# ZEN - Zenith Energy



## System (9 May 2017)

Zenith Energy and its subsidiaries, (including Zenith Pacific Pty Ltd) provide reliable, cost-effective power generation solutions, primarily for clients operating in the resources and energy sectors in remote areas of Australia. Clients are typically operating in locations that are "off-grid", i.e. not connected to the National Electricity Market (NEM) or the South West Interconnected Systems (SWIS). 

Zenith designs, constructs and manages power generation facilities incorporating a range of fuel types, including diesel, natural gas, solar and hybrid systems. Zenith provides its services under both a Build, Own, Operate (BOO) model, and under a Manage, Operate, Maintain (MOM) model. 

http://www.zenithenergyltd.com


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## Ann (22 February 2019)

This appears to be an interesting little stock. I see in the Weekend Australian Financial Review (paper variety) they have a heading in their sector by sector section called 'Ind. Power and Renewable Electricity Producers', this is where I saw it in a group of 11 stocks. I am sure there will be some ETFs that will be looking at these things for their green portfolios.

ZEN provides off-grid power generation for mining companies with a range of diesel, gas and solar. In other words a 'real' business, doing business. 

https://www.zenithenergyltd.com/

There may be a lot more upside for this company. There was a big volume spike yesterday, the NVI (Negative Volume Indicator) is in positive position (This is supposed to be an indicator which suggests 'smart money' is getting into this stock). Also the Money Flow Indicator is rising.

...and a chart


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## Ann (26 February 2019)

I have decided to choose this one for the March Tipping Contest, let's see how it goes.
I am putting in an EquiVolume chart to see where there may be some selling pressure. 0.76 to 0.79 appear to be a solid area of selling resistance. The next really big area of selling resistance starts at around 1.05, this is a virgin area without the price reaching back up to offer the chance to sell out. I would guess this may cause quite a substantial area of pullback/retrace. If the company brings out a decent report it may get it through this level, if not then there could be a very negative reaction.


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## Miner (26 February 2019)

Zenith has provided its financial result. The NPAT has been reduced to almost 30%.
The directors are very clever to hide their lack of performance before the investors and funders. The thrust has been to increase the BOO (buy, own and operate) contracts, the NPAT has been reduced. Well ZEN's business is based on BOO. Yes, revenue is great but what about profitability ? It is just like drilling many holes but no oil or metal even after all surveys have been done. The report is talking of NPAT reduction by $4.8M - looks nothing but what about NPAT reduced by 66% and EPS to the same tune ?
It is most unfortunate that directors sugar coat their report to look as if every thing was okay and then demand their bonus shares, LTI, STI continously instead of freezing the bonus and cutting down the salaries or resign. That what they would do with middle management for lack of performance and not meeting the key metrices. Having said that EUROZ has increased their stake by 1% as a major stakeholder. They must have analysed before hand with possible risks, and probability of  some silver lining which market did not see. 
DNH.


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## Ann (26 February 2019)

Miner said:


> Zenith has provided its financial result. The NPAT has been reduced to almost 30%.
> The directors are very clever to hide their lack of performance before the investors and funders. The thrust has been to increase the BOO (buy, own and operate) contracts, the NPAT has been reduced. Well ZEN's business is based on BOO. Yes, revenue is great but what about profitability ? It is just like drilling many holes but no oil or metal even after all surveys have been done. The report is talking of NPAT reduction by $4.8M - looks nothing but what about NPAT reduced by 66% and EPS to the same tune ?
> It is most unfortunate that directors sugar coat their report to look as if every thing was okay and then demand their bonus shares, LTI, STI continously instead of freezing the bonus and cutting down the salaries or resign. That what they would do with middle management for lack of performance and not meeting the key metrices. Having said that EUROZ has increased their stake by 1% as a major stakeholder. They must have analysed before hand with possible risks, and probability of  some silver lining which market did not see.
> DNH.
> ...




Thanks Miner, I am absolutely no good at reading FA, hence the need to chart really well!
I read it as it just seemed they were trying to have the whole cake, not just a slice and because of that to buy the whole cake you need to budget and take out a bit of a loan. To me I just saw the option, do you want a slice or the whole cake!

I think I will stick to my charts, so far so good! I will put up a normal updated chart tomorrow.
Let's see what the market decides.


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## Miner (26 February 2019)

Ann said:


> Thanks Miner, I am absolutely no good at reading FA, hence the need to chart really well!
> I read it as it just seemed they were trying to have the whole cake, not just a slice and because of that to buy the whole cake you need to budget and take out a bit of a loan. To me I just saw the option, do you want a slice or the whole cake!
> 
> I think I will stick to my charts, so far so good! I will put up a normal updated chart tomorrow.
> Let's see what the market decides.



Hi @Ann
Yes, your charts are always welcome. I supplement  my lack of skills on reading/creating charts with analysing data, company profile and use my  grey hair to make the full pie chart . Zenith is always interesting business and I do recognise it is relatively new organisation and lot many owner /EPC/EPCM companies still struggle to accept BOO concept.
Regarding your question if I prefer a slice of cake or full cake - it depends on the size of cake and price and my apetite to pay for it avoiding chlorosterol.
In general, for a well baked cake with nice ingredients, I am always satisfied with a slice of it.
DNH Zenith but on business side, follow what they are doing.


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## Ann (26 February 2019)

Miner said:


> Hi @Ann
> Yes, your charts are always welcome. I supplement  my lack of skills on reading/creating charts with analysing data, company profile and use my  grey hair to make the full pie chart . Zenith is always interesting business and I do recognise it is relatively new organisation and lot many owner /EPC/EPCM companies still struggle to accept BOO concept.
> Regarding your question if I prefer a slice of cake or full cake - it depends on the size of cake and price and my apetite to pay for it avoiding chlorosterol.
> In general, for a well baked cake with nice ingredients, I am always satisfied with a slice of it.
> DNH Zenith but on business side, follow what they are doing.




Question, a slice of cake or the whole cake? I have a family to feed and a freezer for leftovers. It is not greed it is economics! 
One never needs to worry about Cholesterol it is the Triglycerides you need to watch, this much I know!


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## Miner (26 February 2019)

Ann said:


> Question, a slice of cake or the whole cake? I have a family to feed and a freezer for leftovers. It is not greed it is economics!
> One never needs to worry about Cholesterol it is the Triglycerides you need to watch, this much I know!



Hi Ann
(Sorry folks being out of ZEN topic but hope the laughter can be shared too)
I was laughing on your comments about Tryglycerides, economics of buying whole cake and family to feed .
First of all yes, TGL is to control and not chlorosterol alone with good and bad chlorosterol. Good to get technicals from a chartist  and you get 10/10.

Regarding buying whole cake for the whole family and saving money is an interesting point and it depends who is /are the customers. In my family excepting me no one eats cake and ironically I am the one who takes Statin to reduce TGL . My son maintains a high protein diet and basket ball with his work - got no chance to eat cake. Daughter is pretty health conscious - so no cake on her menu. Wife loves to bake cake for husband and guests but does not prefer to eat cakes to keep her with dance fitness. Ironically she does not buy even on sale because that increases the purchase volume in terms of dollars to get the deal.
So the person left to pay and eat the cake in my family is me!!!! I can not afford expensive cake in full and eat over a week . My economics is to save money by not buying the whole cake and be content with small piece . My late teen daughter is worse than her mum to control dad's eating habits. So  I do not have any chance to eat cake every day just to save money either. 

Essentially the business cases are different to derive economics. Just like buying shares on different strategies.

Let us return to ZEN now . In this instance the total revenue  did not match with the profitability is a serious issue for the ZEN  management. But on medium to long term, surely ZEN would be a signficant asset builder like other infrastructure stocks and rise above then. But, I am not an expert otherwise would have made tons on share trading by sticking some of the good stocks without selling and not to buy junks. 

Recently I have invited ZEN to bid for a project and economics to have their BOO contract vs other options, did not sound good. So may be they are trying to bite more than they can chew. I have had an ex colleague who worked with them at senior management level and quitted because of their business model. I am not suggesting if my friend was right or the business model is right as I am not that close to analyse their business propositions. Just an outsider comment. 

I have bought ZEN few months back and sold out. Luckily (for me) the price has dived down far below on the price I exited. So I am watchful on ZEN as an opportunity in future.


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## Ann (21 March 2019)

Moelis Australia SIV Funds have acquired  4,985,195 ordinary fully paid securities.

*Andrew Pridham *is the MD and CEO of Moelis

This seems like a very positive move for ZEN and may well offer a pipeline for finance if and when required.


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## Miner (3 June 2019)

Trading halt today. Would it be any takeover?
https://www.asx.com.au/asxpdf/20190603/pdf/445kl0t8v5rtpl.pdf


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## Trav. (3 June 2019)

@Miner  extract from the announcement





Then look at Gascoyne

Gascoyne Res Limited (GCY) SUSPENDED


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## Miner (3 June 2019)

Trav. said:


> @Miner  extract from the announcement
> View attachment 95178
> 
> 
> ...



Many thanks @Trav. 
I have to focus on reading at depth when on a holiday mode


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## Miner (4 June 2019)

Trav. said:


> @Miner  extract from the announcement
> View attachment 95178
> 
> 
> ...



GCY  got belly up today. So quick after raising cash. 
What is going to happen ZEN  when it returns for trading?
NWH  already got a flogging. 
When the investors will have a breathing  without a ventilator?


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## Dona Ferentes (13 July 2020)

_- a year later:_

Pacific Equity Partners' pursuit of ASX listed remote power company Zenith Energy has hit a wall. _Street Talk_ understands it was Euroz Securities – which owns about 13 per cent of Zenith via the Westoz Investment Company and Ozgrowth Limited – that submitted a "no" vote against the scheme on Friday.

Management can't vote on the scheme and own a decent chunk of Zenith, which means in order for the proposal to get up, almost all other shareholders would have to turn out and vote in favour of Elemental's $1.01 bid. It looks like Euroz wants to force PEP's Elemental, which also includes OPTrust and Infrastructure Capital Group, to increase its bid.

However, the $1.01 offer – which valued Zenith's equity at $150 million and implied an enterprise value of $250 million – is already at the top end of the independent expert's range of 89¢ to $1.02. It is understood Elemental has had meetings with Euroz and Euroz has indicated it wanted a higher offer. Zenith announced on Monday morning that early stage voting – including Euroz's no vote – indicated a "risk the relevant scheme resolution may not be passed".

The company said 19.59 million Zenith shares were lodged against the resolution, which represented 22.25 per cent of eligible votes. According to its last substantial shareholder notice, Euroz owned 19.34 million shares in the company. Shareholders have until July 29 to change their minds.

It's another twist in what's already been a long ride for Zenith Energy. The company entered into a scheme agreement with Australian buyout firm Pacific Equity Partners in March. Then some late strategic buying from OPTrust and ICG saw the pair muscle onto the deal in May.


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## Dona Ferentes (21 July 2020)

Pacific Equity Partners and friends have increased their bid for remote power company Zenith Energy to $1.05.

_generous_ !


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## System (25 August 2020)

On August 24th, 2020, Zenith Energy Limited (ZEN) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between ZEN and its shareholders in connection with the acquisition of all the issued capital in ZEN by Elemental Infrastructure BidCo Pty Ltd.


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