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CHAR Chariot Limited

8.49
-0.26 (-2.97%)
24 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Stock Type
Chariot Limited CHAR London Ordinary Share
  Price Change Price Change % Share Price Last Trade
-0.26 -2.97% 8.49 16:35:18
Open Price Low Price High Price Close Price Previous Close
8.81 8.30 8.81 8.49 8.75
more quote information »
Industry Sector
OIL & GAS PRODUCERS

Chariot CHAR Dividends History

No dividends issued between 24 Apr 2014 and 24 Apr 2024

Top Dividend Posts

Top Posts
Posted at 13/4/2024 18:48 by wolfofwallstreets
Great post on LSE just now...

This hasn't been an easy journey..but feels like patience is now being rewarded!

CHAR is seriously undervaluedToday 18:31
Just to make the point in a very straightforward way I think it is an undeniable fact the CHAR is in a much better position than it was a year ago particularly with the latest milestone of ENOG becoming the Operator. However this is not reflected in the share price because on April 13th 2023 CHAR closed at 18.15p, almost double the current share price.

This makes absolutely no sense and this should rerate to that level being the highest placing price (18p) to put those placing shares back in the money. All the analysts estimates are at a much higher level between 35 and 57p, with Malcy still at £1 plus. Interesting Times.
Posted at 08/4/2024 17:26 by 888icb
CHAR remains on MALCY’s Bucket list
From Malcy’s Blog today:

Chariot

“ Firstly today apologies, in the Bucket List on Friday Chariot was omitted from the text although was tagged in the header. The piece got lost between Word and WordPress, my apologies!

Chariot remains in the list as it is on the threshold of significant progress with both its operations in Morocco and has addressed the funding of the Transition Power division by way of a strategic review. Here, power and water solutions in Africa are being addressed and renewable energy generation with particular respect to South Africa, where interest has already been expressed and given differing differing funding solutions are required, that is understandable. At Loukos drilling is imminent and if successful would be fast tracked to development, at Anchois Chariot are working with Energean to progress further drilling this year. All this leaves me confident that there is substantial upside at Chariot.”
Posted at 31/1/2024 09:12 by someuwin
Aucus


"Chariot Limited (AIM: CHAR)

January 31, 2024

Share price: £0.09 Target: £0.50

Milestone for the electricity trading business in South Africa

• Etana Energy (49% held by Chariot) has signed a PPA with Growthpoint Properties to supply 195 GWh per year of renewable energy. Etana will wheel electricity to their commercial property buildings located in several jurisdictions in South Africa.

• The electricity that will be wheeled by Etana includes 30GWh per annum of hydroelectric power from Serengeti Energy. The plant is currently under construction and is expected to start production in 2Q25.

• Etana will be paid a fee for the electricity wheeled through the grid.

• While the terms of the agreement have not been disclosed this is an important part of the electricity business that Chariot is building. This is also South Africa’s first multi-jurisdiction, multi-building, multi-source renewable energy wheeling arrangement. • The electricity trading business is not only expected to enhance the margins of electricity generation but also to enable Chariot to secure interests in further power generation projects by capturing electricity commitments. These electricity generation/trading combined projects could potentially deliver double digit returns; which is much higher than similar projects in Europe.

• Chariot is already maturing its interest in 4 wind projects totalling a gross 400 MW using the trading business as the enabler that provides access to PPAs with end-users. It is currently meeting banks and other financial institutions to finance its involvement in these projects through project and mezzanine finance at the asset and subsidiary holding level.

• We re-iterate our target price of £0.50 per share.

Who is Growthpoint? Growthpoint is a publicly listed real estate company trading on the Johannesburg stock exchange with a market cap near US$2 bn. The company has assets in South Africa, rest of Africa, Eastern Europe, Australia and the United Kingdom. Growthpoint owns a 50% stake in the V&A Waterfront and a majority stake in South Africa’s first healthcare property fund. The electricity contract with Etana represents 32% of Growthpoint total current annual electricity consumption.

Valuation While the focus remains on the Morocco onshore and offshore drilling campaign with unrisked value of £0.13/sh associated with Anchois East and £0.11/sh with Gaufrette and Dartois, the power business could become increasingly material. The cost of capital for the power business is also likely to be lower than for the gas business. Our Core NAV for Chariot is unchanged at £0.28/sh. Our Sum of the Parts valuation stands at £0.53/sh."
Posted at 08/12/2023 09:35 by ashkv
Just doing the math in regards to further cash needs for CHAR

Based on H1 2023 Results -> Cash Outflow for the Half Year was approximately USD 9.5 million

At the end of the Half Year CHAR had USD 2.7 million and subsequently raised USD 18 million

Going forward all costs on Anchois until FID will be carried by ENOG

Therefore other than Morocco Drilling (USD 3 million for initial well as updated by management) - cash burn should only be admin costs and other "two pillars"

On deal close CHAR gets a further USD 10 million plus USD 15 million at Final Investment Decision (FID) and another USD 50 million zero interest rate convertible loan on a successful flow test.

CHAR should have around USD 15 million cash at present add another USD 10 million on close of Anchois Farmout for a total of USD 25 million that should suffice CHAR through to FID/Well Flow Results.

Subsequent to Flow Tests/FID CHAR are eligible for FID payment of USD 15million plus USD 50 million zero interest rate loan that will tide them to First Gas.

CHAR need to update the market as to cost controls and financing for other pillars. As the placement route will be limited for them going forward.

Three raises in the past 2 years and 1 month - Raise prior to Anchois 2 drill results are in the money. However, subsequent raises at 18p and 14p are deeply out of the money - I highly doubt that funding will be so forthcoming going forward.

CHAR need to batten down hatches and undertake massive cost cuts or present a plan to finance the other pillars -> spin off, stake sale etc etc
Posted at 07/12/2023 14:13 by ashkv
Simon Thompson Investor's Chronicle

Chariot’s transformational farm-out is underrated

The fall in the company’s share price is a harsh reaction to what looks a good farm-out of its flagship gas project

December 7, 2023

Energean acquires stakes in Lixus and Rissana licences

Option to purchase a further 10 per cent interest

Chariot’s share price falls 15 per cent on news

Chariot (CHAR:11.6p), the Africa focused transitional energy group, has announced a farm-out agreement with Energean (ENOG:995p). The transaction covers its Lixus Offshore licence, which holds the company’s flagship Anchois gas development project, and the nearby Rissana offshore licence in Morocco. Energean is a £1.8bn market capitalisation FTSE 250 company that has a proven track record of successfully developing large offshore gas projects.

The agreement provides funding for both Chariot and the Anchois gas project through upfront consideration, deferred consideration and potentially a full carry to first gas. There is potential to upscale the development and target further exploration prospectivity across the two licences, too.

Energean is acquiring 45 per cent and 37.5 per cent interests in the Lixus and Rissana licences, respectively, to take operatorship. It reduces Chariot’s stakes to 30 per cent (Lixus) and 37.5 per cent (Rissana) with Moroccan state company National Office of Hydrocarbons and Mines maintaining a 25 per cent stake in each licence. In return, Chariot will receive $10mn on completion of the transaction; $15mn on Final Investment Decision (FID); and has an $85mn gross carry that covers its Lixus costs up to FID, including the additional Anchois well being drilled, which will have a gas flow test in 2024.

Following completion of the Anchois well, Energean has the right to acquire a further 10 per cent of Chariot's equity in the Lixus licence for an $850mn gross development carry to first gas; $50mn five-year zero coupon convertible loan note with a strike price of 2,000p or by issuing 3mn Energean shares; and 7 per cent royalty payment on Energean's gas production revenues in excess of a base hurdle on the realised gas price (post transportation costs).

Analyst James McCormack at house broker Cavendish values Chariot’s retained 30 per cent interest in the project at $476mn (35p) on an unrisked basis, or $310mn (23p) on a risked basis using a 65 per cent commercial chance of success. Assuming Energean exercises its option to acquire an additional 10 per cent in Lixus, Cavendish values the 20 per cent fully carried interest at $595mn (risked) or $447mn (unrisked), using a higher 75 per cent commercial chance of success (due to the lower financial risk and result of the Energean carry). This implies a valuation of 29p (risked) to 44p (unrisked).

The conclusion:

“ Clearly, the farm-out transaction fell short of the expectations of some investors as Chariot’s share price fell 15 per cent from 13.7p to 11.6p following the announcement. The share price is also below the 14.75p level when I assessed the farm-out possibilities (‘Chariot could soon announce a 'game-changing' deal’, 20 September 2023), albeit the holding has still delivered a 282 per cent gain in my 2017 Bargain Shares Portfolio.

It’s a very harsh reaction. That’s because Cavendish’s total risked valuation per share of 57.7p for the company is not only five times the current share price, but it rises to 71p assuming Energean exercises its option to acquire a further 10 per cent stake. This highlights the value embedded in the Anchois gas project and which Energean has clearly recognised. So, although the initial reaction to the news is disappointing, expect the heavily oversold shares to bounce when the dust settles. Hold.”
Posted at 07/12/2023 12:42 by ashkv
As I see it the terms of the deal ->

USD 10 million on deal close

USD 10 million on FID (Late 2024 at the earliest)

USD 25.5 million [USD 85 million gross carry to FID of 30% Chariot Share = USD 25.5 million]

USD 2.1 million (30% Share of Planned USD 7 million Rissana Seismic Costs capped at USD 7 Million)

3 million ENOG shares or an Interest Free Convertible Loan Note of USD50 million on FID / Outcome of Flow Test (95% confidence given third party CPR and lab tests) plus full development carry for an additional 10% of Lixus License leaving CHAR with 20% of Lixus plus full developmental carry up to USD 850 million dollars.

Also retained is a substantial 37.5% share of the Rissana license

So in 2024 CHAR should get USD 20 million cash on close and FID plus an interest free loan of USD 50 million which should tide the firm over for the subsequent 2 years to first gas. Also hopefully an income stream from Morocco plus Green Energy initiatives.

Therefore in sum USD 10 million + USD 10 million + USD 25.5 million + USD 2.1 million + USD 50 million (Interest Free Loan or 3mn ENOG Shares) + USD 153 million (USD 850 million Development carry minus minus initial USD 85 million pre-FID carry * 20% Retained Share of Lixus by CHAR) plus 20% of future Lixus Income Stream minus interest costs = NPV10 of 50p to 70p per share based on analyst assumptions!!!


· Chariot will receive:

o US$10 million payable on completion of the transaction

o US$15 million payable on Final Investment Decision ("FID")

o US$85 million gross carry including:

§ All Lixus costs up to FID, including the additional Anchois well with a gas flow test

§ Planned Rissana seismic acquisition costs separately capped at US$7 million
Posted at 26/11/2023 10:43 by bloomberg2
Investor Chronicles sep 202325 Nov 2023 22:08Chariot could soon announce a 'game-changing' deal Shares in an African-focused energy group would easily double on the announcement September 20, 2023 by Simon Thompson Farm-out in Morocco close to concluding Drilling on nearby Loukos licence to start early 2024 $19mn equity raise at 14p in July 2023 The key take from Chariot's (CHAR:14.75p) interim results is that the Africa-focused energy group is close to concluding 'farm-out' negotiations on its flagship Anchois gas development project in Morocco. Around 40 companies are interested and Chariot has received multiple offers from significantly larger exploration and development (E&P) companies. The offers are based on an upfront cash payment and Chariot retaining a material stake in both the offshore Lixus and Rissana licences, in which the Anchois project is based.....
Posted at 06/2/2023 19:52 by sev22
Here is Simon Thompson's Small Companies report in full on Chariot which appeared at the weekend for those that might have missed it or don't have access:

Good news will boost this green energy company.

The Africa-focused energy firm is also a great climate change play.

February 3, 2023
By Simon Thompson

Chariot (CHAR:16p), an Africa-focused energy group focused on developing and delivering transitional energy projects, has released a raft of positive announcements since the autumn, all of which are highly supportive of the investment case.

This week’s small acquisition of ENEO Water, an African company focused on delivering clean water solutions using renewable energy, complements Chariot's Transitional Power and Green Hydrogen businesses within the context of increasing water scarcity across Africa. Desalinated water is an essential component of green hydrogen production, so the capacity to implement desalination solutions powered by renewable energy will be critical for the feasibility of green hydrogen projects.

Chariot's aim is to provide affordable access to water for private offtakers and municipalities in Africa to be sold under long-term agreements, as part of its commitment to socially responsible development. ENEO utilises an efficient and scalable reverse osmosis technology that can be 100 per cent powered by solar energy to produce desalinated water. The company has a proof-of-concept project at the largest windfarm in the Republic of Djibouti under construction.

Desalination solutions powered by renewable energy will be critical for Chariot’s joint venture with Total Eren to co-develop Project Nour in Mauritania. That project has the potential to deliver 10GW of electrolyser capacity, which would make it one of the most significant green hydrogen projects in Africa, and one of the lowest-cost producers, too.

The future’s bright.

*Chariot partners on solar project at platinum mine in Zimbabwe
*25 per cent stake taken in a new South African electricity trading company
*Long-term offtake agreement in principle for low-cost Anchois Gas project

Total Eren and Chariot have also agreed to work together on the development, financing, construction and operation of a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe. It is expected to have an initial installed capacity of 30 Megawatt (MWp) peak – a unit of measurement for the output of power from a source such as solar or wind where the output may vary according to the strength of sunlight or wind speed – with a potential extension of up to 300 MWp. Construction of the Karo Platinum Mine started in July 2022 and is majority owned by Tharisa (THS), the platinum group metals and chrome producer.

In addition, Chariot has taken a 25 per cent stake in a new South African electricity trading company, Etana Energy, which has been granted an electricity trading licence by the National Energy Regulator of South Africa. The country is the largest electricity market on the continent, but suffers from regular power outages due to insufficient supply. To combat this energy crisis rapid market deregulation is currently taking place, which includes selectively issuing electricity trading licences and facilitating the building of energy projects of up to 100 MW generation capacity.

Etana’s objective is to deliver renewable energy solutions at competitive prices to help address the power requirements across South Africa. The trading licence is important. That’s because it opens up access to a range of high-volume off-takers (including municipal, industrial and retail customers) and gives Etana the right to buy and sell electricity on the national transmission grid and within some selected municipal areas. Electricity trading is a new revenue stream for Chariot and it should support the group’s future participation in large renewable projects in Southern Africa.

An African adventure.

The good news doesn’t end there as Chariot has announced a long-term offtake agreement in principle for its low-cost flagship Anchois Gas development, offshore of Morocco, in which it has a 75 per cent working interest. Gas sales of up to 60mn standard cubic feet per day will be delivered through the Maghreb-Europe pipeline on a take-or-pay basis for a minimum of 10 years, thus securing direct domestic supply for Morocco's existing and potentially longer-term gas power plant infrastructure. Investment bank Societe Generale is leading the structuring and syndication of the project’s debt financing, while Chariot’s gas team remain in discussions with commercial partners.

In the near term, newsflow from Anchois is the key share price driver. That’s because Chariot’s 75 per cent working interest in Anchois’ 2C resources accounts for 44p a share of Cenkos Securities' target price of 63p (using a 50 per cent risk weighting and based on a risked value of $507mn). Positive newsflow on debt funding and commercial offtake agreements at Anchois would de-risk the investment case and warrant a material narrowing of the share price discount to Cenkos’ target.

Although Chariot’s share price has drifted since I last published an update five months ago (‘Profit from climate change’, 14 September 2022), the holding has still delivered a 428 per cent return in my 2017 Bargain Shares Portfolio. There is scope for significantly more capital upside. BUY.
Posted at 06/2/2023 07:21 by ashkv
Thank you888ICB for posting about the Investors Chronicle highly positive write-up on CHAR - the B plus B Beelzebub disciples / uber trolls (likely paid) continue to fester on this chat with their make believe malicious tropes... I have posted the full article below for reference...

Please note Simon Thompson mentioning about Soc Gen.... the resident villainous evil entity conveys the bank is no longer on the project as that is what he is hearing in head...... IC are now making items up...haha

Excerpt ->
"Investment bank Societe Generale is leading the structuring and syndication of the project’s debt financing, while Chariot’s gas team remain in discussions with commercial partners.
In the near term, newsflow from Anchois is the key share price driver. That’s because Chariot’s 75 per cent working interest in Anchois’ 2C resources accounts for 44p a share of Cenkos Securities' target price of 63p (using a 50 per cent risk weighting and based on a risked value of $507mn). Positive newsflow on debt funding and commercial offtake agreements at Anchois would de-risk the investment case and warrant a material narrowing of the share price discount to Cenkos’ target."

Full Article ->
Good news will boost this green energy company
The Africa-focused energy firm is also a great climate change play
February 3, 2023
By Simon Thompson


Chariot (CHAR:16p), an Africa-focused energy group focused on developing and delivering transitional energy projects, has released a raft of positive announcements since the autumn, all of which are highly supportive of the investment case.

This week’s small acquisition of ENEO Water, an African company focused on delivering clean water solutions using renewable energy, complements Chariot's Transitional Power and Green Hydrogen businesses within the context of increasing water scarcity across Africa. Desalinated water is an essential component of green hydrogen production, so the capacity to implement desalination solutions powered by renewable energy will be critical for the feasibility of green hydrogen projects.

Chariot's aim is to provide affordable access to water for private offtakers and municipalities in Africa to be sold under long-term agreements, as part of its commitment to socially responsible development. ENEO utilises an efficient and scalable reverse osmosis technology that can be 100 per cent powered by solar energy to produce desalinated water. The company has a proof-of-concept project at the largest windfarm in the Republic of Djibouti under construction.

Desalination solutions powered by renewable energy will be critical for Chariot’s joint venture with Total Eren to co-develop Project Nour in Mauritania. That project has the potential to deliver 10GW of electrolyser capacity, which would make it one of the most significant green hydrogen projects in Africa, and one of the lowest-cost producers, too.

The future’s bright
Chariot partners on solar project at platinum mine in Zimbabwe
25 per cent stake taken in a new South African electricity trading company
Long-term offtake agreement in principle for low-cost Anchois Gas project
Total Eren and Chariot have also agreed to work together on the development, financing, construction and operation of a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe. It is expected to have an initial installed capacity of 30 Megawatt (MWp) peak – a unit of measurement for the output of power from a source such as solar or wind where the output may vary according to the strength of sunlight or wind speed – with a potential extension of up to 300 MWp. Construction of the Karo Platinum Mine started in July 2022 and is majority owned by Tharisa (THS), the platinum group metals and chrome producer.

In addition, Chariot has taken a 25 per cent stake in a new South African electricity trading company, Etana Energy, which has been granted an electricity trading licence by the National Energy Regulator of South Africa. The country is the largest electricity market on the continent, but suffers from regular power outages due to insufficient supply. To combat this energy crisis rapid market deregulation is currently taking place, which includes selectively issuing electricity trading licences and facilitating the building of energy projects of up to 100 MW generation capacity.

Etana’s objective is to deliver renewable energy solutions at competitive prices to help address the power requirements across South Africa. The trading licence is important. That’s because it opens up access to a range of high-volume off-takers (including municipal, industrial and retail customers) and gives Etana the right to buy and sell electricity on the national transmission grid and within some selected municipal areas. Electricity trading is a new revenue stream for Chariot and it should support the group’s future participation in large renewable projects in Southern Africa.

An African adventure

The good news doesn’t end there as Chariot has announced a long-term offtake agreement in principle for its low-cost flagship Anchois Gas development, offshore of Morocco, in which it has a 75 per cent working interest. Gas sales of up to 60mn standard cubic feet per day will be delivered through the Maghreb-Europe pipeline on a take-or-pay basis for a minimum of 10 years, thus securing direct domestic supply for Morocco's existing and potentially longer-term gas power plant infrastructure. Investment bank Societe Generale is leading the structuring and syndication of the project’s debt financing, while Chariot’s gas team remain in discussions with commercial partners.

In the near term, newsflow from Anchois is the key share price driver. That’s because Chariot’s 75 per cent working interest in Anchois’ 2C resources accounts for 44p a share of Cenkos Securities' target price of 63p (using a 50 per cent risk weighting and based on a risked value of $507mn). Positive newsflow on debt funding and commercial offtake agreements at Anchois would de-risk the investment case and warrant a material narrowing of the share price discount to Cenkos’ target.

Although Chariot’s share price has drifted since I last published an update five months ago (‘Profit from climate change’, 14 September 2022), the holding has still delivered a 428 per cent return in my 2017 Bargain Shares Portfolio. There is scope for significantly more capital upside. Buy.
Posted at 05/2/2023 11:22 by ashkv
Thank you for posting about the Investors Chronicle highly positive write-up on CHAR - the B plus B Uber Trolls (likely paid) continue to fester on this chat with their make believe malicious tropes... I have posted the full article below for reference...

Please note Simon Thompson mentioning about Soc Gen.... the resident villainous evil entity conveys the bank is no longer on the project as that is what he is hearing in head...... IC are now making items up...haha

Excerpt ->
"Investment bank Societe Generale is leading the structuring and syndication of the project’s debt financing, while Chariot’s gas team remain in discussions with commercial partners.
In the near term, newsflow from Anchois is the key share price driver. That’s because Chariot’s 75 per cent working interest in Anchois’ 2C resources accounts for 44p a share of Cenkos Securities' target price of 63p (using a 50 per cent risk weighting and based on a risked value of $507mn). Positive newsflow on debt funding and commercial offtake agreements at Anchois would de-risk the investment case and warrant a material narrowing of the share price discount to Cenkos’ target."

Full Article ->
Good news will boost this green energy company
The Africa-focused energy firm is also a great climate change play
February 3, 2023
By Simon Thompson


Chariot (CHAR:16p), an Africa-focused energy group focused on developing and delivering transitional energy projects, has released a raft of positive announcements since the autumn, all of which are highly supportive of the investment case.

This week’s small acquisition of ENEO Water, an African company focused on delivering clean water solutions using renewable energy, complements Chariot's Transitional Power and Green Hydrogen businesses within the context of increasing water scarcity across Africa. Desalinated water is an essential component of green hydrogen production, so the capacity to implement desalination solutions powered by renewable energy will be critical for the feasibility of green hydrogen projects.

Chariot's aim is to provide affordable access to water for private offtakers and municipalities in Africa to be sold under long-term agreements, as part of its commitment to socially responsible development. ENEO utilises an efficient and scalable reverse osmosis technology that can be 100 per cent powered by solar energy to produce desalinated water. The company has a proof-of-concept project at the largest windfarm in the Republic of Djibouti under construction.

Desalination solutions powered by renewable energy will be critical for Chariot’s joint venture with Total Eren to co-develop Project Nour in Mauritania. That project has the potential to deliver 10GW of electrolyser capacity, which would make it one of the most significant green hydrogen projects in Africa, and one of the lowest-cost producers, too.

The future’s bright
Chariot partners on solar project at platinum mine in Zimbabwe
25 per cent stake taken in a new South African electricity trading company
Long-term offtake agreement in principle for low-cost Anchois Gas project
Total Eren and Chariot have also agreed to work together on the development, financing, construction and operation of a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe. It is expected to have an initial installed capacity of 30 Megawatt (MWp) peak – a unit of measurement for the output of power from a source such as solar or wind where the output may vary according to the strength of sunlight or wind speed – with a potential extension of up to 300 MWp. Construction of the Karo Platinum Mine started in July 2022 and is majority owned by Tharisa (THS), the platinum group metals and chrome producer.

In addition, Chariot has taken a 25 per cent stake in a new South African electricity trading company, Etana Energy, which has been granted an electricity trading licence by the National Energy Regulator of South Africa. The country is the largest electricity market on the continent, but suffers from regular power outages due to insufficient supply. To combat this energy crisis rapid market deregulation is currently taking place, which includes selectively issuing electricity trading licences and facilitating the building of energy projects of up to 100 MW generation capacity.

Etana’s objective is to deliver renewable energy solutions at competitive prices to help address the power requirements across South Africa. The trading licence is important. That’s because it opens up access to a range of high-volume off-takers (including municipal, industrial and retail customers) and gives Etana the right to buy and sell electricity on the national transmission grid and within some selected municipal areas. Electricity trading is a new revenue stream for Chariot and it should support the group’s future participation in large renewable projects in Southern Africa.

An African adventure

The good news doesn’t end there as Chariot has announced a long-term offtake agreement in principle for its low-cost flagship Anchois Gas development, offshore of Morocco, in which it has a 75 per cent working interest. Gas sales of up to 60mn standard cubic feet per day will be delivered through the Maghreb-Europe pipeline on a take-or-pay basis for a minimum of 10 years, thus securing direct domestic supply for Morocco's existing and potentially longer-term gas power plant infrastructure. Investment bank Societe Generale is leading the structuring and syndication of the project’s debt financing, while Chariot’s gas team remain in discussions with commercial partners.

In the near term, newsflow from Anchois is the key share price driver. That’s because Chariot’s 75 per cent working interest in Anchois’ 2C resources accounts for 44p a share of Cenkos Securities' target price of 63p (using a 50 per cent risk weighting and based on a risked value of $507mn). Positive newsflow on debt funding and commercial offtake agreements at Anchois would de-risk the investment case and warrant a material narrowing of the share price discount to Cenkos’ target.

Although Chariot’s share price has drifted since I last published an update five months ago (‘Profit from climate change’, 14 September 2022), the holding has still delivered a 428 per cent return in my 2017 Bargain Shares Portfolio. There is scope for significantly more capital upside. Buy.

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