Feedback from AGM and meeting Hanno8 Nov 2018 11:27
Hey chaps.
I was one of the contingent who made it to the AGM on Monday. Hanno joined a selection of us for lunch after and I must say, the meeting(s) filled me with confidence. It was the first time I'd ever spoken to Hanno personally and he's a very shrewd, engaging character. He knows what he's doing and was very comfortable answering even the most 'probing' questions.
In the near term, we can look forward to the following:
1. Confirmation of debt restructure at 10p equivalent. With AFC voting by proxy in agreement of resolution 7, this was effectively them signing off the restructure. Just waiting formal signature now which should arrive shortly and then it can be RNSd (may have already been signed tbh). Some will definitely have been holding off entry with concerns about the debt. Once the restructure is in place, I'd expect those on the sidelines to being taking their positions. Potentially some 'larger' players are keeping an eye on us too...
2. GE/CMEC approving MOU. The importance of the MOU and LOI arriving appears to have been missed by the masses. This is a SIGNIFICANT de-risking event. EDM/MIREME DON'T HAND THESE OUT LIGHTLY, as we've seen by the length of time it took to arrive. They are ENDORSING this project and, as we all know, it meets PERFECTLY with their own targets for generating power to the region. We are the most advanced project in Mozambique and have the best possible partners.
3. Updated timeline to JDA, approved by all parties. This will show a clear pathway to JDA and highlight all significant milestones. Hanno stressed that JDA is not dependant on the EPC and O&M bids. JDA will come first. The rest is basically a formality which will follow. Once JDA signed, that's confirmation that this project goes ahead with our partners. They hoped to have it done by the end of the year, but the reality is their real target is end of January, before Chinese New Year.
We broached the subject of RNSs and 'meatier' wording. Unfortunately the company's hands are tied with what they can release regarding any mouth-watering numbers. However, there are plenty of numbers out there for PIs to work from. Plus Hanno's own comments of 50p per share NPV. We did have some strong discussion about RNS titles. So rather than a boring "Project update", I'd hope to see something more exciting moving forward.
Finally, Hanno is very aware of how frustrated we are by missed targets. The missed targets this year were out of NCCL's hands and lessons have been learned. For what it's worth, following the meeting, I understand various attendees have bought more (including those most shrewd). If that doesn't fill you with confidence, then nothing will.
I know targets of anywhere between 35p and £1 get mentioned and these may seem crazy, but over time I think each target will be hit and perhaps even surpassed, just a few more boxes to tick first. Good things come to those who wait (and take a position before the herd haha).
GL and
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