Shares of SIMEC Atlantis Energy Ltd (LON: SAE) spiked 6.82% higher after announcing that it had installed its tidal turbine in Japan, which generated 10 megawatt-hours clean electricity within the first 10 days of operation.
Today’s announcement is a significant win for the company given that the turbine built in Scotland had delivery delays due to the impact of the coronavirus pandemic on shipping schedules.
Investors were unimpressed by today’s news following the slew of bad news that has plagued the company this year, starting with its CEO’s firing on January 8 with immediate effect and Graham Reid’s appointment as the new CEO to halting its Welsh development plans.
SIMEC Atlantis was forced to stop the development works in a Newport power station approved by the Newport City Council, after a third party asked the Welsh national government to determine if it should continue.
Investors are waiting to see if the Welsh government thinks the call-in has merit with a decision expected within 21 days from when the third party requested the review on February 3. If national authorities accept the call-in, they will have to determine if SIMEC’s project can continue.
A ruling favouring SIMEC could trigger a massive rally from current prices, but a judgment against it could see the stock fall much further. I’m long-term bullish on SIMEC and would be buying more of its stock at current prices.*
Local authorities had approved the project, which stacks the deck in SIMEC’s favour, but anything could happen, mostly if the call-in is accepted.
*This is not investment advice.
SIMEC Atlantis share price.
SIMEC Atlantis shares rallied 6.82% to trade at 20p after rising from Friday’s closing price of 18.7p.
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