# GNX - Genex Power



## System (16 June 2015)

Genex is a prospective power generation development company based in Australia. Genex is planning to develop its flagship Kidston pumped storage hydroelectric scheme (the Kidston Project) located in Northern Queensland. The Kidston Project has the potential to generate up to 330MW of rapid response, flexible peaking power for delivery into Australia's national electricity market. 

It is anticipated that GNX will list on the ASX during July 2015.

http://www.genexpower.com.au


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## pixel (12 February 2018)

Tech meets Fun 
I got in on the Bullish MACD Divergence. Today's announcement and the expectation of successful commissioning make me feel a little less apprehensive. Still, "Speccie Rules", OK?


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## Faramir (2 November 2019)

I have a soft spot for Genex over the past 3 years. Solar during the day, hydro at night. Utilising abandoned mines to make electricity. I "sort of" watch it but nothing more than that.

Today, it fell 38.9%. $0.27 down to $0.165. Pity, it climbed to $0.27 from $0.24 the previous day.

The market hated this news:
https://www.asx.com.au/asxpdf/20191101/pdf/44b6f37rvb0nyb.pdf

If I had funds, would now be a good time to be a contrarian?? It's just a delay, isn't it?? Highly capital intensive and making electricity turns Genex into a price taker, not price maker. Damm, just when I wanted a feel good stock. Feel sad today even though I own no shares.


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## Smurf1976 (2 November 2019)

Faramir said:


> Feel sad today even though I own no shares.



The news has certainly raised a few eyebrows since this was the most advanced, and seemingly most certain, privately funded pumped hydro development in Australia.

Where some of the difficulties arise, and I'm commenting generally here not specific to the contract between Genex and Energy Australia, comes down to time.

Time as in anything involving hydro tends to span a period that's a fair bit longer than the planning horizon of pretty much any other business. It's a mismatch which creates difficulties when it comes to contracts - anything that's long enough for one party tends to be too long for the other. 

If I was to do some crystal ball gazing then I think ultimately it'll get over the line one way or another noting there are political and other aspects to it as well as the company's own issues. It's a project which rather a lot of people, including governments, renewable energy generators and major energy users, are keen on seeing happen and that does create the prospect that some third party tries to broker a deal if Genex and EA can't reach agreement themselves. 

It's also possible that some party other than EA will come forward and enter a contract with Genex. Pure speculation on my part there but EA certainly isn't the only electricity generator or retailer with whom a deal could be struck.


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## Dona Ferentes (30 March 2020)

Faramir said:


> I have a soft spot for Genex over the past 3 years. Solar during the day, hydro at night. Utilising abandoned mines to make electricity. I "sort of" watch it but nothing more than that.
> 
> Today, it fell 38.9%. $0.27 down to $0.165. Pity, it climbed to $0.27 from $0.24 the previous day.
> 
> ...



Maybe it will rebound ..... GNX closer to financial close

Signed binding agreement with Energy Australia for offtake agreements. Should pop at open


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## Dona Ferentes (30 March 2020)

Dona Ferentes said:


> Maybe it will rebound ..... GNX closer to financial close
> Should pop at open



Maybe 60% !

EDIT  - at open. Now 100% up


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## Dona Ferentes (31 March 2020)

Update released - finding ways to work in a Covid world. 
- staff limitations posing challenges but so far, finding ways within strict protocols
- The 50mW Kidston Solar is operating at full capacity
- Jemalong Solar project fully funded and construction underway
- Kidston pumped Storage Hydro now has binding agreement with Energy Australia. Financial close expected in 3Q20 
- $16million in the bank and debt facility lined up till 2024


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## Dona Ferentes (10 August 2020)

• Successful Placement raising a total of $21.276 million; at 22c a share
• Demand under the Placement significantly exceeded the Company’s Placement capacity. Given the strong take up in the Placement, the Company has resolved to undertake a Share Purchase Plan, to raise up to an additional $7 million; and
• Proceeds to be applied toward fast-tracking Genex’s Como Battery Project, Kidston Hydro Project financial close costs, working capital and costs associated with the capital raising.


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## Value Collector (10 August 2020)

I was burning the midnight oil reading about this company last night.

Am I right in understanding the the buyer for the electricity from the Kidston projects in the Australian Government? And Energy Australia is the buyer for one of the other projects.

who is the end consumer for the electricity from the Kidston project, I can see it’s in far North Queensland, but Kidston itself looks like a ghost town, and I couldn’t find any large population areas anywhere near by.

mare the feeding into the national electricity market? Or are they relying on a major industrial or mining company?


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## Dona Ferentes (9 December 2021)

not much on GNX, and @Austwide has concerns. To me, it all sounds a bit tricky/ difficult (but it is in my *greenish* watchlist for obvious reasons). Shareprice hasn't gone anywhere in 2 years.

 Kidston is a moribund and remote minesite, with advantages only being the two pits at different elevations (for pumped hydro) and the associated infrastructure, especially HV powerlines in/ out, a few sealed roads and housing..

The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. In May it signed Financial Close on Kidston.

As well, the 50MW Jemalong Solar Project is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and is now fully operational. Genex is further developing its energy storage portfolio via the development of a 50MW/100MWh standalone battery energy storage system at Bouldercombe in Queensland.

Today, Genex Power Limited announced that it has executed an *Autobidder *Offtake Agreement in relation to the Bouldercombe Battery Project located near Rockhampton, with Tesla Motors Australia Pty Ltd.  The rationale behind developing this innovative arrangement with Tesla for the BBP was to balance the requirement for a minimum level of contracted revenues to support project financing, whilst retaining the ability to capture revenue upside beyond a fixed guaranteed amount. Hence, the Agreement provides for a fixed and floating payment (revenue share) structure, whereby the fixed component extends cash flow certainty to the Project lenders whilst the floating revenue share component allows the Company to retain upside revenue exposure to merchant cash flows from the energy arbitrage and frequency control ancillary services markets.

Under the Agreement, Tesla will operate the BBP using its proprietary algorithm-based bidding system, Autobidder, to maximise revenues in each given year. Autobidder is a real-time trading and control platform which employs a machine learning algorithm to optimise dispatch behaviour whilst adapting to new markets and services.


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## peter2 (1 May 2022)

*GNX* (not CNX) appeared in my weekly scan results. Price seems to be supported by the recent SPP at 0.144. 

*GNX *has started to earn revenue from the two solar power projects and is set to start construction of it's battery and hydro projects in QLD.


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## Dona Ferentes (24 July 2022)

Genex Power looks like it is in play with a bid valuing it at more than $500 million.

Genex’s board is understood to have received the indicative and non-binding bid over the weekend from a group of investors, including Skip Capital and a private equity partner, that have already built up a combined 19.9 per cent stake

Genex Power’s board has hired Goldman Sachs for advice and is expected to disclose the offer on Monday morning.

More than 125 million Genesis Power shares changed hands in two trades late last week, representing about 9 per cent of the company. The biggest trade was late on Friday night, when Jarden’s  crossed 86.5 million shares or 6.2 per cent of Genex’s issued equity, at 23¢ a share or a 70 per cent premium to the Friday close.

5:55:51 PM *.. 0.230 *...86,462,000 ... 19,886,260.000 CXA SPXT
4:10:03 PM *.. 0.130 *...51,718 ...231.930   ASX


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## sptrawler (24 July 2022)

I have had them on my watch list for about 12 months, due to the pumped hydro project in North Qld, they have been on a constant slide from about 23c 12 months ago, but they are an interesting company.
It will be interesting to see what the bid is.


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## Dona Ferentes (24 July 2022)

The distance from market worried me. Always going to be a price taker, and dependent to some extent on subsidies.


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## Smurf1976 (25 July 2022)

sptrawler said:


> I have had them on my watch list for about 12 months, due to the pumped hydro project in North Qld, they have been on a constant slide from about 23c 12 months ago, but they are an interesting company.
> It will be interesting to see what the bid is.



Ultimately they're the only listed company for which pumped hydro forms a significant part of their planned operations.

Origin Energy does own a pumped storage scheme but it's trivial in the overall financial context of Origin's overall business. 

The other pumped hydro operators, those with projects either in operation or under construction, are not listed since they're government owned.

So it's really the only option if someone wants to invest in or take over a company to gain significant exposure to it in Australia.


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## sptrawler (25 July 2022)

Smurf1976 said:


> Ultimately they're the only listed company for which pumped hydro forms a significant part of their planned operations.
> 
> Origin Energy does own a pumped storage scheme but it's trivial in the overall financial context of Origin's overall business.
> 
> ...



Yes it is a good fit for a company who is looking for "green" exposure, or pollution offsetting ect, getting pumped hydro projects up and running from scratch in Australia isn't going to be easy due to pressure groups, red tape, environmental/cultural approvals, labour costs etc, so as you say buying one that is up and running saves a lot of angst and costs.
Which was the reason I was watching them, it as usual is all about timing and it looks like mine was off yet again.


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## Dona Ferentes (25 July 2022)

And has received a conditional, non-binding, indicative proposal from Skip Essential Infrastructure Fund 1 and Stonepeak Partners LLC2  to acquire all of the ordinary shares on issue in Genex by way of a scheme of arrangement. 

The purchase price .. under the Indicative Proposal is *A$0.230* in cash per Genex Share.

SEIF, part of Skip Capital, is a long term, Australian investor in future aware infrastructure and now holds 19.99% of the Genex Shares.  Stonepeak is a global alternative investment firm specialising in infrastructure and real assets with an extensive portfolio of energy and renewables assets and a dedicated renewables investment fund.

_.................. now 20c_


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## sptrawler (25 July 2022)

Dona Ferentes said:


> And has received a conditional, non-binding, indicative proposal from Skip Essential Infrastructure Fund 1 and Stonepeak Partners LLC2  to acquire all of the ordinary shares on issue in Genex by way of a scheme of arrangement.
> 
> The purchase price .. under the Indicative Proposal is *A$0.230* in cash per Genex Share.
> 
> ...



I'm not sure that price would have the shareholders jumping for joy, it will be interesting to see what management has to say., it might give an indication as to how the business is travelling.


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## galumay (25 July 2022)

Will be interesting to see how it plays out, given the debt and a couple of other issues it was one I decided against. There is a lot of positive assumptions baked into the offer price IMO, but shareholders may be even more optimistic!


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## Country Lad (25 July 2022)

Atlassian billionaire leads takeover bid for solar and storage developer Genex​


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## divs4ever (25 July 2022)

looks like my green(ish ) investment  focus will be staying in NZ  

 oh well a bit of geopolitical diversity  might be a good thing


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## sptrawler (25 July 2022)

Country Lad said:


> Atlassian billionaire leads takeover bid for solar and storage developer Genex​



To me it looks like bottom feeders, trying to pick up green assets, at rock bottom prices just going by the chart I posted up 7 posts earlier, they are offering what the company was trading at for quite a long time and now make an offer when the market has tanked.
I don't hold but to me it isn't a good look, isn't it the same mob who made a low ball offer for AGL, when they were on a down?
Only my two cents worth, I don't hold.


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## Dona Ferentes (1 August 2022)

> After careful consideration of the Indicative Proposal (including consultation with its advisors), the Board of Genex has unanimously concluded that the Indicative Proposal undervalues Genex and, therefore, is not in the best interests of the holders of Genex Shares as a whole.  Accordingly, the Board is not prepared to grant the access to due diligence...



So, where next?

The  Board does go on to say it is "_willing to engage constructively with the Consortium to explore whether the Consortium can submit a revised proposal that is capable of being recommended._.." which sounds to me like ; *Make a Higher Offer.*

I wonder if there are any other likely bidders? A Super fund? The 19.9% stake is a bit of a block, however, for another offer to emerge.


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## Dona Ferentes (15 August 2022)

Trading Halt ................ looking like they might agree on 25c for the bid


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## Dona Ferentes (28 December 2022)

_going swimmingly.  Not._

Genex Power shares dropped 19 per cent after Scott Farquhar’s Skip and Stonepeak pulled their bid after a water leak at the Kidston power project.


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