Dyesol discusses growth offshore


Transcription of Finance News Network Interview with Dyesol Limited (ASX:DYE) Managing Director, Richard Caldwell
John Treadgold: Dyesol Limited (ASX:DYE) is a pioneering developer of third generation solar cells, with a focus on solid state dye technology. I’m John Treadgold and joining me today at the ASX Investor Series is the Company’s Managing Director, Richard Caldwell. Richard, welcome back to FNN.
Richard Caldwell: John, thanks for having me.
John Treadgold: Last time you were here you told us about Dyesol’s unique solar power technology that can be integrated into building materials. Can you give us an update on your product developments?
Richard Caldwell: Dyesol is up scaling from the lab to fab as we say; we’re currently working at 10 by 10 modules. And by 2016, we hope to be working at a metre by a metre, or industrial scale and what is known as our Major Area Demo project. So it’s all very exciting and a heavily accelerated development program.
John Treadgold: In terms of financials, can you give us a brief snapshot and an idea of your short-term financial goals for the Company?
Richard Caldwell: Dyesol publishes its quarterly financial position on the ASX. As you know we’re a pre-revenue company, so we do rely on minimising our burn rate. We do that by either selling materials and equipment, which helps supplement our burn. And we also enjoy subsidies and grants from the Government. So this year, we expect to spend somewhere between $7 million and $8 million, although we don’t make formal forecasts on the Stock Exchange.
John Treadgold: Who has been backing the Company to this point, and how many shareholders are on the register?
Richard Caldwell: We’re very lucky to have loyal retail shareholders. Our share register’s comprised of mainly European and Australian retail shareholders. More recently in 2013, we brought on Tasnee, a very large Saudi Arabian company that now owns 33.5 per cent of the Company, and is our major strategic investor.
John Treadgold: You’ve also had considerable interest from the Turkish Development Bank with a Letter of Intent, looking at commercialising your glass PV (photovoltaic) panels. Can you fill us in on the details there?
Richard Caldwell: The Turks have been following Dyesol for the last 10 years. More recently, we’ve come together with a company called Nestle DSC and also the Turkish Development Bank, to form an early stage collaboration to upscale the technology through a prototype development. Development of a pilot line and also plans for mass production in Mersin on the Mediterranean, in southern Turkey.
Over time, we hope to build a facility that generates 600 megawatts of production each year. So it’s very exciting and the Turkish Development Bank has made a Letter of Intent, helping us secure the finance for that major development.
John Treadgold: A lot to look forward to, but the Australian Government has continued to cut its support for renewable energy companies, in Australia. What does this mean for demand locally and your focus on offshore markets?
Richard Caldwell: The conditions in Australia have been challenging for renewable energy companies, but it’s not a showstopper. And in fact, as the technology develops and improves, we feel that we can succeed in the absence of Government.

One of the main problems presented by the Government’s position, at least the current Government, is the fact that it’s very difficult for investors to assess the benefit of investing in an Australian renewable energy company. Which is why Dyesol not only operates in Australia, but has a very broad international reach and looks to develop its technology in other markets, beyond Australia.
John Treadgold: Looking more long term, what should investors keep an eye on?
Richard Caldwell: I think we dual track our commercial plans and our technology development plans. Each quarter we publish our technology milestones and they’re coming along brilliantly. In the last few weeks, we’ve published stability and durability results, which are world’s best. And on the commercial front, we hope to announce a similar commercial development to that we have in Turkey and another major location, over the years. So exciting developments for shareholders to look forward to.
John Treadgold: Definitely. Richard, thank you for joining us on FNN.
Richard Caldwell: Absolutely my pleasure.

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