:-( ....... can't follow 'em all ..... held these many moons ago but got seriously fed up with them ...... still, there are many more stinkers that become more and more putrid

Yet another good close!

hi greek - tough one to call this ...... have AFC got the technology at least half-way sorted yet or is the product still very much in the R&D stage? ...... if the latter, then a sharp retrenchment may shortly(?) be on the cards

the 5 year chart shows all time high more than twice current, but why was that and why the collapse?

The reason for the rise is of course Mr Abramovich's investment (I don't know why : but I always think of Asterix and Obelix when I hear that name)......such a sharp rise might be followed by a pullback to the lower forties again.....just guessing..

clunk! ..... no surprise

Too sharp a rise....check out JKX oil and gas Cynic....might be worth a punt for a few months...market cap far too low...

Looked to buy just a few more, but no way with a spread of plus 5%.

grand old duke of york doing a spiffing job here

Yep,i've been thinking to buy back in myself,i'll wait a little longerand see where it settles at ?

I've been offered 35p to buy this morning - I've put a limit in a bit lower!

if you have already taken a decent profit, then say "thank you very much" and walk away

Almost at the top of the gap now.

I've been filled @33p - time will tell.

i'm amazed you fancy this one ..... i guess they are closer than CRA to something commercial, but just because Mr A decides to throw some money in the pot, does not mean that the company is a winner

That's about it really - I feel I need a foot in this area and have watched these for ages.

Mind you, one to watch long term, will be this British company when/if they come to market. Exclusive: The scientists who turned fresh air into petrol

On edit - I should point out that it is a peppercorn holding.

http://www.independent.co.uk/news/uk/home-news/exclusive-pioneering-scientists-turn-fresh-air-into-petrol-in-massive-boost-in-fight-against-energy-crisis-8217382.html

http://wikisend.com/download/811664/AFC.pdf


MC PEAT & Co Booklet - Page 1

FC Energy aims to become one of the lowest cost generators of electricity on an industrial scale. Its proprietary ‘alkaline fuel cell’ technology is currently undergoing trials that, when successfully onc1uded, should open the route to its commercialisation. We initiate coverage with an 80p TP.

Low cost electricity producer:

AFC Energy’s main focus when developing its fuel cell technology, was to make sure that its ‘system’ could produce electricity on an industrial scale (ie MW class) at a very low cost — such that it would be competitive against mainstream electricity generators which use ‘old fashioned’ technology to turn heat energy (steam) into electricity using ‘engines’ and ‘turbines’ (inherently less efficient processes). We believe that AFC is on track to produce electricity at 4p/kWh (or lower) once commercial volumes are achieved (in FY’16).

Enormous market potential:

The production of electricity at such a cost would generate enormous interest from many industrial sectors. We believe that AFC will initially concentrate its resources to service a few key sectors such as the chlor-alkali market, the waste to energy market, the distributed power market and the Korean market. The provision of a service to just these markets could see AFC installing 3OMW+ of capacity pa in FY’16 onwards.

Pilot production plant:

The company has recently opened a new production facility at its UK HQ to enable it to produce up to 20,000 electrodes pa. This will give the company sufficient capacity to meet its anticipated levels of demand over the next 18 months. We take this as a good signal on the part of management of its confidence in the near term technical and commercial success of its fuel cells.


AkzoNobel trials:

AFC Energy has installed some of its fuel cells for trial purposes into a chlor-alkali plant owned by AkzoNobel in Germany. Many different parameters are currently being tested, including longevity. We believe that the successful conclusion of these tests will send a huge signal to other potential partners to accelerate their commercial discussions with AFC.
I - fantastic value opportunity: Using a DCF based valuation approach (based on our ‘central case’ revenue assumptions) we derive a 12 month ‘fair value’ for the stock of 1 15p (with a WACC of 15%). We have then applied a 30% market discount to arrive at our 12 month Target Price of 80p.

a very good critique, but of course and as outlined in the preamble it does presuppose that the trials are every bit as successful as expected or even promised