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Top post bladesharp!!
When NCCL was admitted to AIM they had only had a JORC of 1.8b tonnes of which SRK confirmed economic potential for 10m tonne pa export of thermal coal. Today that JORC is 4b tonnes! Check https://www.ncondezienergy.com/wp-content/uploads/2020/01/218061ncondeziclean-1.pdf for evidence of this.
Today coal is at $270 per tonne so even if we use the old 10million pa figure then that alone is £2.3b a year!!!
Currently Ncondezi is only £4m mcap and when looking at the coal asset alone thats for sale/jv and was confirmed in yesterdays interview that it is all permitted and could go into production in 6-9 months. There will be a lot of interest in this asset which i expect to enter into a bidding war!
Then on top of this the new solar project!
The upside here is beyond our wildest dreams!
#NCCL With two HUGE projects/ assets now in play! Turning around ON!
Project/ Asset 1: Grid Scale Solar Project 5000MW+ potential
Project/ Asset 2: 4Billion tonne JORC Coal Asset, with permits, concessions, now open for JV/ Sale.
Once again, both HUGE!
Project/ Asset 3: 300MW Coal Power Plant (Scalable to 1800MW). Has not been turned down officially and global shift back to coal generated power back on. NCCL Looking to use Coal Asset JV/ Sale option as leverage to get movement on coal plant.
All for just £4m market cap!?
More news by end of month!
#StocksToBuy #Stocks #StocksToWatch #StocksInFocus
Who knows what such a massive resource is worth?
Im not familiar with the structure of launching a mining JV but lets say we restrict the mine value to the easier surface coal of 120m tons over a ten year deal.. coal is approx $325 / ton currently.
Lets say we agree to let our partner run the mine 100% and we just take a flat royalty of say £10 / ton... that equates to $120m royalties every year for 10 years.
Is that realistic?
For comparative purposes... Glencore completed the acquisition of Cerrejón open cast thermal coal mine in Colombia recently by buying out its 2 existing joint partners in a $588m deal.
Cerrejon is also a 4Bn ton resource but it only has approx ten years mineral rights left. Annually it produces about 25m tons per year.. so Glencore must have been looking at a 250M ton resource over a ten year lifespan.
So lets say we mine at 50% capacity of Glencores mine but we have longer timescales and far superior recoverable tonnage. What would Glencore value a JV with NCCL at?
On a royalty basis over 10 years we could be looking at $120m per year = 30p/share per year.
Would Glencore stump up £200m to initially buy in? I dont think thats unreasonable for such an opportunity... for NCCL that is 50p per share as an initial payout ...
We can only dream at this stage as this current plan of solar and coal mine blows the original power plant out of the water.
Lets get the solar agreed asap and then we can sit back with the popcorn and watch how the coal JV develops over the next 18 months.
An excellent interview with Hanno. He looked and sounded calm, assured and genuine. I have had my doubts regarding his leadership in the past. Maybe now he comes good. If they pull off a full solar farm feeding energy to the Grid and a partner mining the coal. SP here? anyones guess. Cherry on Top is out the Blue, CMEC announce funding. Boy could see 25p. Easily
We were at around 12p(?) When we were about to sign for the power plant...Reversed to 6p when new Chinese group waded in ... Nothing of consequence has happened since...??????
#NCCL Coal asset and mine plans. Hanno said:
"When global thermal coal prices are at a record high. And we are sitting on a 4billion tonne JORC coal resource, which is fully permitted, with coal concession etc. we believe able enter into coal production within six-to-nine months!"
-------
The add the Grid Scale Solar Project, 300MW but scoped for 5000MW+ potential!
All for just a £4m market cap!
BOOOOM!
For just £4m market cap!
$NCCL Ncondezi Energy pivoting to solar in Mozambique https://tinyurl.com/2y2nt69x @Ncondezi_Energy
$NCDZF $9NE #NCCL #NCDZF #9NE
https://twitter.com/proactive_UK/status/1584526133361451008
Looking good ahead of news.
As others are saying, plenty now going on here, with the majority of the upside still in play!
The Coal could very prove to be the biggest WIN for NCCL. Coal prices are through the roof and it will take nothing hardly once an joint venture partner is agreed, to start extracting, transporting and selling, the easy to mine huge JORC Coal resources NCCL sit on. Could go BOOM big time here. In no time..Literally. Never been as much going on for NCCL as lately.
Would be great if we Ncondezi can get a grant too!
Solar project feasibility study set to be completed this week (already confirmed last week in RNS that it is still on track) and all stars are starting to align for a significant increase in SP from these levels. We all know how quickly the SP moves here
What I like about selling the coal asset as opposed to chasing the power plant project with China is the following;
- The area has proven & significant coal resources (Between 2009 and 2013, roughly US$40m was spent proving up the potential of the project with 78,274metres drilled over 524 boreholes delivering a classified JORC coal resource of 4.0 billion tonnes).
- Coal at all time high price with the worlds power needs V ability to supply is in a mess for the foreseeable future.
- A competent persons report backs up the numbers (Mr Stewardson and Mr Andrews)
- There is excellent infrastructure to move the coal to major cities and coal export hubs (benefiting from two existing export coal rail corridors)
- The project has been given all the relevant government consents, although they will need updated and approved again.
- Ncondezi taking this new tact will force the hand of China one way or another, either sign up to the powerplant project or remove yourself from the equation.
Not bothered either way, we have a huge proven resource in the ground, and it is time to monetise it.
Competent Person’s Statement
The information in this RNS that relates to coal resources has been reviewed by and is based on
information compiled by Mark Craig Stewardson and Gavin Stuart Andrews of Mineral Corporation
Consultancy (Pty) Limited. Both Mr Stewardson and Mr Andrews are Competent Persons who are
registered as Professional Natural Scientists in the field of Geological Science with the South African
Council for Natural Scientific Professions, a Recognised Professional Organisation included in a list that
is posted on the ASX website from time to time. Neither Mineral Corporation Consultancy (Pty) Limited
nor any of its Directors, staff or sub-consultants who contributed to this resource estimation has any
material interest in Ncondezi or in the assets under consideration.
Both Mr Stewardson and Mr Andrews have sufficient experience that is relevant to the type of coal deposit
under consideration and to the activity being undertaken to qualify as Competent Persons as defined in
the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (the JORC Code). Mr Stewardson and Mr Andrews consent to the inclusion in this RNS of
the information based on their work in the form and context in which it appears.
The JORC Code sets out minimum standards, recommendations and guidelines for Public Reporting of
Exploration Results, Mineral Resources and Ore Reserves. The information contained in this release has
been presented in accordance with the JORC Code and references to "Measured" Resources are relevant
to that term as defined in the JORC Code.
A Competent Person’s Consent Form dated 18 May 2015 relating to the Ncondezi 2014 Annual Report
and Financial Statements is held on record by Ncondezi. There have been no changes to the coal resource
estimates since 18 May 2
#NCCL Buying is starting to pick up folks!
#StocksToBuy #stockstowatch #Stocks #StocksoftheDay #StocksToHold #sharemarket #Shares #ShareTip
#NCCL Development work on coal mine already done, drilling/ JORC status, mine plan etc. $40m worth of work, while market Cap £4m
Coal assets/ mine project ready to be sold or moved into JV territory
Then add, 300MW Grid Scale Solar Project, with 5000MW+ potential
#StocksToBuy #Stocksinthenews #Stocks #
SP could move quickly now. Full ask being paid. Once buyers start gaining confidence, we will fly.
Agreed.
BIG BUY Orders in, I believe.
Excellent to hear that the BOD are finally going to look at extracting the coal, I know its indirect, but NCCL own a huge resource, fully proven up. Sat waiting for China, meant it was kept locked away.
Looks like mr Fletcher holding the Lions share of stock, has forced the other directors hands and eventually REAL shareholder value will be un-locked.
NCCL could prove to be a real winner. Lets see
Agreed!
Solar project news due now, in a matter of days. Will be followed company PR, Q&As and interviews.
We're finally breaking out. 2p then 3p and then beyond 5p. 5p SP equals market cap of £20m only. As you say, market cap in 2011 for the coal mine alone was £171m. Upside is HUGE!
"In 2011, the NCCL market cap was £171million -- and that was for just the coal mine (one of the largest high quality deposits in Africa). Now add the Power Plant!"
Just thought i would post as i think there will be many running the numbers over NCCL over the next few weeks/months
Must be the best time to buy /hold this stock in years. If they JV you will see instant monetisation of the stock, no waiting for years till the power station is built.
This must be worth 3p + just on any news of interested party's. IMO
Great RNS, just need a 100% rise to break even. (Shame no eye roll emoji)