The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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It is the timing Appi, not the idea!
Once CBM is producing an income and low interest rates on secure finance, then by all means boost the company when it is safe to do so.
But to risk us going bankrupt before the project is up and running imho is madness!
We can keep alive with our CBM plans , as we are doing , for quite a few years. Survival until the good times are back is my idea of good management and so far we are!
God bless Australians, no trades overnight so sp is bearing up.
Profiteers in the UK are dragging it back and encouraging others to grab the lower prices whilst lowering them yet again! It is so pathetic. Ashes to ashes over and over again!
4p is healthy compared to 1.75p but , really folks, 4p is pathetic when the price should be nearer to 11p! I despair!
Brad you seem to talk about Solar PV as though it's some crackpot idea - a nascent untried technology that nobody has previously considered nor overcome all the issues you mention. South Africa's proximity is relevant here and it has been embracing solar , mostly in the Northern Cape, for some time and continues to expand capacity. They even have a 75MW PV farm at Kimberly called Lesedi!
https://www.power-technology.com/projects/lesedi-solar-pv-project-kimberly/
The installation cost of commercial PV has dropped dramatically in recent years, and it is increasingly commonplace. A hybrid operation is perfect for our situation, and as stated previously the company has done the due diligence and feasibility work . The CBM negates the need for expensive storage batteries and the solar will extend the life of the CBM, as well as enhance the environmental credentials of the project - something that is becoming increasingly important in Africa.
If we are contemplating solar in the very near future, I worry that our security costs will soar!
Solar panels could be a target for thieves, and they look more vulnerable to damage from wild animals or vandalism. And they'll occupy a larger surface area to police as well.
I don't want TLOU to waste money proving that Solar is a false economy - and there must be reason why commercial solar isn't already commonplace (by anyone).
..I'm reposting this from 10th October.
I spoke with TG at the very beginning of October, a few days after his last interview, and got the following granular detail on how things are going to pan out. Today's RNS tallies with this scenario, and the weekend visit of our Minister Moagi to Lesedi underscores the importance of TLOU and CBM + Solar to mitigate Botswana's energy shortage.
FWIW IMO The very timely rally last week in the Share Price can be traced back to the interview Tony Gilby gave on the 29th September (see link).
TG detailed how funding is (likely!) split into 2 Phases, the first for the poles and wires to connect to the grid at Serowe, and the second for the 'expansion of generation capacity'.
Sharp listeners would have noted how Phase 1 was for an amount *between* $6-$10m, and then that 'expansion of capacity' phrase. Even sharper listeners would seek an explanation for the $6-10m spread and what exactly would comprise the capacity being expanded in Phase 2. Here's one:
Phase 1: The poles and wires (plus transformers and a substation at Serowe) should be c.$6m. The $4m balance could/should comprise of $2m for 2MW of solar (@$1m per MW standard rate). This would leave $2m to be deployed perhaps on additional well/s to dewater Lesedi 4, and/or as a $ buffer.
Thus: 2MW of solar could generate $2m pa of revenue - neatly utilising the current BERA licence - plus an initial amount of CBM generation from using the currently-flared gas at Lesedi - (as the company did at Selemo). The CBM could/should expand further if a further well successfully dealers Lesedi 4 as indicated by the company.
Well, well, and if so, $10m gets TLOU connected to the grid, with revenues of c.$2m pa as a dual fuel (solar and CBM) electricity generator.
That scenario alone would be transformational for the company - grid connection, revenue generation plus the unlocking of the solar potential and TLOU's huge CBM reserves.
Then on to Phase 2 of $20m for the EXPANSION of generation capacity. Those sharp listeners would have noted that you cannot expand what doesn't already exist. At Phase 1 costings, Phase 2's $20m would produce a further 10MW, and in line with the 10MW PPA currently being adjudicated on at the AG's office in Gabarone.
Now investors have started to put a Market Cap on that (very likely and even imminent) scenario. A £50m MCap is at 9.50p, for example - not the 1.75p when TG gave his interview (see below).
Friday's close at 2.75p remains a complete steal - IMO, DYOR etc.
You see it all adds up.
Have a listen @1:00 - 1:40
https://www.boardroom.media/broadcast-single/5f72b8e4ffe5d60019a5aba2