Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Sorry for that Xerxes, I'm probably just becoming impatient after 7 years.
Not so much sad, but frustrated that we cannot meet many set targets and just trying to put our progress into perspective and highlighting that even with our best power prospect we are still a fair way off. Trying to be realistic and to spell out what we will have coming down the line, but perhaps not this year I fear.
I still think it will be different with positive news and we should gain some momentum and it can all change so easily with the right news on one of these coal fired projects. These large coal fired projects take an inordinate length of time to progress as they are complex in comparison with the likes of a gas power generating plant such as Bordesley.
Given this complexity, what is a concern is that they appear to be struggling with Bordesley and we are more or less being kept in the dark, as this should have been commissioned by now, even allowing for Covid-19. So a little bit of apprehension on how will they fair with a full blown power station.
Sorry negative thoughts creeping in again.
Posted this 3 times already, so sorry if it dups.
Bcl - yes you always appear to be a clam character and say it as you see it, what else can we do. My wife asked me this morning, how are the investments doing and the reply was easy, ‘what investments.’
I would welcome anything taking us north and a return to the 4.84p plus and the Kat news on fund-ing is great for them and ensures they are off to the races, but not too confident on what KAT and MED IPO will do for KIBO price wise. So far KAT has not had much impact on the Kibo SP, unless of course without KATs influence Kibo would be down to half their value.
It would appear that longer term KAT will not start production until Nov next year and the level of revenue from MED is unclear particularly in terms of what it will earn in profit after lease payments and exactly what Kibo’s 51% will be worth, assuming we retain this minimum. When KAT is in pro-duction surely it is more likely to create inherent value in the Kibo SP, or will it, but still away off production.
Regardless of what I think all will be revealed in time, but on reflection the only thing I see that will move us, is good news on one of the three main coal fired power projects. It looks like Baobab PPA target of a ‘few weeks’ is not arriving, so perhaps the Interim report stating the end of the year is correct. In addition, the second Benga PPA, is supposed to be due at the end of the year, but realistically speaking this is more likely to happen after NCCL finalise their PPA with EDM, which is down for board approval in Q1 next year. So my expectations are next year for the main project news.
What percentage of KAT and MED will we eventually end up with?
KAT in the 18 months from May RNS is down to complete the drilling, mineral resource updates, feasibility study as well as plant and infra-structure designs, manufacturing and construction before a production
MED has an equipment lease agreement with lease payments being made from any steady state rev-enue creation and if it’s ongoing for 80 months, it will be interesting to see what the income and prof-its will actually look like.
So maybe exciting for LC to gain another salary, but not the exciting year he alluded to earlier on, perhaps next year!
Without a doubt the forthcoming funding decision sets KAT up nicely for development, however to achieve gold production there is still a long way to go, as the 7 May RNS stated:
‘A total of 18 months was allowed in the Study to complete the drilling, Mineral Resource updates, Feasibility Study as well as plant and infrastructure designs, manufacturing and construction before production ramp up to 250,000 tons per month’.
This also stated, ‘Timeline to first production still achievable within 18 months’
So, assuming it is still 18 months from May 2020 there is plenty time for me to invest my profits from Kibo into KAT. Yes it’s a touch of sarcasm, sorry.
It’ll be a first for LC, but he delivers KAT and surely, he can’t drop a clanger here as KAT has to be a definite earner and more likely to add value despite the fact we have reduced from 57.1% to 29.63%. Surely the KAT effect has to be reflected in the Kibo SP eventually, or will it? So, this will be profitable when they start to mine for gold, and interesting to see if the production start and end timelines will be updated, if not, it would appear that gold production may possibly start from Nov next year.
Currently Kat MCap is about £8m, so Kibo’s 30% equates to about half of Kibo’s Mcap of £5m, if it has contribution at all, as the SP has not rocketed?
The question is what effect will KAT enhancement have on the KIBO and will it be reflected in the share price; well we shall see in a years’ time and it will be interesting to see what our KAT share is by then.
Similarly so, with MED.
I tried to continue my 10:38 post yesterday but it froze every time. Maybe today. Fourth attempt.
The Reserve Power energy element compliments the Coal fired power, as would renewables such as wind, solar and battery storage systems and I feel we should have kept the reserve power projects. It would have been the only early revenue earner that Kibo would have had, regardless of how large or small the potential revenue it will earn. Easier for LC as we don’t have any funding to do now.
Anyway, it is gone now and we are left with the 3 power projects. I assume from the media that our source of these ‘shovel ready’ acquisitions is Plutus Power Gen, who are deserting the reserve power supply area due to unprofitability and are selling 9 sites. This is also of concern as it has to be profitable at the end of the day. But you never know even LC may hopefully come good with that one and it may be down to the Stratkraft 5 year agreement he alluded to.
So as this all unfolds, we still wait and hope that there may be every chance of the eventual advancement of the coal fired projects which will ultimately create some shareholder value, but they need at least one project developed through to FC, with a 2/3 year build, construction and commissioning program ahead of it.
It appears that the Interim date for the Benga PPA superseded LC's 'few weeks', unless it comes shortly, so the Benga PPAs look like the end of the year now, if on time, so only KAT and MED news to look forward to. So, maybe next year for the exciting news. Meantime it would be nice to know the potential earnings and profit and how much value, if any, MED will add to Kibo?
As I posted earlier according to LC it was to be an exciting year, perhaps exciting for him when he earns another salary after he spins off another project without any regard for shareholders. Yes, it may be exciting with the MED IPO and more so for KAT as it develops, but what’s not so exciting is that already Kibo’s share has almost halved reducing from 57.1% to 29.63%. so not too brill. Among all the question to LC this was another. What percentage increase in KAT will Kibo receive for the services rendered by staff to KAT, or is it only the relevant staff who are benefitting from this KAT work?
KAT initially had 14 interested parties and great if we had that degree of interest in financing our 3 Coal fired power projects. We on the other hand have engaged Wimmer to secure the company’s debt requirement for our African power projects, but very little details on the $900m potential funding arrangements and of course first of all we need a project to come good. Hope KAT details significantly more info than we have had.
Yes this is good for Sloane but we need the larger Coal fired projects to come good.
It was to be an exciting year according to LC, perhaps exciting for him as he spins off another project without any regard for shareholders and presumably earns another board salary.
Re the Sloane/MED spin off and IPO, pre-admission, Kibo start off with a 73.89% share and intend to retain 51%, what value will this create for Kibo?
LC could have created immediate shareholder value by offering a rights issue to existing PIs along with the IPO and most likely the IPO will come and go by the end of the year and I suspect that the SP may just fall thereafter, as I think happened with Opera.
Reserve Power Plant - Bordesley was supposed to be commissioned at the end of March and even allowing for the Covid delays, week wise, it should have been commissioned at the start of September. We never got the real story here and there is still no activity on site. Next year most likely for any commissioning and revenue and not too sure about our share being 5 million though. Bordesley or the other is now penciled in for commissioning in for Q1 of 2021. How can it be a year late when it was at the advanced stage in Feb for an end of March commissioning? A rabbit off somewhere me thinks and what is the real reason for the delay? I suspect that they probably messed up the planning hence no site progress.
In contrast a small Gas Power Generation Plant is tiny compared to a Coal Fired PS and what is concerning is, if they cannot bring that gas tiddler into commission on time, how will we fair with a larger more complex coal fired PS, that can take 3 years to build and commission?
For the 9MW plant, based on a 7.5MW rating, the figures released quote a revenue of £7.29m and a mid IRR of 20%, it does not however state the period of years that this applies to, as I recall. So, is it over 25, 20, or 10 years and therefore exactly what is the mid IRR value worth? That was another question to LC and also what value will these 3 generators add to Kibo, 51% of what?
Yes this is good for Sloane but we need the larger Coal fired projects to come good.
It was to be an exciting year according to LC, perhaps exciting for him as he spins off another project without any regard for shareholders and presumably earns another board salary.
Re the Sloane/MED spin off and IPO, pre-admission, Kibo start off with a 73.89% share and intend to retain 51%, what value will this create for Kibo?
LC could have created immediate shareholder value by offering a rights issue to existing PIs along with the IPO and most likely the IPO will come and go by the end of the year and I suspect that the SP may just fall thereafter, as I think happened with Opera.
Reserve Power Plant - Bordesley was supposed to be commissioned at the end of March and even allowing for the Covid delays, week wise, it should have been commissioned at the start of September. We never got the real story here and there is still no activity on site. Next year most likely for any commissioning and revenue and not too sure about our share being 5 million though. Bordesley or the other is now penciled in for commissioning in for Q1 of 2021. How can it be a year late when it was at the advanced stage in Feb for an end of March commissioning? A rabbit off somewhere me thinks and what is the real reason for the delay? I suspect that they probably ballsed up the planning hence no site progress.
In contrast a small Gas Power Generation Plant is tiny compared to a Coal Fired PS and what is concerning is, if they cannot bring that gas tiddler into commission on time, how will we fair with a larger more complex coal fired PS, that can take 3 years to build and commission?
For the 9MW plant, based on a 7.5MW rating, the figures released quote a revenue of £7.29m and a mid IRR of 20%, it does not however state the period of years that this applies to, as I recall. So, is it over 25, 20, or 10 years and therefore exactly what is the mid IRR value worth? That was another question to LC and also what value will these 3 generators add to Kibo, 51% of what?
Meant to add this comment.
I came across this in an old word doc from a short course Accounts/law, but the origin is unknown.
Removal by ordinary resolution
Any member wanting to propose a resolution to remove a director must give the company 'special notice', (a formal notice setting out his request) at the registered office of the company at least 28 days before a general meeting. The directors may try to frustrate the members' intention by not calling a general meeting at all.
In this situation, a member who owns at least 10% of the voting shares in the company can request an extraordinary general meeting at which the proposal is put to the vote.
Whenever the company receives special notice of a resolution to remove a director, the board must ensure that the director concerned is informed immediately. That director has the right to make written representations to the members. He may also speak at the meeting.
Not sure if it is an issue of what is in the directors contract and if their is a case for unfair dismissal etc, as I don't know enough about it.
I never received the webinar link, but ETX Capital have eventually sent a link to the recording of the webinar to listen to. Really just a presentation as per slides, then not a very good attempt to answer the few questions that were asked. Strange that he spoke about Haneti in the presentation, but refused to answer where the Haneti funding was coming from, as it was KAT. He seems not to enjoy the questioning and sounded very uncomfortable in his answering.
Well my thinking would have been to firstly announce that the Baobab PPA had been finalised, which then sets it all up nicely for the presentation where it is evidenced that they can in fact achieve things and we receive a boost in confidence and he gets everybody on board. On 1st Oct he said the original anticipated date for the PPA finalisation of 30th September was now extended for a few weeks, what is a few weeks, I call a 2 a few, but open to interpretation as usual. So, do we think we will we get anything today, probably not.
bcl - thanks for that .
Well if it there is nothing new it is disappointing, perhaps he thinks he has a different audience these days and also perhaps Jax is not that far off with his steamroller view. I received a message saying someone would contact me then that effectively was it. I sent in my questions fwiw.
I assume that the Q and A will eventually be posted on the website? Surely there has to be some probing questions accompanied by some honest answers, rather than usual fluff.
Just reading as you update, you’re better updating than LC!!!
Just thinking, that if they cannot get a small gas turbine built installed and commissioned, what is going to happen with the coal fired plant. This was to be commissioned at the end of March.
These power projects are massive in comparison and take a lot or work.
What is the definition of the foreseeable future then, 2 months, 6 months or a year or longer?
Well he has had plenty of time to prepare for it and surely there has to be some positive umph in even a bad presentation.
Re Moz they have to update the DFS, as it will be required to assist in the funding. Maybe I'm wrong but I thought they said they would update it. The Moz news was also overdue from March I think.
You mean to say there were no probing questions but just a few standards and it was cut short?
(Ii) Tanesco Transmission System Readiness For Interconnection, And Corporate Commercial Man-agement Improvements;
A) Tanesco Transmission System Readiness For Interconnection. This Will Include A Technical As-sessment Of Tanesco’S Transmission System To Identify The Operational, Planning, And Technical Gaps In Meeting The Requirements For Operational Integration In The Sapp And The Eapp For Power System Stability, Operational Ancillary Enabling Services, Frequency Synchronization, Tie-Line Con-trol, Protection, Metering And Other Technical Requirements;
B) Corporate Commercial Management Improvements. This Will Support The Implementation Of En-terprise Resource Planning (Erp) Tool That Will Establish An Integrated System For Managing Core Business Processes, Including Financials, Billing, Customer Service, Asset Management, And Other Key Organizational Activities; C) Provision Of Consultancy Services For Implementation Support For This Part Of The Project.
The Above Activities Will Be Subject To Open International Competitive Bidding.
(Iii) Project Implementation Support And Capacity Building
A) Support For Project Management, Implementation And Supervision And Capacity Building Through, Inter Alia, Provision Of Consultant Services (Including For An Owner’S Engineer For Imple-mentation And Supervision Support Of Part 1 Of The Project), And Provision Of Operating Costs And Training;
B) Support To The Project Implementing Entity For The Establishment Of A Team Of Experts To Pro-vide Technical Expertise On Operational Matters, Including The Preparation Of Feasibility Studies (Technical Assistance Facility);
C) Technical Assistance And Capacity Building To The Project Implementing Entity, The Recipient And Its Agencies And Institutions To Reach Readiness For Regional Power Trade;
And D) Technical Assistance, Capacity Building And Training To The Project Implementing Entity On The Preparation, Implementation, Monitoring And Supervision Of The Safeguards Instruments And Environmental And Social Aspects Of The Project And On The Preparation And Implementation Of The Gender Plan For The Project
Prequalification/Initial Selection Of Suppliers And Contractors Will Be Required For All Contracts For Works Under Component (I) Transmission Infrastructure Extension For The Following Contracts:
(A) Construction Of The Proposed 132Km Iringa – Kisada 400Kv Double Circuit Transmission Line,
(B) Construction Of The Proposed 158Km Kisada – Mbeya 400Kv Double Circuit Transmission Line, ·
(C) Construction Of The Proposed 110Km Mbeya – Tunduma 400Kv Double Circuit Transmission Line,
(D) Construction Of The Proposed 220Km Tunduma – Sumbawanga 400Kv Single Circuit Transmis-sion Line On Double Circuit Structures,
(E) Construction Of The Proposed 400/220/33Kv Substations At Iringa, Kisada And Mbeya, ·
(F) Construction Of The Proposed 400/220/66/33Kv Sumbawanga Substation, 400/220/33Kv Tunduma Substation, ·
(G) Const
The only tender info I found appears to be Zambia based and to see all the details you have to subscribe. I have asked LC for project timelines and if the date referred to below is still applicable. Perhaps some more info tonight from the webinar.
TENDER info re TAZA
https://www.tenderdetail.com/Global-Tenders/TenderNotice/28020546/cfb22e3c-4df5-40e6-bdc5-37fed76c8e0d
GTR No
28020546
Agency Name
You can view only after subscription.
Tender Title
General Procurement Notice For Tanzania-Zambia Transmission Interconnector Project (Taza)
Competition Type
ICB
Country
Zambia
Due Date
18-02-2021
Tender Details
General Procurement Notice For Tanzania-Zambia Transmission Interconnector Project (Taza)
The Project Will Include The Following Main Components:
(I) Transmission Infrastructure Extension, Which Involves:
A) Construction Of Approximately 620 Km Of 400 Kv Iringa-Kisada-Mbeya-Tunduma Double Circuit Overhead Transmission Line And Single Circuit Tunduma -Sumbawanga 400Kv Single Circuit Trans-mission Line On Double Circuit Structures.
Additionally, The Project Will Also Finance A 4Km 400Kv Double Circuit Transmission Line From Tun-duma To The Zambian Border That Will Be Energized At 330Kv.
B) Upgrade Of Iringa Substation From 220Kv To 400Kv And Construction Of 400/220/33Kv Substa-tions At Kisada, Mbeya, Tunduma, And Sumbawanga; Including The 400/330Kv Auto Transformation Substation At Tunduma For The 330Kv Transmission Line To The Zambian Border.
The Above Activities Will Be Subject To Open International Competitive Bidding.
(Ii) Tanesco Transmission System Readiness For Interconnection, And Corporate Commercial Man-agement Improvements;
A) Tanesco Transmission System Readiness For Interconnection. This Will Include A Technical As-sessment Of Tanesco’S Transmission System To Identify The Operational, Planning, And Technical Gaps In Meeting The Requirements For Operational Integration In The Sapp And The Eapp For Power System Stability, Operational Ancillary Enabling Services, Frequency Synchronization, Tie-Line Con-trol, Protection, Metering And Other Technical Requirements;
B) Corporate Commercial Management Improvements. This Will Support The Implementation Of En-terprise Resource Planning (Erp) Tool That Will Establish An Integrated System For Managing Core Business Processes, Including Financials, Billing, Customer Service, Asset Management, And Other Key Organizational Activities; C) Provision Of Consultancy Services For Implementation Support For This Part Of The Project.
The Above Activities Will Be Subject To Open International Competitive Bidding
Nice one G4S, hope you do well and we create more momentum for a change. LC certainly says he will create value, but when? Want to buy a Fender CC-1045CE/NAT, that would give me about £100 to invest unless I got a good deal. As I recall between my wife and I we had 3% away back in 2013, but what’s left is almost worthless now, but I don’t think that will happen to you. Hopefully things change shortly and both you and Yaki and the rest of us do well here on in, good luck.
NCCL was up 20% yesterday on a PI board appointment so food for thought, but don't know what % he has though.
Thought we would be pleasantly surprised with an early RNS re the Baobab PPA. Also we are unlikely to get the PPA with EDM signed this year, as Hammerphil says the formal EDM board approval of PPA is due in Q1 next year for NCCL and it is more than likely we are following on after them. Of course, it’s a possibility that the PPA might be agreed on this year, but requires board approval, who knows?
RNS - The appointment appears to be a reasonable decision as he has engineering qualifications and background with relevant energy experience which relates to our needs and it will be interesting to see if he can move things along. It is however another increase in expenses assuming Maree is still paid. Also I wonder if and when he will commit to buying any shares, as against awaiting the freebees.
Aerial, yes perhaps 'Our Day Will Come.'
Just thinking about the interconnecting transmission lines, have you seen any proposed start and completion dates, which may be a useful indicator of timescales for MCPP. Also, so far, no news of any substance on the whether the negotiations are on-going re an appropriate tariff across the various countries. At the back of my mind I thought I had read somewhere that Feb 2021 was the tender closing date. I’ll dig around again.
Emailed LC a pile of questions, but I don't suppose he will reply.