The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Lignite is normally uneconomic to transport, so the textbooks say, but world trade is $7 billion, 80% plus between Indonesia and China
https://oec.world/en/profile/hs/lignite
This threw me, maybe some pre processing before shipment?, but can’t argue with the figures.
Chinese power plants owed £1.1 billion in overdue payments, hence may be a pause in new plants.
http://surl.li/obwpz
On positive side pk asking these existing plants to run on Thar lignite, although we know that was rejected in the to be built Gwader plant by the C’s, but potentially could create a market for the lignite, even if blended with imported high quality coal.
I think projects like this are small change for the Chinese, at the end of the day they are selling their equipment with a good rate of return.
Security is an issue , but now every Chinese person involved with CPEC gets use of an armoured car . https://tribune.com.pk/story/2384975/all-chinese-cpec-workers-to-move-in-bullet-proof-cars
The country is not short of electricity, only half the generating capacity is used, but the issue is affordability , generators get paid regardless, so no incentive for the state to add capacity at the moment.
Green hydrogen has good export opportunities, but the required infrastructure to export is barely developed globally
Who the hell designed this, some kid in Baluchistan?
good to see content was checked
https://oraclepower.co.uk/gold/northern-zone-project/
The gold system encountered at NZ was investigated to assess gold recovery rates through metallurgical testing. The results obtained in June 2022, indicated that good gold recoveries can be achieved within six hours of 83.3%, and up to 90.4% gold recovery over 72 hours. Further testing confirmed individual recovery from sample 2 of 94.7% after 24 hours, with an average recovery of 92.9% after 24 hours
Just my thoughts but appreciate feedback, could post links, but tiresome when you have to relink them to avoid mention the P word.
China has declared it will not build/finance any more NEW coal based power stations outside of China as part of its commitment to global warming. Japan , Korea and World Bank others said same earlier. Although importantly this is a pre-declared project under CPEC, so in theory could go ahead.
P'stan has no money, at least foreign exchange, can't or has has had issues with paying Chinese companies / airlines and others , so soured the pitch . The current single Chinese Thar Lignite miner has said it will stop working if not paid.
The country actually produces too much power , but most is expensive based on imported LNG or high quality coal. for simplification generation capacity 40 units, demand 30 units , transmitted 25. Existing power stations have 25 year contracts , so if we can produce 10GW but you can only use 6GW , you pay us for the margin on the other 4GW .
So transmission system is poor, huge theft , even government don't pay their bills .
The Gwader coal power plant, P'stan insisted on using Thar coal , Chinese insisted on imported coal...guess who won.
Positive news , existing power plants can use Thar lignite if blended in with imported high energy coal 1:5 mix (20%)
A 105km train line to to connect Thar to the national rail network is planned, was actually announced a few years back and said will be operational in 6 months , anyway reanounced a month ago, no news to date .
Anyway in summary the country is very short termist, The PM has talked about its begging bowl culture, not ready to stand on its own two feet. Long term if we get a project over the line 17% return is expected, so within 4 years capital costs paid and happy days.
No track record and a high risk country, 7 staff , if you include directors ,enough to pay staff in bank for the next year?
Fun share but not something to put your pension on!
Thoughts?
we are all in shock
3 things i would like to express
negativity : of course there is negativity , 17 years and no revenue stream , saying get 1 project over line will transform the share , it will , but no track record to date.
fundraising was obvious , little in the kitty and £350k of salaries to pay, let alone office expenses and travel etc . check the last companies house report.
****stan has generation capacity of say 40 units, the demand is 30 units , the transmission capability is 20 units. the country has to pay for the idle capacity of independent power plants for the electricity they could not sell, so electricity if you are lucky to get it is loaded with additional costs.
the share if you buy now is the bargain of the century, if you believe what was not achieved over the last 17 years will now be achieved, on a shoestring you are onto a winner.
in sporting odds what would you give this?
i thought the issue was distribution, masses of capacity but unable to distribute , hence payments to ipp for capacity payments, e.g plants run at 50% so compensated ?
this from wiki, so semi reliable
according to the ****stan economic survey 2021–22, the installed electricity generation capacity reached 41,557 mw in 2022.[10] the maximum total demand coming from residential and industrial estates stands at nearly 31,000 mw, whereas the transmission and distribution capacity is stalled at approximately 22,000 mw.[11] this leads to a deficit of about 9,000 mw when the demand peaks. this additional 9,000 mw required cannot be transmitted even though the peak demand of the country is well below its installed capacity of 41,557 mw.
No brainer for a company with a track record, but tell me what has been achieved in 17 years as a company. Quite a few MOUs , reinvention of the company from coal to gas to gold to hydrogen, but nothing that has earned a penny.
Just a bit miffed at moment
Hot off the press
https://tribune.com.pk/story/2433921/long-awaited-rail-track-to-ferry-thar-coal-okayed
Railway line to be built by December 2024…if no delays.
I agree, that lignite should be burnt on-site, although Thar is a desert and requires huge quantities of water.
Maybe that’s the logic of feasibility study to relocate power plant to Karachi, despite the enhanced cost of transporting low value lignite.
0r maybe Thar coal will never happen and we get royalties on a power plant based on imported coal, as according to article last CPEC funded coal plant, if I read correctly
https://www.brecorder.com/news/40245581
Q&A , nice to have but can the lady say anything outside published information ?
Yes of course talk about prospects and hopes , talk about MouS
Cant say anything market sensitive, I believe..
My only question for meeting is why are salaries not linked to share prices ? Guys would be on skid row