Member Info for NapoleonSolo

in full on Rame board.

Tim Adams, CEO, commented: "We are very pleased to have secured this funding to accelerate the due diligence required under the Terms of the Santander framework for the financing of our next four wind projects in Chile totalling up to 118 MW.  The ability to accelerate these four projects and the opportunity to bring them on stream together creates greater economies of scale, which should result in better returns.  Furthermore, the potential to upscale the turbines we use in the projects could result in a material improvement on our expected IRR per project factoring in the higher yields and reduced capex and demonstrates our commitment to delivering fully optimised power plants.  By doing this we can offer attractively priced power to our customers whilst maximising returns to the business and this fundraising also reflects our very strong focus on linking any capital deployment to short term earnings growth."  

In addition, proceeds of the Placing will be used for taking wind measurements at 100m above ground level at the four projects.  The data gathered will be used to calibrate the extensive existing wind measurements taken by Rame at the project sites. This new data will enable the Company to accurately analyse the enhanced energy outputs achievable using the latest generation of large high efficiency wind turbines now becoming available in the market.  This has the potential to improve the already robust economics of these projects.  The bigger turbines, which operate on taller towers, hence the need for higher measurements, have the potential to increase the energy yield significantly for the same installed capacity.  Consequently the reduction in the number of turbines required reduces the cost of the balance of plant and thereby improves the capex per MWh.  The results of the new measurements will be used to refine project models over the next three months and will continue to provide valuable data thereafter. The Placing Shares will rank pari passu in all respects to the Company's existing ordinary shares.  Upon admission to trading on AIM, the Placing Shares will represent approximately 5 per cent. of Rame's issued share capital, as enlarged by the issue of the Placing Shares.  Application will be made for the Placing Shares to be admitted to trading on AIM, with dealings expected to commence on 29 August 2014.   Total Voting Rights Following admission of the Placing Shares, the Company will have a total of 101,097,444 ordinary shares of no par value in issue, with each share carrying the right to one vote.  This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change of their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Rame Energy plc, the international energy consultant, engineer and power generator, is pleased to announce that, in order to expedite the development of 118 MW of wind projects and potentially improve the already robust economics of these projects, it has raised £750,000, (before expenses) through the placing of 4,838,710 new ordinary shares (the "Placing Shares") with both new and existing private and institutional investors at 15.5p per share (the "Placing").  Reasons for the Placing and Use of Proceeds On 16 June 2014 the Company announced that it had signed an exclusive framework agreement including indicative terms (the "Terms" or the "Agreement") with Santander Investment Chile Limitada ("Santander") for up to US$69m of equity financing for the Company's next four wind projects in Chile, totalling 118 MW.  The Placing will allow the Company to expedite the due diligence required by Santander under the Agreement.  By accelerating various final studies and permitting (where not already in place or complete on a project) the Company can bring forward the point of the investment decision on each project and, if positive, a move to financing and construction under the Agreement which will provide substantial near term earnings for the Company with Santander buying into each project at a fixed price per MW under the Terms. 

You're welcome

In full on Rame board.

CGE Distribucion is part of the CGE Group, one of the most important energy conglomerates in Chile, responsible for c.39% of electricity distribution in the country to more than two million customers. Pieter D'haen, Chief Operating Officer, commented "The granting of the environmental permit for the export power line at Punta Chome represents another positive step towards the construction of this wind project in Chile, and brings us closer to our stated targets of having in excess of 100 MW of power generating capacity installed and in operation in Chile by the end of 2015 and 300 MW within three years." 

Pieter D'haen, Chief Operating Officer at Rame Energy plc added "Rame has provided wind energy related consultancy services in Pakistan since 2007.  This MOU is a great example of how the recent acquisition of Beco Ltd has created synergies for the Company, enhances our engineering division's capability to deliver cost effective and reliable power solutions to blue chip customers, extends our portfolio and gives us access to major new markets." Punta Chome Wind Farm Project, Chile: Environmental Approval Received Rame's sub-contractors CGE Distribucion, who will build and own the export power line for the 9MW Punta Chome wind project ('Punta Chome'), has advised that the environmental permitting process for the export line is now complete and that environmental approval has been received. This represents an important development for Punta Chome and is also a key milestone under the framework agreement with Santander Investment Chile Limitada for the equity financing of the Company's next four wind projects in Chile totalling 118 MW (of which Punta Chome is one), as announced on 16 June 2014.  Under the terms of the agreement, operations at all four projects are due to commence by 31 December 2015.

VTE is a subsidiary of FBL Group - a group of companies dealing in industrial engineering, thermal power, waste heat recovery boilers, steam boilers, fabrication and installation.  VTE clients are primarily in industrials and telecommunication and include Alcatel - Lucent Pvt Ltd Pak, WinCOM and Pakistani tobacco company, Akora Khattak.  VTE's network of clients provides an opportunity for Beco to build on its expertise in off-grid systems to access the diesel displacement market in the telecoms and agricultural sectors in Pakistan. Nigel Brunton-Reed, Managing Director of Beco Ltd, commented "The MOU represents a significant opportunity to deploy our expertise in off-grid renewable energy based power systems into Pakistan.  This agreement with VTE gives us immediate access to a large potential customer base where our proven technology can provide significant benefits."

Rame Energy plc, the international energy consultant, engineer and power generator, is pleased to provide the following update on its operations in line with the Company's strategy to grow its revenue generative international energy consultancy business, which supplies power generation solutions to the industrial, mining and utility sectors, in tandem with establishing Rame as an independent power producer ("IPP") in Chile. Solar Services - Beco Ltd signs Memorandum of Understanding ("MOU") with Pakistan based engineering company Vital Tech Engineering & Services (Private) Limited. Beco Ltd, a wholly owned subsidiary of Rame, has entered into a MOU with Vital Tech Engineering & Services (Private) Limited ("VTE"), a Pakistan based engineering company.  Under the MOU it is envisaged that Beco will provide off-grid, renewable energy based, power supply systems for a variety of applications (the "Systems"), which VTE will then install and maintain.  The MOU gives VTE exclusive rights to the resale and ongoing maintenance of the Systems in Pakistan for a minimum period of two years (subject to final contract).

Thanks for that

He also believes Rame could start paying out dividends from some of this growing earnings stream in the next two years.“We are currently saying the sweet spot for us is when we have circa 100MW. So there is no reason why we couldn’t dividend in early 2016,” the Rame boss explained.As outlined above, the company’s expertise has been derived through its Engineering Services Division, which supplies bespoke power generation solutions to the industrial, mining and utility sectors.This third division operates in both the UK and Chile, and continues to generate a significant revenue stream.In fact, Rame recently acquired a long-established UK solar business to bolster its capabilities in this area, and this could also provide opportunities for the Large Scale Power Generation Division in the future.Rame also sees strong opportunities for growth in this area and this will be another focus for the management team in the coming months.It is this flexible and diversified ability to provide power solutions to a range of different projects, as well as build its own, which makes Rame such an interesting and solid proposition.

The group expects to build 300MW of capacity by 2017 and the Rame chief executive is confident the demand is there to achieve that target.The group cemented its relationship with Santander on the 15MW Raki-Huajache Project that should be completed by the end of the year.Rame has already completed the bulk of the development and thus Santander is benefiting from short lead times.Transforming itself into an independent power producer (IPP) is just one of three divisions which provide revenue streams to the business.The company also has a small-scale generation division, which is focused on the fuel replacement market.As highlighted by its partnership recently established with Mandalay Resources(TSE:MND), there are plenty of opportunities for this division, which adds renewable energy such as solar, wind or heat recovery systems to create hybrid power generating systems.Because of the stated short life of Mandalay’s Cerro Bayo mine, in southern Chile, few traditional renewables companies and power producers would see an opportunity to make a fuel displacement power project work, CEO Adams said.Meanwhile, its size, small at 1.5MW, would also be off-putting to companies without the requisite expertise and background, he pointed out.However, Rame is making the leap, knowing where others can’t, it can make a good return over the stated remaining life of the Cerro Bayo mine.If, as Rame anticipates, the life of the mine is extended, then Rame’s investment would continue to see the benefit.“In fact these small fuel replacement jobs segue quite nicely with the larger projects, while the income stream will also be aided by the income generated by the base engineering business,” Adams said.

The company is being bankrolled by a local subsidiary of Santander under a quite intricate funding formula that appears to be a win-win.Santander has committed US$69mln; however, this isn’t subordinated debt.It will invest at an equity level, acquiring its stake of up to 90% of the project, on an agreed price per megawatt hour.Under this formula, the amount invested by Santander to acquire its stake will be more than it costs Rame to develop the asset – so there is a profit there for the company.It also makes a margin from the building phase itself. Rame’s expertise in project management and construction should minimise the leakage of cash out to a subcontractor.“Less than a year down the line, Rame will have the opportunity to buy Santander out of its share of the project,” Adams said."This should see the bank receive a private equity level of return for a short hold period, while still generating a strong return for Rame for the life of the project.”The deal could be funded through a traditional bank facility, although it is considering all of its funding options, including a bond.The last stage of the value creation process would be to sell 49% of the forward revenue stream to financial institutions such as cashed up Chilean pension funds, seeking to invest in long term and low risk cash flows.“They are hungry for low risk, stable income project investment and are increasingly recognising the potential of energy projects, in addition or as a substitute to traditional infrastructure projects such as toll roads or hospitals,” the chief executive explained.“We would then be left with a majority holding of a project which, in addition to the immediate revenue from the sell down which can be re-invested in new projects or returned to shareholders, will provide the company with a long term, stable income stream.”As he points out, 100 megawatt (MW) sold on this basis “would see substantial cash inflows”.

Rame Energy (LON:RAME) has come to the market with what, on the face of it, looks like quite an interesting investment proposition – bringing renewable energy to the industrial sector in Chile.When you drill down and assess the company’s expertise in this sector and couple this with its unique funding deal, you realise the group has a very well thought out strategy.The essence of the opportunity is found in Rame’s engineering heritage, in particular its decade-long track record in managing specialised wind power projects.The breakthrough came when the group was asked to build, from scratch, a solution toBarrick Gold’s energy needs, in the Andes.“It is the highest operating wind turbine in the world,” said chief executive Tim Adams of the giant wind turbine Rame built.“We thought it [the project] was going to be all about logistics, but in fact it was also about developing core technology that worked at altitude.”“So we gained a lot of experience of what’s in the box. It took us into Latin America and exposed us to the mining industry and was our first demonstrable turnkey power project at scale.”Rame immediately became recognised as a leader in this particular niche sector - and it was obvious there was an opportunity to build, own and earn yield from these projects.At the same time, project funding for wind energy, which had been problematic in the aftermath of the global financial crisis, became easier to source.

You're welcome.

A hatrick of days in the blue. Is the market finally realising the short term potential of Rame.?

8%

Another 9% added today. Exciting times ahead.

Thankyou very much for that find. Much appreciated. Regards