QPM - QPM Energy

[peter2]

Here's something that you don't see in many investment reports.

When was the last plague in Qld? Other than Labour ministers over the past decade.

 

[System]

On November 26th, 2024, Queensland Pacific Metals Limited changed its name to QPM Energy Limited.

 

[rcw1]

Good evening

$hit loads of volume yesterday (06/12/24) ... nice ... somebody knows something ha ha ha ha ha

15-minute chart

Announcement 4 December 2024 (see attached)

• Binding agreements have been executed in relation to Townsville Power Station (“TPS”) dispatch rights and North Queensland Gas Pipeline (“NQGP”) gas transport and storage services.  The agreements reflect the same key commercial terms previously announced by QPM;
• The agreed terms will result in a significant reduction in fixed operating charges and ensures QPM will be financially robust with capacity to accelerate its’ gas production growth plans
• Total annual fixed charges under the two agreements to fall by 83% compared to current contract terms; and
• The new contract terms would have improved QPME’s FY2024 financial performance by $30+ million.

Daily Chart

Have a very nice Sunday.

EDIT: now attached

Kind regards
rcw1

 

[peter2]

Selected for the Jan comp but could be a worthy contender for most of 2025.

QPM has transitioned from a mineral explorer, low cost nickel production research to gas powered power supplier in Qld.

Has contracted to buy the Moranbah Power Station. QPM already supplies the gas and will now sell the power it generates to the state grid.

Price threatening to break-out to a new high.

 

[frugal.rock]

Chart update.
I feel this could be a decent long term play from here?

 

[Dora Kent]

QPM's still got to prove it can be profitable, even with the modest aims that it has set itself.
The problem I have with them is that it's always good news, until you realise they weren't telling you the whole truth.
They keep raising cash, and keep spending it, and it's not always clear where it's being spent.
I think, wait until they actually post a net profit.

Even the recent acquisition of the turbines is spending money in the future before the current business case has been proven. And it won't be their own money they're spending. Apart from Eddie King's last modest spend in the cap raising last year, the management haven't taken advantage of the bargain prices. I just wish the company would learn to walk before they can run, and then they'd rebuild trust for shareholders whose $100M of capital they spent on consultants fees.

 

[frugal.rock]

I see 2 key personal have converted performance rights , CFO and a GM of Corporate Development, announced today.
I guess they showed up to work for a week straight? or something...
6 million shares each.
Pffft
I wonder how much of the consultant fees was "related entities" whether disclosed or not?

 

[Dora Kent]

I see 2 key personal have converted performance rights , CFO and a GM of Corporate Development, announced today.
I guess they showed up to work for a week straight? or something...
6 million shares each.
Pffft
I wonder how much of the consultant fees was "related entities" whether disclosed or not?

Consulting was high end, so probably not related.
I saw that the John Khoo and Duane Woodbury's 6M performance shares coincided with a roughly 6M sale on the bell yesterday afternoon.
I don't know if they're dodgy, and they seem to be doing robust work so far into the energy market, but they keep on doing these things that I think "No - please don't do that. Build the business before you start rewarding your directors or raise capital again"

Anyway the issues I've mentioned are the probable reason why the s/p is in the dumps and keeps getting sold into.

 

[frugal.rock]

Even the recent acquisition of the turbines is spending money in the future before the current business case has been proven.

I think they stated that some turbines have a lead time of 5-7 years, but they stopped short of saying whether what they have ordered and price fixed, have those lead times!
What are investors supposed to think?

" Secured 2 x 55.8MW aeroderivative gas turbines from GE Vernova under fixed price contract, significantly de-risking the development timeframe of the IPS as lead times for gas turbines are now 5 – 7 years for some models; "
From latest quarterly for the Isaac Power Station

 

[Dora Kent]

I don't know what to think, won't give them the benefit of the doubt now. Show me the money.

 

[Dora Kent]

Another 5.6M sold on the close today. Maybe John K and Duane W are tag teaming.

 

[Robbo]

Popped up on a scan last week, suggesting supply may have been exhausting and proceeded to see a bump yesterday (earning a speeding ticket from the ASX and a "we know nothing".

I wasn't quite convinced to throw my hat in the ring, so it remains on the watchlist.

 

[Dora Kent]

I think it's also too early based on the fundamentals.
Their main revenue source, Townsville Power Station has recently come back online and you can see the revenue generated here is just over $4M since the start of the FY. They share that revenue I think it's 50% so that is nowhere near what they need.

In their presentations they inevitably quote the shoulder (dawn/dusk) QLD electricity price peaks. These numbers are irregular. Sometimes the revenue is very high as the price hits a cap of around $16,000/MWh but these are rare and unpredictable. This patchy income stream, plus the company's habit of spending money they haven't got, and then doing a discounted CR for their pals at Fosters is what keeps this from rising.

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