NCCL thoughts5 Mar 2019 13:53
There are big differences between us and other projects.
Having two giants on board throughout this time - GE and CMEC - and still with us, having gone through all of those earlier processes and milestones.
Remembering early tariff discussions, including some of the intense work around them (that workshop or whatever the heck it was LOL). Why all that effort for these global giants otherwise?! You won’t see them get involved unless they mean business. We can look to the other projects that they have brought on line, whether together (and I believe they have worked together in the past – with GE attending CMEC conferences in China as one of their key major trusted partners) or separately (GE and the Sindh/Thar Project in Pakistan)
Remembering that GE and CMEC (likely GE in particular) wanted those assurances from Moz, that letter of intent and MOU ahead of going any further, to ensure ‘comfort’ before pressing forward. Why bother if not something you are genuinely interested in?
We have the involvement of the Africa Finance Corporation (AFC) who specialise in this area, having supported other projects across Africa, seeing them to fruition. They are also our largest shareholder, at something like 19%. They are not here to mess about.
Don’t forget ‘Polenergia International’ who have over 10% and are an industry specialist.
The biggest difference we have here between KIBO and GCM, and others, is that we have seriously major backers and clout. The very biggest. If you are going to do coal to power in Africa or anywhere in the developing, this is the example (post-SEP) you follow.
I know there have been ‘delays’, but a project this size and this complex, with such interested parties, was always going to have this.
Something else that mattered to me early on was to try to work out how committed GE were to this. Is why spent huge amount of time researching GE. They were in a difficult place, having invested in coal-tech, Alstom and then rest, to the tune of multiple $$$billions. That investment has to payback. Is why they went after Lamu. Is why they are here now. Ncondezi, at 300MW, scalable to 1800MW eventually, allowing GE to introduce their own tech, equipment, infrastructure, services and expertise, from the beginning and drop fed further over the stages. Add to that, by having a stake in Ncondezi, they also secure year-on-year revenue/profits from the operations. Incredibly important given their situation.
I have no doubt GE want this.
And now, after all the previous work, GE and CMEC inform NCCL to press ahead to Binding JDA, with notification in a matter of weeks not months.
Going to post these numbers again:
$250million to $30million annual revenue once operational (based on 300MW)
Upwards of $1.4billion in taxes and royalties over 25 years/life of project.
What do those tell us?
They tell me that no-one should be looking to walk away fron this!
Sign In
Follow the stocks
