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Great information MT. Thanks for posting.
That's what you call great news MT
Thanks for posting
The Akwa Ibom State Governor said the free trade zone would be 50,000 hectares, the largest in Africa, covering six local government areas: Ikot Abasi, Oruk Anam, Onna, Eastern Obolo, Mkpat Enin and Ibeno. Committed investments for the FTZ have been reported to be $10 billion. In discussions with the federal government, he has called for more energy infrastructure in Akwa Ibom.
The comments/interview in the Savannah Energy Annual Report with the Akwa Ibom State Governor(further to earlier meetings/discussions with SAVE management in connection with SAVE securing new gas fields in the area), perhaps offered a clue that Federal Government approval for this mega port and industrial city were not too far away; "We expect Savannah to continue to expand its operations in the state, which will create future opportunities for local employment, economic growth and sustainable investment. As Savannah expands gas supply to new industrial clusters and our planned deep-sea port, we hope many more international investors and industries will be be attracted to Akwa Ibom State".
The green light for Africa's first mega port and industrial city development will as sure as night follows day, provide an unprecedented opportunity for Savannah Energy to deliver a huge expansion of its high margin nat gas business over the decade ahead, supplying existing and new power stations/generators and large, high value industrial businesses.
Data Source: Mainly Lloyd's List
On the strength of this company making, transformational development I substantially increased my holding late last week to 2.0 million shares.
IBOM DEEP SEAPORT & INDUSTRIAL CITY
I've bought a few this morning after it being tipped by you Trek, your information on ARB has helped me a lot so thought that it made sense to come here as well to spread the risk. Got in just under 12.2 so it is looking like I'm not the only one who took your advice today!
In terms of project size and scale, the Ibom Deep Sea Port and Industrial City Project will be akin to building from scratch the Port of Rotterdam - Europe's largest Port and Industrial centre.
Over the coming years the new Port and Industrial City development will drive an exponential growth in energy demand across the region - the fast tracked $2.016 billion first phase port development will commence construction immediately and comprise ten port terminals with a combined quay length of 7.5km (4.75 miles), which will create 300,000 jobs in Akwa Ibom. The deepwater port will have an annual freight container throughput capacity of 9 million TEU, placing it in the top 15 container ports in the world - this is well over three times greater container throughput than the Port of Durban, currently the largest container port in Africa, and number 72 in the world.
Some 3,500 companies are expected to operate at the fast tracked deepwater port development by the end of 2023.
The 2,565 hectare (6,412 acre) Ibom Deep Sea Port (IDSP) project involves the development of a Greenfield Deepsea Port and accompanying Free Trade Zone (FTZ) in Akwa Ibom State in the South-East geopolitical zone of Nigeria. The FTZ Ibom Industrial City initiative will be built on a 50,000 hectares(125,000 acres) site donated by the Akwa Ibom State Government at no value.
The IDSP project is intended to become a major national and regional economic gateway that will provide huge additional freight container handling capacity for the country. In addition to containers, the IDSP is expected to handle petroleum products (export and import), crude oil and natural gas (export), vehicles (import) and bulk trade in natural resources (import and export).
The Ibom Deep Sea Port will also serve land-locked Niger, Equatorial Guinea, Cameroon, Angola, Gabon, Democratic Republic of Congo and Chad, as the African continent's first mega port has been designed with international multi model connectivity; offering direct access to coastal and inland railway lines, the Victor Attah International Airport, and new regional, national and international road networks.
Commissioner for Economic Development and Deep-sea Port, Akan Okon commended the federal government for approving the business case thereby giving the nod for the immediate commencement of the "mouth watering project", with Bollore and Power China Consultants as preferred bidders.
He stated that the project which would be built on 60/40 private public partnership would not only address the unemployment problem in the state, but would rake huge revenues into the coffers of the federal and state government.
He said, ”The procurement process for Ibom Deep-sea adopted an internationally recognised process which has been adjudged as the best by ICRC and most of our bidders participated electronically via virtual data room.
THE EAGLE HAS LANDED - Savannah Energy (SAVE) - wins the National lottery on rollover week !
The Port of Durban is the largest port in Africa - to handle the 2.7 million freight containers/30 million tonnes of cargo that pass across its quays and through it terminals each year, and drive its huge petrochemical and other industrial businesses requires enormous amounts of energy.
In addition to the Port of Durban's regional and national economic importance to South Africa, it's also a vital import/export artery for the fast growing landlocked and coastal Nations to the North.
Now, imagine what a new port of the size and cargo throughput capacity of Durban could do for a region like South East Nigeria, its hinterland and the land-locked, economically constrained Nation's to the east; and, in particular for a company that's the principal supplier, with daylight second, of natural gas for clean energy power generation in South East Nigeria - pop: 70 million, in a nation of 240 million, that is forecast to double by 2050.
Well, news was released late last week that should put an enormous smile on the faces of shareholders of Savannah Energy - because approval to build a new Mega Port and Industrial City in the South East of the country - in Savannah Energy's back garden to be more precise - was given by the Federal Government of Nigeria.
Incredibly, this new deep water port development, the first in West Africa, will be built to a design specification MORE than THREE TIMES the size and cargo handling capacity of the Port of Durban.
Nigeria's Ibom Deep Sea Mega Port will be Africa's largest and most important port - one of the fifteen largest freight container ports in the World ( 13 are in China and SE Asia) - it will be Africa's first Deepwater Port and industrial city designed to take on the Chinese and SE Asian giants.
The disclosure late last week by the Akwa Ibom State Government that the Federal Government of Nigeria has given approval to The Ibom Deep Sea Mega Port Project and Industrial City is akin to Savannah Energy and its shareholders winning the lottery in terms of its growth prospects over the decade ahead. As it will see the largest deepwater port and industrial city on the African Continent built on Savannah Energy's doorstep; in a region serviced by three modern but greatly under-utilised gas fired power stations - Alaoji, Calabar and Ibom - which are all powered with nat gas exclusively supplied under long term contract by Savannah Energy, the only major nat gas supplier in the region.
Savannah's Accugas midstream business owns and operates the Uquo gas central processing facility which is located at the very heart of the region where construction of the new mega port and industrial city will shortly commence and, owns the 260km of heavily under-utilised gas pipeline network (power station and industrial) that services the region.
Looks like this ‘dog’ has got a new bone :)
We are on a long term up trend and should continue into high teens
Another undervalued stock I traded, ARB. Have sold many now to bank profits having got an average down to a tad over 4p. They went from +10p to 3p and now 19p. The rise has been meteoric over the last month. From 5p to touching 20p. Now there are +120 posts there on a BH. There used to just be a few posters at 4-6p.
People have realised ARB was not valued appropriately. The catalyst being the rise in BTC and PayPal adopting crypto then hey presto sentiment changed!
I really see the same happening here, a new customer, mobilising Niger, announcement of a dividend. Suddenly folk will do the math and the herd will arrive to ramp the stock!!
Those on the sidelines will likely suffer purgatory as they refuse to pay 12p for something they could have had for sub 8p just a while ago. Then it may go higher and not pull back! So many investors suffer that fate. What does it matter if you pay 12p and sell for 28p but they will sit on the sidelines waiting for that lower price that may never come again. Hence DYOR.
Munchbox you should have entered when you had the chance - still not too late. Should be back to 30p or north if market is pricing metrics / prospects accurately with a realistic discount value...
It normally happens when a loss has been made Mr B
Patience here will be rewarded Later he contract and more will be the driver plus more reforms and positive energy developments from the president already in plan will do the bizz.
This suffers from deep scepticism towards anything Nigerian. Most people are, not unreasonably, terrified of an early morning RNS, announcing fraud, criminal damage, legal skulduggery or political theft. If none of these things happen, the cash continues to flow, AK builds the business in Nigeria and manages to restart Niger, then the value is easily over 100p.
It always amazes me how folk like to knock a stock after they have sold out. It’s as though they resent the thought of anyone making a profit because they didn’t believed in the company. Alternative view points are always welcome but comments like ‘ Good luck. Had this dog before and thankfully sold out at the suspension re-list price of 28p ’ and then continues to post always makes me suspicious of their true intentions.
Many are relieved of recent news and Price rise here but shouldn’t get carried away.
It’s been painful on the way down along with many delays and hopefully now it will continue its rise but staying to say 25p - 30p like it will be all roses on the way is slightly optimistic and can happen if many things actually pan out for Save along with meeting deadlines.
It’s heavily geared and bring in Nigeria risks will always remain.
Yes they have Niger to look forward to in 2021 but it will not be plain sailing here ..... let me tell you.
Good luck. Had this dog before and thankfully sold out at the suspension re-list price of 28p
Markets at all time highs need a little pullback in order to rally higher hoping all goes to plan that is with the economy’s.
It just feels like one of those stocks that will never reflect its true value and will always trade under asset value etc etc.
We have just turned a corner I believe we have been consolidating under 10p for about 9 months ever since March 20, whilst commodities have recovered we did not and cashflow and collecting cash was a real concern before we have solid cash and now reducing debt and faster levels and signing up potential new customers with addition to add some gas resource to our reserves. We are now starting a long term trend considering how long we have consolidated for it would not surprise me if we see a quick re-rate well in excess of 30p
Yes and what is surprising is the Finncap note overlooks the admin savings. They are significant!
“Revised Group Administrative and Operating Costs guidance of US$43.0m - US$47.0m (from US$68.0m - US$72.0m) reflective of the significant cost efficiencies and savings that have been delivered across the business in 2020; and...”
I mean it’s $25m on what was a £90m mcap company! One could almost argue that the recent sp increase is purely based on cost savings!
Thing is as investors we have to try and work out why a SP goes up as well as down. The tendency is often apathy when things turn to the upside. Often hubris kicks in and laziness! Granted a bit early for that but outside of our last update which realistically only solidifies what we already ‘know’, and I agree that has value. But it didn’t contain anything transformational from baseline.
Imo, that’s yet to come!
Like the sound of the new contract being finalised.
See fair value north of 35p next year broker notes take 40% most of the time
For 2021, the changes are smaller. The lower Lafarge gas contract volumes are mostly offset by the higher gas price, but revenue falls 3% to US$215m and EBITDA by 7% to US$154m.
Capex rescheduling and the deferral of the Uquo gas well into 2021, alongside the acceleration of the Accugas compression facilities, result in 2021 capex rising to US$78m. We estimate this leaves end-2021 cash of US$77m, with net debt falling to US$374m.
All else equal, our risked-NAV and price target rise 6% from 49p to 52p/sh. It must be stressed that our NAV still does not factor in any additional gas contracts beyond the current three take-or-pay contracts. With first gas deliveries under the new FIPL contract expected to start next year and another gas sales agreement with a significant new industrial customer being finalised, our NAV is still biased higher.
My top 2 for 2021 apart from SAVE (obviously) are Bushveld Minerals (BMN) and Trackwise Designs (TWD). I’m going for EV investments next year.
No investment advice intended.
Simply Wall St is a bot. It just churns out tosh. Everyone knows it should be £2! Lol....
Re the new year tip sheets apart from Malcy please share any links if they come up. It’s interesting to see which tipsters can actually count! My top tow last year were TXP and ARB both I posted here.
This year for my top two it’s SAVE and ECR.
Got a few more that I just posted on the ARB bb but if I had just two they’d be my potential ten baggers for 2021.
Simply wall st have a fair value of £ 1.37 in an article 3 days ago seems slightly high imho.
May also be due to being on a number of new year tip lists, still I will take that too. Topped up on Xmas Eve and expect a good rise from here. Good luck to all Lths. Onwards and upwards.
I could well 4 bag from here over the curse of 21 with divi ECT
Will be a very good return from these lowly levels imho
Niger has concluded preliminary studies for the implementation of power projects worth hundreds of millions of dollars nationwide, according to Niger’s secretary general in the Ministry of Energy Balla Mahaman Rabiou
According to Rabiou, the government has embarked on an aggressive plan, to increase access to power for its predominantly youthful population from currently over 16% to 80% by 2035. Of particular focus, are Niger’s rural areas which have power access levels of less than 5%. Many of the power projects envisaged, are expected to be solar mini-grids, taking advantage of Niger’s abundance of sunlight throughout the year. The recently created Agency for the promotion of rural electrification is at the forefront of this effort.
There has always been a drive to increase access in Electricity in Niger, supported by donor partners like Power Africa, USAID and the European Union. However, the government’s new plans rely significantly on its own revenues, expected from increased oil production in Niger. Production is scheduled to increase from currently 20,000 bpd currently to 120,000 bpd in 2024. This increase shall be made possible, with the completion of the 1950Km Niger-Benin oil pipeline to be built by the China National Petroleum Corporation (CNPC).
The pipeline will transport crude to the global markets via the port of Seme in Benin from Niger's prolific Agadem basin. The pipeline has therefore become a symbol of hope, upon which several major development projects depend. Growth rates overall in Niger are expected to reach double digits, for the decade after the completion of the pipeline in 2024.
Following Petroleum Minister Foumakoye Gado’s role in securing the construction of the all-important pipeline, he was named by the African Energy Chamber as one of the top 25 leaders in the African Energy Sector to watch. Minister Gado’s success in facilitating the deal has significantly de-risked exploration in Niger in particular and the Sahel in general.
The pipeline also symbolises the likelihood of even greater exploration in Niger. British minor, Savannah Energy is leading the way with five discoveries from five exploration wells drilled and a combined estimate of 6.7 bbo initially in Place in its two licenses. Several other companies are currently negotiating with the government to secure exploration licenses in Niger. Niger’s success is being closely watched by oil companies who in the past have paid less attention to the search for hydrocarbons in the Sahel. This is likely to change, with the successful completion of the pipeline.
I think some of this rise may be because the ii sellers had gone home early! Still I will take it.
+10p close with strength at last! My post from a month ago...
“Needs a 10p close. Been oh so close!
Once we see 10p with strength, sentiment will change. Then we will no doubt get a 10-20% rise day. May even be more. You know SAVE on the leaders board!
It will happen. ”
Well 14% and 11th on the leaders board. I am expecting much more though!