Malcy comment today..14 Apr 2022 15:31
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This is a detailed and comprehensive analysis of what is going on at Sound at the moment and shareholders should be delighted at what they see. The operational and strategic update contains plenty of information on existing projects, some on the way and others which are further down the road.
Take Tendrara Phase 1 where the mLNG project is ‘well underway’ with site preparation and Italfluid as well as other engineers are making good progress. At the Phase 2 development, which is bigger and potentially better than Phase 1 and needs substantial financing which is ‘moving forward’.
Indeed on that point, in a long chat with Chairman Graham Lyon this morning, he explained that progress on financing was very encouraging and that Moroccan banks and other lenders are sending ‘multiple’ term sheets to Sound. This to me suggests that the FID maybe this year as the home institutions are very keen to get going and that the shortage of local gas is not lost on them.
I am looking forward to having a longer chat with Graham Lyon, much of the last few months has been a closed period due to many corporate deals on the go and he assures me that the team has been very busy. In parallel with all that is going on above the water he says that shareholders can ‘rest assured’ that there has been progress across many fronts this year.
The shares have had a good start today and are up around 15% as I write, if things go ahead as I would expect Sound is not only building a substantial business in Morocco but is taking a leading position in a number of existing, transitional and renewable businesses in the country, for that it is being made very welcome. That should be rewarded by a significant increase in the value of Sound.
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