Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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CF, if you look at Bangladesh, they have just shelved several coal fired power projects, all of which were in the construction phase. It does not matter one jot how much time, energy and money has gone into a project, they can still collapse.
Even China now is having doubts about financing these projects.
Look at one of your other failed ramps-GCM.
Woops sorry for the double post guys. Just to add, why would mgt continue to communicate that negotiations are progressing positively, and that we're in a strong position etc, if the project is about to fall over...?
There's a simple solution to the twitchiness that I've already suggested and hope Hanno and SF are about to execute. Directors need to convert warrants / options. This will provide confidence in the project going ahead. It will provide us with funding. It will boost the share price. All things investors will cheer about. If indeed they're confident in the project being commissioned it should be nothing for them to do this. We'd only need about $250k to take us to year end, and $500k to take us to FC (if we're not bought out before-hand), so peanuts in the grand scheme of things.
The main project is going ahead. We're just horribly delayed as is the way in Africa. If mgt convert options / warrants the natives will be less restless for another 1-2 months, me included. Simple solution. Let's hope they do it sooner rather than later. GLA
hxul, you speak of the project never going ahead - Please explain why EDM & Moz have allowed it to run for years along with our Chinese partner, one of the biggest companies in the world and an extension of the Chinese state? Why are we even negotiating a tariff and final project timetable? Why are they building (and tenders about to be awarded) a transmission line to Malawi? Why have we just completed additional studies to connect with this line? Why have CMEC submitted a tender for the transmission line? Why have CMEC continued with all the studies, agreed historical costs, early works program etc? Why are they still pushing ahead with finalizing and signing the EPC contracts?
As for the tariff, in case you haven't been able to put two and two together, they're not negotiating with us, they're negotiating with CMEC. You know the partner who will own most, if not all of the project. The partner that will have the EPC & O&M contracts. The partner most likely to develop the transmission line near our project.
By your own admission you're not invested so I have to ask, why are you spouting such drivel over here?
hxul, you speak of the project never going ahead - Please explain why EDM & Moz have allowed it to run for years along with our Chinese partner, one of the biggest companies in the world and an extension of the Chinese state? Why are we even negotiating a tariff and final project timetable? Why are they building (and tenders about to be awarded) a transmission line to Malawi? Why have we just completed additional studies to connect with this line? Why have CMEC submitted a tender for the transmission line? Why have CMEC continued with all the studies, agreed historical costs, early works program etc? Why are they still pushing ahead with finalizing and signing the EPC contracts?
As for the tariff, in case you haven't been able to put two and two together, they're not negotiating with us, they're negotiating with CMEC. You know the partner who will own most, if not all of the project. The partner that will have the EPC & O&M contracts. The partner most likely to develop the transmission line near our project.
By your own admission you're not invested so I have to ask, why are you spouting such drivel over here?
hxulcolrdoh - the need of EDM is greater than ours to get the deal done. In order to finance the tariff needs to be at a level that’s viable to all parties, so it will be agreed at a commercial rate irrespective of financial strength of NCCL.
If we can’t get the power project concluded, will still be value in the coal resource, although this is buttons compared to potential returns of the power project. That’s the risk/ reward profile here.
All shareholders are rightly concerned about the breached timescales, but this is symptomatic of business in these countries. Thats why the SP is so low against e potential returns.
We are close, just keep the faith.
I doubt if EDM are interested in progressing the main project at this time - if ever.
If they were now would be the perfect time for them to do it. NCCL are effectively bankrupt / from a negotiations point of view holding a busted flush. They'd pretty much have to agree to whatever they were given and be thankful.
Another day with no RNS. Folks over on ADVFN are getting very twitchy now
Am with Benjan1 here. I think we are close.
Keep the faith folks!
Completely agree we're in the final furlong Benjan. A simple funding solution and / or EPC contracts and we're back in the 5's. Tariff and we're at 10p, perhaps more given it unlocks so many things. C'mon Hanno, get the funding sorted at least.
Morning Chaps, although funding is a risk, I’m satisfied that Scott Fletcher and possibly other directors will cover with warrants if necessary.
We are so close to the end game on the main project and there has been so much committed to get this far that it’s unlikely to fall away due to a few £100k of costs to stay afloat.
I’ve added a few more this morning, I’m satisfied progress is being made and that we’re in the final furlong. I can’t foresee there will be a buying opportunity at this level for much longer.
Keep well all and keep the faith.
I'd prefer we get funding issues out of the way with option / warrant conversion as our next news. This will lift the share price to higher than the conversion price almost instantly. It shows confidence in the main project. And gives us much needed cash. In an ideal world this would be closely followed by tariff, and EPC contracts being signed. And shortly afterwards historical costs being updated in light of tariff approval. All of this gets us to +10p with option / warrant conversions giving us a much higher springboard. Funding is in our control, so no reason for Hanno to drag his feet on this as per his track record. He's known for a while it's required so hopefully already has a plan drawn up. I honestly don't want to hear about the solar side of things until this is sorted. Every time Hanno updates the market on the solar project the share price drops further from our near record lows. He should take direction from the market and sort out the things holding us back. Funding is first and foremost. Tariff / EPC next. After this he can rns solar every day if he likes. But main project needs to come first now. GLA
Chris, we don't need him to buy. Buying won't solve our funding issue, which is the only major red flag in the rns. We need SF and directors to convert warrants / options to shares so we have necessary funds to take us to year-end. About £250k should do it. Alternatively they can provide a bridging loan, but not on the f@cked up terms they did for the solar project. I'd rather they do a raise at 3p for 10-15m shares than go down that route. That would give us enough cash for circa 6 months from September on current burn rate.
Overall a very respectable amount of work was completed, especially when considering the impact of Covid. The main project looks and sounds solid. I'm glad they have outlined all the work completed in the past year and framed it in a way that says to EDM / Moz it's far too late to back out now. Everything that has been asked of them has been completed on time. I also noted they have referenced the work done by CMEC in the tariff proposal and negotiations, both in the interview and rns. A nice supporting statement to say it's 'us and CMEC' currently in negotiations. And another reference to 'optimal ownership structure' for both projects. I'm hoping this refers more to CMEC final % ownership of the main project, than divvyign up both projects at the expense of nccl PIs. We have largely funded this little foray into solar. Whether it has been through capital raises or Hanno's salary that he's taking in shares (diluting our shareholding). If they're going to do this they need to ensure that nccl PIs are adequately compensated with shares in the new Ncondezi green company. Shareholders won't forgive them otherwise. Hopefully not something to worry about once the tariff is signed, and we're sitting at +10p negotiating to sell more / all of our coal resource and project to CMEC (China).
All very positive except for the funding concern. If they can simply and elegantly solve this with director option / warrant conversions then we can sit very comfortably waiting on EDM & Moz tariff approval. AIMHO GLA
Be interesting to see if we see larger buys now. That is all the possible fluff out the way and next news should be the big one with any luck.
Surely will be able to raise funds by exercising warrants?
Would be good if other Directors in the business put there hand in their pockets too. Two of them have no vested interest in shares at all!!!!
that the accounts are out the way.