Member Info for Thornback

Agree with the Mamba licences Appi, we know that this is the Project area that would be used for Orapa if we were successful with the tender.
Let's keep all the options open.

All moving along nicely.
Looks like the full 10MW will be sold to the BPC but more than happy with that.
Let's get that finance agreed and the TL contractors mobilised..

This is a few months old now but I would expect we are one of the favourites..!

https://www.pressreader.com/botswana/botswana-guardian/20210806/281492164367085

Fair shout mrmoagi.
So we have the MDCB, the BDC and the BPOPF all with direct links to the BRG. I'm not adding Anglo American or others coz my head hurts.
I hope they announce the financing soon haha.

Hi NE, I agree, there's some good thoughts coming up now that the PPA is signed.

I'm also thinking that as the Asset is being built the finance value could be reducing based on the hand-over of the completed assets to the lender.
Basically once the asset is complete the loan value no longer exists and has netted off because of the assets received. Also the repayment terms could reduce as the risk and loan value is decreasing.
A sort of asset financing, again I'm getting the BDC.

No it's my own hunch I'm afraid Brad, lol
The BPC/Utility will definitely want to own the asset/infrastructure, however we are arranging the finance and building it.
Build and Transfer (BOT) is common with infrastructure projects and I'd expect a favourable finance deal because of it but we shall see..!

It's also why I'm not ruling out the BDC as a potential Finance provider.

Here's my thoughts FWIW.

I think this 10MW will all be sold to the BPC as it will incorporate costs for the Build and Transfer contract for the TL Scope. The price will obviously include the cost of the TL Scope plus profit for the company.

Once we are producing 5MW and have upgraded the TL's to 110kV minimum we can apply to become a member of the SAPP.

I'd also think we are free to agree PPA's with other bodies but would imagine they will be nearer to when we are producing because of price fluctuations.
Getting this initial PPA plus funding to get connected was/is the major step.

Transfer of shares.

Things are progressing..!

So who are you thinking of mrmoagi, the BDC..?

Intersting gents, I agree with the SPV in order to isolate financial risk.
Do you have a reason why you think the financing will be pure debt..?
I must admit CC's "long term strategic holder" has lead me to believe there will be an element if equity involved.

That's interesting DtE, my thoughts are similair, here's my gut feeling scribbles after converting to GBP, just for fun whilst we are waiting for the Finance.

£7.25M
£5M straight debt at 8% to 10% interest

£2.25M in equity at 3p placing.
Giving 75,000,000 shares.

Tital Shares - 600,199,039 plus 75,000,000 = 675,199,039

BPOPF holding was 47,230,769 = 7.87% holding
Plus 75,000,000
BPOPF now 122,230,769 = 20% holding.

Not sure if this is thinking with my heart and not my head but I would be happy with this.outcome.

Critical Path Analysis from an accurate Programme is a must.
I'm just doing some work in my Primavera P6 Plans now so maybe I can help out.
I'm freelance and will take payment in either cash or equity lol.

We'll have to agree to disagree on this one Brad, I guess it's just a matter of opinion.

Without the PPA, there is no finance package, without the finance package there is no TL's, without the TL's there is no Power. Therefore you have nothing to sell and can't become a member of the SAPP (where you need to be producing 5MW of Power before becoming eligible)

This is what TG stated in the RNS;
Tony Gilby, Tlou's Managing Director, said "Signing of the 10MW PPA is a major step forward for Tlou and builds on the excellent progress made to date. It has taken some time and considerable effort to get to this point as all of those involved would appreciate. This achievement puts the Company on a firm path towards development of the Lesedi power project and considerable growth potential.

With strong demand for reliable and cleaner power in the region, this 10MW project is expected to be the start of much larger developments by the Company.

This is great news for the Tlou, our shareholders and for Botswana. After a long wait we can now look forward to getting the project up and running."

 

Very true Hb2, as you indicate, without the PPA we wouldn't actually be on the motorway, we would still be sat in the garage.

I can't understand your "the PPA was not that important" Brad but each to their own.
It unlocks everything but now the focus is the Finance.
Hopefully it is concluded asap and then TLOU can really take back control.
The field operations phase needs to be properly Project Managed and as previously indicated I'd like to see a Project Plan or at very least an illustration with timescales attached with regular progress updates.
Let's get the bull whips out and accelerate this scope, time is money.

If the BDC took an equity stake in TLOU, well that would be fantastic.
I don't see it either mrmoagi and will stick with my guess at the BPOPF.
You never know though..!

Appi I agree, a lot of people will no doubt be waiting to see if there's a placing.
I can't see there not being an element of equity, especially with the finance providers being a "very strategical long term holder" as CC put it.
Yes that means some dilution I'm afraid but hopefully a lift in SP too.
Like you say the placing value is critical as the SP always seems to follow it.
I've got my guesses but time will tell....

Not at all mrmoagi, I, like you want to know ALL the finer details. It would be remiss of anyone invested here not to want to know everything.
Hopefully we will get some meat added to the bones very soon.

I'm in that group whizz, I'm a little disappointed this didn't test the 4 to 5p mark. Like I've already said maybe peeps want to see the PPA details or Finance agreed and detailing before buying in.
I do think a lot haven't grasped what the PPA offers the company.

Copper inventories at their lowest since 1974.

https://www.bloomberg.com/news/articles/2021-10-15/copper-spread-spikes-to-record-in-latest-sign-of-tight-supply