Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Just so there are no unpleasant surprises DTE, the 2 initial pods are intended to provide gas for the first 2mw. If the flow rates are better than I estimate they should do more but won’t be enough for 10mw. Initial capex of $15m will be to get the first 2mw into the grid. Further funding will be needed to expand to the full 10mw although lots of the initial infrastructure will support 10mw so the following 8mw will be significantly lower cost per MW to install.
I’d be surprised if this has any lasting effect on the SP. there is nothing we didn’t already know and copper still isn’t in breakout mode so the market isn’t in the mood to reward news right now.
They come in containers and you just have to wire them in. There will probably be an integrated control board that needs to be wired into the master control system. It’s not exactly plug and play but it is described as ‘turnkey’. Pretty much the same thing.
That’s the intention.
If that’s the case then I hope they agreed a price a couple of weeks ago.
Perhaps because of what they are finding on the JV patch requires a change of plan. The last couple of RNSs have a definite feel of refining the plan, by which I mean going from a broad exploration strategy to a focused deliniation strategy. You are assuming that when they raised in Dec they knew that they were going to do this. It might be the JV plan has additional cost & the consulting fees have not been budgeted for. The problem is that we are light on the details of the JV agreement. It is due a big rerate but it’s going to need a lot of work first. Happy to accumulate whilst the fog puts others off though.
@thewhale I’m talking about what our Oz in the ground are valued at against the mcap. (I’m assuming 1m Oz as per SRK statement) @stukey it does have that whiff about it. Worth the pain to delineate a resource.
Couldn’t turn down gold in the ground at approx $4 an Oz. Not really interested in owning more gold assets right now but jeez, that’s some value so couldn’t leave it. Looking forwards to a resource being defined officially.
I seem to recall from previous conversations in 2017 that 9 months was the approx construction time. The gensets are pretty heavy but fit in containers so if the pads are prepared they can be delivered and hooked up to the sub-station without any assembly. This early setup is designed to be quick and easy with super low capex. Scaling beyond this would be 40mw units which would prob be gas turbines
Thx Lekka. My big take aways from the interview: The power price used in the financials was the ‘government decreed price’ given that they need the power and we aren’t trying to gouge them, unless Sekaname have gone wild with trying to under cut the govt price (which would be surprising) it bodes well for a PPA agreement. And approaches to fund the initial project are very forthcoming. $15m to get the first power into the grid. I’m pretty happy about how small that cost is. I had ~$25m pencilled in. I had a look back at the timeline for sunshine gas and they had a significant pullback after initial run up that lasted ~2 years. That must have required some conviction to hold through. Roll on Q2!
To answer your question re production I’m hoping for a min 150k per lateral. 100k would be problematic over 150k would be very nice. Im expecting that all the work for the last year on seismic and cores will have done what it was supposed to do and optimised production to get us into a great position.
I haven’t been able to get the images metadata, someone who knows about these things might be able to do this. I’m inferring that they are from 2017 based on the state of development but I could be wrong.
Sekaname operations? I’m not sure about this one as there are a few prospective CBM co’s operating in the region. https://www.bing.com/maps?osid=bc942fb7-434e-43a4-848b-a18d3a8642b4&cp=-22.122909~26.561971&lvl=17&style=h&v=2&sV=2&form=S00027