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It's already in the final stages of the project. The question at the moment is whether they can raise the signposted $200m.
Personally I don't mind either sale or spin off. If it's sold, return the sales value to shareholders as a special dividend. If it's a spin off and we get shares in the new company then each individual investor can easily decide how they wish to proceed based on their own investment criteria.
I do like the idea of using it to showcase what can be achieved with a mix of renewables and VRFB. That could open significant opportunities in future as a half way house for operators on the way to inevitable future closure. Many of these plants are recent builds and they are not all going to close before a return on investment to their operators whether we like it or not. Of course governments could choose to pay to close them or steadily make emission regulations more and more stringent, if such policies are available to them.
I agree SOtRR ... it is an asset owned by the Shareholders. It has been developed and is perhaps not yet ready as a package to be sold on. But I want the value either distributed back as a dividend, or re-invested in developing the company.
I do not subscribe to this 'wrong message' stuff. The wrong message is to take shareholders money, develop an asset and then give it away.
While a general move away from coal is to be applauded, there are places where it is the economic viability that drives. And while China is still building coal fire power stations by the hundreds, frankly, one small one on an island in the Indian Ocean is just insignificant
I think giving company assets away would send the wrong message and cause long term damage to investor sentiment particularly if trying to attract new money. The coal is still worth $6bn at todays prices assuming the published resources are still accurate (based on the last annual report).
Battery storage would be very beneficial and allow the plant to run at a more constant rate 24/7.
I am all for spin off or sale to remove it from BMN but could see significant opposition to any resolution to give it away for free.
Why not do both - gift the government the coal mine and let them decide if they want to build it in exchange for being given the opportunity to provide alternative PV+VRFB backed minigrids to all the isolated communities that would not have been served by the traditional grid that the coal plant would have fed into.
Good idea BonScott but the mini-grid will serve that purpose and I don't think BMN are that cash rich to give millions away yet.
I think the plan is to give the coal business to the government in the end and I'm hoping they just forego everything thing and say have the business now rather than in the future.
Maybe they can just pay some fees for costs incurred once the business is up and running, while keeping Prince in charge with a job.
I've said it before. Cover the site with PV backed up with BE VRFB. Give it to the Madagascans for a nominal amount and showcase the result to the world what BMN/BE can do for green energy. The wake up call and subsequent PR to the world will be much more beneficial to the company in the long term than a few quid in the back pocket for the sale of a coal mine in my opinion.
Yes it has been argued 'what about our partnership with Sinohydro'. Well f**k them.
Why should a poor country always have to have the ****tty end of the stick? Why can't Madagascar be the front end of the energy revolution? Empowered by Bushveld Energy showcasing what we can do!
Wind, solar and bess instead of the coal power station. What a way to show off our product.
Whether we give it away (my preferred option) or sell it for a nominal amount, I don't really care, but getting rid of it before the JSE listing/main FTSE listing would be good so that there's no excuse for potential investors to be put off by any 'dirty coal' legacy attached to the company.
There was a man working at a Lemur coal mine. Every Friday he would take a wheelbarrow full of dirt home. Every time he did this the security guard would stop him, make him dump out the dirt and sift through it searching for coal or other stolen valuables. The security guard always found nothing so he would reluctantly let the man reload the dirt and go home.
This goes on for 25 years until the man finally retired. On his last day the the bewildered security guard pleaded with him "I know you've been smuggling something out of here all of these years. Please just tell me what it was?" The man replied with a sly wink "Wheelbarrows".
Right Loudspeaker and that effectively opened the door for us to get Vametco and Brits.
time to move on - just give it to the Government of Madagascar
Ophidian
We paid 6 cents a share for it in a hostile takeover to plunder their cash pile.
I would happily just give it away. It served it's purpose - now it is just an Albatros.
not worth anything really anyway
Ophidian
Does anyone have any thoughts about how much cash could be raised by the sale of Lemur?
If it's a decent amount, I'm thinking it might be a useful way of kickstarting dividend payments, which will hopefully be announced soon after the JSE listing.
I think every business with connections to coal needs to look carefully at the global impact. Fortune will be well aware of the need to create a completely green profile, to the business going forward. If there is a way to move Lemur out of the Bushveld Minerals company structure either by selling the business or by having it listed as a sperate entity and raising cash which could be used to start operations at Mokpane or upgrade Vanchem more quickly would be a very good use of the funds in my opinion. But, I have no doubt that when the opportunity is right the action will take place. The fact that we have had no news about Lemur since the Q3 update on 7th November could be very telling. It is not mentioned in the February 2020 presentation at the 2020 Mining Indaba. I think this is one inevitable RNS due very soon. A Chinese buyer would be most likely in my thoughts.
I just hope it raises a significant sum for the business.
Cheers, RK
Lemur has got to go. Probably after the JSE listing. It's a domino. It precludes an awful lot of potential institutional investors looking for ethical investments. In my opinion anyway.
Any chance the goalposts could change to a hybrid mine with BESS playing a role to make it a more efficient coal-mine in some way?
Would be nice if there is a long term plan in Madagascar for BE to deliver micro-grids after establishing ties with the energy governing bodies.
Maybe the world bank recognises the poverty there and if BE deliver in SA, there is additional funding to help in less developed Africa.