Member Info for CF73

It's worthwhile noting that in the Options RNS, the first draw-down (return of historic costs) takes place immediately after binding JDA. Far as I can see, apart from the fact of the sligth delay in getting the tariff to EDM etc. everything remains on track. Also believe, very strongly, that it is at binding JDA that the key SP rre-rate will take place. We do not require all the money immediately. And even without return of historic costs as quickly as stated in the Options RNS, just the mere fact of a binding JDA that stipulates we would be getting back 'x' amount, would have a massive affect on the SP.

Agreed Rbelfry. Folks need to focus on binding JDA. This is the key bit. Anyone selling on the back of this Financial Results RNS will be ruining the day later.

Again, from today's RNS;

"This support [for Tariff] is an essential milestone in finalising the JDA process which is currently targeted for completion by the end of July 2018."

Binding JDA still targeted for end of July. At least we know where things are. I will be adding later this afternoon.

Good luck folks!

Well said Laxey!

The first draw down comes after binding JDA and very quickly indeed, as per Options RNS. There is no reason for folks to be spooked here. They will lose money. All that's happened is that the tariff is due in a little later than expected but even with that in mind, the company still remains on target for an end of July binding JDA conclusion. That should tell folks everything.

Andre01, a sensible comment about how the possible wait for cash could affect sentiment. It depends on investment strategy as to how long folks want to hang around, what their targets are etc,

Again, for me, binding JDA at end of July is what I'm waiting for. There, the numbers will come to be known. These will set the parameters for valuing NCCL. We may not achieve all of that value but I think we will be very pleasantly surprised when we see the numbers (i.e. historic costs to be returned, payment for whatever amount above 60% taken by partners and whatever proportion we retain). While timelines may not need to adjusted from time to time, the company have presented to us a time line that is very precise, and could have only done so if there a very reasonable degree of confidence in it. As a minimum, I am expecting that GE and CMEC are completely behind this, hence why the binding JDA element remains targeted for end of July.

I also note from the podcast, June 11th / 12th, Hanno was asked about why investors might be interested in investing in NCCL, he responded with this in particular.

“We currently have a set of milestones during June and July to deliver our partners, which will unlock significant value to shareholders.”

He / they know they have control of the a element of the process, being the binding JDA, knows about the numbers, knows that the result will be significant for holders (including with Michael Haworth our chairman being in for 6.27% of the shares in issue)

Andre, you said:

"CF73. 2.7m shares at 7.5p does not equate to 5.1m its about 200k so bugger all in comparison. "

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Can I ask, what do you mean by this?

[Those options at 7.5p are not the capital draw-down. The capital draw down from partners is a chunk of money to go into the project, coming from Ge and CMEC. And by the sounds of it, is is happening fairly quickly in the process, if we go by the Options RNS]

Exactlky splatted, this is the point. Even with the most marginal slippage in terms of time (only two weeks), they have informed they are still on for end of July of Biding JDA.

I am primarily interested in binding JDA. It is there we will see the numbers that set the value for NCCL and our SP. This is in four weeks. So there is no delay as yet, as per company guidance, to the conclusion if this phase of the process. This phase of the process is discrete and compartmentalised, as in the primary aims of NCCL is to get to binding JDA, as they have always said. The rest of it, including FC, will happen as a matter of course, but PIs should not be interested or worried about this. Not relevant at this point. Only binding JDA (we will get tariff approval in the meantime).

End of July folks.

gods, a sensible post. Wordings are always complex and can be taken in all sorts of ways. Always amazes me.

Whatever issues regarding timing of tariff envelope submission, which has taken a tad longer (but not by much), the binding JDA element remains in the power of the key project parties, being NCCL, GE and CMEC. This is easier for them to process and confirm as it does not require an external party to the project to be involved.

In other words, and although I remain confident that we will get our desired approval and within reasonable time, we should be confident that even with that really minor delay in the submission of the tariff, the binding JDA remains targeted for end of July, as company guidance.

Andre01, the binding JDA sets everything else in motion and fundamentally derisks the project. Financial Close is pretty much guaranteed thereafter. All of the milestones have been set in the way they have because they are more than expected to be achieved

In early June 2018, the results of the FM were accepted by CMEC and GE, and the Company has subsequently prepared an updated tariff proposal to be submitted to MIREME and EDM in early July to seek in principle support to initiate negotiations for a new power tariff envelope. This represents a key milestone in confirming the Project economics, re-starting tariff negotiations and completing the JDA process.

From the Financial Results, the following tells us that they binding JDA is still on for end of July.

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Receipt of this support* is being treated as a main priority and is a key factor in finalising the JDA process which is currently targeted for end of July 2018.

*In principle support for the Tariff

This is not money we need to find. This is money that our JV partners are putting into the project. According to the Options RNS, this seems to be happening very quickly, so i excellent.

" 2,790,779 options vest on the first draw down of capital from a new strategic partner into the Ncondezi Power Project and are exercisable at a price of 7.5 pence per share;"

mike29. I understand that to mean first monies drawn-down from partners following binding JDA. The line from the Options is below and makes that clear.

" 2,790,779 options vest on the first draw down of capital from a new strategic partner into the Ncondezi Power Project and are exercisable at a price of 7.5 pence per share;"

From the podcast of June, Hanno mentioned that the tariff would be in within a week and then discussions would follow. So we are within range of news.

Looking forward to next week. Good luck folks!

Caterham, the big jump in SP that most of PIs are concerned with is related to binding JDA and not Financial Close. As per recent RNSs and updates, nothing has changed. The tariff update is due very soon. The most recent updates to the market, the RNS of 11th June, and the subsequent podcast, provide clarity around this.

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From the Financial Model Update RNS, dated 11th June:

'…the JDA process which is currently targeted for completion by the end of July 2018.'

https://investegate.co.uk/ncondezi-energy-ltd--nccl-/rns/financial-model-update/201806110700038595Q/

And from the Podcast, following the Financial Model Update:

'We currently have a set of milestones during June and July to deliver our partners, which will unlock significant value to shareholders.'

stevenc72, agreed, minuscule amounts of patience needed and that when the El Presidente refers to your project being built, you know it's going to get built. NCCL have provided a time scale of milestones. One so precise that it can only be because it will be met, in effect agreed already. Just a matter of orderly roll out of the news.

This is a once in a lifetime opportunity to multibag where there's time line in the very near term and where there's a degree of certainty seldom witnessed. Once again, from the most recent updates;

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From the Financial Model Update RNS, dated 11th June:

'…the JDA process which is currently targeted for completion by the end of July 2018.'

https://investegate.co.uk/ncondezi-energy-ltd--nccl-/rns/financial-model-update/201806110700038595Q/

And from the Podcast, following the Financial Model Update:

'We currently have a set of milestones during June and July to deliver our partners, which will unlock significant value to shareholders.'

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Good luck all!

...everything remains completely on track, no hair out of place even.

...Tariff news next week in my opinion. Results too. Then towards the end of the July, and binding JDA. But this will take off on tariff news alone, into double digits and 14p-15p + ------ as tariff news settles JDA.

...looking forward to a good day ahead folks :-)

Bladey, that is too funny!

Agreed Dandy. Believe that GE and CMEC - but especially GE - will be looking to draw in other power projects it has close links to, to use our NCCL Tete as the supply for those plants. This helps to take significant advantage of the whole operation at NCCL.

We have no proper updated NPV but it's got to be absolutely massive and likely to grow once it is scaled up (from 300MW to 1800MW).

The article from a May 2018, has the El President of Mozambique effectively referring to our project at Tete (there is only one power project progressing in the Tete province of Mozambique - that's Noncdezi/NCCL). The article reads (right at the end);

"Nyusi said that a coal fired power station will be built in Tete province, plus a new transmission line interconnecting the Mozambican and Zambian."

That one coal -fired power station is OURS.

Excellent work by Laxey, finding this article a weeks or so back.

https://www.miningreview.com/mozambique-100-mw-floating-power-station/

Mozambican president Filipe Nyusi and his Zambian counterpart Edgar Lungu launched the 100 MW floating power station in Nacala, to boost energy supply between the two countries.
This article was first published in ESI Africa

According to the chairperson of state-owned electricity company, EDM, Mateus Magala, the electricity produced by the floating power station will be injected into the national grid at the Nacala sub-station.

In February this year, a Turkish vessel containing the unit was docked at Nacala port and 110 kV cables were connected, linking the ship to two special reception pylons, 65 and 85 m tall.

Magala stated that this floating power station has been developed to ensure electricity supply for the next two years to Mozambicans while also selling energy to Zambia.

Nyusi said the floating power station is “an example of energy cooperation to the benefit of the citizens and the economies of Mozambique and Zambia.”

Nyusi noted that Mozambique’s energy supply has been growing at an average of 12% a year, which contributes considerably to the country’s GDP.
Coal-fired plant of the cards

He then highlighted that the Southern African Development Community is facing an electricity deficit of 7.9 MW at peak hours, which affords Mozambique the opportunity to become a centre for the generation and transmission of energy for the entire region as it already sells most of its energy to South Africa.

Nyusi added that bringing the floating power station into operation results from a long experience of partnership between the Mozambican and Zambian electricity companies, and the need to provide more electricity of good quality.

Nyusi said that a coal fired power station will be built in Tete province, plus a new transmission line interconnecting the Mozambican and Zambian

Significant Shareholders -- Share register at NCCL

http://ncondezi.com/significant-shareholders.aspx

Shareholder/Shares/Percentage

Africa Finance Corporation 54,988,520 --- 20.73%

Polenergia International Societe A Responsabilite Limitee* 29,111,719 -- 10.97%

Michael Haworth** 16,468,087 -- 6.21%

37% held by these parties alone. Michael Haworth is our Chairman., holding 6.27%. While Africa Finance Corporation (AFC) holding nearly 21% has huge influence, working across of Africa on power, mining and infrastructure projects. While further still, our second largest holder, Polenergia, is headed as CEO by Jacek Glowacki, a non-executive director on the NCCL board.

So the two conclusions I draw are a) we have shareholders who have clout and b) we have a board whose interests are are very much aligned with our own.

Being aware of this gives me a huge amount of confidence.

Good luck to all genuine folks!

Splatted, Blue indeed!