RE: Orcp25 May 2023 09:25
The issue afaik has always been getting the necessary regulatory permissions to use the coal for power generation.
We all remember waiting for that LOI for years.
Well, now we have more than an LOI but an MOU in which the government of Sindh (with their new power to do this) has agreed to let us go ahead with our project.
But we need a larger local partner. So comes along K Electric and says yes, we'll take all that power off you hands. But we think we may have a better idea. Maybe instead of having the power station on your land using your coal, we should build it closer to us. That way we get the electricity near our existing infrastructure and use existing coal mines to supply the coal.
So we now have an MOU to look into these two ideas and decide which is more commercially sound.
The MOU is for 12 months so we should have a decision well before then because after the decision they then need to work on financing and other things.
So we now have everything we need to move ahead with this project, unless all parties agree that we're better off moving the site. But we have the initial agreement for the offtake, as well as regulatory permission, government backing and huge financial backing.
Since we don't know yet which project will be chosen we don't know yet what our % will be, so I think it's impossible to sell at this stage. Besides which, why sell so early when in a year the project will be on much firmer footing.
Yes, we are trying to go green, but who can blame them for using the coal that's just sitting there when it's so expensive to import and they desperately need the power. After all, if we in the UK can reopen coal mines after 30 years, how can anyone tell them they can't.
So this is a buy and hold for me. Under £4M mcap is ludicrous. Actually we would have to ten-bag for the sp to become ludicrous.
And in terms of recent price action, it can't be due to what's happening in the US because we've gone down so much more than the wider market. Nah, this was manipulation. Seen it before and it preceded good things. But it looks like the bear raid is over. DFS next month could massively change things here.
All IMO.
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