Shares of SIMEC Atlantis Energy Ltd (LON: SAE) are down 46.2% this year and seem to be headed towards their all-time lows, as shown in the weekly chart below. What’s next for the company?
The sustainable energy company’s shares have fallen drastically after the Welsh national government agreed to stop the Newport City Council from approving the Uskmouth waste-to-energy project after an environmental group called in the project.
The Uskmouth project was meant to be the company’s flagship waste-to-energy project that would serve as a global blueprint for how countries can convert coal power plants into generators of electricity from waste products.
The environmental group known as Friends Of the Gwent Levels (FOGL) welcomed the Welsh national government’s decision. Still, we are yet to get any confirmation as to whether the project will be approved.
SIMEC shares have fallen significantly since the hold order was issued, which indicates that investors expect the project to be halted, which could have a massive negative impact on the company.
The company’s tidal energy business is still operating as usual, given that the company finally delivered its Scottish-built AR500 tidal turbine to Japan in mid-February, much to the delight of investors.
SIMEC has had a tumultuous year so far, starting with the firing of its former CEO Tim Cornelius in early January and Graham Reid’s appointment in his place. The company had also made several board changes before its former CEO’s departure.
The current challenges with its flagship Uskmouth project have led to the latest downtrend, and this is unlikely to change until we get some confirmation of whether the project will continue. In the meantime, the company’s shares are headed towards their all-time lows hit in March 2020.
SIMEC Atlantis share price.
SIMEC Atlantis shares are down 46.28% this year and are trading near their all-time lows; what’s next for the company?