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A tip for the more gullible minded folks lurking. When someone like MM takes over a message board, gets a merry band of shareholders and punters engaged and contributing - his next step is to start the Guess the share price prediction .... All good fun of course; but just his disgusting style to generate hype and BS and suck in the unsuspecting.

Either he makes money by being paid by the company (indirectly somehow) to generate the buzz on social media OR he does this as a day trader trying to stoke up excitement and volume whilst he buys and sells as suits his mood on the day......

He is now 2 for 2 in my book. He will be somewhere else now doing the more or less same thing - let me know where please.

Brad said this: "This is why PPA's are bad news for TLOU. Without them, TLOU can choose who get their power supplies. With them, they are legally obliged to supply the PPA first. Hence 10 MW over 2 or 3 MW was not TG's wish!"

I am afraid you only partly understand the dynamics of a PPA / BPC / grid connection etc.

BPC own the transmission grid/ lines in entirety across Botswana. The terms of the 100MW tender provided that the 2 respondents (Tlou and Sekaname) would be responsible for any grid connections at their cost. And once connected, ownership of the TX line would revert to BPC. So the cost of constructing this 66kV connecting line (some 100km) will revert to BPC once Tlou energise the line and start selling power under the PPA.

And once the PPA is activated - if Tlou do not meet the power generation targets therein, then likely they would be hit for penalties for non-despatch as per the PPA contract.

So Tlou are in a tough spot with connecting to the grid if they are not very confident they can despatch power on a consistent basis to BPC (who likely would delay paying them back given Govt is near broke). Yes Tlou will get paid at some point - the concern behind when. And you can be sure if BPC had a reason to hit them with penalties for non-performance of the PPA contract, then a jolly old mess would ensure - and Tlou would lose for no reason other than there probably isnt much they could do to force BPC to act reasonably / honestly. The joy of business in Africa.

If folks could wrap their heads around all these moving parts, maybe then the mud slinging would stop.

But thats going to be a problem - becoz, as I have told you for years, all is not as it seems in the news released to the market by Tlou. One would expect Tlou management to have an understanding of the problems within Botswana over the past years - and I am sure they probably do have such an understanding. But for how many years did they simply push out endless positivity in their efforts to kid the market along that everything was going to be great. Very Trumpesque if you ask me.

This is the question the company needs to be asked I believe. if the answer is 1 or 2 MW of power generation is sufficient for steady state operations, then what Tlou has designed in its proof of concept should be sufficient. If not - well that would be a difficult point in time. Lets assume 2 MW is sufficient, for now.

Next - when will Tlou explain clearly why 2 horizontal wells cannot seemingly produce sufficient gas for a much larger quantum of power generation. Is it a case of badly drilled wells? Or difficult coal seams? Or what ......? Because 2 horizontal wells costing in excess of A$5m should generate a way larger amount of gas to generate more than a proof of concept 1MW power generation. Lets get clarity.

I agree - there is some clarity missing on what Kala will finance. When the announcement mentions 'project', does that mean the Tlou project (which would encompass the completion of TX line) or does that mean the Kala / Tlou project. I suspect the latter simply based on events to now. It would again confirm the disingenuous nature of Tlou wording in their announcements. But lets assume it has the wider, fund Tlou project ie include TX line as well.

Kala has the money. There was uncertainty at the time of signing re well performance. BPC are notoriously late payers - fact (even if folks here disagree). Both sides need to decide how best to spend Kala money - they know both sides are in control of the Data Centre project and if that works, Tlou is then in a position to demonstrate to everybody else that CBM proof of concept has been achieved. So it seems to me they decided/ agreed to pursue the Kala only part through to operational success, that requiring a smaller amount of funding than pursuing both aspects at the same time. Doing it this way, Kala are better able to manage their investment risk by close involvement in just the Data Centre project. The grid connection can be financed thereafter once all parties know that the horizontal wells can be relied upon - or put another way, just imagine trying to deliver both parts, switching both projects on and then finding there is not enough gas to run both. Tlou would likely then incur penalties under the PPA with BPC.

A PPA is an agreement to purchase a reasonably steady state amount of power. Because those managing the power into the grid need a degree of certainty on feedstock - hence why there are penalties if certain basic quantums are not met.

And maybe all this is rubbish - Kala just said use our money to deliver our proof of concept first. How many here would decide otherwise if it was your money .......

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