Member Info for JDwag

100% JD

Agree, SirG, that is what it condenses down to. A tremendous bit of business. The background to it is interesting to say the least, a potential up-scaling believe it or not to 2,000Mw!!! And very large coal mines on it�s doorstep. JD

On this leaves me speechless, check out the history and potential size of this�� JD

Steady! JD

Are outstanding, minimal investment 'risk' with zero upfront dilution for a potentially huge payback if progressed. Well done LC, you leveraged the stuffing out of that one. With the portfolio growing, once the PPA is dropped we will rocket higher. One thing is also becoming clear, they obviously have the means to actually fund these projects, I can only think they have serious backers lined up for Tanz already with the carrot of Bots and Moz. JD

http://ewn.co.za/2018/06/06/eskom-still-negotiating-for-reasonable-prices-from-coal-suppliers Pertinent to Bots. JD

https://citizen.co.za/news/south-africa/1944899/how-much-coal-does-sa-have-left/ Interesting story for its multiple connotations. In a world were lots are happy to still generate power from coal, very few paradoxically want to be associated with mining it, etc. What that means of course is coal reserves are shrinking fast and prices are rocketing. Leaves a handsome opertunity for countries / companies who actively have lots of coal in a ready minable state and of course can generate power from coal and export the power. With the whole of the MCPP and MICPP (once proved up) we are looking at multiple hundreds of millions of tonnes under ownership. The long game here could make us very wealthy. JD

Yaki, indeed. It's impossible to know what will land as and when the PPA does land, 300Mw alone is probably a USD$800m+ capital project (USD$8b or so over the 25 year concession), that is huge! However, I can see the justification for why investor's may see a lot more than that coming in terms of much more than 300Mw. Even if you do �tier� that over a multiyear / multi price PPA, etc. JD

Great find, Yaki, only MCPP is remotely ready on the Coal Electrical Generation front. Especially now that the TG looks to have shelved their �Kiwira� Coal Mine / Plant plans in the area. Exciting stuff. JD

Looking a little more perky, now we just need pinky�. JD

https://www.businesslive.co.za/bd/markets/2018-06-04-stronger-asian-stocks-a-good-augur-for-jse/ News in SA say the Annual Results May be out today, if for nothing else it may stave off the boredom and give us something to digest. I personally like the Annual Results to see how bullish the CEO and Chairman’s statements are. Annual Results should be this week no matter what. JD

Good find. Of course, not a lot changes for us, in fact if anything it now puts both the PPA and SML in to the one basket. If (when) the PPA is agreed the SML will be a rubber stamp at Cabinet Level. The PPA has to be approved at Cabinet Level (Attorney General) anyway. JD

Possibly the most interesting thing out of this article is: 'Mr Kitandula claimed the government was not committed in developing the Kiwira Coal Mine despite huge demand of the coal by industries. The government failed to release Sh10bn meant for the project.' If the government is choosing not to progress a possible coal mine / 200Mw power plant in the Mbeya region, where will that 200Mw be made up from locally / from coal, looks good for us. JD

While we PIs twiddle our thumbs waiting for news, what is clear is that despite their grandiose speeches for government lead development, the reality on the ground is they have next to no monies to progress (by themselves) projects needing a large upfront capital expenditure, as the below article shows. Yes, it is frustrating just how long all of this has taken, however, judging by the below they have next to no alternative other than to develop MCPP through an independently funded finance vehicle to achieve up scaling of their power grid / requirements. Frustrating now, however, in the long game, all roads lead to Rome....... http://allafrica.com/stories/201806010785.html JD

Yanked the spread right in, why, I have no idea, maybe a 2pm PPA RNS? I wish! JD

Yes, it's been a slog, won't argue there. JD

Sonic, there are a myriad of possibilities, one thing is for sure, it will be tiered in prices in some respect, the bigger it is the more upscale can bring down unit costs, as I look at the future TG pipeline of energy projects you have to think the TG would be crazy not to allow for immediate upsizing, they have zero chance of hitting their 2020/2025 targets without a beefed up MCPP. JD

Must have inhaled something, no esia, no design, no Contractor, no funding, need to cut down three million ancient tweets before the project can begin (that might start in July (maybe)). And when all that is done, throw up a Dam, fill the Dam then commission a 2,100Mw Plant. If these peeps think that will be done in 2020 sometime, they’ve lost it. I actually refuse to believe they do think that, no sane person could, so just playing Politics with the masses IMHO. If you look at similar hydroelectric projects in that part of the world, 7/8 years before first power (if you have someone competent Building it). The Hoover Dam as an example of throwing the kitchen sink at it and not worrying about modern health and safer practices (or human casualties) took almost 4 years to build. I only hope that in reality the TG really know this and will ask Kibo to upsize MCPP to as big as they can ask quickly as they can. JD

The reason I ask (and just thinking out loud) I doubt LC will wish to see KIBO get diluted away in the wash as and when KAT next do a fundraising. I think LC will want Kibo to retain a good size chunk of KAT so it retains upside in it as it progresses. JD

Would you be happy if Kibo raised funds (or used part of the funds we already have) to fund KAT through increasing its shareholding in KAT? I think I would! JD