In view of Professor Tim Flannery’s services being no longer required by the new Federal Govt – I was curious to have a look at the history of Geodynamics Ltd GDY – a green energy company that the good Prof was invested in.
GDY floated in late 2002 with a market capitalisation of under $20 million – the share price reached a peak of about $2.10 in late 2007 when there were 190 million shares issued – making for a peak market capitalisation of ~$400 million. It has been downhill from there and these days with shares at 10c the market capitalisation has melted away today to ~$42 million.
GDY has raised $220 million from shareholders over the 11 years – and also $107 million in Govt grants.
This year GDY has commissioned a demonstration 1MW generating plant near Innamincka. I see last month they told the ASX of an impairment of $88.8 million in their books re Cooper Basin assets.
Clearly it is a tough game at the cutting edge of developing a new “clean green energy source” at a depth of +3km under the Cooper Basin.
To see extracts of headlines that caught my eye – from lists of GDY ASX announcements over the 11 years.
30/08/2013 Impairment of Cooper Basin Assets – $88.8 mill
25/07/2013 Geodynamics receives Clean Energy Council Innovation Award
22/07/2013 Habanero Pilot Plant trial update and Ministerial site visit
11/04/2013 $22.2 million R&D Tax Incentive refund received
03/04/2013 1 MWe Habanero Pilot Plant Commencement of Commissioning
28/03/2013 Origin advises intention to withdraw from Joint Venture
10/12/2012 Major stimulation completed at Habanero 4
24/01/2012 Capital raising program achieves maximum amount of $10M
21/12/2011 Placement raises $3.8 m and Share Purchase Plan announced
15/12/2011 Geodynamics welcomes international climate change progress
14/12/2011 $6.4 M received to date for Habanero 3 insurance settlement
21/11/2011 $12M Settlement reached for Habanero 3 Well Control Incident
12/10/2011 Passing of Clean Energy Future Legislation welcomed
11/07/2011 Geodynamics welcomes clean energy package
20/12/2010 Geodynamics completes $16.2 million capital raising
14/12/2009 $7 million awarded under the Geothermal Drilling Program
06/11/2009 Federal Government Awards $90 million in REDP Funding (Kev747)
08/09/2009 Re-validation of Proof of Concept
21/08/2009 Habanero 3 Well Incident Investigation
25/02/2009 Bonus Options Rights Issue
26/11/2008 NSW Government Awards $10 million in Funding
21/10/2008 Estimated Geothermal Resources as at 21 October 63,000GWh
16/06/2008 Geodynamics completes $33.5 million capital raising
18/02/2008 Positive Temperature Results from Shallow Drilling in Hunter
11/02/2008 Geodynamics completes $37.4 million capital raising
05/02/2008 Notice of Habanero 3 completion
15/01/2008 Geodynamics Prepares For Landmark Year
Late 2007 share price maxed at around $2.10 – 190million ord shares issued
29/10/2007 Geodynamics and Origin Energy Agree On $105M Joint Venture
17/04/2007 Completes $49.8m Rights Issue
21/02/2007 Geodynamics completes $12 million equity placement
28/09/2006 Environment Minister visits Habanero hot rock energy site I.McF
10/07/2006 Resignation of Managing Director
29/06/2006 Habanero 2 – Well Suspension
05/12/2005 Funding for Cooper Basin HFR Geothermal Demo. Power Plant ($5mill)
10/06/2005 Raises $14.2m from SPP
30/05/2005 Habanero 2 Heat Flow Reaches in Excess 15MW Thermal Power
10/05/2005 Placement raises $5 million to lift working funds
26/04/2005 First HFR geothermal flow in Australia
09/11/2004 Completes $14.2 million equity placement
26/07/2004 Habanero 2 on Track
28/05/2004 Raises $5.1 million from SPP
11/03/2004 Geodynamics raises $7m to drill second HFR well
24/11/2003 Undertakes $6.12M Capital Raising to Acq. Enabling Tech.
26/05/2003 Raises $3.95 million from OIS/SPP
09/05/2003 Geodynamics Completes $2.4m Raising
23/04/2003 Press Rel: GDY Secures Additional $1.9m
Warwick,
a few more
Dec 2006, Tim Flannery talks about the benefits of GEOTHERMIA and harnessing energy.
Accolades for Tim Flannery from Hot Dry Rocks Geothermal Energy Consultancy firm.
Late 2006 – Tim already owned shares in Geodynamics.
7th Feb 2007 – Tim Flannery goes on ABC’s Lateline, and sprooks geothermal energy.
7th Feb 2007 – Geodynamic shares 95 cents.
9th Feb 2007 – Geodynamic shares $1.10.
9th Feb 2007 – Tim Flannery on ABC radio says “There are hot rocks in South Australia that potentially have enough embedded energy in them to run the Australian economy for the best part of a century.”
Shares by late 2007 up to $2.00.
6th November 2009 – Rudd gives $90 million grant to Geodynamics for 25MW power plant.
Feb 2011 – Geodynamics down to 35 cents. Shareholders livid.
I noticed that when GDY floated in late 2002 – ANU had 9% – does anybody know the history of that shareholding ? Would be fascinating to know to what extent ANU participated in GDY capital raisings.
Here is the top 20 list from ASX ann – 11 Sep 2002
SHAREHOLDER NAME NUMBER HELD %
1 Metasource Pty Ltd 10,443,392 36.12
2 CVC Reef Limited 2,786,873 9.64
3 The Australian National University 2,608,186 9.02
4 Commonwealth Custodial Services 1,000,000 3.46
5 Mr Christopher Biggins 500,000 1.73
6 RBC Global Services Australia 500,000 1.73
7 Paksian Pty Ltd 450,000 1.56
8 Cairnglen Investments Pty Ltd 350,000 1.21
9 Blackwood Consolidated Pty Ltd 300,000 1.04
10 Mr Martin Carl Albrecht 250,000 0.86
11 ANZ Nominees Limited 250,000 0.86
12 Brincliff Pty Ltd 250,000 0.86
13 Ms Siobhan Marie Downe 250,000 0.86
14 Mr Warwick George Morris 250,000 0.86
15 TBIC Pty Ltd 250,000 0.86
16 Mr Allen Trachsel & Mrs Helen Trachsel 250,000 0.86
17 Transgrid 250,000 0.86
18 Transmere Pty Ltd 250,000 0.86
19 Belmark Investments Pty Ltd 155,000 0.54
20 Wycliffe Pty Ltd 150,000 0.52
TOTAL 21,493,451 75.31
Here is their current top 20 holders – no sign of ANU.
What gets me is, if you claim something makes economic sense, how can you ask for a subsidy for it? The only way to tell if something is viable is to see if it stands on its own two feet.
All in all, flim-flam Flannery has sure cost the Aussie taxpayer a packet, starting with many years of free tertiary education in the 70s and 80s. Then professorships at government-funded universities. After that, paid gigs with State governments, many “dam doom” pronouncements, and thus a large share of responsibility for the billions States wasted on desal plants. Moving on, $180K/year as Chief Climate Commissioner (George Orwell eat your heart out). $107 million down the drain on his hotrocks codswallop. Last but not least, his share, whatever that might be, of responsibility for the carbon tax – $4 billion last financial year alone.
Amazing what one nong with a big mouth can cost the rest of us.