Shares of SIMEC Atlantis Energy Ltd (LON: SAE) are down 62.5% this year but show signs of recovery after hitting new all-time lows on Wednesday 19th May after its biggest shareholder entered receivership proceedings.
Investors were worried that SIMEC UK Energy Holdings Limited (SUEH), which owns 43% of SIMEC Atlantis shares, would liquidate its holdings after the receiver takes control of the company.
Since February this year, the waste-to-energy company’s shares have been falling after a third party wrote to the Welsh national government asking it to intervene and call in the Uskmouth project approved by the Newport City Council.
SIMEC Atlantis yesterday issued an update on the project, saying that it submitted a “Statement of Case” (SOC) to the Planning Inspectorate on 21 May 2021. The next step in the call-in process is for the Planning Inspectorate to review SIMEC’s environmental statement for the Uskmouth Conversion Project.
The company said that it is waiting for feedback from the Planning Inspectorate in due course. SIMEC has outlined why the Uskmouth project should be approved, including that the plant will remain a thermal combustion electricity generating station. The company is seeking planning permission to change the station’s fuel source.
From a technical perspective, the company also noted that all it would be doing is bringing the electricity generation plant back to life and changing its fuel source, which was not opposed by the statutory consultees.
SIMEC Atlantis’ tidal turbine business is also doing quite well after the company’s Scottish-built AR500 tidal turbine installed off Naru in Japan received s ministry of economy, trade and industry (METI)’s approval.
The success of its four-month trial showed that the tidal industry could make a meaningful contribution to Japan’s goal of diversifying its energy sources to include more renewable sources.
I believe SIMEC’s shares will shoot higher once the Uskmouth project is approved since this year’s decline was triggered by the call-in order in early February.
SIMEC Atlantis share price.
SIMEC Atlantis shares are down 62.5% this year but recently bounced off their all-time lows. Can they rally higher?