I think we will too, Hot! 3 officers of the company all said as much, GG at the signing ceremony, TG in the RNS release, and CC in his Proactive interview. That sounds like concerted policy and not just one going off piste, so to say. The BPOPF are after returns, as they say: 'You have the capital and there’s an expected return on it'. Right now they have 7.8% of the shares at 7.30p, as per the back of my envelope. They are no mugs. If they can get more than their stated objective of 7% then debt-based funding at that level or more is a win-win for them. They achieve there return *AND* rocket the SP and put their existing holding back into the money. We shall see, of course.
I don't see much point in looking much further than the BPOPF. This from last October:
“Infrastructure drives the economy and we want to focus on it in Botswana, which will boost employment and opportunities,” BPOPF acting CEO, Moemedi Malindah told BusinessWeek on Wednesday. “We are thinking of all types, from roads to others. A company can come to partner for electricity, transmission of the electricity, roads, water and others.... “Infrastructure involves a lot of related parties that need to all get to a certain point for deals to happen. “These are more contractual long term investments, but we are working with parties in the country.” He added: “You have the capital and there’s an expected return on it. If someone can give you that return without the risk, definitely you go for that. “Government has the best credit rating compared to others and so you come to the table and negotiate. “THERE ARE DISCUSSIONS AROUND SOME OF THE PROJECTS THAT WE CAN DO TOGETHER.”
Morning Whizzer. Looks like you have nicked my crystal ball. This was you on Saturday: We will all still be waiting for the ppa next year and the same people will still be on here saying it’s close, I’ve heard this or that but the reality is it’s still miles away!!! LOLs back to you with bells on.
10MW PPA to earn $10m pa. Very nice indeed, and must be the final boxed ticked for funding. The company said as much yesterday:
PROJECT FINANCE The Company has agreed terms with a potential financier for an initial USD$10m package to develop the Lesedi project. Legal agreements in relation to this proposal are being prepared. These agreements will need to be finalised and signed before the package becomes binding.
'...has agreed terms..' A very strong statement, and I have checked and it was given with the approval of both the funder themselves and Grant Thornton, our NomAd.
MFM - 100% that the company will deliver gas-to-power for Botswana. They even retweeted an article this morning that Botswana imported 47.8% of their Q2 electricity requirements. Gas-to-power will happen, as sure as you like. That aside, the optics of a Gaborone-listed company using high tech plasma torches to produce Hydrogen (all the buzz) and Carbon products, and from local natural gas, won't be lost on the politicians and influencers thereabouts.
BS and MFM, if I may, here's my take on the order of business.
For historical and obvious reasons the PPA is considered the key that unlocks our gas assets. Without a bankable PPA there is likely no funding (whatever the company say otherwise, I agree). And without funding there is no point in starting the poles and wires, as many have said here. Doing so would invite any number of business risks and practical jeopardies. So the company (and us) have been forced to sit around waiting ....
However gas-to-power is no longer our only route to market, and IMO can and will be overtaken by Hydrogen and Carbon production. The question is how much funding this requires. This from the Company in July:
Costs and ownership under the HOA THIRD PARTY COSTS TO BUILD THE PROTOTYPE WILL BE SHARED ON A 50:50 BASIS WHEREAS ASSOCIATED IN-HOUSE COSTS WILL BE COVERED BY EACH PARTY. Tlou will supply the input gas and electricity at no cost to Synergen Met for the prototype. An input gas price will be negotiated on expansion of the project. Tlou will retain ownership of the input gas and Synergen Met will retain ownership of the plasma technology and associated IP. Hydrogen and Carbon products will be owned 50:50. Tony Gilby, Tlou's Managing Director, said "The HOA with Synergen Met is a truly exciting development for both companies. It potentially creates another major market for our gas that will complement, and be in addition to, the Lesedi gas to power project. WHILE THE GAS TO POWER PROJECT IS STEADILY PROGRESSING, THE HYDROGEN-CARBON PROTOTYPE CAN BE DONE USING TLOU'S GAS FLOW FROM LESEDI 4P AND EXISTING APPROVALS FOR GAS AND SOLAR.
This reads to me like we go halves on the unit itself, supply gas at no cost and, and this is key for me, the wording clearly says that the hydrogen-carbon prototype can be done while poles and wires are being built, ie revenue before gas-to-power under the PPA.
AIUI the fully containerised 'prototype' will be built and tested in Queensland, ie plugged into local natural gas and given a run. Only then will it be put on a boat to Durban and trucked to Lesedi. Once at Lesedi we simply have to put the unit on a hard stand and plug in the gas that is currently being flared.
Obviously plenty of detail needed to fill in the gaps here, but I'll bet on us generating revenue on H plus C many months before gas-to-power, and that something creative is done to fund the project.
You do 'appreciate' that 6months has passed by since that raise, and the PPA has not appeared? Very little point starting the poles and wires without them, and most unlikely that full funding would be available in any case. You can chose to criticise, as is your right, but at least have the integrity to recognise that conditions dictate actions, and the BoD have responded accordingly. Perhaps you could also offer up an insight what you would have done in similar circumstances. That might justify your criticism.....at little.