RE: Well what did you think about the update ??9 May 2022 08:42
Always on the cards Frank, Ops update only. 3 key points for me.
Ruvuma
As previously communicated, the Company is progressing discussions and exploring options with interested parties for possible divestment and/or farm-down of Scirocco's interest in both assets, while maintaining our funding options in the event we retain our 25% interest in Ruvuma at the time of drilling CH-1.
"The priority of management remains to progress the ongoing, material discussions on the sale of the company's interest in Ruvuma, to remove the funding requirement "
AD
In Q1 2022 the revenue received for the quarter by GGL totalled £323k (unaudited) supported by high power prices through the period. This compares to the same period in 2021 where revenue was £240k (unaudited) - a 34.5% year on year increase. EBITDA for Q1 2022 was £158k and at current power prices, EBITDA for the first 12 months of EAG's ownership of GGL is on target to exceed £600k.
From a business development perspective, EAG is currently carrying out due diligence on three additional AD plants. Under the arrangement with SEM (announced by Scirocco in an RNS dated 9 December 2021) the Company and EAG gained exclusive access to a technical solution for the processing of digestate into a nutrient dense organic fertiliser. The EAG team is engaged in discussions regarding up to seven merchant installations of the SEM equipment on third party AD plants. This is in addition to the planned nutrient recovery system at Greenan, which is expected to increase EBITDA for the entire Greenan complex to c. £1,500k per annum once operational.
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