Malcy’s comments are positive25 May 2021 19:42
From Malcys blog today
This news today is most important and I’m sure will cement Chariot as a key player in Africa for both gas and renewable energy. Indeed I would suggest that the moves that have been made by Adonis Pouroulis since he took over have made Chariot a unique story in Africa and with potentially substantial upside.
The moves that have been made since then have the effect of considerably de-risking Chariot, at Anchois, where significant work has been done looks a lot more robust now that this raise confirms a well will be drilled this year. The cost of drilling this well seem to be lower than the expectations next year and that this year provides the company with a window of cheaper costs.
Apart from Anchois, the moves that they have made with regard to the partnership with Total Eren look to me to be able to be bracketed in that rare ‘company maker’ situation. The opportunities in the African mining industry and the use of renewables will be found by the management and financed by access to Total’s inexpensive debt makes this, exclusive deal seem copper bottomed to me. Talk of 500 MW or even a GW are not impossible and with 1.2bn people on the continent rising to 2bn mean that sustainable, green ESG compliant energy will be the place to be.
This financing is clearly significant for Chariot and whilst the discount has been commented on I feel that the ability to get some institutional investors on board is a justifiable price worth paying. Indeed the fact that this management has delivered a lot this year, and at this stage the CEO is putting a substantial amount to take part in the raise via direct investment, as well as his underwriting of what looks like an attractive offer which has been structured so that existing investors can participate at the same price looks eminently backable to me.
The deals this year, combined with the opening up of Chariot into being a major player in gas and renewable power for Africa’s huge mining industry and operating in at least 17 countries with an existing presence assured, plus the backing of the exclusivity of the partnership with Total looks like a no-brainer to me. A unique story, without doubt I would say that weans Morocco off coal for power and supplies a huge basic industry with renewable power.
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