Member Info for DowntoEarth

Tony seems bullish, also I like the way he's so thrifty with the costs.

Is there anything stopping the Bots Government from issuing both parties with 100 MW? After all they are desperately short of power, so why would it be an issue?

That the share price has remained static, the RNS's delivered over the last month have been massively significant for this company going forward, the BOD must be scratching their heads as well. I can only assume that the SP is being held back and is stretching like a rubber band - which will soon be released. It's sods law that if sold here and moved somewhere else with the intention of buying back in later, the opportunity will be missed because it will surprise us all.

......Is that at least the tender won't be cancelled this time. Personally I think what might happen is they will award both parties 50 MW each, although I'm not sure how that sits with Tlou because they are only asking for 10 MW for this stage of development. Subsequently, if the Bots government award Sekaname 90MW and Tlou 10MW, I fear that the markets will interpret that as a negative for Tlou in spite of the fact that is all they requested.

How long does it take? About 6 months, so in theory the next month things should get exciting.

Looks like Southern Africa's power problems are only going to get worse:

http://af.reuters.com/article/idUSKCN1QO1SQ

Botswana Government would be mad not to give a tender award to Tlou

Until D day, D being massive dilution.

I agree Tom, one of the main risks which Tony emphasised as being significant was carrying out the lateral wells, well 3 out 4 have now been completed, yet the market has chosen to ignore this great piece of news - Bizarre!

Once the heavy cash burn field operations are complete, at the end of Q1, the company should have about $2.2 million in cash left to basically pay the wages of the small team of staff. This ongoing cost whilst a PPA is established and with that, new debt funding for the business of supplying power. I suppose if you took an extreme long term view and assumed that this proposal was not achievable then yes they will run out of money at the end of the year, but realisticly as TG has stated several times recently everything is progressing on budget, on plan and anyone who has done some basic research would know this.

Crizmo,

If the ASX reply from the company was released late at say 6pm on Tuesday 5th in Sydney, that would equate to 7:00 am in London on Tuesday the 5th. Yesterday's rise didn't start until mid morning of the 5th, I would suggest the clarification from the company was the reason behind yesterday's rise. Today's fall, I would suggest is combination of some profit taking and nervous sheep mentality.

The correspondence was on Monday and Tuesday, also Sydney is 11 hours ahead of us, therefore I would suggest that yesterday's rise was instigated by TLOU's response of the questions raised by ASX. Which the market clearly liked.

Slumber is a cool name, but what about the name Dikgang? Probably a popular name around Brighton.

Not enough volume, if was a leak this would be at least 10p higher than it is now. The SP will trend up as the number of days to the RFP decision become less. To anyone who knows this share, It's so obvious it's almost like giving out free money.

We're about to move up again

Good timing I reckon, to me this looks like the pause before the next step up to around 7.5p. Interest will steadily build week on week until March.

Tom,
That was my assumption as well.

An eventual takeover is where this will end up, that I have no doubt - Tony Gilby has done this twice before for companies valued at billions of dollars. It's just a very simple case of clearing the government red tape, proving the concept works and increasing the reserves to maximise the value before moving it on to a sizeable energy company, which can easily make a business case for investment because all hard work and variables have been addressed. Tlou are carrying this out methodically, patience will be rewarded, this is one of those shares when you look back in 12 months and you think to yourself 'why didn't I load up at the start of the year?'

The situation with Ashwath and Richland slightly reminds me of Mysquar and Atlas Capital Markets, Atlas lent the money to Mysquar but converted very little, now Mysqar are doomed to failure it's now clear why they didn't convert. Possibly a similar situation going on here? If Ashwath converts after a sale of the company, surely the share price will be higher than it is today, so he'll get less shares, how does he make a return for himself?

Why has Ashwath not coverted his loan to shares, is he expecting the company to go bust and take the asset if it does?

Sounds to me like somebody's got them over a barrel, not a recipe for a good sale price.