Member Info for JDwag

My old friend I’ve missed you. JD

‘Only if you have been in the deepest valley, can you ever know how magnificent it is to be on the highest mountain. Richard M Nixon’ This is our smallest project. We have an armoury to be unleashed in time. JD

I'm beginning get to think our CEO is underpaid. JD

Getting commercial deals over the line is critical to confidence. I hope this is the start of a good few PPAs to come. Moz CSA and PPA would be the game changer thou. JD

'MED has since completed due diligence on two of these sites with an aggregate capacity of 25.2MW and has signed a Sale and Purchase Agreement ("SPA") on one of them, Bordersley Power Limited ("Bordersley"), a 5 MW gas-fuelled power generation plant. This transaction is expected to reach completion shortly. In tandem with this, MED is evaluating potential Engineering, Construction & Procurement ("EPC") providers for Bordersley and conditional offers of debt financing from two financial institutions. Both sites are planned to be operational in the last quarter of 2019 and the first quarter of 2020 respectively (subject to completion of the second acquisition).'

JD

I’m looking forward to the details on the second JDA on the remaining 20.2Mw under negotiation being announced.

JD

Yep, this will be used as the framework with Statkraft to rolled off. Going back to the RNS of 21 May, the move to predominantly 11Kv sites was outlined as saving on 'concomitant' costs. For that read agreed framework with Statkraft on what they want from Kibo IMHO. A very good day, our first of many PPAs to come and the next one in Moz will be 30 times higher. Remember that this was all done at no direct cost to Kibo. JD

https://www.esi-africa.com/industry-sectors/generation/kibo-energy-ventures-into-energy-storage/

JD

Interesting angle on the ‘insurance’ side of things. That is a huge issue in Performance Contracts where you have potential losses on unavailability (in our case if the plant doesn’t work, etc.).

JD

So considering the way that both NCCL and KIBO have gone on their respective projects by tacking a renewable element on to the existing coal infrastructure, do you think this is something the Moz Gov have requested as part of their PPA Negotiations?

JD

The last few days have been interesting in our partnerships. Clarke Energy (owned by the U.S Kohler Family), ESS (backed by BASF) and Statkraft (for the offtake / PPA for MAST). All backed by huge enterprises.

JD

Yes, CF, politically if nothing else the smart thing to do. You’ll struggle to get a CtPP built these days without some sort of renewable component tacked on. If designed correctly, it could allow for more power consumption and less down time with different power generations on one site and allow better planned maintenance. JD

Out. JD

The headline figure (taking off the impairment) of £3.16m for Admin, Fees and Exploration doesn’t read that well in isolation. However, delve under this and if you combine the £654k cash in the books as at year end with the only money we have raised this far 2019 (£500k from Sanderson) then for a full half year (Jan to June 19) we are looking at approx £1.1m (possibly less depending on how far it goes) for H2 2019. So, whatever they are doing in the background they have obviously ‘cut their cloth’ as the SP came down late 2018 / early 2019. So fair play. Onwards me march in terms of projects. JD

We have fabulous projects IMHO. it's just a patience game in having them realised. The nature of them and being very long lead in in terms of execution means there has been and will continue to be frustrations galore in programme execution. MED, however is really rather beginning to excite me. It will be interesting to see what the IRR numbers are on these <10Mw / 11Kv plants. JD

https://www.esi-africa.com/industry-sectors/transmission-and-distribution/mozambique-secures-420-million-world-bank-grants-for-energy-transmission/ JD

For those interested in such things (I am) looks like we will be using Jenbacher Turbines which are very good quality stuff. https://www.clarke-energy.com/gas-engines/ JD

Bcl, being in the constitution / Engineering business myself a delay of three months or so (for arguing sake) is hardly unusual in these circumstances. Their preferred EPC Contractor (Clarke Energy) won’t have 5Mw of Gas Turbines laying around, these will all have to be specified for site specific circumstances and then procured (months worth of long lead in time) and that’s even before Clarke Energy can commit to personnel / resources to design and construct the project, they will be finishing one project and moving on to another, there is no money in having resources idiling waiting for work. The big plus in that RNS was debt and Equity wasn’t even mentioned. And when I look at the Gross Margins that the likes of Statkraft (in the annual accounts I posted below) are making i’m hardly surprised that funding isn’t an issue. Their Gross Margins nearly made me fall off my seat they are so high. I’m lucky if I pull a measly 30% GM from my projects (granted I’m in a poor margin industry) these boys are pulling in multiples of that.......I can see why LC wants a slice of this cake. These projects will almost certainly have much higher margins than any of our African behemoths. JD

https://clbrief.com/huge-ambition-for-mozambican-power/

From a week ago.

JD

I’m very happy with that RNS, it’s good solid forward progress.

https://www.statkraft.com/contentassets/8b0a89909020499888ba39060119c31e/annual-report-2018-statkraft-markets-gmbh-english.pdf

The PPA / Offtaker are hardly a bunch of diddies eh?

JD