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Brad, Zioc has two message boards, one for AIM and the other for Aquis exchange (confusing). All the RNS’s are on the AIM board.

Guys,

Genuine post. If you want an opportunity to get back some of your losses from Tlou, have a look at Zioc, they’ve got a string of announcements over the next 5 weeks which should make a big difference to the SP. Zioc is where Minorminer disappeared to after he left here.

I’m new to this share, so correct me if I’m mistaken.

The This is Money article states:

‘Stage one, aiming to produce 12 million tonnes per annum (Mtpa) of premium pelletisable iron ore concentrate, is now estimated at $1.94 billion, with an additional $1.87 billion needed to expand to 30 Mtpa.

This investment projects a net present value (NPV) of $3.68 billion, rising to $7.36 billion upon full build-out.’

So an investment from of $1.94 billion will give an NPV of $3.68 billion. Surely the net figure of $1.74 billion for stage 1 will be the basis on which the BOD will negotiate of any sale of the asset. With 700 million shares in issue gives an SP of $2.50, why are we at 6p???

Surely any deal , whether it be a partnership or buyout the result will be a SP many many multiples of the current SP?

Minorminer (a massive fanboy of Tlou) cleared off from this board as soon as the Doc arrived. At the time I thought it was a bit strange, but it looks like he called it right. He's now over at ZIOC.

In the long term, I'm sure Tlou will get this over the line and be producing power, but whether private investors will benefit, that is another question.

Not hedging their bets with some solar has always concerned me. Having the grid connection and ppa would surely facilitate a partnership with a supplier of solar panels and associated infrastructure? I would have thought it would be a no brainer in a county where the sun is always shining!

This kind of thrifty cost saving measure is never a good sign, I suspect there is some issue with regards to the finance they are trying to secure and they are now battening down the hatches.

The company has a connection to the grid and a PPA, supplementing the gas to power with solar would surely a sensible way forward.

Some more due diligence for this loan will only give more confidence in the potential success of this company going forward.

The thousands of hours of negative research just to validate your negative opinion about a company you don't like and you're not even invested in, can only be attributed to some kind of mental issue. Life's to short, go off and do something else, stop wasting your time here!

I noticed that as well Brad. Suggest to me they are going to now concentrate getting enough wells in the ground to go straight for 10mw

Things are moving up. I wonder if there is an imminent RNS about finance?

Good question. Certainly a waste of money on the fees. On a brighter note, there seems to be a reasonable amount of buying today.

The Doc already owns 35% of the company, I’m kind of relieved that he didn’t take another sizeable chunk of new shares, with a preference for debt. I would like to see new investors or preferably the pension fund up their stake. The RNS intimates they are currently negotiating along these lines, let’s see what happens.

If the BOPF buy a decent chunk, I’m sure that will send out all the right signals to the market.

You're speculating that the tariff will be rubbish, but the Doc started investing immediately after the 10MW PPA was signed and he continues to invest. Also the margins can't be as bad as you appear to be guessing if other entities are looking to do the same as Tlou

Oh, I have thought long and hard about what I think will happen with Tlou going forward and I think the most likely scenario will be a company sale after 2MW is reliably going into the grid. It would explain the reasoning behind installing the smaller generators. That might not appeal to some on here, but that's what I feel will happen at which point the pension fund and the Doc will convert their respective loans to equity.

Do you think the Doc shared your 'concerns' when he decided to invest around 20 million dollars into the company?

Excellent news. Might have a little top up.

Brad I wouldn’t ignore solar, going forward It’s pretty obvious that solar will also feature as part of Tlou’s power generation, why else would they have purchase a massive 4000 hectare farm for ‘power generation assets’? It’s a bit overkill unless you are going to need the space, which solar does. The idea that the company would invest millions of dollars for a grid connection solely on the hope that enough gas can be produced from two wells, without a plan B for power generation, is laughable. The company alluded to this in one of their reports a while back if the gas produced at Lesedi is insufficient. I think in due course we will form a partnership with a third party for them to supply the solar panels, whilst Tlou provides the connection to grid and the PPA. The Doc wouldn’t have put the amount of money he has into this company based solely on gas production, of that I am sure.

Don’t forget the recent placement with the ‘sophisticated investors’, somebody must have convinced them that this is more than just a punt.

It's going to take several more months to both dewater lesedi 6 and complete the grid connection, so I would expect the quarterly update to be the next bit of news. Very boring I know, but that's the reality of the situation at the moment. FWIW, I think once grid connection and commercial gas flows are confirmed, this will unlock the news flow we would all like to see.