SIMEC Atlantis Energy Ltd (LON: SAE) shares crashed 49.6% after the company revealed that the Welsh government had taken over the decision on the permit variation for the controversial Uskmouth power project.
Discussions about the permit variation to allow the coal-powered plant to run on fuel pellets, which are a sustainable energy source compared to coal, had been going on for over a year now, which deals a significant blow to the company.
SIMEC Atlantis had been in discussions with the independent Natural Resources Wales (NRW). It had provided detailed information about how the variation of the permit was in line with current regulations and was at the tail end of the discussions.
The Welsh government’s decision leaves SIMEC in a challenging position. It increases the chances of the entire project being scrapped, leading to massive losses for the company, which has already invested millions in acquiring the power plant.
Investors were disappointed by the news, given how close SIME was to getting the NRW’s approval to resume work on the project before today’s announcement. Today’s decision increases the chances of the project not moving forward in the future.
SIMEC and its investors will be waiting with bated breath to see if the Welsh government shall finally approve the Uskmouth project unlocking million in revenue for the company and providing a reliable electricity source for South Wales and Newport in particular.
From a technical perspective, SAE share printed a new all-time low today but was struggling to recoup some of its losses at writing.
*This is not investment advice.
SIMEC Atlantis share price.
SIMEC Atlantis shares crashed 49.58% to trade at 1.20p, falling from Wednesday’s closing price of 2.38p.
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