RE: Large Sell8 Aug 2021 02:01
Hi G_G_G,
I sent this :
"Hi there,
I'm a longstanding investor in NCCL and am disappointed at the current state of affairs :
The shareprice is at an all-time low; cash is forecast to run out in a month (September); and yet there has been a complete lack of relevant communication from management., including follow-up to RNS'd content :
on 16 November, NCCL pledged approx 11% of its shares to support a $ 1.8 m budget for CMEC funded 'accelerated development works'. This included unspecified survey drilling work and due diligence to confirm that key agreements such as EPC comply with Mozambican law. What was the scope/nature of the drilling (started 8 months ago) and what were the results ? and is the EPC compliant with Moz law ? (Although, this seems somewhat academic , if the EPC still hasn't been agreed , 8 months later.)
on 30 Dec , we were advised to expect formal feed back from EDM re tariff agreement'early in the New Year' . What , concretely, has happened since then ?
on 4th Jan, we were told that $ 21 m of costs agreed 'in principle' and 'US$5.7m of costs relating to historical senior and project management costs still under negotiation'. What has happened since then ?
on 1 March there was an update re solar;
on 9 March, Synergy was appointed as Project Advisor, up to Financial Close. What has Synergy billed in the last 5 months...and what , specifically , has it done ?
on 25 March, we're still awaiting feedback from EDM, but are told that at least CMEC has reiterated support for the Project. This statement comes from NCCL, not CMEC itself. What evidence can NCCL provide to show that CMEC is still 'on board' ?
on 6 April solar update and director loan (punitive) to solar;
on 4 May, we learn that the solar emergency loan has gone through;
on 19 May, we're told that we're still waiting to hear back from EDM (ie 5 months late) but that the EPC with CMEC is 'nearing completion'. What has happened in the last 3 months ?
1st June , another solar update;
9th June, another solar update;
14th June another solar update;
25 June AFR, in which the Shareholder Loan in default gets 'in principle ' shareholder OK for restructuring (What is current status of this, pls ?) and Co acknowledges it is funded to Sept 2021 and will need further funding thereafter. What is current status of this , pls - 6 weeks away ?
12 July Presentation : What is the current status of the PPA and the PPC ?
What external evidence is there that EDM - and more importantly, Moz Gov - actually intend to progress Ncondezi to realisation ? By now, there should be line-items in the country's budgetary allocations, etc, and award of supporting parallel infrastructure works/contracts to show that Moz intends to go ahead with THIS project. There is vague talk about others,
Absent any hard info re ANY of the RNS'd matters raised above, it's easy to subscribe to the cynical view that ' the main project is dead, NCCL are playing for time to build a solar
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