Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
https://www.ippmedia.com/en/news/julius-nyerere-hydro-power-plant-has-not-stalled-says-dr-kalemani
Ah, an update from Medard Kalemani, the Energy Minister, who I emailed, but never received an answer.
Forgot they renamed the dam after Julius Nyerere who was the Prime Minister and President of Tan-ganyika in the 1960s.
Julius Nyerere Hydropower Station (JNHS), also called Rufiji Hydroelectric Power Station, is a 2,115 megawatts (2,836,000 hp) hydroelectric dam under construction in Tanzania. The power station is ex-pected to produce 5,920GWh of power annually.
Also with the elections coming up on 28 October this year, Magufuli defends the large infrastructure projects.
https://www.thecitizen.co.tz/news/Magufuli-defends-big-infrastructure-projects/1840340-5619578-w1hbq/index.html
Anyone read any up to date news re the Stiegler Gorge dam especially on how the dam is progressing?
I came across the March 2020 article below titled 'The Downside of ‘Development’ – Tanzania’s (former) Selous Game Reserve.'
https://atcnews.org/2020/03/31/the-downside-of-development-tanzanias-former-selous-game-reserve/
An interesting article, but as with Kibo some up to date progress info appears hard to come by. I'll email LC he'll know!
From the article it is no wonder there appears to be so little news about the dam. It also appears that if it happens JPM is to export surplus power. It also alludes to the usual delays and cost overruns. Maybe LC does know something, hence his readiness quote to tender if requested.
A couple of excerpts.
1. Comment is Free .......and Punishable - ...........These mild criticisms were met with an impassioned threat from environment minister Kangi Lugola, who told parliament: “. . . the government will go ahead with implementation of the project whether you like it or not. Those who are resisting the project will be jailed”. Since then, apart from praise-singing, local commentary has been muted, while external critics have focused more on the conservation aspects of the project than on its economic and financial implications, though the two are related. No academic economist, Think Tank or newspaper editorialist has commented negatively on the project, while social media sources have featured both critical and pro-Magufuli commentary, albeit with little insight into the underlying issues. It is striking that no advocacy group or alliance in or outside Tanzania has challenged the SGD through public interest litigation, as happened in the case of the proposed road across the Serengeti
2. Resource Misallocation and Delays - ..........It is most unlikely that the SGD will be commissioned before the end of President Magufuli’s second term in 2025, given the typical delays and cost overruns in mega-dam construction, leaving the unfinished project as a potentially costly embarrassment for the next government to deal with. Hopefully, ongoing investments in gas-fueled power plants, bottled gas for urban consumers and off-grid solar for rural areas will assure adequate power and help control deforestation in the likely event of an aborted Stiegler’s Gorge Dam.
You can't be wrong every time Wimbo. Yes I would agree with you both that these relationships threads through companies and it would appear to keep each other on the gravy train.
I'm sure I watched a TV prog a while back highlighting the web of connectivity of a number of directors on each others board and as far as I remember it was not uncommon. The other crazy thing was the number of boards some of the director's were actually on and pulling in salaries on each. Easy money if you have no scruples and you can get it and I often wonder how they find time to actually do something akin to what is called work. Nice to be wanted poor souls.
However I'm sure there are good and bad directors as in all walks of life.
I notice from Power Metal that they and Katoro hope to confirm the launch of the drill programme on Haniti to the market in the near term.
I forgot and was surprised that their CEO is Paul Johnson who I think is the same PJ who was in charge at MTR re our old Pinewood project which was another disposal. As I recall they made a fortune on a small investment of about £150k in Kibo. Don't think they achieved much else in the way of progress on the project though. Perhaps another of LC friends?
NCCL have had news re their SH Agreement which they signed with CMEC and it is encouraging that they retained about 40% equity in the project. They too have had a fairly long haul and are likely to beat us to that party, but are not across the line yet. I think they said it would be signed when the investment conditions are met, so this percentage may well change.
They are certainly heading in the right direction, will we?
Aerial - Great to see some positivity with EDL after a bleak spell and it just shows what can transpire if you get organised and into gear. Hope they can generate the right levels of profit and it's a great position to be in for a change.
'Another 900% and I will be laughing'. That brought a smile to my face until I realised I only need a 19.36 bagger to break even. : O )
Re the one day 'Rodders' comment, ‘Only fools and horses’, don't tell me Del boy invested here also! Maybe he is right, this time next year we could be.....
Looks like they can do what they want re share conversions, unless it relates to a minor lender only.
Yes Rock, the abject failure to delivery over these 8/9 years does start to become a touch frustrating after a while and it really would be brill if we had something to actually smile about apart from the issue of more shares. But this will continue for a while no doubt. Surely we have finished disposing of projects now, or have we, as no news re Botswana these days.
Missed this out.
It is more than a year since the DFS was presented to the EDM utility company and it appears to be slow progress awaiting the PPA negotiations with EDM and those on-going with other off-takers. However it is slowly advancing and has to be Kibo’s best bet unless we get life into MCPP vis the African Power Pool, so an update would be welcome.
I had almost forgotten about the CA Kibo signed with STEAG Energy Service, who are an engineering and O&M company in the STEAG group of companies. This strategic partnership was to incorporate world class operating and engineering experience and capability into Kibo’s developing energy plant. Is this still applicable?
Also re Mbeya, no news on SEPCO and GE involvement and as GE bypassed the opportunity to invest in NCCL, unlikely they will be anything other than the hardware supplier of Turbines and Generators etc. But what do I know.
Also, again no words of encouragement in terms of any Botswana update. The end date was the 20th March 2020 for the coal supply agreements to be signed along with the PPA with MCIPP to supply commercial power off-takers and also the same end date for signing the PPA to supply exclusive power to PCP from KP1. So, no details on this after another slipping delay, so I expect that we should hear sometime next year, or if lucky, perhaps sooner, who knows?
I might also get excited at a 0.1p rise if I had invested recently, especially if it was at 0.15p, the con-version give-away price, but not far to go, only another 4.54p.
Only real meaningful news will produce what LC has said in the last RNS. ”…..Either way both agreements will continue to progress at pace, unencumbered by the other,so that we can realise meaningful value for our shareholders and our power clients."
The lack of updates is always disappointing however at least we are hearing some news regarding Benga plant with its 350/400MW potential. In Sept last year we had the signing of a non-binding Power Purchase Term Sheet and a non-binding Coal Supply Term Sheet with Vale. Then we had news in relation to a new MoU with EDM, with similar terms to the first, to guide further development of Benga, i.e. to focus on facilitating the project from its current state of development to fruition. News also included a land increase for possible renewable energy / electrical storage systems and the signing of a binding term sheet for supplying the 200MW to Baobab’s Tete Steel and Vanadium Project.
The RNS and St Brides Partners Weekly Brief signpost that we have two pieces of news ticked off, it would appear that the independent Grid Impact Assessment and Integration Study on Benga Power Plant Project, (BPPP) has been completed, reviewed and submitted to EDM, (aids the DFS, submitted last year, and financial model) and also the finalisation of the Technical and Financial Feasibility review of the Baobab Project.
In addition, they also announce a further Kibo work task and so have commissioned an Integration study to assess the feasibility of 400 MW combined project for the Baobab Project and BPPP.
However re the work on the PPAs, it indicated that Kibo are extremely pleased with the progress being made and PPA discussions / negotiations with both EDM and Baobab are on schedule for completion by the end of this year and the beginning of Q4 respectively.
Again another slipped target, as I thought Baobab was due in September, anyway as anticipated, probably not such an exciting year as LC indicated, plenty of time for PPA to come out and yes they do take time to negotiate, but I expect probably early next year for this news I feel, but could be surprised.
As these large industrial plant costs are high, I would imagine that a single power plant to supply both Baobab and EDM will be significantly cheaper that the costs involved in designing and constructing 2 separate plants to serve them independently.
Also, of interest would be further news on the signed collaboration agreement reported last June to develop suitable base-load electricity storage solutions with ESS Tech Inc., a leader in the design, manufacture, supply and installation of long-duration energy storage technology products and services in the power sector.
Sorry afternoon
Wimbo – Re yesterday’s post good to hear from you these day and know you are on form, just needs JD and the rest to join and the 50p party is on, sorry 1p party, but the thing is in which year will this be?
Perhaps NCCL will beat us to that party as good news re their SH Agreement just signed with CMEC and encouraging that it has retaining 40% equity in the coal and mine project. Although I was surprised that GE did not take a stake. Perhaps they’re saving their money for the Kibo project!! I notice they say it will be signed once the investment conditions will be met, so perhaps the 60/40 split may subsequently change.
However, despite this signing still no tariff approval with EDM however one distinct advantage is that with just the two partners it should be less complicated to achieve FC and of course the additional benefit is that CMEC are arranging the funding. So probably no problems there.
As we see, it takes time and they are at least a year or so in front of us and as I recall they have been discussions for a while now. I believe that the Financial Close target date was H1 of 2021, so looking like they might be in line to achieve this.
Perhaps we're next!!
I feel that it is time for an update on the energy projects, news re Coal supply and PPA are overdue from 20th March in Botswana, also Benga news is supposed to fall in Sept.
What is happening with the African Power Pool transmission line and do we have any discussions taking place with these neighbouring countries’ power utilities and when is the transmission line supposed to be completed LC. Wouldn’t it be great to get the export of power on track and it may be only then that old JPM wants a piece of the action In addition what communications are there on that little old dam, any progress and what is the position re domestic power supply. I wonder if our ole mucker MzeeMkuki has heard anything from the countrymen.
Can't recall if I posted this, but did ref to the company a month or so back.
Came across this web link for Plutus Powergen PLC and as indicated before it does not sound too inspiring re the Peaking Power Generation Plant and as said previously perhaps LC is proposing to buy some of these, who knows.
https://www.morningstar.co.uk/uk/news/AN_1585750090348083400/plutus-powergen-funds-running-low%3B-mulls-sale-of-all-investments.aspx
From memory It was about May or June time that Contango Holdings completing a reverse takeover of Zimbabwe coal project which cost or at least the implied value was £6.4m.
As ever P, P and P
Imweru and Imwelo had a combined resource of 755,000 oz, whilst Imweru with 550,000 oz, and the potential to expand to 1 million oz in conjunction with neighbouring Lubando’s 168,000 oz gave a total resource of 718,000 oz of Au and possibly higher. So, it is was given away for sweeties by KAT who are labelled as a miner. Yes of course KAT still has Haneti another of Kibos disposals, but if you are a miner why dispose of Imweru unless you need funds. KAT have at least 14 interested parties in the funding provision, so not too sure re the selling of Imweru. I think we reduced from 52.2% to about 38% and still no news if we receive remuneration, share wise for KAT services rendered.
Then we have Bordersley so, we farm out MED and by now after 7 years invested I sure aint following the story and it sure as heck doesn’t help when LC ignores everyone’s emails. Still never heard about the $100 million funding, anyway it’s going going gone and I wonder what % Kibo will be left with?
So, what if any will be the transformational news? I suspect not this year despite what LC RNSd as 2020 being an exciting year.
Re the Mbeya project only worthwhile news was that they continue to explore private and African Power Pool off-take agreements. LC indicated they were positioned to participate in any coal fired generation projects that Tanesco offered out for tendering, however only likely to change I suspect if the Stiegler Gorge is delayed or stopped, who knows with JPM in charge. Mzee said don’t hold your breath. LC perhaps has high hopes of a request to again re-tender, he must know what is going on within Tanazania, particularly with respect to the Stiegler Gorge project where there appears to be a distinct lacking of media news on the dam progress. Potential still remains as it has for 7/8 years.
Re Benga, we last heard they had a land increase for renewables and a binding term sheet was signed for the supply of 200MW and probably the only news this year will be the PPAs, one with EDM and one with Baobab Resources, with the latter due in September, if on time. Also expected is the finalisation of the completion of the independent grid integration and impact study.
Re Botswana, they had an end date of 20th March 2020 for the coal supply agreements to be signed along with the PPA with MCIPP to supply commercial power off-takers and in addition an end date for signing the PPA to supply exclusive power to PCP from KP1. So, another delay and will we hear some news this year also, who knows, perhaps shortly even, but who knows?
We have had the authorisation of the shares to allow headroom for future funding, so any short term news is likely to be some of the above, but nothing really major to add a boost to the SP.
Yes we may rise on some of that news, but unlikely to be sustained, so only the ST traders and LTH with a low average may benefit, but not me at 4.84p, or whatever it is. I try not to think too much about it.
Long term investors do find it incredibly hard to accept the extent to which LC has managed to under achieve and that is a huge amount over 8/9 years. Yes, industrial projects do take an inordinate amount of time to achieve a positive close, but over the period it does not change what they, LC and the BOD have delivered, which is absolutely nothing and in so doing went from about 200 odd million shares to 1.392 billion and now we have a 5m shares in issue possibility. Sigh!
There was a time when LC called a halt to dilution, but he has driven the price so low there is no other option but to give shares away for proverbial peanuts to the usual benefactors. How long will the £1 million raised last us and when will we have the next round of fund raising at 0.15/ 0.2p or lower. We need news, real news and not what is currently anticipated re PPAs and coal agreements and of course all of these projects need funding. NCCL have been almost there at the FC but for how long? Many years ago, to me it was an attractive proposition if we had achieved it but, now as we look back how much have we spent and exactly what have we achieved. I suppose if you accumulate all the fund-raising exercises this would be indicative of the spend fora zero deliverable. I was going to do this, but didn’t what to depress myself.
The only thing positive that keeps me going is the fact that the usual crew are actually prepared to accept shares and the warrants at 0.8p and 1p in the first place and so unless I am missing something there has to be a slight positivity to that fact especially that they must know or think they know more than the commoners, that’s us PIs. Hard to be positive over such an extended duration and down only 97% and the worst thing is the constant lack of updates on our projects or should I say diminishing projects.
We have said it for years that the potential is there, but we are continually thwarted by LC and the give-away of projects ether through cancelling or farming out not to mention the absolute give-away of shares and the warrants situation.
I don’t mind if everyone has a slice of the cake and preferably the same size. Include PIs in the next fund raising and get us on board. Preferably with a new CEO as I believe LC has had a decent run at it and over the years it has been nothing but abject failure. Step aside now LC you tried and failed, time for someone else.
We change from a miner to a developer to an energy company without any discussions what so ever. So, what do we do, we remove Pinewood and Morogoro from the frame and what did we spend on all of the discarded projects including what it cost for Haneti and Bordersley and what is the cost of KAT work, without Kibo being rewarded for services rendered?
We examined and assessed the potential to sign an MoU with LVG to amalgamate Imweru with their Imwelo mine and then discard this with the eventual tagging of Imweru along with KAT for another disposal.
bcl – Just read re Acountancy, you should tell LC that you will audit the accounts in future if you get the same cheap rate shares as the others. So, based on 0.015p, which would do you for starters, how many million shares will you get each year? Did a few courses on this and nothing made me appreciate the Sage computer programme, (Student version) more than having to do all these manual Debit and Credit entries and a trial balance was always so much easier, despite it always balancing, due to posts. Sage was good, but you soon realised that to learn you had to make mistakes, so you knew how to correct error postings. Don’t know if I could have worked on this as a full-time job though as I was into Engineering, anyway I found it interesting.
I just wish LC knew a tad more about finances and if he does, it is not apparent thus far, but you never know, we may get a surprise one of these years.
As ever P, P and P, this time next year we could ........
LC has to do better re the treatment & communications with shareholders, surely you want to succeed & if you want authorisation of the 5 million shares issue, then consider PIs for a change rather than ignoring them with apparent condescension. It’s time to change & strive harder and stick with a strategy to deliver meaningful project news. Let’s have a webinar so that we can test you on the questions many must have to hand. Honest questions with honest answers.
Perhaps, now is the time for a new set of faces in the board room, not exactly an outstanding performance if after 8/9 years zero is delivered, which equates to zero wages in my book.
What exactly are the BoD doing, 6 directors spending time on what? KAT working no doubt and are they paid for services rendered or does Kibo benefit from this, as should be happening? We shall see if the Kibo's % of KAT increases in the near future.
Re the EGM, as outlined in my last post, some points & my queries below, but I will only vote YES if LC addresses points 4 & 5, as totally cheesed off with the cheap shares and the warrant give away each fund raising.
1 What happens if the vote is vetoed? Does LC sell down shares in KAT and eventually with MED also
2 The EGM requires 75% and so need PIs support for authorisation to issue to 5 billion shares, from 2m
3 So why does LC and the BOD not support PIs to ensure we benefit from future share issues to raise capital
4 In return for a positive vote LC gives a guarantee that future fund raising will involve share-holders by offering them a chance to subscribe to an open offer or a rights issue rather than just the Sands type of fund raising where we give-away millions of shares in fees and warrants & conversion price at 0.15p
5 Again they have a positive vote, if they also incorporate a Rights Issue in conjunction with the IPO for new Sloan/Med company IP
6 As a shareholder, do you need a set percentage of shares to make an amendment, but it’s probably time limited
7. Can we make amendments to the resolution to include a guarantee as above in return for a vote or does it need 21 days?
That's me for now as I don't think that there will be any real meaningful news this year.
Re Benga we await the completion of the independent grid integration & impact study and the 2 PPAs, one with EDM and one with Baobab Resources, with the latter due in September & that is probably the only news we may have this year, now Bordesley's gone.
MCPP could come alive but, I suspect next year for real news.
Re Botswana, News was due 20th March for CSA to be signed in addition to the PPA with MCIPP to supply commercial power off-takers and PPA to supply exclusive power to PCP from KP1. Another delay so perhaps news shortly, who knows?
Anyway, no yes vote from me unless LC promises to consider PIs in future funding. Suspect more of same, cheap shares to Sands et al & warrants at give-away prices with 0 delivered.
P, P & P
Many years ago, there was a large Kibo dilution and as I recall LC indicated that in future there would be less dilution and give him his due, they were thoughtful and more considerate actions for a while. That was until JPM in his wisdom deemed through Tanesco that Kibo had not qualified for the coal fired power plant tender, when in fact no IPPs had actually qualified for the said tender. At that time, JPM hung his hat on the Stiegler Gorge 2.1 GW power project supplying power at the cheapest possible price and so no apparent need for IPPs to generate power via coal fired power plant or any other energies.
The question is, will any of this change and if so, how soon and what will we require funding wise?
Also a question for LC and et al re the next round of funding, what will the conversion price and warrant price be pitched at?
Any email reply I used to get from LC included a thank you for your support. Now we have no reply and the complete lack of updates on the projects is annoying and frustrating and it has always been sparse.
A Q a while back to LC. Will I live long enough to reap the rewards from Kibo, no answer. That should have been the first warning sign for me.
We knew LC would have to hold another EGM to ensure they had enough shares to allow fees/warrants to be exercised.
We made our point at last EGM so, if the authorisation of shares is voted down next time, where do we go from here?
Well whatever he does it should be an alternative approach and more attentive towards shareholders.
So, what do we do assuming there are insufficient shareholders voting yes.
The BOD want our vote so what do we get in return, apart from decent and respectful treatment and a project delivery?
Open to suggestions, but the only thing I can think of, if attainable, is that LC extends to shareholders a simple guarantee that PIs are to be involved in all future fund raising exercises, whether open or a rights issue, in return for authorising an increase in share capital to 5 billion.
If a need to issue shares for funding it might as well be to PIs for a change. It is time for LC to deliver something to get us all on board and stop the Sanderson type give-aways, we know a degree of dilution will happen.
In addition, perhaps rather than adopting a straight IPO in forming a new MED company, he should also deliver this in conjunction with a rights issue to PIs, in return for our EGM votes. At least it rewards PIs in a small way for their loyalty.
Apart from that I cannot see the point of voting the increase in share authorisation down, as not too sure where that leaves us? Will LC be tempted to sell down any of the shares in KAT or the new MED?
However, based on a proviso that we know for sure we are to benefit from the participation of future fund-raising offerings by receiving preferential treatment, then we give LC the positive vote.
Time for a change if it is feasible, come on LC give a guarantee to PIs on
So what news, if any, can we expect?
Re Benga there was a land increase for renewables announced along with the signing of a binding term sheet for supplying the 200MW, which is valid until 30 Sept this year. Also expected is the finalisation within the next month of the completion of the independent grid integration and impact study and then news on the 2 PPAs, one with EDM and one with Baobab Resources, with the latter due in September and that is probably the only info we may have this year, now that Bordesley has gone.
Yes, LC as you say, a very exciting year indeed and what do we do, farm out another project into a new company with an IPO to boot, how quickly things change from exciting to non-delivery.
MCPP – It may transpire of course that there are other moves afoot re MCPP, for example, with the possibilities of private off-takers, power supply to the African Power Pools and dare I say it, perhaps a change of heart by JPM with a resurrection of the coal fired power plant tender, which LC has indicated he is prepared for, if an invitation is received of course via the national utility. However, as Mzee commented on, don’t hold your breath politics unlikely to change things in Tanz.
Also, supplying domestic power from Mbeya thru’ Tanesco is likely to be fraught with long discussions on the PPA, as it is no secret than it has to be cheap electricity. Perhaps it is clutching at straws here, but perhaps the only prospects I see for this domestic power supply may possibly be the combination of the progress on the African Power Pool supply being more or less finalised, in conjunction with a distinct lack of progress on the Stiegler Gorge project, which so far news wise, appears a touch unclear. It is however reputed that costs will be over $10 billion now and for that you can build MCPP, EDL’s plant and a few more for that. I thought it was it to be paid thru’ taxes, I can’t recall now.
Re Botswana, regrettably another news lacking project and another delay as the 20th March 2020 was the deemed target date for the coal supply agreements to be signed in addition to the PPA with MCIPP to supply commercial power off-takers and also the end date for signing the PPA to supply exclusive power to PCP from KP1. So, following another delayed target, perhaps some news this year also, perhaps even ‘shortly’. Who knows?
Note the lack of ref or mention to Botswana in the last LC broadcast or in the operational focus of the 25 June RNS, which may be of concern, but again who knows apart from LC?
Kibo have after restructuring, 35% of a 762Mt coal resource and 3 large customers, 85% of a 300MW project KP2 and 35% - 40% of KP1, a 300MW project. Now if anything could be delivered, it’s a different story. History shows that delivering these large projects takes an inordinate length of time, even when you have the perfect board on board. Just look at the time NCCL have been at it.
When did Kibo PIs ever, in 8/9 years have the opportunity to decide on anything, apart from the recent knocking back of resolution on the authorisation to issue 5 billion shares etc. No explanation why it’s 5 million shares, and now he wants the headroom. The apparent reason in part is that it ensures they have the requisite number of shares to allow the warrants to be exercised to those and them, who are always looked after. He should have thought about that before arranging the funds, but he wrongly assumed that the PIs would not vote against. Also, given we are near 1.3 billon shares and the amounts they pay in fees to raise the last $1 million, how much will the next funding be raising and no doubt it will be accompanied by the usual warrant enticement at the usual give-away prices and dilution. Also, what will the subsequent warrants be exercised at.
Raising funds is a necessary evil, however where does the PI loyalty come in to the equation.
For a change rather than the imposition of the normal Sanderson style rip-offs, introduce a share offer with due consideration to the PIs which would be appreciated and additionally should improve the relationships and confidence in the BoD. Therefore, rather than exclude and alienate PIs, introduce an offer to allow PI’s to participate in fundraising either thru’ an open offer or a rights issue. Surely the PI’s deserve some merit for their long-standing suffering and this may not be as bad as past fund-raising exercises with warrant perk allocation to the usual parties and still nothing delivered.
That however is never a consideration with the usual excuse that they always claim it costs too much to administer. Nonetheless they were quick enough to raise an IPO with another proposed farm off of Sloan/MED, following on from a similar situation with the disposal of projects into KAT.
Thinking about it, LC must have told them something worthwhile, because what is the point of offering warrants if the company is to end down the Swanee.
Incidentally the last very generous fund raise to the fortunate offered a conversion price of 0.15p. It may not be that exciting shortly however as we may well drop below that unless we have substantial news. But, I cannot see anything significant coming our way for a good few months and perhaps next year will produce more excitement.
At least hopefully by then we have a workable vaccine, a therapeutic drug treatment and an antibody injection that will fight off Covid-19. Until then we will struggle to eradicate the virus.
Anyway, we are down to 3 potential projects all requiring some funding or other and LC et all need to expedite something meaningful, preferably this year, but I think maybe next year for any main news.
Mabesekwa (Power)/Botswana
Benga (C2P)/Mozambique 65% Kibo, I50MW supply to EDM, 200MW to Baobab
MCPP (C2P)/Tanzania 300MW (Poss 600MW) mine mouth plant & export to African Power Pools
LC unfortunately appears to care little about PIs now. There are a number of LTH here including myself and it feels a life time and nil delivered. In fact, there always appears an indifference in the way he changes strategy whenever he wants and disposes of projects willy nilly without shareholder consideration. Needless to say, with the latest disposal of Sloan into a new MED the related IPO disappoints, the sting in the tail would have been softened slightly if the PIs were offered a rights issue for shares.
No real meaty project updates to speak of and invariably, if we have news, any rise in expectations appears to be followed by a degree of negative news which contributes to the underlying low SP. Targets now appear to be a waste of time as missed constantly. Maybe we are finished with all that!
Understandably there is some merit in separating first KAT and the proposed new MED with respect to a saving on funding requirements and the fact it may reflect on the SP, albeit Kibo shares percentage is more than likely to reduce as happened with KAT. Originally we owned 52.45% which is now about 38%, so it can change quickly. However along with KAT, MED may be the only thing this year that might have an increasing effect on Kibo’s share price, albeit short term. But no real evidence of boosting Kibo so far. LC said funding wasn’t an issue, so, what happened to the $100 million being negotiated, if we are now farming off MED.
In the past, they have had no decisive strategy going forward and sadly lacking in the necessary foresight to ensure that they obtain adequate and appropriate funding to cover a realistic period of project development, beari in mind the number of projects involved and what was coming down the track. A positive policy may prevent the need to go cap in hand to Sandersons, again & again, costly and a give-away of millions of shares in the process, not to mention the dilution. Funding inevitably becomes ever more challenging as share price diminishes. A straight and true strategy is not a word in LC’s vocabulary unless it’s a changing one with indecision.
The worrying thing is the authorisation of 5 billion shares, what will LC do with them. Will it simply be more of the same, meaning cheap shares to Sands et al and warrants at give-away prices with nothing delivered apart from dilution. The last fund raising will not last forever and it’s unlikely to see us thru’ to the final completion of any of the 3 coal power projects. Hence LC ‘headroom’ request & EGM.
Last Thursday I watched a company interview where the CEO stated it would be up to the shareholders to decide what was to be the approach re the operational order of their 2 mines. The order of the mine production would be theirs alone, bringing both mines into production, one first and then the other 6 months later, or even both mines together, the choice would be down to the shareholder. How often do we hear that?