RE: Mixed Bag23 Mar 2021 16:38
Mitegap. Still piecing this together but at a basic level, for $90k cash and a few million shares, Chariot has effectively bought a producing asset in the renewable power industry in Africa with 500MW of power that they can sell into existing mines in Africa. They are currently in discussions with African mine operators who require everything they can produce from the solar power plant.
Add to this the contacts and reach of Adonis and Chariot in Africa and it’s easy to see how this can be scaled up quickly to feed into other mines on that continent.
Imo, the ONLY reason this hasn’t turned a great profit for AEMP to this point, is because these discussions are ongoing, and yet to be completed. Once complete, and a deal is agreed, this will be a significant producing asset.
From the RNS
“AEMP is a renewable and hybrid energy project developer, with an ongoing strategic partnership with Total Eren, a leading global player in renewable energy, predominantly in solar and wind. Total S.A., the French multinational energy company, has a shareholding of about 30% (directly and indirectly) in Total Eren. AEMP and Total Eren (the "Partners") are looking to provide clean, sustainable, and more competitive energy to operational mines in Africa, which represents a giant, largely untapped market in which Chariot's management has numerous high-level contacts. Transaction highlights include:
· Pipeline of 500MW of African Mining Power Projects:
o The Partners are in discussions with African mine operators with an aggregate requirement for 500MW of power for whom the Partners could provide viable energy solutions.
o Chariot's management is also looking to leverage its other significant business interests in multiple mining operations across Africa to rapidly grow the pipeline. The African mining power market is estimated to be around the same size as half of the entire UK power market.
This could and will be huge for Chariot, I just think thing today’s RNS is a bit of slow burner. When people start to realise what’s going on here, this will be a big catalyst for the share price imo.
GL