Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Another brilliant post McA
The case is totally overwhelming.
On another tack I have been rereading the last RNS (equity funding)...it seems to get better and better each time you read it! We are in an unbelievably strong negotiating position, and are sure to get a cracking deal!
Roll on Jan!
Tomorrows short trading day (ends 12.30) could be interesting. Hopefully we will see more buys and so continue to rise steadily.
GLA !
http://www.merrionstreet.ie/!CJKYI1
Dimension energy security 19th Dec 2018 (Page 90)
Ireland has a small population base and consequent high cost per capita to fund infrastructure. Its
peripheral location at the end of the European electricity and gas grids, with relatively high
dependence on imported gas, low import route diversity for gas, potential increasing role of gas in
the energy mix for heat, transport and power generation, including as a back-up for intermittant
power generation, means that our energy security profile is different to most other Member States.
Following the exit of the UK from the EU, we will no longer be physically connected to the EU
Internal Energy Market.
In addition, existing policy is to cease using coal for electricity generation by 2025. This will remove
the ESB-owned 900MW coal-fired Moneypoint generating plant from the electricity generating
portfolio. While this action will have a positive impact on harmful emissions, it will reduce our
diversified fuel mix, and will impact on security of supply.
Furthermore, Bord na Móna will cease harvesting peat for electricity generation before 2030. There
are three peat-fired generating plants, totalling 350MW of electricity. Depending on several issues,
including fuel supply, compliance with EU and national objectives, and economic viability (carbon
price, fuel costs, sustainability, etc.) these plants may be converted to biomass over time, thus
maintaining fuel diversity and possibly an indigenous fuel source if sufficient biomass can be
produced locally.
Given this profile, our objectives are:
In the most cost effective way,
? to maintain and, where necessary, facilitate the enhancement of resilience of the
gas and electricity networks,
? to improve diversity of our gas and electricity supply and import routes, including
exploring the potential for LNG and gas storage, and
? to increase indigenous production of clean energy sources;
? to facilitate, as a preference, commercial investment through policy and regulatory
certainty;
? to ensure close cooperation on security of supply at EU and regional level, in
particular continued cooperation with the UK.
Continue to examine how emissions from the energy mix can be reduced, including
the potential role that Carbon Capture and Storage technology could have in
facilitating the high level of natural gas in the energy mix.
http://www.europaoil.com/documents/EuropaProspects2Go-Inishkea.pdf
Corrib & Inishkea
• The Corrib gas field provided 66% of Irish demand in
2017 but is now in decline, with a predicted 15 year
field life.
• Irish Gas demand is predicted to increase 14-44% by
2025 (Gas Networks Ireland) - plus post-Brexit energy
security is an issue.
http://www.icrag-centre.org/t4media/Ireland%27s%2520natural%2520gas.pdf
Ireland is committed to increasing renewable energy’s contribution to electricity generation as a key component in the transition to a lower carbon energy future. However, in order to maintain stability in the national electric grid and until such time as reliable, large-scale battery storage is developed, intermittent renewable sources such as wind or solar need to be paired with a predictable and reliable energy
source such as natural gas.
Ireland therefore needs to secure reliable and affordable sources of natural gas as a critical element in the country’s electricity generation for the coming decades.
The Importance of Natural Gas in Future Electricity Generation
Figure 1 shows the historical sources of natural gas in Ireland. In the early 1990s, the Kinsale Gas Field supplied
all our demand but, with the natural decline in production from the field, imports increased to meet 95% of demand in 2010.
The Corrib Gas Field was discovered in 1996 but did not come on stream until December 2015. As soon as the
field was in production, Irish gas imports dropped significantly. Today, the Corrib Gas Field could supply enough
natural gas to power all our natural gas electricity generating stations.
In 2017, Corrib gas supplies provided 67% of national gas demand but this is expected to fall to 50% in 2018.
The natural decline in production will continue over the next decade and by 2025 Corrib will only supply about
20% of Ireland’s demand. Imports would again provide about 75% of Irish gas demand, with the remaining 5%
coming from biogas.
Jimmy, this from the funding update rns on 27th December: " Initially, financing arrangements will be provided for enabling works...". Whoever they choose for funding, it seems there will be cash available to start work on site early in 2019. Placing, if appropriate, has been said to be at project level only, so shareholders are OK, imo. If it looks too good to be true, that 's because imo it is good and it's true.
https://www.laserenergy.org.uk/resource-centre/brexit
We have been considering the impact of Brexit’s “deal or no deal” come 29th March 2019 and have been working in partnership with our major suppliers to draw up details surrounding some of the main issues affecting the energy procurement in particular.
What impact will Brexit have on the commodity price of Gas and Electricity?
Since the Brexit decision went through, the value of the pound has fallen signigicantly and so we have seen an increase in the cost of imports for all commodities, not just gas and electricity.
Dependent on the outcome of discussions around the Internal Energy Market (IEM), there may be the imposition of additional tariffs for the cross border trades which will mean UK energy costs could rise.
Is there a risk of security of supply?
There are strong commercial incentives for the UK and EU member states to continue trading and whatever the outcome, there will be a desire to find a workable solution.
Europe and the UK are heavily connected by our energy infrastructure and this is key to our ability to fill demand. There should be no physical change to our energy network although future plans may be delayed until full details of Brexit are in place.
Security of supply may come more into question if tariffs on trades were seen as an unreasonable and alternative approaches to supply and demand are needed.
How much of the UK energy supply comes from EU (and Norway)?
Approximately 50% of our gas supply comes from the EU and Norway.
Approximately 5% of our electricty supply comes from the EU.
What is the Internal Energy Market (IEM)?
The Internal Energy Market has been build up since 1996 to help build a transparent, fair, competitive and regulated market across the EU.
By exiting the IEM, the UK would lose voting rights for the various organisations that set the rules on how trades occur.
If the UK leave the IEM - a new free trade agreement will be needed to maintain the current tariff-free trading on gas and electricity - this would include covering items such as carbon pricing.
So sorry. Just reported your post by accident. Big fingers. Admin this is not a report. Thank you
"The combined FEED studies have delivered P90 cost estimates of £114m for Phase 1 and £265m for Phase 2". A total cost of £379m. This will be mini Sirius minerals on FID confirmation. If INFA kept half, would they be worth £185m? Plus upside of the additional caverns?
Sorry Spud...I see you pipped me to it while I was looking for source!
I just found it.
RNS 21st Dec 2018
'The Front End Engineering and Design (FEED) element of the Project was completed in November 2018 and the FEED report was submitted to the European Union in December 2018 in accordance with the Company's grant conditions. To date approximately £13.5m has been invested in the project.'
GLA !
Some superb posters on this forum, again reminds me so much of the rely SXX days.
Keep it up folks and a Happy and prosperous New Year to you all.
Mr T
Mcadder....swift and brilliant.....nice one!
Now that's what i'm talking about!.....If prospective buyers see this, then I'm sure they will wet their knickers!
Only thing I would say is I'm pretty sure I've seen somewhere recently that about 13M has now been spent to date.
Also can't argue with Spuds summary !!
Good one mcadder Slight correction Over £13.5 million invested so far ( from the more recent rns) 4 equity term sheets on JW's desk is testament to the attractiveness of islandmagee energy as a long term, secure investment!
Hi Setanta many thanks for your earlier reply :)
Snowman my earlier post wasn't intended to be an overall summary but if it's bullet points you want for new or would be buyers then here goes:-
(The environment)
• R.O.I & N.I undergoing major gas expansion programme
• Gas to replace Coal, Peat & oil for heating= increased demand
• R.O.I & N.I let down due to isolation/lack of infrastructure
• No gas storage in Ireland means lack of security of supply
• Ireland to miss it's climate change targets by huge margin
• Gas spot price volatility to increase = higher consumer costs
(The project)
• Will benefit 2 member states therefore has PCI status
• PCI status includes storage facility and reverse flow of SNIP
• Strategic asset of national importance
• Qualifies or EU funding (FEED & earlier phases included)
• Ongoing application for another £40M grant (decision Feb 19)
• benefits from UK govt guarantee scheme
• Pioneering fast response facility will be first of it's kind in UK
• Potential reduced Capex costs of £265M from previous 320M
• Economics to be based on daily not yearly price fluctuations
• Advanced talks with 3 blue chip funders(4th now on the table)
• Recent letter of intent from offtaker with 6 interested parties)
• Huge interest with traders will help reduce volatility/prices
• Project has sense of urgency due to closure of Rough
• Application for additional licence for 15 more caverns
• Potential twinning of SNIP (allowing for Rough style facility)
• £11.5M + already invested in the project to date
• Seismic studies show Islandmagee only suitable location
• Potential different uses for caverns (decarbonisation of grid)
• Potential 40+yr life of project with 21.6% forecast IRR
• Fantastic bod comprising JW, GL, AD, JT and AR
• Plus bod who are aligned with shareholders with a decent %
• Full planning consents along with local support (RARE!!)
• Storage licence & environmental impact assessment in place
• FEED fully completed with all recent milestones achieved
• Recent land purchases undertaken
• Numerous LTH'S here unwilling to part with their shares
So as Spud says in summary BUY BUY BUY!!!
Buy INFA, its BRILL ;)))
I'm used to spuds very high calibre posts here but I rated mcadders latest as I described it.I made it plain that I saw it as A SUMMARY of a lot of valuable detail related to INFA. And that is what it was. I've been here a fairly long time and I am certainly well researched but if I were a new investor, or one thinking about making an entry,mcadders work would have put me on track to further my own research. That's all. Go well.
Setanta and everyone,
Please don't take this as a critisism. I am definately a Mcadder fan.
However, 'Perfect summry mcadder. There really isn't anything else one needs to add for the enlightenment of recent or prospective holders in INFA.'
Although the 16:14 post was a great post I would not describe it as it is described as a summary of all prospective holders need to know.
However, Mcadder himself, and Spud and loads of others on this site over the last 9 months or so (not to mention rapid dave) have delivered such comprehensive summaries that I definitely would have described as stand alone comprehensive summaries. Beyond my skill set but perhaps someone would like to take up that challenge to bring an updated comprehensive summary on board.
It would be worth it's weight in gold....the shorter the better....just bullet points....we could post it everywhere!....I'm thinking a sort of updated version of rapid daves summary early in the year....it was superb!!
Easy for me to say.........and a lot of hard work for whoever attemps to put it togaether....my dream team to work in collaboration on that would definitely incluse Mcadder, Spud, O & W and other stalwart posters on this site.
But my God....it would be good for potential investors !
GLA
Perfect summry mcadder. There really is'rt anything else one needs to add for the enlightenment of recent or prospective holders in INFA.
Definitely right to be sceptical when it comes to AIM Jimmy! Most advanced this project has ever been! The fact the NOMAD allowed the release of the last rns without a precautionary statement speaks volumes to me and I am very confident this team will deliver! We have several offers of finance, we are drawing up a shortlist of off takers. This facility is needed and more importantly for us wanted. GLA
Actually Jimmy it's 12yrs since the project first hit the drawing board - in the days when it was part of Egdon resources before being demerged to become Portland Gas and now Infrastrata Plc. Considering JW has only been CEO for 4 months here I'd say he has under promised and over delivered during his short reign. Lot's of failures by previous bod's with wasted time and money but Infa is a totally different beast now with the quality and economics of the project now proven up. Let's not forget they didn't even obtain a storage licence and planning consents until 2012. Some of the valuable seismic data obtained between 2005-2007 and the drill in 2015 to obtain core samples are now worth their weight in gold and probably helped to determine the possibility of a further 15 caverns being developed on top of the 8. Infa is sitting on a top quality asset with a bright future now thanks to a top quality professional bod.
I've got 1.6m shares so I believe the project will go ahead. But so does every investor in every aim share. All I'm saying is he has to deliver. So far this company has been on the go over 10 years doing this.
Jimmy00, don't forget that CEO has several 100s of thousands of his own £s in here. Should help to dispel some of that scepticism imo. And he's very good at keeping us informed. All round good track record, fingers crossed.
It's on the AIM market. That bring scepticism from me until proven otherwise!
'Ha ha steady. If the CEO can actually get it built and the valuation above £50m for INFA then we can put praise to him. He's got over some hurdles but the main project needs delivered.'
Jimmy....the guy has a track record of delivering bigger projects than this one!