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Frontier Shortlists Preferred Banks as Waroona Debt Financing Process Moves into Phase Two
Frontier Energy Limited (ASX: FHE; OTCQB: FRHYF) (Frontier or the Company) is pleased to provide an update on the Company’s funding strategy for the Stage One development of its Waroona Renewable Energy Project (Waroona Project).
HIGHLIGHTS
- Frontier has commenced Phase Two of the debt financing process, shortlisting preferred banks ahead of additional due diligence to enable submission of binding, credit approved terms
- The Company anticipates credit approved terms to be provided during the next 8 to 12 weeks, assuming successful completion of due diligence
- Phase One of the Debt Financing Process generated strong interest from Australian and international banks, confirming:
- Interest in providing senior debt financing which aligns with the Definitive Feasibility Study (DFS) assumptions1
- Acceptance of the selected original equipment manufacturers
- Key due diligence requirements and the proposed third-party service providers to undertake the work to meet those requirements
- Ability of potential financiers to meet the proposed timetable
- The DFS set out the maximum debt carrying capacity and included assumptions regarding amortisation periods and interest rates
- Targeted maximum debt carrying capacity in the DFS was between 65% to 70%, which equates to a debt facility of $200 million to $225 million
- The strategic equity investor process is ongoing, with NDAs in place with a number of Australian and international groups
CEO Adam Kiley commented: “Key to the initial phase of the debt financing process was confirmation of our major funding assumptions, which assumed gearing levels of between 65% to 70%, equating to between $200 million and $225 million, equipment selection, due diligence requirements and the funding timetable.
Confirmation of these key assumptions in such a short time frame is testament to the key attributes of the Waroona Project being well understood by financiers, predominately due to its simplicity and its executability as well the strong returns it delivers.
We have now moved into the second phase of the debt financing process and will be working closely with shortlisted banks towards credit approved terms and complete due diligence requirements in a timely manner.”
Shortlisting banks for debt financing
Following the release of the DFS for Stage One of the Waroona Project in late February, the Company commenced the Debt Financing Process to assist in meeting the funding required for development at the Waroona Project. Image 1 below provides an outline of the key outcomes and indicative timing for each phase of the process.
Image 1: Waroona Project – Debt Financing Process and indicative timing
As highlighted above, Phase One of the Debt Financing Process involved the Company’s debt advisor, Leeuwin Capital Partners, seeking expressions of interest from financial institutions to participate in the Debt Process.
Click here for the full ASX Release
This article includes content from Frontier Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Investor Presentation
Carbonxt Group Ltd (ASX:CG1) (“Carbonxt” or “the Company”) provides the attached Investor Presentation
Company Snapshot
- Carbonxt products remove toxic pollutants from a range of industrial, water and air environments.
- The products are unique engineered activated carbons with first of a kind manufacturing operations.
- Three US-based production facilities, with the third facility being commissioned over the coming months.
- Industry leading R&D capability.
- Environmental regulations driving strong customer demand.
- New joint venture with Kentucky Carbon Processing, LLC (“KCP”) to expand production and product range.
- Recent EPA regulatory change underpins impending water market entry, significantly expanding addressable market.
Click here for the full ASX Release
This article includes content from Carbonxt Group, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Honda to Establish C$15 Billion Electric Vehicle Value Chain in Ontario
In a bid to expand its electric vehicle (EV) capabilities, Honda Motor (NYSE:HMC) has announced plans to invest approximately C$15 billion to establish a comprehensive EV value chain in Ontario, Canada.
The investment reflects Honda's efforts to meet the increasing long-term demand for EVs in North America.
“Today's announcement is a historic investment by a manufacturer in the Canadian auto industry,” said Honda Canada President and CEO Jean Marc Leclerc in a company announcement on April 25. “It proudly honors the highly skilled associates who have earned a global reputation for manufacturing excellence and represents Honda’s recognition of the long-term attractiveness of the Canadian electric vehicle manufacturing ecosystem.”
The proposed EV value chain will include the construction of an innovative EV assembly plant and a standalone battery manufacturing facility in Alliston, Ontario. Additionally, Honda plans to build a cathode active material and precursor (CAM/pCAM) processing plant and a separator plant through joint venture partnerships.
Once operational, the EV assembly plant is expected to produce up to 240,000 vehicles per year, with the battery manufacturing facility boasting a capacity of 36 gigawatt hours annually.
The project is anticipated to create over 1,000 new manufacturing jobs in Ontario, while also generating significant spinoff employment opportunities across various sectors.
"Today’s announcement is a game changer for manufacturing in Canada,” said Justin Trudeau, Canada’s prime minister. “Honda’s investment is a vote of confidence in Canada, in Canadian auto workers, and in our manufacturing sector. Together, we’re creating good-paying jobs, growing our economy, and keeping our air clean."
Honda's investment aligns with its transition toward carbon neutrality, with a target to achieve 100 percent zero-emission EV sales by 2040. The move also involves supplementary investments such as retooling existing facilities and establishing a joint venture EV battery plant with LG Energy Solution (KRX:373220), with an expected investment of US$4.4 billion.
The company views the establishment of the EV value chain in Ontario as a strategic step toward achieving this goal, leveraging the region's skilled workforce and supportive business environment.
Collaboration with the Canadian and Ontario governments will also play a crucial role in driving innovation and providing incentives to support the project. The federal government's new investment tax credits and provincial incentives aim to promote low-emission manufacturing and attract investments in EV supply chain segments.
North America's EV landscape
The North American EV market is slated for substantial growth, driven by increasing EV adoption and supportive government initiatives, according to a forecast from Fortune Business Insights.
As the third largest region in the global EV market, the area is projected to experience a CAGR of 16.1 percent during the forecast period. The market size is expected to soar from US$62.73 billion in 2022 to US$228.47 billion by 2030.
In the US, both consumers and the government are increasingly investing in electric mobility. The US Department of Transportation's approval of EV charging network plans for all states, covering approximately 75,000 miles of highways, underscores the nation's commitment to expanding EV infrastructure.
Canada also boasts untapped potential in the production of essential materials for EV components. As one of the top five countries producing cobalt, copper, graphite, precious metals, nickel and uranium, Canada's expansion into lithium, magnesium and rare earths production further strengthens its EV market position.
Don't forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Quarterly Activity Report Quarter Ending 31 March 2024
HIGHLIGHTS
- Frontier released its Definitive Feasibility Study (DFS) for a 120MWdc Solar Facility with integrated 80MW 4-hour battery (Stage One). DFS Highlights included:
- Stage One generates average EBITDA1 of $68 million pa over first five years of production and $63m pa over first 10 years of production
- Post-tax payback1 of 5.8 years (4.6 years pre-tax) based on $304m total initial capital cost
- Leveraged2 post-tax Internal Rate of Return (IRR) is 21.6%1 and pre-tax IRR is 27.3%1.
- Procurement and EPC contracts nearing conclusion with all equipment selection being with tier one providers
- Tender process resulted in cost estimates for all major long lead items in line with or lower than DFS estimates
- Final equipment selection and contract negotiations on track for conclusion in Q2
- Phase One of the debt process confirmed strong interest from banks to provide debt funding solutions in line with the terms outlined in the DFS, including approval of debt carrying capacity of 70% which equates to $225 million
- A select number of leading Australian and international banks have been shortlisted (Phase 2) as part of the debt financing process
- The Company anticipates credit approved terms to be provided during the next 8 to 12 weeks, assuming successful completion of due diligence
- The strategic equity investor process is ongoing, with NDAs in place with a number of Australian and international groups
- WA peak electricity operational demand reached a new record of 4.23GW in February 2024, and exceeded the record peak six times during the March quarter
- A significant rise in peak prices (4pm – 9pm) occurred during the March quarter, increasing by 65% to $172/MWh compared to the previous yea
- The average energy price in 1Q24 was $78.5/MWh, 6% higher than 1Q23 ($74.2/MWh)
- On 14 occasions during the quarter, the Australian Energy Market Operator paid for demand reduction to ensure stability and reliability of the system
- As at 31 March 2024, Frontier had cash of $10.3m (unaudited)
Stage One DFS confirms strong financial returns
The Company’s Stage One DFS highlights Frontier's unique opportunity to be a near-term major renewable energy producer in Western Australia, at a time when energy demand continues to outpace supply in WA, resulting in electricity prices reaching record highs. The key project assumptions determined by the DFS are highlighted in Table 1 below.
The DFS forecasts annual renewable electricity generation of approximately 258GWh (year one). Of this, 120GWh is stored in integrated DC coupled batteries and sold in the Wholesale Electricity Market (WEM) at peak demand times, with a charging and discharging efficiency loss of 15% or 18GWh.
Click here for the full ASX Release
This article includes content from Frontier Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Tesla Shares Jump on Full Self-Driving Milestone in China
Tesla (NASDAQ:TSLA) shares rose on Monday (April 29) morning following the announcement that Chinese authorities have approved the company’s advanced driver-assistance technology.
The company was up 11.88 percent from Friday’s (April 26) close at US$188.29 as of the opening bell.
CEO Elon Musk made a surprise trip to China over the weekend as the Beijing auto show ended. Soon after his landing, news broke that the company’s advanced driver-assistance technology has successfully met China’s strict data security requirements, leading to the removal of previously placed Tesla car restrictions that prohibited the use of cameras and sensors and restricted over-the-air Tesla updates.
This development has fueled expectations that Full Self-Driving (FSD) could soon be available in China.
Due to concerns that built-in cameras could collect sensitive information, Chinese officials had banned Tesla vehicles on certain government properties. However, Musk’s meetings, which included a sit-down with Chinese Premier Li Qiang on Sunday (April 28), apparently appeased officials, who also approved new energy vehicle models from Chinese-owned BYD (HKEX:1211), Lotus (NASDAQ:LOT), Nezha, Li Auto (NASDAQ:LI) and Nio (NYSE:NIO).
Tesla has reportedly also signed a deal with Baidu (NASDAQ:BIDU), China’s most widely used search engine, that would grant Tesla access to Baidu’s mapping and navigation technology for FSD, further solidifying its position in the market.
Tesla’s FSD system is classified as a Level 2 driver-assistance system, which means that although it can handle some aspects of driving, the driver must remain attentive and prepared to take control at any moment.
FSD is an upgrade to Tesla’s Autopilot driver-assistance system, which primarily focuses on maintaining the vehicle’s speed and lane positioning. FSD expands upon these capabilities with more complex features, such as automatic lane changing, intersection navigation and object recognition. The technology has been offered in China since September 2020, but with limits on features such as automated lane changing and adaptive cruise control.
In the US, FSD is currently undergoing beta testing, with users providing feedback to refine the system. Tesla’s Autopilot features have been subject to scrutiny, and just last week safety regulators opened an investigation into whether new safeguards installed during Tesla's December recall of more than 2 million cars are enough to address safety concerns following a series of crashes. It has since been reported that Autopilot was linked to at least 200 crashes and 29 fatalities.
Tesla’s recent breakthrough in China could provide a much-needed boost for the carmaker, as it has been facing stiff competition from local EV manufacturers. Its sales in China have been declining as new competitors enter the market, prompting the carmaker to pursue strategies such as price cuts in an attempt to regain market share. The introduction of FSD could be a significant differentiation factor for Tesla, setting it apart from Chinese EV manufacturers.
The approval of Tesla’s technology in China comes after the company’s Q1 earnings call last week, which revealed a 9 percent drop in revenue and 22 percent fewer car sales than the previous year, Tesla’s biggest annual drop since 2012.
Tesla shares closed Monday at US$194.05.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Appendix 4C
Carbonxt Group Ltd (ASX:CG1) (“Carbonxt” or “the Company”) has released its Quarterly Cash Flow Report.
Click here for the full ASX Release
This article includes content from Carbonxt Group, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Carbonxt Group Limited – March 2024 Quarterly Update
Carbonxt Group Ltd (ASX:CG1) (“Carbonxt” or “the Company”) has released its Appendix 4C Report for the March 2024 Quarter and provides the following update on the key areas of activity for the period -- all numbers are in A$.
Highlights
- Customer receipts for the March quarter were $3.6m – an increase of 8% on the prior quarter.
- Sales of Powdered Activated Carbon (PAC) were consistent q/q and up 56% on the prior comparative period due to increased sales in non-coal fired power station channels. This outcome has been a deliberate effort of the Company to improve manufacturing efficiencies and increase gross margins.
- Sales of Activated Carbon Pellets (ACP) were up 37% on the prior quarter.
- Construction of the flagship Activated Carbon production facility in Kentucky, USA is now focused on commissioning activities, with operations expected to commence early in Q3 CY2024.
- Post quarter-end, the US Environmental Protection Agency (EPA) released an important update on PFAS regulation, with the introduction of legally enforceable rules that limit PFAS levels to 4 parts per trillion (ppt) in US drinking water.
Carbonxt is a cleantech company that develops and manufactures environmental technologies to maintain compliance with air and water emission requirements and to remove harmful pollutants. The Company’s primary operations are in the US and include a significant R&D focus as well as manufacturing plants for activated carbon pellets and powder activated carbon. Carbonxt continues to expand its pellet product portfolio to address numerous industrial applications.
Managing Director Warren Murphy commented: “The March quarter marked another busy period for Carbonxt’s US team, as final construction activity at the flagship Kentucky facility approaches completion ahead of commissioning and first production. The new facility will provide the Company with a significantly expanded production capacity for Activated Carbon products in both granular and pellet form, marking an important step forward as part of our commitment to play a key role in the provision of market-ready products to improve the quality of US water supplies. The industry continues to enjoy strong policy and regulatory support at the federal government level, highlighted by the latest EPA announcement confirming the new legally enforceable standard for PFAS levels in US drinking water. We look forward to providing consistent updates on Kentucky in the June quarter as final construction works are completed ahead of the commencement of full production operations which are scheduled for early in the September quarter.”
Click here for the full ASX Release
This article includes content from Carbonxt Group, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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