The Magnis Energy Technologies Ltd (ASX: MNS) share price has stepped into the green during morning trade on Friday. At the time of writing, Magnis is trading at $0.32, up 1.61%.
Magnis Energy shares are on the move despite there being no market sensitive information for the company today, although, it did release its annual report earlier.
Read on for more details.
Magnis Energy share price gains despite 13% decrease in total income
Magnis recognised a significant 27% downstep in total income for the year of $619,587, down from $851,880 in FY20.
However, it did make an almost $500,000 fixed asset sale in FY20, which could help explain the difference at that level.
After all, expenditures factored in, Magnis reported a net loss for the year of $16.3 million, primarily made up of $11.5 million in administration expenses – but well behind the net loss of $7.4 million in FY20.
This was adjusted to a year on year loss of only around $1.2 million after the company made a $7.6 million gain on its financial assets. Nonetheless, Magnis still recognised a 13% widening of its loss from FY20.
The company has also been busy at its Nachu Graphite project in Tanzania this year, conducting a review of optimal production levels at Nachu to get it functioning soon.
It has also continued land clearing and water bore development at the site alongside various social assistance programs.
Aside from this, Magnis also raised capital for its lithium-ion battery plant in New York, Imperium3. Magnis bought the plant as a part of a consortium of investors in 2018.
An asset management firm focused on energy and power invested $50 million into Imperium3 to ramp up production.
Magnis also raised $34 million from a placement to further increase its stake in Imperium3 and expand productions at the site.
With this move, it has made four new board appointments as a strategic manoeuvre to drive success at the Imperium3 site.
What's next for Magnins Energy?
The company wants to "be a key global player in the lithium-ion battery value chain of electric vehicles and clean energy storage".
As such it envisions that the Imperium3 plant will be at commercial production, "with fully optimised and automated lines" to meet customer demand in FY22.
Imperium3 will raise further capital in FY22, in order to finance an increase to the plant's capacity scale.
It also wants to "secure offtakes and finalise funding" for its Nachu Graphite project in Tanzania.
It's been a choppy year to date for the Magnis Energy share price, having gained 56%. Its collapsed 16% this past month and is around 1.5% in the red this week as well.
