Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Well nothing new in the LC broadcast and looking at the info in relation to Bordersley a delay of 9 months rather than commissioned at end of Q1, cannot be attributed to Covid-19. He is making excuses and why? I have queried this as per this mornings post.
Re Benga the 2 PPAs are awaited and well documented as per this morning's post and expected this year, as we already knew, so nothing new here. No mention of Botswana, so looks like the review has been completed and the decision made.
So, as I said this morning, it looks like nothing much is going to happen this year apart from the PPAs and the reality is that this year is not going to be as exciting as LC indicated in his 4 Feb post, i.e.
“I believe that 2020 is going to be an exciting year for Kibo as we look to deliver on the energy needs of the present without compromising future generations.”
So just have to wait till next year to see what happens here.
He did sound positive on how things will be in 5-10 year, but again no mention of Botswana. Really encouraging, only have 5 to 10 years to wait.
Sad, but some of us could have asked more probing questions. Nothing to really set the pulse racing, even for a minute, just same old LC stuff and not worth the effort.
Quite sad really all this time we have been invested here and still nothing delivered, despite the fact that Bordersley should be commissioned well before the year, but it appears it won't.
That has to be me for a wee while.
Keep safe and well
Buenas nochces
As posted previously, in theory they should not be that far away from the target date for commissioning, which was supposed to be the end of Q1, but in reality, we are now being told that due to Covid-19, Bordersley may still be in production by the year end. What is happening with this project and why can it suddenly be 9 months behind target when it was on schedule on the 4th Feb. Come on LC waken up.
It makes my blood boil that there is no work activity on site and LC knows that we know that this is true, additionally it appears no ostensible real effort from AB Impianti on completion and we still don't know the circumstances surrounding what appears to be an end of year target.
Itay locked down on 21st Feb, so if they were on target for the end of Q1, they were only 5 weeks away from commissioning. However, given the possible new target delivery by the year end, clearly progress was not on schedule and they must have been well short of finishing, or there are other factors involved that have been withheld re the delivery of this project.
We were notified on 26th May that AB Impianti were back to work, so, worst case scenario is, from lockdown till then is about 14 weeks and in between all of this they have had the factories open and were also working remotely, so there had to be some development with work progressing. Assuming 14 weeks from the so-called start date of 26May takes us to 1st September. So, is LC suggesting this as a target date knowing that it is one that is easily achievable, or what is going on?
Also, we were told that we had pre-qualified for the CM auction giving us a chance to win a 1-15 years power supply contract and did we win any contracts? So further details on this and the situation re the 5-year PPA agreement with Statkraft would be appreciated along with the due power generation commencement date.
What happened to the 8th April statement ………….”We remain firmly focused on progressing this project, which offers significant near-term revenues thanks to the power purchase agreement we have in place with Statkraft………..”
Perhaps the delay is simple due to the fact we never won the 1-15 year contract and the T-3 and T-4 auctions are more distant for years 2022 and 2023 in any case. Why is there now no urgency on progressing Bordersley now?
I anticipate there is more to this than meets the eye, but expect more information asap and need a proper update.
It may well be that the proposed shovel-sites are part of PPGs/Rockpool Investments’ business, I think they used to have 9 of these sites, who knows?
Regarding the 20 'shovel-ready' sites with the potential to generate up to 300MW, we await with bated breath on exactly when we will have the procurement details and the technical and financial information on these sites, including the $100 million funding, but for now I would just love to get Bordersley project done and dusted. To me this was LC’s chance to show he can actually deliver something in 8 years, albeit it is the delivery of a small and fairly manageable project in comparison with a more complex C2P plant. In addition it cannot be a big earner for us, but it would be or should have bee an easy first. But if we can’t get this off the ground the mind boggles re performance on the other projects.
Re Kibo progress the question is, if they are reviewing projects what, if any, project will be shelved or sold off for peanuts.
Re MCPP, the only worthy news is that Company say they continue to explore private and power pool off-take agreements and LC stated they were in a position to ensure it can participate in any coal fired generation projects offered out for tender by the utility Tanesco. Perhaps LC has high hopes for a re-tender, he must see what's coming down the track, especially as there appears a lack of news on the Stiegler Gorge project. then again, perhaps it was just a passing comment as nothing else was new.
Re Benga, the last news indicated a land increase for renewables and the signing of a binding term sheet for supplying the 200MW and most probably the only info 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 within the next month of the completion of the independent grid integration and impact study.
Re Botswana, the 20th March 2020 was the end date for the coal supply agreements to be signed along with 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 that delay, we should hear some news this year also, perhaps ‘shortly’.
So any short term news is likely to be some of the above, the authorisation of shares to allow some headway re future funding or just guessing ,the postponement, or decision on the future of MCPP (or another project) or possibly some welcome news on the procurement of the ‘shovel-ready’ sites.
But for me Bordersley's situation needs to be addressed as some is not ringing true hear. If the company remains confident that Bordesley can still be in production before the end of 2020 then provide some info on this.
Come on LC this is supposed to be an exciting year as you described it.
I/net probs today
Wimbo - A 20 bagger would be fine, but I need 24.2 to get that elusive BE point Perhaps clutching at straws here and a number of years ago I said to LC, partly in jest at the time, will I ever see any return or reward for my Kibo investment, not such a daft question now though.
There was a young man called Wimbo
Like us all thought he’d give it a go
We all put our trust in LC
And he relied on JP
Yeah President Magufuli you cost us some dough
Talking about Magufuli, perhaps he might be the driving force for that curved ball named Mbeya to get Kibo into orbit, who knows. Supplying power to the E ans S African pools will not happen overnight. In fact we all know these large C2P plants take an inordinate amount of time. Sometimes even the tendering process is lengthy in the power industry.
Have we heard any news re JPM’s baby, the Stiegler Gorge project? The last I heard they laid a corner stone a year ago, but haven’t seen a progress update since.
Re Tanzania I read recently that their first wind power plant at Mufindi was starting operation.
The other JPM news is the controversial manner and strange goings-on surrounding the Covid-19 situation, see link below
https://theconversation.com/covid-19-is-casting-magufuli-in-the-worst-light-in-an-election-year-138329
Also, I think this is election year, interesting to see how JPM fairs as after the last election the Bulldozer’s popularity went down from 96% to about 55%. Some controversy surrounding the way he is handling the Covid-19.
Came across this article re Tanzania’s energy prospective and strange I thought there would at least be a mention of that dammed dam, but not so.
https://theexchange.africa/countries/tanzania-energy-prospective-tough-ground-to-break-for-local-content/
There is every possibility that LC will sell off a share in KAT, most probably once they have the funding organised. The £1m funding gives them the leeway till then.
Of course, the big surprise may be that the BoD decide to remove LC and provide a most welcome impetus to the SP, who knows. Who has more that 5% shares? When is the AGM, September?
I think we should be getting some clarification on exactly the situation re Boredersley and it’s financial matters and indeed what is happening with the other 20 ‘shovel-ready’ sites.
Any progress on the other projects?
Wouldn’t it be great if Benga showed some progress, yes we had the land increase and the signing of binding term sheet for supplying 200MW, however we still await 2 PPAs one with EDM and the other with Baobab Resources, which is due by September, any chance we can speed this lot up, no, I thought so.
Re Botswana, as I recall 20th March 2020 was the due date for the coal supply agreements to be signed along with the PPA with MCIPP to supply future commercial power off-takers and also the completion date for signing the PPA to supply exclusive power to PCP from KP1. What is happening here or have I
bcl - re post ending with letter g - keeping it clean, I suggest simply, "get the finger out and deliver something worth hearing - please"
As I said to LC in an email, I have been invested here for 7 years, probably longer for you, but one of us is most certainly the poorer, by a long shot.
Also meant to add the RNS 25th June 2019 details the 5 year PPA agreement with Stakraft and included the following:
Louis Coetzee, CEO of Kibo Energy, commented, "Finalizing a PPA with a global player such as Statkraft is a key deliverable in terms of the overall Project Management Plan at Bordersley to deliver a technically and commercially viable project, thereby solidifying the platform for long term revenue creation as of Q1 2020. With a portfolio exceeding 12 TWh from over 400 customers, Statkraft is a natural partner for us and we are delighted to be working with its team."
Details
As part of its strategy to develop a portfolio of small-scale Reserve Power generation projects, initially in the UK, MED has today concluded negotiations for a five-year Power Purchase Agreement ('PPA') for its Bordersley project with Statkraft Markets GmbH, a leading provider of long-term PPA's and have agreed to execute the PPA finalized today, on 01 July 2019.
Bordersley is MED's first shovel-ready site targeted for commercial commissioning end Q1 2020, which will comprise a 5MW gas-fuelled power generation plant. Under the terms of the PPA, MED will be responsible for the operation and maintenance of Bordersley, and Statkraft Markets GmbH will engage in providing a comprehensive solution including feedstocks (gas) and trading the power generated at Bordersley ..................
So what happened to all of this, if it was supposed to create revenue as at the end of Q1 2020?
Notice also from the 31st October 2019 RNS that it indicates the reinstatement of the Capacity Market (CM), which aims to ensure security of electricity supply and Kibo pre-qualified for the T-3 (2022) and T-4 (2023) CM auctions, in addition the pre-qualification offers the chance for Kibo to win an auction for a 15 year CM contract.
We have had no notification re the outcome of this, so perhaps we never won this 1-15 year CM contract, which would probably be why the AB Impianti build & commission work appears non urgent.
We need clarification from LC on this in additional to other financial info.
Interesting that the CM price quoted is about £20/kW, not sure if this is correct as the baseload a year ago was about £35/MWh and with reduced working due to the virus I believe it has reduced to about £22/MWh.
The highlights from the above RNS were:
· Reinstatement of the Capacity Market scheme by the department of Business, Energy and Industrial Strategy, following the European Commission's decision that the GB Capacity Market scheme is compatible with EU State aid rules and thereby amongst others enables the UK to make capacity payments under the GB Capacity Market.
· Bordersley has conditionally prequalified for the 2022 three years ahead (T-3) Capacity Market Auction.
· Bordersley has conditionally prequalified for the 2023 four year ahead (T-4) Capacity Market Auction.
· This conditional prequalification and potential subsequent qualification will give the right to Bordersley to participate in the auction to win a 15-year capacity market contract.
Pixie - It might prove to be a nice and interesting holiday, but LC would just spoil it for you, so I would just email him you never know he might answer you, no reply to my emails.
Ask him about the change from miner to an energy company, which we had no say in. How much money has been sunk into failed and disposed projects such as the ditching of Morogoro and Pinewood, including the MTR caper with Morogoro and ask also about the Imweru gave away and the Haniti farce both supposed to be worth $750m. If we had remained a miner/energy we may well have had KAT under our wing.
That's it Aerial you just never know.
I thought I saw a post by Short6 re the Bordersley planning application, but I can’t see it now, it referred to the Bordersley contract re power supply to the grid.
I still have not seen info on any contract other than they had applied to be in an auctions. I asked LC for this info but obviously no answer.
So, we still do not know even the broad details of what this 5MW power plant will generate in terms of possible revenues and if, that is if, it was to generate this year, it will be the only source of pennies coming in. So at the moment a lack of any PPA info and other financial information in relation to sales and potential profits coming in.
Just thinking, perhaps Kibo never won a contract hence they may not be caring about Bordersley for now and this may explain the lack of site progress and the lack of AB advancement. Any delay cannot be attributed wholly to the Covid-19 completely, because if AB were on time, they would only be delayed 5 weeks. (2ist Feb lockdown to commission date at end of March).
From the 12 Dec 2019 RNS, I notice this refers to the Statkraft PPA, so perhaps the grid contract is done through them.
Louis Coetzee, CEO of Kibo Energy, commented, "Having already worked with Balance to acquire the Bordersley 5 MW plant, we are delighted to strengthen our relationship with a formal agreement. This will provide MED with a steady flow of shovel ready sites, enabling it to rapidly build an initial portfolio of 100 MW reserve energy projects in the UK.
"We hope to replicate the success we have had with Bordersley, which, from its acquisition on 20 June 2019, is on track for commercial commissioning at the end of Q1 2020. This will see us utilise not only our partnership with Balance, but also our other partners including global player Statkraft Markets GmbH for power purchase agreements and AB Impianti S.R.L for plant development including the EPC and funding."
So if reading LC, please furnish us with more details on exactly what is going on re Bordersley, including whether we won a contract on the auction process and the pertinent info relating to the financial aspects of the project.
Afternoon JD, I will go for 255K and give him, as ever, the benefit of doubt. Why do they need a salary, when nothing is being delivered, even at 45%, when there is no money, this only exacerbates the problem and accelerates the need for future funding. I despair sometimes.
Anybody any idea what is going on with Bordersley something does not sound right with a possible year end date not when progress had been rapid and ahead of schedule at one time. It surely cannot be that late?
Selling at 0.18p I am only 96.28% down. What's the point when it is only worth sweeties. Just need an attractive share to invest in.
So much for an exciting year.
Just trying to recap dates. The target date for commissioning as I remember was clearly stated as 20th March 2020 and the 30 October 2019 RNS indicated it was to be fully operational by the end of Q1.
On 4th Feb - LC stated. Remains on track to commission the inaugural flexible power site at Bordersley
On 17th March RNS - LC said
· In light of the recent coronavirus outbreak, MED's joint development partner, AB Impianti S.R.L ('AB'), who are based near Milan, Italy had to temporarily halt operations;
· AB team are however now working remotely, and factories are operational again;
So despite lockdown all the time the factories were working, albeit not fully, I would imagine.
On the 8th April - LC indicated
The development of Bordersley had been progressing RAPIDLY and AHEAD of schedule. However, as has been explained in recent communications, COVID-19 has caused unavoidable delays to the planned construction and commissioning of the plant, which was due to take place by the end of Q1 2020. We are doing all we can to continue to progress this and counter any further delays. AB Group, the Italian power giant which will supply, construct and commission the Bordersley plant, continues to progress the project remotely. ………………. We remain firmly focused on progressing this project, which offers significant near-term revenues thanks to the power purchase agreement we have in place with Statkraft and will of course continue to provide further updates as soon as we are in a position to do so.
On the basis that AB Impianti manufacturing program was on target, or even more advanced as LC stated, (which it appears now it probably was not), then we should only be delayed from 21st Feb to the end of March, i.e. if AB were on time, they only had about 5 weeks to go to meet the commissioning end date, if on target, of course. In that case they should only need 5 weeks from their restart from lockdown, which was on 4th May according to the article below. i.e end date of 8th June for commissioning.
https://www.nbcnews.com/news/world/italy-eases-out-lockdown-4-million-people-head-back-work-n1199171
So even if we give them 5 weeks from the 26th May RNS Informing us that they were back to work this takes us to the 29th June, so why from the latest RNS, does it now appears that a huge delay is on the horizon due to the virus interruption.
About 8 weeks will have passed from 4th May until 29thJune, so delay cannot be solely down to the Covid -19. Surprise, surprise, and if they say they are not late, then they will be well and truly late if we hear nothing till the year end.
Considering from lockdown date of 21 Feb date to the 26th May RNS informing us they were back, this is less than 14 weeks, so if we take 14 weeks from the 26th May, the expected commissioning end date should be 1st September, or they are delayed and we don’t have the real story.
So come guys, let's get Bordersley sorted out.
Are we getting the run around from LC with another tall tale or is LC just trying to avail himself of a target in order to guarantee that the Bordersley commissioning year end date is a cert to be met? I hope it is true, but well before the end of the year.
So, if the new target date is the end of the year, explain why?
We had an RNS indicating that AB Impianti were working remotely and then another indicating that they are now back working on the construction of the plant, albeit restricted. How the heck can they be 6 months adrift of schedule due to Covid-19?
In addition to this we have yet to hear any details or the funding facility on the other 20 potential ‘shovel-ready’ flexible power generation projects, which have the potential for up to 300MW of gas generation sites.
Whichever way you look at it, it was never going to be met given the lack of progress on site, so what is the problem on site and what are we not being told. If there are planning changes afoot, what are these?
I foolishly envisaged that Bordersley was to be our first real project that would be easily expedited and on time as it pales into insignificance compared to a coal fired power station, both in physical size and the necessary financial funding. if there is a lack of progress on site, then spell out what the problem is, as it cannot all be attributed to the Coronavirus, surely.
If the delay is down to AB Impianti not being on the ball with their plan, then let’s hear about it, or is that too much to ask?
Is it just that no one meets targets now adays and another reason for why costs are so high?
I thought for a time that they would push really hard on Bordersley, but wrong again. If Bordersley is not commissioned before the end of the year, odds on we will need further funding. It also begs the question how can LC indicate as in the 4th Feb 2020 RNS, that 2020 was to be an exciting year for Kibo, when in reality not a lot is going to happen according to what is stated in the RNS
Not such an exciting year I think, but great if we could see light at the end of the tunnel on one little project just for a change instead of constant delays and missed targets and dilution and Sandersons involvement.
So come LC give us something positive to look forward to for heaven’s sake and ensure Bordersley is sorted out and commissioned so that we have a small source of revenue this year, our only source of revenue, unless we start to sell the coal.
If we cannot deliver on this matchbox/dinky toy, we have no chance with the monstrous Tonka coal fired power plant.
Just in from the garden and BP has just gone up. Here we go again.
I thought we might only be 5 weeks away from 26th May, re good news on Bordersley’s commissioning, but with this funding facility I can only assume that Boredersley is not in the frame for a good wee while. With project good news the SP had to rise somewhat surely and why not wait until then. Nice low prices I suppose for those and them as per usual.
Now once again where did they consider that other PIs might be prepared to invest when they prices are low and there are the usual rip off fees involved in addition to the routine warrants and of course as normal Sandersons will be involved? It would make a change for PI to be able to furnish themselves with additional cheap shares, but I imagine this will never happy. They just say it cost too much to administer, but at least with a placing of shares for PIs we wouldn’t be looking to involve for 7% and 15% fees and warrants would we?
LC just doesn’t give a dam about PIs, LTH or other wise.
The last few words indicating that the company is ready to submit a tender documentation on demand for any tender process for further coal fired power projects, is this fluff, or does he know something we don’t re the Stiegler dam
Back to the garden over and well and truly out.
Perhaps after his review of our projects and any project shelving, this wind power generation could potentially be LC's next project. Or will he stick to Benga where they signed an MoU to facilitate the Benga coal gen development with the additional land for the provision of renewable and long duration storage energy projects as per Kibo's policy of providing reliable, sustainable and affordable electricity. Who knows?
https://www.thecitizen.co.tz/news/1840340-5575488-ayrypl/index.html
Following on from the EGM where the resolution failed has anyone indicated their thoughts on what they perceive would be an acceptable alternative that the board should be offered and in particular addressed the question to LC?
We have to resolve the fiasco with the salaries and we have to accept that to raise money we have to have placing's, that is part of what AIM is all about. The SP level of the placing is also most important. We need a board who has vision and strategy who are not blinded by the train coming down the track, despite the fact they are in the position to know exactly what is coming and it is essential they have enough experience and ability to realise what action is required.
If we need to raise more funding it would be nice if we had some momentum in the SP, hope we can have a little injection from the Bordersley project, who knows?
Given we aint cash rich, the BOD should accept that they have to reduce their salaries given we have actually achieved nothing in the 7 years. Surely a performance related settlement is appropriate, nothing delivered equates to nothing in salary, ok, a basic survival salary linked to targets met has to be a fair approach, which of course has to be achievable.
In lieu of salary, despite the fact they never had permissions for this, how high a purchase price do we want to accept?
They clarified that the max was either the 10-day VWAP or 0.45p, (after clarification RNS). A higher offer price is obviously much preferred. As said previously, I would settle for 1.3p as they have never ever had any skin in the game, which I think would have been important, so that’s fair to me and it will may well instil some confidence if they move forward, even on a higher share price for a change. Easy salary money for the BOD considering there is nothing delivered and nothing coming in, revenue wise. Still not sure what they are achieving apart from KAT work, so let’s hope they are not skimming the money in for that and Kibo % increases, but yet to find this out.
Do we want to accept that they, the BOD, receive any additional warrants in conjunction with the salary settlement?
If so what is the warrant expiry date , 1, 2 or 2 years? If they are to receive any warrants, I think 1 year is ample. I prefer no warrants as they have done nothing to warrant them
What accceptable number of authorised shares to be in issued in future, after all they are first to know what is pending? No excuse for not being able to anticipate what the company actually requires to facilitate the progress of a project to a certain stage, whatever this stage is. We all know we never had any say in the disposal of projects and the change from miner and developer to an Energy company and we should also have had a say in the Company deciding not to take their salaries and then have an input into the said repayment. If we were making millions it is a different scenario, is it not?
Well let's see what news we get on Bordersley. As the end date for commissioning was supposed to be the end of March 2020 and the Italian lockdown started on February 21, we should only be about 5 weeks from the date of the RNS of 26th May. Although there may well be certain restrictions due to Covid-19, in theory as AB Impianti have been working remotely prior to this date, we may not be far away from the 5 weeks, but what do I know?
The AGM was 24th September last year but not sure if we will have the required backing re dropping LC as CEO and of course who takes over?
Interesting that Kibo also received positive funding interests from multiple entities re securing the substantial financing of up to $100 million to simultaneously develop the 20 'shovel-ready' power sites. I feel that if we can expedite Bordersley and move rapidly on these other 20 shovel-ready sites, this may be the start of better news to come and our salvation, but who knows. He needs Bordersley and the shovel-ready sites expedited PDQ as it will be our only revenue. Come on LC have you got what it takes. I hope we don’t have a second wave, shortly.
A pity we could not get Wimbo and a few others who have met LC to have a meeting with LC just to sound him out re our future prospects and forthcoming project work plans, that's if he knows anything. But no question about it LC has to deliver now, we have all had enough false promises, no fluff just get it all moving for once.
Let’s also have an update on how much our share of KAT has increased by with all of the services rendered to KAT.
It is unbelievable that after moving across from mining based to become an energy company, without us having any say in it, LC is now reviewing the projects with a possible view for dumping a project or projects. In Dec he said 2020 was going to be an exciting year for our projects. Wed all thought they were taking on too much but they obviously did not.
Oh well back out to the hard labour in the garden
Sorry my post FWIW missed out the following for some reason.
- M Han**** constantly said there was no problem with PPE in the NHS or Care Homes
- He left the most vulnerable of all people in society unprotected, shame
Last few words were - Watch China & see how they fair with the second wave.
That's it.
As ever P, P and P.
More importantly stay safe and well