Successful China Test Supports Synthesis Energy Systems, Inc. (NASDAQ:SYMX) Shares

Synthesis Energy Systems, Inc. (NASDAQ:SYMX)

Shares of Synthesis Energy Systems, Inc. (NASDAQ:SYMX) gained over 40% and closed trading at $0.51 per share. The gains come one day after the company released news that the largest capacity industrial synthetic gas facility for the Aluminum Corporation of China Limited (CHALCO) (NYSE:ACH) has successfully completed performance testing – the facility operates four SGT systems. This concludes successful performance testing at all seven SGT systems installed for CHALCO.

$SYMX
1 monthj Daily Candlebar graph for SYMX

DeLome Fair, President and CEO of Synthesis Energy Systems, Inc. (NASDAQ:SYMX), stated “This latest milestone achievement at the largest capacity SGT project to date comes as we are in negotiations for similar and larger clean energy projects around the world. Our proprietary technology’s clean synthesis gas replaces expensive natural gas for numerous energy and chemical uses, including industrial fuel.”

Synthesis Energy Systems, Inc. (NASDAQ:SYMX) technology utilizes unpopular fuel sources including low-rank, low-cost high ash, high moisture coals, which are significantly cheaper than higher grade coals, waste coals, biomass, and municipal solid waste feedstocks. Houston, TX-based Synthesis Energy Systems, Inc. (NASDAQ:SYMX) devotes itself to generating clean, high-value energy from low-cost and low-grade coal, biomass and municipal solid waste through its proprietary technology that transforms these resources into a clean synthesis gas (syngas) and methane. Synthesis Energy Systems, Inc. (NASDAQ:SYMX)’s proprietary technology enables the production of clean, low-cost power, industrial fuel gas, chemicals, fertilizers, transportation fuels, and substitute natural gas, replacing expensive natural gas-based energy. Synthesis Energy Systems, Inc. (NASDAQ:SYMX)’s technology can also produce high-purity hydrogen for cleaner transportation fuels.

Shareholders of Synthesis Energy Systems, Inc. (NASDAQ:SYMX) have not seen rewards for some time. YTD the shares are down 64% and down over 66% for the year. Just this week the company’s shares established a new 52-week low of $0.34 and the analyst’s have a one-year price target of $1.75 which is considerable higher than the stock’s 52-week high of $1.45. Losses have plagued stockholders for the past five years. In 2012, SYMX shareholders had a per share loss of (-$0.39). The following years have seen similar losses and in 2016 the company posted a loss of (-$0.27). Sales have been on a downtrend as well. In 2014 the company posted sales of $17.5 million but for 2016 that figure was only $6 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Australian Deal Rockets Shares of Synthesis Energy Systems, Inc. (NASDAQ:SYMX)

Synthesis Energy Systems, Inc. (NASDAQ:SYMX)

Synthesis Energy Systems, Inc. (NASDAQ:SYMX) closed Wednesday’s trading at $0.93 and gapped up to open this morning at $1.03 before hitting its current inter-day high of $1.28 for a gain of over 37.6%. Volumes have been even more eye-popping. SYMX shares have a 30-day, daily volume average of 161,360 but less than an hour into trading over 3.2 million shares had been traded. The market’s activity seems to be in response to an announcement by the company that it has entered into agreements stemming from a large-scale Australian energy project that could result in $27 million in fees and $120 million in equipment.

Houston, TX-based Synthesis Energy Systems, Inc. (NASDAQ:SYMX) is a technology company that specializes in processes that generate clean energy from low-cost, and low-grade, coal, biomass, and solid waste. Synthesis Energy owns a proprietary technology that allows for the production of clean, synthesis gas (syngas) and methane. Synethesis’ technology is also capable of producing high-purity hydrogen for alternative energy demands.

The licensing and design agreements are between Australian Future Energy Pty Ltd. (AFE) and Synthesis Energy Systems, Inc. (NASDAQ:SYMX). In addition to equipment sales, fees will be paid to Synthesis Energy based on milestones during development, design, construction, start-up, and operations of the Australian project. Synthesis Energy Systems, Inc. (NASDAQ:SYMX) is expecting over $150 million in top-line revenue from the deal. Importantly, this project represents what is planned to be the first of many deals that AFE executes for industrial-sale, poly-generation facilities that utilize synthetic natural gas and electric power.

Synthesis Energy Systems, Inc. (NASDAQ:SYMX) is embarking on a business model with this deal that they hope will bear fruit for decades to come. In addition to licensing fees and equipment sales, Synthesis Energy is taking an equity position in AFE to the tune of 40%. Additionally, Synthesis Energy Systems, Inc. (NASDAQ:SYMX) expects to receive dividends from ownership in the primary fuel resources that supply the AFE projects, such as Batchfire Resources Pty Ltd, which operates the Callide coal mine, and future operations such as the recently announced Pentland resource acquisition.

DeLome Fair, Synthesis Energy’s President and CEO stated “The combination of our ownership in Batchfire Resources and this license and engineering work, together with the expected proprietary equipment order and equity ownership to follow, are the first major commercial successes for SES outside of China. When combined with the future projects that are planned by our Australia platform and coal mine ownership, we believe that SES now has a solid base for both near term profitability and attractive long term growth, and we are working to develop similar platforms in Europe, the Caribbean and South America.”

Management of Synthesis Energy Systems, Inc. (NASDAQ:SYMX) will discuss the Australian project, provide a business update, as well as report on Q3 2017 financial results beginning at 4:15 p.m. ET on May 11. To access the live conference call webcast, go to http://services.choruscall.com/links/symx170511.html, or Synthesis Energy’s Investor Center website: http://ir.synthesisenergy.com/index.cfm – or by phoning (877) 508-9602 (U.S.) or (412) 317-5113 (Int’l). Callers should request the “Synthesis Energy Systems, Inc. call.”

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance