#Water Consumption is forecast to double by 2050.
#The production of biofuels has also increased sharply in recent years, with significant impact on water demand. Between 1,000 and 4,000 litres of water are needed to produce a single litre of biofuel.
#Almost 80% of diseases in so called "developing" countries are associated with water, causing some three million early deaths. For example, 5,000 children die every day from diarrhoea, or one every 17 seconds. Demand for freshwater is increasing by 64 billion cubic meters a year (1 cubic meter = 1,000 litres).
Melbourne, New York 13 March 2020
Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has entered into a new strategic market segment and new province with an Aspiral TM sale to Beijing China Railway Science New Technology Co. Ltd. for a project involving the Chinese Railway System in Inner Mongolia.
Utilizing Fluence’s proprietary MABR technology, this Smart Products Solution consists of an Aspiral™ L3 unit to treat an initial 35m 3/day of highly concentrated wastewater. The wastewater is unusually high in nitrogen, similar to Fluence’s Hubei highway Systems project s and, once treated, will meet standards equivalent to China ’s Class 1A effluent requirement . Fluence’s MABR technology has demonstrated its ability to comply with the required effluent standards in previous extreme cold temperatures, while maintaining treatment fidelity.
08-July-2020: I can see why FLC might look like rediculously good value at around 20 cents per share, but their chart is truly horrible, and they are very exposed to China - who may well still be trying to punish Australia for daring to ask for an inquiry into the origins and early response to COVID-19. I have been out of FLC for a long time now, and haven't been following them very much. I also removed them from my Strawman.com scorecard some time ago because I saw little reason why their SE SP trajectory was going to suddenly change and head north again. I removed PET recently for much the same reasons. A small Australian company with too much invested in China at the wrong time.
Other issues specific to FLC, in my opinion, include:
Of course, 2 days later (on Friday 10th July, 2020) - they released this announcement: Fluence Achieves Positive Quarterly Cashflow. And rose +17.5%.
I think a number of my points do however remain valid. On the other hand, this could be a positive inflection point for FLC. Time will tell.
Fluence operates in the small to mid range of water treatment, desalination project size.... They work globally from a minesite in Chili, a chicken factory in Italy, a resort in the Philipines, the worlds longest highway in China....and on and on.
This market is saturated with huge multinationals that are chemical companies like ECOLAB, Solenis, filtration companies such as Pentair, some Chinese giants.
On the small cap space I also own Scidev Ltd (ASX:SDV) which imports chemicals that coagulate all the crap in the water that you can then filter out with standard processes.... SDV have a big market in coal mines and recently building sites.
None are as compelling as Fluence, which is weird as I am down on FLC and up on SDV even though I'm more bullish on FLC, as their product offering is diverse, scalable, environmentally friendly, energy efficient, and are fast approaching cashflow positive.
Some countries import water to survive...eg Turkmenistan imports 97% of its use!!! Ok that is an extreme example.. Zimbabwe imports 39%. Not only poor countries.. Switzerland imported 24% of its use ****All these stats are in 2017****
By reusing wastewater, having decentralised desalination plants in an energy efficient, environmentaly friendly, cost effective solution I believe and hope that Fluence and the communities it serves can prosper.
Fluence achieves positive EBITDA in Q1; and expects to be cash flow positive in Q2
Quarterly Activities Report for Quarter Ended 31 March 2020 (Q1 2020)
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[Disclosure: I have held FLC shares in the past, but do not currently hold any. I'm interested again however - it sounds like they may be at an inflection point - moving into being a profitable company at last]
Update: I looked into them a little further and soon lost that interest. As explained in my forum post today (8-July-2020).
FLC has a suite of decentralised waste water treatment and desalination technologies and is slowly winning global recognition.
FLC has successfully cracked the difficult Chinese market. The company also has significant projects in the Ivory Coast and Argentina.
The US is also looking at improving wastewater management and clean water technologies with legislative change.
I believe the snowball is tettering at the top of the hill and FLC may have identified managable solutions for global decentralised clean water technology.
Thus far FLC technology is proving to be reliable, effective and inexpensive to maintain!
Do your own research but the demand is coming! Can FLC successfully fill this demand and become profitable? Time will tell!
My money says yes, but please do your own due diligence!
10-July-2020: Fluence Achieves Positive Quarterly Cashflow
11-July-2020: FLC were up +17.5% yesterday on this announcement - to close at 23.5 cps; Of course that rise was off their year low of 20 cps, set on Wednesday and maintained on Thursday, and at 23.5c, they are still down -60% from the 60 cps level they reached almost 12 months ago, on July 16th, 2019, and they did also manage to briefly go over $1 back in October 2016. Not sure if they were in the same business (or were the same company) back in 2008, but Commsec has them as trading at over $200/share, which I imagine is allowing for a major share consolidation or two at some point (where prior share prices have to be adjusted up to reflect the lower number of shares on issue as a result of a consolidation). It may also involve a backdoor listing or something. I haven't followed FLC for more than a couple of years. Anyway, point is that I was pretty negative about them in a forum post here a few days ago, and now (of course) they've popped on this positive news. Very welcome news for you @Sunkendrailor, assuming that you've kept the shares you bought 3 days ago. Here's some of the detail:
Fluence Achieves Positive Quarterly Cashflow
Fluence Corporation Limited (ASX: FLC) is pleased to announce that it has achieved positive operating cashflow for the quarter ended June 30 (Q2 2020) in line with previous guidance. The Company’s cash balance at the end of Q2 2020 was approximately US$20.0 million, up from US$16.9 million at the end of the first quarter.
Commenting on Fluence’s financial performance, Managing Director & CEO Henry Charrabé said: “Streamlining our operations and focusing on timely collections from customers enabled us to turn our operating cashflow positive. Despite global challenges and the economic slowdown, the Company is now in a stronger cash position with approximately US$20.0 million cash on hand at the end of June, than compared to US$16.9 million at the end of March.”
Further detail regarding the Company’s financial and operating performance will be provided in the forthcoming Q2 2020 business update at the end of this month.
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So this could be the inflection point that the market has been waiting for (for probably too long), but I still reckon a number of my negative points remain valid, which I'm going to put into a Bear Case straw now.