LONDON (Alliance News) - Ncondezi Energy Ltd on Tuesday said it will not be able to meet the conditions for the extension of its contract with Electricidade de Mozambique in time and said the rest of the year will be focused on further development of the Ncondezi power project.
The company posted a pretax loss of GBP1.8 million for the six months to the end of June, compared to a GBP2.9 million loss a year earlier, due to the company having cut administrative expenses. Ncondezi does not produce any revenue.
In the first half, the company extended its commercial agreement with Electricidade de Mozambique, the Mozambique power utility, for the sale of electricity from the Ncondezi power plant to the end of September and completed the environmental social impact assessment on the transmission line and the water optimisation study at the project.
But Ncondezi said it will not be able to meet the conditions for the EdM agreement extension in time and has requested a further extension to allow it to complete the development pathway for the Ncondezi power project.
The remainder of the year will be focused on completing the development plans for the Ncondezi project, securing more funding and agreeing a further extension with EdM.
Shares in Ncondezi were down 17% to 1.565 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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