LONDON (Alliance News) - Ncondezi Energy Ltd Tuesday said it hopes to advance the development programme for its Ncondezi power project, as it narrowed its losses in the first half.
The company, formerly known as Ncondezi Coal Co Ltd, posted a pretax loss of USD2.9 million for the six months to June 30, compared with a USD3.8 million loss a year earlier.
Administrative expenses totalled USD2.9 million, down from USD3.8 million a year earlier. This included a share-based payments charge of USD100,000, compared with USD200,000 a year earlier.
The net cash outflow from operating activities for the interim period was USD1.5 million compared with USD4.0 million a year earlier.
Earlier this month, Ncondezi agreed a 25-year commercial deal with Electricidade de Mozambique (EdM) on the sale of electricity from the Ncondezi power project.
The agreed commercial deal includes the range for the starting electricity tariff to be paid by EdM, said Ncondezi, which will then be subject to adjustments throughout the 25-year operational life of the project.
The agreement is subject to a number of conditions, including the introduction of a strategic investor acceptable to EdM, confirmation of the availability of political and commercial risk cover, bankable EPC contracts, and agreeing a timetable for the substantial completion of all key project agreements involving EdM, said Ncondezi.
Having reached a commercial deal with EdM, the company Tuesday said it expects the necessary funds to be raised to continue the development programme for the Ncondezi project.
Ncondezi shares were quoted down 2.7% at 7.30 pence Tuesday afternoon.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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