Ncondezi Energy Share Discussion Threads

[yasx] 03/12/2021 09:04

Sage,

Read the previous announcements and the basis upon which they sold this project to NCCL holders. Then look at what they have flogged it back to themselves for. it is outrageous - period.

[yasx] 03/12/2021 09:03

So, the raised funds of 1.88 M per the RNS above. They also used the 500k bridging loan. Not to mention part proceeds from another placing. There was also the partly drawn working capital facility.

I am perplexed how this sale today represents a premium valuation - relative to what? It is at a fraction of what they invested in it.

That Lurker chap insisted he liked numbers. Well, can he explain the numbers here? No, thought not. Chuckle chuckle

[albert arthur] 03/12/2021 09:02

I'd not be happy if I took the placing, but I am happy buying here on today's news..

[the_sage1] 03/12/2021 09:01

The shorts do not like this, they thought NCCL were going to do a distressed placing which would have enabled them to close their positions not so !

NCCL has sold a project which would have only generated 'Contracted revenues of US$3.1 over the life of the Project' (RNS dated 4th May) for $1.3m in cash. Not bad in anyone's book is it.

[yasx] 03/12/2021 09:00

RNS Number : 2574V

Ncondezi Energy Limited

05 April 2019

News Release

JV in Solar/Battery Energy Sector and Fundraising of GBP1.88m

5 April 2019: Ncondezi Energy Limited ("Ncondezi" or the "Company") (AIM: NCCL) is pleased to announce that it has:

-- entered into a term sheet with GridX Africa Development ("GridX"), an African power developer, enabling it to enter into a Joint Venture ("JV") focused on building and operating captive solar and battery storage solutions for the African Commercial and Industrial ("C&I") sector (the "Term Sheet"); and

-- raised a total of GBP1.88m (US$2.48m) before expenses, through a conditional placing and direct subscriptions ("Fundraising") of 28,856,060 ordinary shares in the Company ("Ordinary Shares") at a price of 6.50 pence per Ordinary Share (the "Fundraising Price").

[albert arthur] 03/12/2021 08:59

Time to buy. I'd say... holding mid term... can't lose at these levels IMO... fresh start, debts paid.

[m1sterx] 03/12/2021 08:56

This has been bashed to death across all social media platforms, it does not take a brain surgeon to work out why.

How short is short ?

[yasx] 03/12/2021 08:53

You really have to chuckle at some of the absurd contributions on this forum. To think that some think they have got a good deal here - they cannot see the wood for the trees. The project has essentally been taken for a pttance.

Incidentally, when they were recently using funds to this solar project recently they were advising of a shift to reneables away from coal "the transition to renewables and carbon neutrality is accelerating, and Africa stands out as a key market with the highest energy costs and lowest energy access rates"

Suddenly, today they announce "in an increasingly challenging post COP26 environment, selling the C&I subsidiary allows the Company to fully focus on progressing the Company's main project".

You could not make it up. All that money thrown at the solar project and just as it statrts to generate money they sell it for a fractionof what they spent on it.

Now, can someone tell me how this line in the RNS got past the Nomad?

"Green Energy's offer provides a premium valuation"

Really? Premium to what? Certainly not what they spent on it. Maybe a premium to other offers which might have been nil.

Of course, the carrot continues to be dangled on the main project " In the meantime progress continues to be made on the Ncondezi Project with all key parties."

What progress - the sensitive discussions they can't reveal to you. Chuckle chuckle.

Am confident next year this hits nil pence. I would not rule out a separate listing in due course of the solar project as Hanno/Fletcher make a comeback to rinse and repeat.

[albert arthur] 03/12/2021 08:53

I took some today.

[broken_arrow1] 03/12/2021 08:50

There are some shenanigans going on here behind the scenes on the order book for sure.

One suspects a market maker is short, trying to contain the share price, it will be interesting to see how this pans out, once the book is level the shares usually regain their true value.

IG are currently asking 1.25p for only £5k of stock but most retail brokers are 'at best'

[yasx] 03/12/2021 08:30

What a shocking announcement.

So, they raised over 1.88M by way of a placing a while ago to fund this solar project, then had a working capital facility applied for the same, not to mention proceeds from a further placing which it was averred would be used in part to fund this, as well as a loan of 500k. After spending all that they have thought it reasonable to sell it to a Director for just over £1M.

Someone previously asked how Fletcher would recoup his losses. Well, here is your answer.

I previously indicated that in my view the only asset the Co. had was the solar project since I did not ascribe any value to the coal project. Now that the solar project has disappeared, all you have is cash (likely less than £1M given ongoing use of the same) and a listing. Given the cash will continue to be used for the so called coal project sensitive negotiations, one has to discount this heavily. Thus, fair target price currently I reckon is around 0.2p or less, with an eventual target of nil pence still valid.

[mininglamp] 03/12/2021 08:18

It looks a decent deal in my considered opinion, worth noting the sale was made to the the company's largest shareholder who is significantly under water on his circa £2m stake in Ncondezi.

The cash has been received in full unlike many deals in the junior space which are often staged over months or in some cases years.

The company seems upbeat on it's coal/power project also, they have promised a full update by year end.

The shares look cheap.

[the_sage1] 03/12/2021 08:13

They have received a fair price for the solar asset, over the entire project life it was projected to deliver only $3m in revenue.

When the dust settles one can clearly see the deal is a good one, it may have left a few short entities having to close positions in the market, as most of the shorting is usually carried out by market makers/brokers expect to see some share price shenanigans in the meantime.

This is going back up make no mistake.

[frankandbeans] 03/12/2021 07:37

Well the director bridging loan is covered but the solar asset has been offloaded from NCCL leaving them with the CTP “project”;.

How’s that coming along these days? Any update on the shareholder loan agreement? What about the tariff?

WAKEY WAKEY

[the_sage1] 03/12/2021 07:16

Well done to those who kept the faith, cash received, director loan repaid, the company now has a healthy cash balance which must be around £1.2m.



US$1.3 million Sale of C&I Subsidiary

[frankandbeans] 03/12/2021 07:09

Solar plant asset is sold to the NED to pay off bridging loan to NCCL?

Brazen.

[garykc] 30/11/2021 12:26

And a 600k buy

[frankandbeans] 30/11/2021 10:13

To be fair, I think the price has done a bloody good job of dropping itself.

Not a massive buy at these prices either, punt money to some.

[garykc] 30/11/2021 10:01

Or drop the price to enable a 500k buy!!!!

[123js] 30/11/2021 09:02

Appears to be a chap selling to renew train pass before the price rise... has been holding relatively strong... reason for optimism!

[frankandbeans] 30/11/2021 08:46

Areet bonny lads looking a bit sour here, isn’t it time that they did another convoluted loan arrangement?

No news on the CTP?

At least FTSEyas has stopped fingering you though ay?

[garykc] 30/11/2021 08:34

Bad news coming??

[yogaboy] 25/11/2021 12:06

This calm before the storm is as calm as a calm person with a degree in calm from Calm University. Given yesterday's tweet by the President of Malawi, is anyone else a little disappointed by the lack of NCCL's ability to promote its own interests to the market?hTTps://twitter.com/lazaruschakwera/status/1463105806757515271?s=21

[garykc] 24/11/2021 08:45

A speculative punt by someone this morning?