ABC - Adbri Limited

[peter2]

Poor old Adbri. It just can't get going higher with any conviction. Being in an emission intensive industry it's going to be hard to sell itself into the ESG crowd. Seems it's going to try on May 2nd.

I wonder if they've talked with CXL yet? If ABC could capture and store CO2 in their cement it could a winner.

Vale, ABC you were such a smooth mover and a swing traders dream stock.

 

[divs4ever]

am dreaming to buy some more ( i have a top-up order currently in the market )

Russia will kill the Climate Change agenda , because i very much doubt they will let the obnoxious EU stagger along until the end of 2024 to replace Russian fossil fuels

so the EU climate scam must collapse into a pile of hypocrisy

i would have thought this whole niche would have been doing better by now , but eventually infrastructure will need to be repaired and replaced , so i intend to carefully add more while the sky is gloomy

PS i hold ABC 'free-carried ' buying @ $3.10 and $2.80 during 2011 , and reducing to rescue the invested cash in November 2017 @ $6.35

 

[So_Cynical]

Poor old Adbri. It just can't get going higher with any conviction. Being in an emission intensive industry it's going to be hard to sell itself into the ESG crowd. Seems it's going to try on May 2nd.

I wonder if they've talked with CXL yet? If ABC could capture and store CO2 in their cement it could a winner.

Vale, ABC you were such a smooth mover and a swing traders dream stock.

I attended the Adbri AGM today, no mention of Calix specifically but their Net Zero Emissions roadmap clearly states that Adbri is relying on roughly 70% of their emission reductions to come form "Breakthrough Technologies" so basically they have no idea how zero will be achieved.

My other takeaway from the AGM is just how much of a gravy train public company's are, all the board members standing for re-election have the correct mix of skills and experience to provide valuable contributions the the board etc etc, so much shameless self promotion.

One idea put to the board had some serious merit, the idea was to link executive bonuses to shareholder bonuses, so when a director or CEO gets X bonus shareholders get a fixed percentage of that as well, makes perfect sense to me.

 

[Dona Ferentes]

Poor old Adbri. It just can't get going higher with any conviction. Being in an emission intensive industry it's going to be hard to sell itself into the ESG crowd. Seems it's going to try on May 2nd.

I wonder if they've talked with CXL yet? If ABC could capture and store CO2 in their cement it could a winner.

And today's Announcement:
Calix CXL awarded a $11m grant from the Australian Government’s Carbon Capture, Use and Storage Hubs and Technologies Program to develop the world’s first commercial-scale process for the manufacture of low emissions lime with Adbri (ASX: ABC).

 

[So_Cynical]

And today's Announcement:
Calix CXL awarded a $11m grant from the Australian Government’s Carbon Capture, Use and Storage Hubs and Technologies Program to develop the world’s first commercial-scale process for the manufacture of low emissions lime with Adbri (ASX: ABC).

AGM finished at 11am and in the afternoon this announcement, Calix is basically the only organisation globally offering any kind a industrial level abatement, they pretty much have the market to themselves at the moment.

 

[divs4ever]

Sydney, Australia | 19th May, 2022 – Australian environmental technology company Calix
Limited (ASX:CXL) (“Calix” or “the Company”) is pleased to announce it has been awarded a
$11m grant from the Australian Government’s Carbon Capture, Use and Storage (“CCUS”)
Hubs and Technologies Program to develop the world’s first commercial-scale process for the
manufacture of low emissions lime with Adbri (ASX:ABC).
Highlights:
• Calix to receive $11m to develop a low emissions lime kiln with key project partner
Adbri, as well as CarbonTP and the Heavy Industry Low Emissions Technology CoOperative Research Centre (“HILT CRC”).
• The project will be located at Kwinana, Western Australia and provide low emissions
lime for alumina, gold, and other industries across Western Australia.
• The plant will use Calix’s Low Emissions Intensity Lime and Cement (“LEILAC”)
technology to demonstrate the use of renewable power and grid load balancing, assess
alternative energy sources such as hydrogen, and the efficient capture of CO2 process
emissions.
• Captured CO2 is planned to be provided to the proposed South West Hub Carbon
Capture and Storage (“CCS”) project.
The project, undertaken by Calix in collaboration with key partner Adbri, will help accelerate
Calix’s LEILAC technology by building and operating the world’s first commercial-scale
process for the manufacture of low emissions lime. The proposed plant, at Kwinana, WA, will;
(i) produce lime using renewable power,
(ii) demonstrate grid load balancing by flexibly operating only during peak renewable
electricity production / low electricity cost periods,
(iii) assess alternative energy sources such as hydrogen and alternative fuels, and
(iv) capture the CO2 emitted from the process.
Once the proposed South West Hub CCS project is operational, CO2 can be fed into the
system for permanent storage, creating truly zero emissions lime.
The project objectives are aligned with the Government’s Technology Roadmap to reach net
zero emissions by 2050 and to lower the cost of CCS to less than $20/tonne. The use of low
emissions lime will be directed to the trade-exposed alumina, nickel, rare-earth and gold
producers to reduce the embodied emissions of their products.
With the $11m in funding secured from the Australian Government, Calix and Adbri will now
proceed with the next stages of the project under the Heads of Agreement announced in March
2021, including the finalisation of commercial terms and further technical work.
Calix and Adbri anticipate undertaking a feasibility study for the project followed by a front-end
engineering and design phase. The plant construction and demonstration is expected to
include raw material feedstock contributed by Adbri and would test multiple fuel and energy
options including natural gas, hydrogen and renewable electricity with load switching.
Calix Managing Director and CEO Phil Hodgson said:
“A few years ago, I doubted a world-first commercial scale application of our technology would
have been built in Australia, and as a result our efforts were concentrated offshore. However,
with the support of the Federal Government and the Technology Investment Roadmap, the
HILT-CRC, and companies such as Adbri, who are now starting to lead low emissions efforts,
it is now a reality. I am proud our first commercial scale lime kiln is being developed here in
Australia, creating local jobs, utilising and developing local talent, and helping to future-proof
our vital local manufacturing sector.”
Adbri Managing Director and CEO Nick Miller said:
“We welcome the Federal Government’s support as part of its Technology Investment
Roadmap. The funding commitment represents a significant milestone in our collaboration with
Calix to develop carbon capture and storage technology to reduce emissions from lime
production.
“As a leading Australian producer of lime aspiring to be net zero by 2050, we recognise it is a
difficult manufacturing process to abate. Transformative technology-led partnerships like this
one with Calix form a key part of our own pathway to net zero by 2050, reducing our emissions
profile while supporting the decarbonisation of our end-market customers in the alumina, gold
and rare-earths sector.”
HILT-CRC CEO, Felicity Lloyd said:
“This project is an important step in demonstrating pathways to reduce the emissions of CO2
from heavy industry for lime, and then cement. The major sectors of aluminium and steel are
users of lime, and the project will be of direct interest to them in better understanding how to
reduce the emissions intensity of their products. Calix technology is also applicable to the
green alumina and steel manufacturing process, so this project will build capacity and knowhow to support such future opportunities.”
This announcement has been authorised for release to the ASX by:-
Phil Hodgson
Managing Director and CEO
Calix Limited
9-11 Bridge Street
Pymble
NSW 2073
Ph +61 2 8199 7400

-----------------------------------------------------------------------------------------------------------------------------------------------

i hold ABC ( 'free-carried' )

 

[Dona Ferentes]

another silly ASX code for search engines

ABC results out today. Market not impressed, and down nearly 20%. And a lot of conditionals in the outlook.

2022 Outlook
The current uncertain economic and operating environment makes it difficult to provide quantitative guidance at this time. Subject to these uncertainties, demand for our products from the residential, infrastructure, commercial and mining sectors is expected to remain strong in 2H22. Further out-of-cycle price increases will assist Adbri in actively managing inflationary pressures, with pricing traction key to our ability to deliver. We anticipate strong demand for cement, although building and project completion timelines are being extended due to materials and labour shortages. Lime volumes are anticipated to be stable in H2 versus H1. Lime pricing is expected to improve with new customers seeking reliable domestic supply due to supply chain disruptions experienced by importers. Demand is expected to remain strong for concrete and aggregates to the end of the year, and if weather abates in NSW, will be buoyed by the commencement of delayed projects and flood recovery works. Softness in retail spending is expected to impact masonry demand, with increased interest rates impacting household discretionary spend.
Gross cost savings of circa $10.0 million for the year, will only partially offset ongoing cost headwinds in areas including pallets, shipping, labour, power, fuel and raw material prices. Excluding business acquisitions, 2022 capex investment is estimated to be approximately $300.0 million, including circa 40% for the Kwinana Upgrade project.

Hard to make a buck:

 

[divs4ever]

another silly ASX code for search engines

ABC results out today. Market not impressed, and down nearly 20%. And a lot of conditionals in the outlook.

2022 Outlook
The current uncertain economic and operating environment makes it difficult to provide quantitative guidance at this time. Subject to these uncertainties, demand for our products from the residential, infrastructure, commercial and mining sectors is expected to remain strong in 2H22. Further out-of-cycle price increases will assist Adbri in actively managing inflationary pressures, with pricing traction key to our ability to deliver. We anticipate strong demand for cement, although building and project completion timelines are being extended due to materials and labour shortages. Lime volumes are anticipated to be stable in H2 versus H1. Lime pricing is expected to improve with new customers seeking reliable domestic supply due to supply chain disruptions experienced by importers. Demand is expected to remain strong for concrete and aggregates to the end of the year, and if weather abates in NSW, will be buoyed by the commencement of delayed projects and flood recovery works. Softness in retail spending is expected to impact masonry demand, with increased interest rates impacting household discretionary spend.
Gross cost savings of circa $10.0 million for the year, will only partially offset ongoing cost headwinds in areas including pallets, shipping, labour, power, fuel and raw material prices. Excluding business acquisitions, 2022 capex investment is estimated to be approximately $300.0 million, including circa 40% for the Kwinana Upgrade project.

Hard to make a buck:
View attachment 145773

impressed ?? no

but willing to add extras ( which i did at the open )

sadly the price has kept sliding

so i might have to decide IF to grab some more sub $2

has been a roller-coaster ride over the last 11 years , but have still had a better outcome than my adventure with BLD

sadly i see cost pressures continue , but that is just a reflection of the current economy

 

[KevinBB]

If they changed their name back to Adelaide Brighton Cement I might be tempted to buy some at these prices. I have no idea who Adbri is.

KH
(living in the past)

 

[divs4ever]

i grabbed a few extra early this morning , but yes name changes like that throw brand reputation into the dumpster

but really what is the ( mid-term ) future of civil construction in Australia , i suspect it is rather dark and grim

tried to pick up some cheap BLD this morning ( hoping they will eventually convert into SVW shares [ i hold SVW ) but missed , maybe another day

 

[finicky]

Not a chart I'd be buying, I anticipate lower, but seems a meat and potatoes (cement, masonary and sand) company that is historically 'cheap' now that it's a lower price than the GFC - albeit without the earnings power of back then.
But trading at 0.7 x book value when it can reasonably be expected to get back to something like 9% ROE in future years? Just got a new cost cutter CEO.

Not Held
Not buying

All Data Monthly

 

[Smurf1976]

One of my picks for the 2023 full year trading competition.

On the fundamental side, demand for the product isn't about to disappear. Sure there might be some who see an issue with CO2 emissions and so on, which are inherent to cement production by its very nature, but cement isn't becoming obsolete indeed it's a key component of large scale infrastructure.

Add in at least somewhat lower energy costs being likely, at least in the short term, and I think it's oversold.

 

[divs4ever]

One of my picks for the 2023 full year trading competition.

On the fundamental side, demand for the product isn't about to disappear. Sure there might be some who see an issue with CO2 emissions and so on, which are inherent to cement production by its very nature, but cement isn't becoming obsolete indeed it's a key component of large scale infrastructure.

Add in at least somewhat lower energy costs being likely, at least in the short term, and I think it's oversold.

i was kinda hoping it would slide a little lower so i could buy some extras

good luck

 

[finicky]

"AdBri lifted 1.4% today on the back of a bullish broker note from Macquarie."
Daily chart showing some sustained life from the same level as the GFC low.

Not Held

Daily

All Data Monthly (not showing recent price rise)

 

[So_Cynical]

Still operating profitably and has a great dividend history, i should probably buy a few more.
down 72% over 5 years seems a little over done for a market leader that trades profitably.

 

[edgecrusher13]

my understanding is 2022 was greatly affected by temporary setbacks, weather, fuel costs, raw supply.
Happy to buy at a low and hold given you would assume better conditions ahead.

 

[divs4ever]

welcome to ASF,

as a holder since 2011 ( av. SP $2.90 ) reduced in November 2017 ( @ $6.35 ) then added more in 2022 ( @ $2.39 and @ $1.60 )

yes i am still looking to add below $1.60 , but i think 'better conditions ' are still a fair distance away ( and a lot of that , is outside the control of the company )

good luck

 

[finicky]

Back down at recent support level @ 1.60 .. hmm
No obvious buy signal that I can infer yet. In fact daily chart suggests caution to me. Do I dare ? lol

Not Held

Daily

 

[divs4ever]

Back down at recent support level @ 1.60 .. hmm
No obvious buy signal that I can infer yet. In fact daily chart suggests caution to me. Do I dare ? lol

Not Held

Daily
View attachment 154337

that is around my ( top-up ) target but have been watching two REITs today without success

maybe i will throw in a low-ball order

 

[DrBourse]

Last researched ABC on 9/3/23,…….IV is $1.26 to $2.18…..Current SP $ 1.62 looks like creating a ST Double Bottom then Bouncing off the 17/10/22 Gap Down Major Support Line, if that happened ABC then has SIX Minor or Major Res Lines it will have to Head Butt….ST Inds are not happy atm as they are all in O’Sold Territory and still falling…..So basically the ST TA outlook is not great…..Personally I would need to see some confirmation TA signs B4 the next ST Trend could be identified…..

My 9/3/23 FA, & todays TA, is below for those that are interested…..Bout the only +ive I can see is the fact that the SP Decline seems to have found broad support in the $1.61 to $1.90 area, which just happens 2B within ABC’s IV Range of $1.26 to $2.18……

Cheers.....
DrB.