RE: Interview5 Aug 2020 15:22
Great Proactive Interview from Hanno.
Took the opportunity to do some transcription work. Looking extremely positive for me!
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“…and in addition to that, other power plants that were looking to be developed at the time we last did the study, have fallen away. So, it has all impacted how we integrate into the grid, and very, important that we work closely with EDM, to gain access to proprietary information that they have, to complete that study.
Regarding the Tariff, they are “...running various scenarios and stress tests…” with “specialist teams within EDM”
“On top of this, we have the process with our strategic partners, in particular, CMEC (China Machinery Corporation), where we’re at a near final draft of the Shareholders Agreement Term Sheet, which I think will be the next major news item. And we are, I think, quite a far way down the historical costs development cost audit. Just to give perspective, we’re doing an audit of the last ten years, of development costs on the project, for both the mine and the power plant. It’s definitely been a bit more intensive, than the previous audit we did. We’re looking at pretty much every invoice incurred, regardless of size. It’s been a massive undertaking by our accounts team, but that’s largely done. And hopefully, that report will be dine in the coming weeks, then we can submit it for review of our partners.”
“Finally, we are at various stages of the EPC agreement, on both the mine, the plant and the transmission line, and we hope to have those signed in the coming, well, if not this month, then probably next month. But it’s progressing well.”
“Some good news-flow, which we will release to the market as and when we achieve those milestones…”
“We did have a new CEO of EDM, a few weeks back. That did require, sort of a reintroduction of the project and reestablishment of the processes and procedures we had in place, for the work programme we had targeted, but that’s all done and dusted.”
On the historic costs:
“We have a target figure. At the moment, we have, previously when did this work, on the power plant, we were looking at $17milllion. There has been some expenditure since then, where we’re looking at somewhere between $17 and $25million, is the target, at the moment. And again, we’re quite a way through that and feeling confident we’ll be able to achieve that.”
Shareholder Agreement Term Sheet
“…biggest significance is on the Chinese side. This will be seen as a milestone for our partners to demonstrate both internally within their own fairly large organisations, as well as with the Chinese and Mozambican governments, that the project is progressing. It will very clearly outline CMECs role, in the project, the equity position they are looking to take, how they will be managing the project through the construction and operation phase of the project. And also how the project will be governed between Ncondezi and CMEC, as the two major shareholde
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