Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Progress continues behind the scenes at @TlouEnergy ??Lesedi 4P dewatering, gas flowing and strong flare ??PPA negotiations advance ?? #Hydrogen project will open up a 2nd route to market for our gas ?? ??Strong demand growth is expected as ?? decarbonises. #TLOU #Botswana
Brad, interesting stats. I guess when countries are losing huge amounts (eg. Togo) that must be the 'including pilferage' factor the site mentions. Made me wonder - if Tlou owned the transmission lines, I would expect the electricity metered at Serowe to be paid for. However, if BPC own the lines, would it then be the Lesedi readings that are paid for? i.e. the point at which the electricity is supplied to the BPC? In the long run it might be a better deal to put the lines up and give them to BPC for free?! Just a thought, on a particularly dull work day.
TB - When I asked Tlou about the delays with getting the 2MW PPA finalised, the reasons given were fairly vague but one example of things that needed to be sorted out was on the metering of the electricity. Tlou would meter the supply and so would the BPC, and agreement had to be reached on how to deal with a discrepancy. Presumably that particular issue was dealt with as the 2MW was signed, so as to what is holding up the 10MW award, no, scoobyless here too.
TB - no problem with disagreement (keeps the board worth reading!)
Can you expand on the 70% point? I thought that until we are producing some amount way over 10MW, we would be selling 100% of the power to the BPC. I may have missed something along the way but AFAIK the success of the company doesn't rely on selling via the SAPP, it was a 'nice to have' option, after supplying power to the BPC, our primary customer...
Hi TB. For once in the Tlou story I'm not sure I hold the BG (BPC) responsible for this delay. We already have the 2MW PPA signed and sealed but, to date, TLOU have failed to deliver. If you were in the BG would you be rushing to offer us a bigger contract? I appreciate that Tlou want to get the 'right' backers on board, and if they can achieve that then great, but at what point should they consider the 2MW a proof of concept, get the $10m any way they can (Director's loan?), get connected to the grid and then go after further finance in a far stronger position?
Progress does feel 'tantalisingly close', just a due diligence report away perhaps, but I think that's what makes it more frustrating!
Hi Brad. Yes, couldn't resist having a go at that test. My 160 is 'Albert Einstein' level apparently - so I wouldn't put too much faith in it :). Back on topic, nice to see some progress here of late. It looks like funding will happen now (even if it means more dilution), so for me, the gas flow numbers move back into focus. Would be good to know where we are with those (albeit with the reduced dewatering). To hear officially that we now have enough for at least the interim PPA would be a good start (unless I've missed that update?)
Brad - Mr Moagi does seem more pro-CBM (and just more pro imho!) than his predecessor but I have to wonder how much influence he has when the interim PPA that he asked the BPC to arrange with us is still to be signed. Hopefully nothing more sinister than (para)state inefficiency and/or the impact of Covid. Stating the obvious maybe, but getting that signed will be a massive boost to Tlou, will enable better terms for funding and should (imho) see a rerate. Fingers crossed, since April!
Great article Brad, thanks for posting.
"But government also needs to be decisive and move much more quickly ... the current invitations for IPPs to provide electricity from solar and CBM sources are moving at a glacial pace." - so true!
Hi Brad. I think you got the most cryptic part with RAM backwards! Tyre is an ancient city in Lebanon, important in Crusader times, without the 'E' for east. St Sebastian was a Christian martyr.
Here's a trickier one for anyone, why no interim PPA yet? :(
Apologies if already posted but just came across this from Lefoko Moag, Ministry of Mineral Resources, Green Technology & Energy Security, Botswana (but you knew that already :). Nothing new, but this is from April and still positive on CBM.
https://www.youtube.com/watch?v=5hmXE2kbL0Y
Whl2 - I don't think anything is due soon: "...the Company's unaudited interim results for the 6 months ended 30 June 2020 will be published by 30 September 2020, and the Company's audited annual results for the 12 months ended 31 December 2020 will be published by 30 June 2021.". - RNS Number : 1478Q