PIRI30 Apr 2015 13:55
What PIRI had to say
“Our investment in Rame was made principally at the pre-IPO stage, investing £410,000 in February 2014. We invested a further £55,000 at IPO and made a further modest investment to maintain our stake in a later fundraising round. Since IPO, Rame has successfully completed a 15 MW wind project at Raki in Chile and this is expected to be operational imminently;
Rame has a 20% continuing equity interest in the project. Rame has announced the expansion of its pipeline of wind projects in partnership with Santander from 118MW to 133MW and it plans to commence work on two sites from this pipeline with a combined size of 54MW during Q4 2015. Having acquired an UK-based solar energy specialist, Rame has now commenced its first significant solar project in Chile. It has also commenced its first off-grid wind project, and sold one of its smaller Chilean wind projects on a basis that could earn it up to $2 million in consideration and fees, while retaining an option to take a 20% equity stake in that site.
While Rame's share trading performance has been disappointing since IPO, we remain confident of their business model and we hope to see significant progress over the next twelve months.
While the Rame investment has not borne immediate positive results in stock market terms, we continue to regard investment in renewable energy to be a potentially fruitful area, though it needs to be approached selectively, particularly bearing in mind conditions in the local markets where the projects are situated. With regard to Chile, we took into account what we considered to be its relatively stable and growing economy, its structural energy deficit and its transparent and user-friendly renewable energy regime.
http://www.investegate.co.uk/pires-investments--piri-/rns/final-results/201504301242288723L/