Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
There are three - obviously they wouldn't want to be identified. No comment on my subject of course. Says everything about level of thinking on here. Just to add - its difficult enough getting investors to put up for a power station in a developing country - they will only do so against government guarantees they will be paid their tariff. Does LC really think investors will put up against a bevvy of private off-takers except for a very small plant ? Its that sort of la-la land thinking explains why those three think what they do.
LC must be even more delusional/wishful in thinking he can build (and get financed) a 350MW station and then get in some dribs and drabs of offtakers to evntually take the whole output - in absence of which the financing won't make sense. No credible, serious, capable industrialist would air such an airy-fairy concept before investors. Shows how, all along, he has been out of his depth, incapable of planning ahead, and why considered a joke by other power developers I know in Africa.
(And maybe Mbeya ran up against Tanesco's refusal to pay a sufficient capacity charge, as was mooted here some months ago. Without it, none of these projects will get financed))
Well - LC would say that, wouldn't he ? But how many shares to be issued to get there ? Back of envelope says 500m at least, not counting development costs and share of equity. And five years before any income. (Neglecting Med which will need up front investment and a lot of them) More precise back of envelope says Moz & Bots together will produce about the same as Mbeya would have done - but Kibo's share will be less.And more than double shares already in issue.
Might be worth re-entering one day. But far too many risks before then.
Its not just LC. Schaffalitzky has presided over this and steadily dropping share price ever since Kibo listed - and said and done nothing while taking his swag while not investing more than a drop of his own cash. Ditto the Nomad who was warned of LC's dodgy announcements, as well as St Brides. As for the brokers - what did you expect of the bucket shops who were the only ones to take kibo on board ? Birds of a fluffy management feather always flock together.
"Could turn out very good" ! How do you know ? LC has never divulged the slightest info about their cost and profitability. He acquired them to add to his grand scheme to be an 'energy guru ' ! - all his other 'grand schemes' having bitten the African dust.
EDL has gone the same way. Maybe as I suggested some months ago, it's old-fashioned coal technology Tanesco wants to replace with less polluting combined gasification plants ?
Meanwhile at least EDL has coal to sell (and a licence to mine) even if not enough money.
These two between them will have profits slightly less than Mbeya, and Kibo looks like having a smaller share - if they ever get off the ground. Yet shares in issue now already over twice when Mbeya was the great white hope, and will be three times before they contribute. Share consolidation below 1p inevitable.
Re consolidation. The shares are now dangerously close to their 1p par value - below which Kibo can't issue any new shares to raise cash. With at least 5-6 years before any dividend income from the main projects, cash burn on admin alone (forgetting development costs) is $1.5m pa - ie some $8m needed. Med will cost upfront before it generates any cash - and at least three-four 20MW plants costing at least £10m each to plug cash burn. They might be financed by loans, but repayments will take lots of the cash. Investors can see this coming, and likely the shares will continue on down. So Kibo will achieve what no other co has - to my knowledge. Two share consolidations and a steady 97% fall in is shares over its relatively short life. The last 1 for 15 in 2013 was what did for it in professional investors' eyes.