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Bassa-Douala industrial zone: companies finally resume service after 24 days without electricity
Business in Cameroon) - Since October 14, 2022, companies located in the Bassa-Douala industrial zone, in the Cameroonian economic capital, have been supplied with electricity again, after the fire that occurred on September 20, 2022 shortly after 6 p.m. , at the Logbaba transformer station. This equipment makes it possible to supply electrical energy to this industrial zone. After 24 days of hardship imposed on companies, with the added bonus of a cessation of activities, the National Electricity Transport Company (Sonatrel) therefore complied with the injunction made to it on October 7, 2022 by the Minister of Water and Energy, to replace the consumed transformer no later than October 13, 2022.
“? The 36 MVA (megavolt ampere) transformer was actually installed on the 13th. However, voltage variations appeared, which were managed thanks to the latest settings that allowed companies to gradually start connecting from October 14, 2022. Production activities have gradually resumed ?,” said a source at the Bassa industrial zone.
The information is confirmed by internal sources at Eneo, the concessionaire of the electricity production and distribution service in the country. It is also specified within this subsidiary of the British investment fund Actis that the replacement of the transformer consumed at Logbaba, with a capacity of 50 MVA, by another of reduced capacity (36 MVA), has induced a reconfiguration of the network, in particular with the switching of households to other transmission lines.
Upgrading networks more and more urgent
Moreover, despite this gradual return to normal, the economic operators of the Bassa industrial zone continue to maintain that the installation in Logbaba of a transformer of the same capacity as the equipment consumed (50 MVA) remains the only guarantee of a return to optimal production. They are also hopeful that the incident that occurred on September 20, 2022, which had significant socio-economic consequences on their activities, will lead to the implementation of a system to anticipate incidents of the same type. .
" ?To anticipate incidents of this type, Sonatrel should permanently have transformers in reserve", already whispered a player in the electricity sector a few days after the Logbaba incident . But, from internal sources at Eneo, the anticipation of incidents, such as the one which has just plagued activities in the Bassa industrial zone, lies in the effective implementation of the "? Plan for upgrading the networks of Douala and Yaounde?". This plan, which provides for investments in both transmission and distribution lines, consists, we learn, of the construction of a second backup line next to each existing transmission and distribution line. So as to be able to switch immediately to the emergency lines t ...more.
https://www.investiraucameroun.com/energie/1710-18587-zone-industriel
isn't it a bit easy to work out after years of confetti placings? Next Capital raise IF it comes out of suspension will be less than a penny. Yes, a penny and then it will be multi-billion shares flooding the market. Sorry guys Mr Market has this down as a defunct company and placed in the bin with most companies that went to the wall.
According to what everyone says you can only get 6 months! We are now past this and no notification of extension or delist?
Answers anyone?
After that rns, I guess no one will expect the suspension to be lifted at all. in the RNS they say they are trying to sign a deal for another rig for more drilling, who the hell is going to sign up for their rig when they could never be paid.
No one will lend them money so it's only a question of time before one o9f the main creditors calls in their debt with a swap in debt for company. all / any shareholders left will get nothing, and that's been on the cards for god knows when. Another clever move by Foo who saw all this coming and got out while he did. But did he sell any / all his shares as he got out.?
Ps
I Am LTH over a decade!! So feeling the pain like all LTH
Just stating what mess he inherited!
I have no doubt that Logbaba will be a success story.
I also have almost no doubt that I won't benefit from that success.
Can't say I share your enthusiasm for Kelly's efforts for LTHs REC1.
Agreed no mention of any extension but also nothing about being delisted either?.
Let's all remember who got VOG
Here FOO!!!.
Poor Roy been trying to clean up the shambles left credit it to him for trying!
Electricity: how the fire at the Logbaba substation threatens to ignite the metallurgy sector in Cameroon
On September 20, 2022, shortly before 6 p.m., a fire broke out on the electricity transmission network, in particular at the Logbaba transformer station in Douala, consuming the 50 megavolt ampere (MTA) transformer supplying electrical energy to companies located in the industrial zone of Bassa. The metallurgists, large consumers of electricity (31 MW per month), who produce iron-based building materials as well as small agricultural equipment, are the most affected by this incident, which remained unresolved 15 days later. This, due to government inertia, cash flow tensions among operators in the electricity sector and differences between Eneo and Sonatrel on the option to be adopted for a return to normal in the supply of electricity in this sensitive area of ??the Cameroonian economy. Investir au Cameroun conducted the investigation into the impact of this fire, which has plagued the metallurgy sector in the country, with operating losses, job cuts, shortages and defaults on payments to banks. in perspective…
On October 4, 2022, electric cables burned again on the line serving the industrial zone of Douala, in the Cameroonian economic capital. Good sources, a similar incident occurred on October 1 , eleven days after the fire which, on September 20, 2022, consumed the transformer installed by the National Electricity Transport Company (Sonatrel) in Logbaba transformer station, thanks to which the company Eneo, the concessionaire of the electricity distribution service in the country, supplies the companies located in the Bassa industrial zone.
This fire, the consequences of which have not been resolved for 15 days now, “? resulted in the shutdown of several factories classified in the category of “Key Account” customers in the electricity sector. These are manufacturers in the metallurgy sector such as Prometal, Métafrique, Aciéries du Cameroun, with significant socio-economic consequences: thousands of jobs threatened and operating losses ?, "announces the electrician Eneo in an information note published on October 4, 2022. more .......
https://www.investiraucameroun.com/energie/0510-18532-electricite-comment-l-incendie-du-poste-de-logbaba-menace-d-embraser-le-secteur-de-la-metallurgie-au-cameroun
Surely the shares must now be cancelled as we've exceeded the permitted 6 month suspension timescale and there's been no notification of an extension having been granted? Nice one Roy!
And another potentially large ICC dispute, again 'unmerited'....so was RSMs claimed I believe. Final nail with that one
Dealing with RSM will not improve cashflow and unproven assets at matanda of no help with JV, assets to back debt. So no tangible improvements since suspension as far as I can see. Not a RNS that gives any real plan of hope. So just a waiting game.
They can't raise cash while suspended from the market. They are reliant on cash generated through operations for day to day financing. The problem is they will not get the suspension lifted unless they can demonstrate they can operate as a going concern. As the cash runs down the risk of liquidation increases. Glad I only have a small holding here don't expect to get anything back. IMO
Trying to understand RNS
Does it mean they have extended suspension till end of October?
According to the RNS the state of the company is precarious so unlikely suspension will ever be lifted
As is common in these situations someone will acquire this company after liquidation at bargain prices and shareholders left with nothing
THE SILENTS IS DEAFING !!
Not so sure I have a problem with delisting (not ideal I know) - as long as we then at some point relist. The co.is owned by shareholders and a couple of firms (Hadron etc) I believe own c.40% and have loans in place (repayment was waived at present). They are investment vehicles and thus profit and liquidity is a prime need. They also have conversion options. VOG need to be listed to raise money in future (all O&Gs do this!!) via placings etc. So, can't see any rationale in being privately owned - by the shareholders still. Only way to relist is via trading clarity - RSM repayment /agreement of some sort which takes us back to either explo at Matanda (not a clue as yet) ,alternative funding/JV at Matanda/giving RSM more of Logbaba etc. imho these are the key variables to VOGs survival. Suspect any 'info' RNS may well be 'we are in discussions etc' sadly.
Think it's odds on we are going to delist. Seen it all before. It's not about us it's about the people who run vog
Would think this is LSE rules not VOGs. Possibly extension application still in review stage or just a LSE 'normal timescale'.
I'm guessing they have to say something today?
Was interested to see drill funding in Cameroon for TowerRes. IF, that word again, VOG have Marula producing/showing a result of some positive sort and that is 'monetisable', funding is out there???? Believe that VOG has debt in place already with BGFI??
-- June 2022 - Tower Resources Cameroon SA executed a term sheet with BGFI Bank Group, the largest bank group in Central Africa, for a medium term loan of CAF 4.42 billion (equivalent to approximately US$7.1 million) as partial financing of the NJOM-3 well on the Thali block in Cameroon. The loan would cover around 40% of the US$18 million well cost, with a further amount in excess of 25% already having been paid for by TRCSA, and the balance of 35% of the cost of the well also to be funded by TRCSA.
I've sent numerous requests for that info, but complete radio silence. How long is a piece of string.
And we wait??
Morning Voggers. Be surprised if we are not either delisted or the suspension extended tomorrow (??). Can't see a 'last minute deal' appearing over the weekend. If one had been struck then issue we would have been RNSs by now. More interested in any rhetoric/news with any forthcoming RNS. Have they done anything in Marula etc. imho Logbaba has limited appeal given lack of big power, any of the power projects commencing, Entinde still literally not in the pipeline and a local finance structure that appears to have no cash. Just yhe demand for the power! So, Matanda, Marula and I hope exportable energy seems to be our best hope and quite a large one at that i its 'right'. GLA.