Member Info for JDwag

Bcl, all you say is correct. And I have no idea if there will be news before or on Wednesday (at the Audience with LC).

But just going on the basis that no material news is forthcoming before then there must be a reason why he has ‘broken cover’ from the long media hibernation that he has been in? Unless he feels like he fancies a complete kicking on a Wednesday Night down London Town for a bit of a laugh.

It may well be that he has just become a damn site more positive in the last few months (based on known tangible events coming up) that now (after a horrible news run on Tanzania) is the time to get back out there and sell the company on the basis that 2019 will be a good year (rather than just imminent material news).

The truth is only God and Lurker know what is for us.

JD

Well, there you have it, from the world’s leading authority on Peaking and Thermal Coal Plants and consigliere to all of the CEO’s of the world’s major mining companies……..Lurker says it’s a dud, I’m selling up.

No doubt he’s now away to the local bowling club to keep all of his mates super entertained and recant tails of when he flew concord for a living and his time downing 75 Messerschmitt’s single handed during the battle of Britain while drink a pint of bitter at the same time.

My god is there nothing this seemingly incautious Aerospace PM can’t do?

JD

Total finger in the air job.

JD

On the basis of:

‘Financial modelling indicates projected IRRs of 13-16% and NPVs of GBP 16 -19 million for the initial assets described above. MED is exploiting a growth niche market in the UK for small scale Reserve Power generation to balance out the national grid at critical times.’

Could be annual profits on the projects of £2.08m on the lower end and £3.04m on the higher end. Of course that is based purely on a rude calculation, that doesn’t ‘flesh’ out what the off take agreement will actually be for.

JD

Jim,

Thanks.

From the RNS of 15 August:

'MED's business strategy is to acquire and develop a portfolio of small scale power generation assets. Â Various "shovel ready" sites have already been identified in the UK, capable of sustaining gas fired power generators and ancillary structures from 20MW upwards. Â They have full planning permission and permitting in place, long term lease agreements, grid & gas connection offers and positive feasibility studies, pertaining to technical and commercial viability.'

So on that basis, let's hope it is just the funding to secure on these projects (if we take it on).

JD

It is, the demand for Peaking Power with a lack of base load (which we are heading to in the UK) is huge, OFGEM report that for every 8Mw of Wind and Solar that 1Mw (a 12.5% back up ratio) of Peaking power Capacity is needed, it will be a huge growth market.

But it then raises the next spectre of how do we pay for it? To get 5Mw of Peaking Power (Gas) on to the market for example, how much does the initial CAPEX come to (I don’t know). Then you have to compete in the Government’s (DECC) capacity auctions (again, I don’t know how long that takes).

All questions for LC next Wednesday I would guess???

JD

RNS of 10 Dec:

‘Under the agreement, MED has secured the exclusive right to acquire three peaking power sites totalling 31.3 MW from a prospective developer ("Counterparty"), subject to completion of due diligence to MED/Kibo's satisfaction and subsequent agreement of detailed commercial terms and conditions, including the acquisition price and transaction structure. MED has until 31 January 2019 to complete its due diligence on the first 5.3MW………’

So I bet you we do get news prior to the Wednesday meeting, it will be that we have taken over a 5.3MW Power Peaking site in the UK.

JD

Pretty much, we have great projects and a great (potential) story, but every project is open ended with nothing yet so far de-risked in terms of licences or power purchase agreements.

JD

Agree. After ridding the storm somewhat after the falling SP and stalling in Tanzania why on earth turn up to a buzzsaw in the City of London to a bunch of PIs baying for blood if there is nothing positive to talk about? Will be an interesting evening..... JD

LC hits the City? Aye or Nae? JD

The thing is, in construction / engineering, there are things you can save time on and there are things you can’t based on programme issues and the sheer fundamentals of the materials you are working with (concrete). Concrete in this volume cannot just be ‘thrown’ down on mass, the chemical hydration issues with that amount of concrete is immense. The notion that you could put down that amount of concrete alone, let alone the base works and diversion of the water during building works in 26 months is utterly lamentable. Only a proper despot who believe what the yes men around him say could actually believe that.

That’s before you even get to filling up the reservoir in a part of the world that is already prone to drought and hydro power not working. It’s 10 years at least before 2,115Mw is full commissioned.

And the costs of getting your original programme wrong. Pick a number of this kind of CAPEX………

JD

This is a Government that is going about telling people that they are going to build a140m concerted Dam, fill up a 34 billion cubic meter reservoir and the commission and then transmit 2,100Mw to the grid on a 26 month construction programme. I almost expect anything at this stage. JD

It would also be nice if something juicy in the form of a PPA or (S)ML was delivered before then?! JD

At least he’s got the ‘save the date’ invite out. Now gives folks the chance to arrange things. JD

I really wanted to try and make this, but almost certainly with the lateness of this now I won’t be able to, which, considering the first RNS was now two weeks ago is shameful. Your right, this isn’t difficult, it’s easy to organise a suite for 3 hours in central London, this is just contempt, plain and simple.

JD

Wimbo, your probably right, but leaving it this late to actually tell anyone you are completely alienating most of your shareholders who don’t work on the square mile and can’t pop round on their way home. It’s a total joke this procrastination of telling us the date. JD

I want to see a big fat RNS red dot tomorrow!!! JD

Never a truer word spoken, Gillie.

We are now in possession of very advanced and very large projects (however we got here) we need to start seeing these executed into tangible returns while we are all young enough to enjoy it.

JD

The three ‘Hatachi’ Projects that now look to have gone south where due to have provided approx 15% of the UK’s long term base power requirements. It’s part of the long term trend for the U.K. to dodge critical infrastructure decisions on power and we are now heading towards a critical base load shortage. And before any tree hugging idiot talks about windmills and solar panels, that ain’t base load. If we go down the wind and solar road instead of proper base load then in order not to have blackouts galore (when it’s not sunny or windy) then you are going to need billions spent on ‘peaking’ power agreement in order to plug the power gaps when renewable isn’t working. That will mean thousands of megawatts of peaking power (gas) infrastructure being built. Clever old Louis.......he sees the long term U.K. issues in the dark clouds on the horizon. JD

If they actually believe that statement (I pray they know better and it’s just a politician lying) it’s genuinely worrying.

JD