March 2016 Quarterly Report
Canberra, April 29, 2016 AEST (ABN Newswire) - Dyesol Ltd (
ASX:DYE) are pleased to provide the Company's March 2016 Quarterly Report.
Financial Quarter Highlights:
- VDL Of The Netherlands and Dyesol Collaborate on Major Area Demonstration Prototype
- Quarterly TAB Milestone of 7% Perovskite Strip Cells on Metal Substrates Achieved
- Turkey Quietly Progressing
- Dyesol Joins ASX All Ordinaries Index
Corporate and Operational
From behind the scenes, the corporate interest in 3rd Generation PV continues to grow and is at unprecedented levels. This presents opportunities and threats, which we manage accordingly. One observation is very clear - the incumbent 1st Generation manufacturers are feeling the heat and working hard to understand the nature of the disruptive, new energy source - Perovskite Solar Cells (PSC). In a circa $50 billion solar PV market, manufacturers that lose their way risk oblivion, whilst the more adroit are exploring paths to transition. At best, we see tandem modules as intermediary and, at worst, a wasteful diversion. The long-term future is one where Perovskite Solar Cells make a significant impact as the next generation of PV. This is competition at its best and we are rising all the time to meet it.
The question of our progress in Turkey understandably continues to attract shareholder comments. We urge patience as we navigate our way through the processes involved in government-industry collaboration for a pioneer technology in a country with early-stage technology capability. Planning and approvals have made good progress during the quarter, particularly as the government seeks to manage oversight of a large public investment in an unfamiliar technology. It is much the same the world over.
In the meantime, we have submitted an application for a large Australian Government grant (CRC-P) in collaboration with CSIRO and a large Australian building materials company. This is independent of ARENA and, thus, less subject to any of the travails that may occur pre and post federal election, although we assume a bipartisan support for our current activities. Surely, Dyesol is one of the lead companies the Government have in mind in its innovation statement that establishes the framework for better commercial exploitation of Australian hi-tech opportunities?
In parallel, joint manufacturing opportunities continue to improve in Korea, the U.K. and one or two individual European countries. Importantly, Dyesol remains at the visible world forefront of scale-up and commercialisation activity.
Operational efficiencies are running at historical highs. Recently, we upgraded our Aurora facility in Queanbeyan to improve clean room facilities and working conditions for our scientists and engineers. At low-cost, we have enhanced climate control and cleanliness. Implementation of ISO compliant clean room facilities for the preparation of high performance cells and modules is imperative. We have also added air conditioning, a staff breakout room and new offices for the Glass Group, which is well deserved given the old age of the building and the harsh weather conditions that sometimes are experienced there.
Management has also conducted a detailed cost analysis which has helped identify approximately $250,000 of savings per annum out of working capital requirements. Major areas affected included travel, marketing promotions and bulk utility management et al. This has translated into the lowest ratio of Corporate to R&D expense in our near 11 years of listing and reflects a clear intention to (a) focus primarily on technology development and (b) maximise the funds recovery through R&D rebate.
Sales of materials are trending higher and profitable. We are, increasingly, the preferred materials supplier to academia and industry, including our major competitor.
Research and Development
Dyesol has achieved its 3QFY2016 Technical Advisory Board milestone of producing a 7+% conversion efficiency on a steel substrate strip cell. This is (admittedly) a low-ball target and double digit efficiencies at scale are within our reach. Nevertheless, we consider this milestone an excellent substantiation of progress for the UK based Metals Group.
Metals are technically more challenging for a number of good (and confidential) reasons which, inter alia, relate to the opacity of metal. We have adopted a different material set and architecture from glass substrate strip cells, where we are currently generating strip cell efficiencies of 12% to 13%. The steel substrate architecture is seeking to eliminate any significant organic material content. Moreover, the current product development plans emerging from our activities at Solliance at Eindhoven, The Netherlands will allow for different substrates, including titanium and aluminium. This parallel metals focus is globally unique to Dyesol in PV development and, again, attracting strong leads and enquiry from global materials groups.
During the quarter we also staged an internal technology symposium or offsite. At the symposium we agreed technical focus, scale-up plans and technology milestones for the next 12 months and beyond. In particular, activities of the core R&D team are focused on the translation of technology from smaller modules to larger devices using common and affordable materials and processes.
Manufacturing and Technical Collaborations
VDL Emerging Technology Group is having a measurable influence on our technical progress. The Major Area Demonstration (MAD) Prototype is currently nearing completion of the Feasibility and Functional Specification stage. This has been instructive in understanding all the considerations of scaling to prototype as the critical step prior to pilot line and mass manufacture. VDL is a world-class expert in sheet-to-sheet (S2S) and roll-to-roll (R2R) processing where precision engineering is an essential requirement. VDL ETG brings expertise from manufacturing development in the solar PV, auto and aerospace industries to the table.
During the quarter, there was also more general progress for spot-cell efficiencies where 22.1% conversion efficiency was accredited to KRICT at the Newport Laboratories. This is exciting because PSC is now achieving efficiencies comparable to CdTe and Silicon, yet at a much lower projected cost and with greater versatility and opportunity. Although these laboratory results are "unstabilised", they demonstrate incredible potential.
Elsewhere, in Australia a Cooperative Research Centre Programme grant application has the possibility to launch Dyesol's technology locally as it proposes a wholly Australian commercialisation consortium where the government will financially assist prototype and pilot line development. Here, substrate and finished product manufacture have all local content and solutions. This is a diversification and risk mitigation strategy meant to run in parallel with other commercialisation proposals such as Turkey and have been in negotiation and planning for many months.
Financials
The net operating monthly cash burn (Sec. 1.8) for the third quarter averaged $790k. Net cash usage from operating and investing activities (Sec. 1.14) for the nine months period ending 31 March 2016, averaged $572k per month with R&D tax rebates included.
At the end of the third quarter cash balances totalled $7.5m.
To view the complete report, please visit:
http://abnnewswire.net/lnk/W62AR44E
About Greatcell Solar Limited
Greatcell Solar Limited (ASX:GSL) (OTCMKTS:DYSOY) is a global leader in the development and commercialisation of Perovskite Solar Cell (PSC) technology – 3rd Generation photovoltaic technology that can be applied to glass, metal, polymers or cement. Greatcell Solar Limited manufactures and supplies high performance materials and is focussed on the successful commercialisation of PSC photovoltaics. It is a publicly listed company: Australian Securities Exchange ASX (GSL) and German Open Market (D5I). Learn more at our website and subscribe to our mailing list in English and German.
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