Magnet26
You are right that they are probably related party, insider. So the price will need to be set by the non execs.
Also your points about the other large scale projects in Bots and Moz but also the small scale projects in the UK. I am sure SEPCO would love to build them here too?
But any monies raised, even at 5.25p would be good for KIBO as they can build those small scale plants here, with much shorter timescales
bcl42
It could be an SML issued and the Minister being right, JUST about!
President's absence from Dar might cause a bit of delay, in case the Cabinet meeting doesn't go ahead. No idea.
Anyway, I m happy to wait for another week or two, if needed
Also, let's not forget that the Energy Minister said new power generation projects will be announced at the end of the month.
PPA and SML on 31 August?
Magnet26
Could be anything, very much depends on what is negotiated.
Looks like LC has set 5.25p as his floor price, so I would expect smth upwards from there. Shumba "paid" smth like 6p+ I think.
Sepco can easily pay any price and balance it out on the EPC side. If EPC contract is 200mln, a couple of % additional profit margin can pay for the higher KIBO price.
Also in the meantime, with PPA and SML landing, we can easily be 10p+. Let's not forget the Irish fund
And shows LC's shrewdness to go into small scale power project market. Dangote are building their own power gen plant - 30-40 MW as I understand and I am sure using someone like KIBO's new UK partners
An I can see many other mining and other businesses in Africa who might want small scale power plants.
Dangote finally got its gas from the Govt owned TPDC, after squeezing the cement market and blaming it on higher diesel prices and lack of coal
They are starting to see that not having enough affordable electricity is starting to cause problems
Magnet26
Have seen the copper application. Interesting but no idea why.
Also interesting that some update from another Aussie company which is ta;lking about financing solution in place expected by end of the month. They are expecting an ML too. So must have been told that it will be in place by then
Looking good
Another Aussie miner progressing
http://www.strandline.com.au/irm/PDF/2622_0/FungoniMiningLicenceApplicationUpdate
On SML vs MLs, the Minerals Minister said that she will prioritize the SMLs and will take them up for Cabinet approval as soon as technical stuff is sorted
"...The Minister confirmed that following the official inauguration of the Mining Commission on the 30 May 2018 she has instructed the Commission to commence processing the pending SML application as quickly as possible. Minister Kairuki informed Mr. Stanfield that she is expecting to be able to present the applications to the cabinet for final approval in a matter of weeks."
This was end of June. So end of August sounds like a plausible timeline
https://www.marketscreener.com/PEAK-RESOURCES-LTD-9943330/news/Peak-Resources-Limited-Ngualla-SML-being-considered-by-Mining-Commission-26819928/
But as I said, as the President likely to be away in his home town following a family bereavement, not sure if the VP or PM would chair the weekly Cabinet meeting.
Absolutely,
I expect next week, as SML needs Cabinet approval and the President went back home on Friday as his sister was very unwell . I understand she passed away yesterday, so expect him to have some private time with his family this week
Well spotted Wimbo
Actually, I can see quite a few other ML applications whose status changed from Application to Application Recommended.
My understanding is that it means that all technical work completed and now up to the Mining Comm to consider the licence application at its next meeting and decide whether to issue it!
NA
I have ROM of $5-$10 in my head, can't remember if managed to extract it out of KIBO or industry documents.
Also in terms of transport costs, again it is I believe 5c/tonne/mile, and I think by rail (TAZARA!)! So if KIBO wants to export coal via Dar, it would add $25/tonne transport costs.
So if can produce RB3 quality, say for $20 and transport for $25, with RB3 price on FOB basis of $85, should leave KIBO with $40/tonne profit!
Maybe once the MCPP is finalised, they can operate the mine, too. GoT is quite keen on hard currency, so I am sure would love export of excess coal!
Lurker5
I presume you are privy to the financing discussions that were highlighted in today's rns? I thought so.
I can see a wide range of possible investors, from the likes of CDC/Norfunds, AfDB, specialist Africa funds - both equity and debt to the likes of GE and SEPCO. But we will find out soon, once PPA concluded and the lid on FC starts to come out.
This is the over arching strategy below. Plus the small scale and quick to bring online small scale projects.
Also I wouldn't surprised if KIBO moved to renewables further down the line!
I would advise people to read it, think whether they believe it. If do, whether it makes sense. If they don't believe in it or think strategy is wrong, the only logical step is to sell out and invest in something that they think will do well
Kibo is simultaneously developing three similar coal-fuelled power projects:
the Mbeya Coal to Power Project ('MCPP') in Tanzania; the Mabesekwa Coal
Independent Power Project ('MCIPP') in Botswana; and the Benga Independent
Power Project ('BIPP') in Mozambique. By developing these projects in
parallel, the Company intends to leverage considerable economies of scale and
timing in respect of strategic partnerships, procurement, equipment, human
capital, execution capability / capacity and project finance. Additionally,
the Company will benefit from its robust and experienced international
blue-chip partnership network across its project portfolio, which includes:
SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium);
Minxcon Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells
International LLP.