Ncondezi Energy Share Discussion Threads

[bean02] 05/4/2017 12:27

And they are in at 5.8!

[kibes] 05/4/2017 11:54

Nick Rubens - I think AFC the largest shareholder will probably be obliged to bail them out, however the terms of any cash offered will undoubtedly be pretty steep. If they are only looking for $300,000 to cover admin expenses for the next year I am sure that is doable, bearing in mind that AFC had already offered up to $3 million of which so far only $1 million has actually been drawn.

[bean02] 05/4/2017 10:26

None whatsoever.

[nick rubens] 05/4/2017 08:36

Is there any risk here that they may end up doing one of these death spirals for the money?

Reading the RNS makes me think that the death spiral hunters will be offering them a deal?

[cl0ckw0rk0range] 04/4/2017 10:48

Clearly someone with a personal grudge against Africa C2P. Yawn.

[deanroberthunt] 04/4/2017 09:16

although, it could be worth a dead cat technical punt from here...

[deanroberthunt] 04/4/2017 08:08

and now, the end is near, and as you face the final curtain...

[cl0ckw0rk0range] 04/4/2017 07:33

The Company is engaging with the lenders under the shareholder loan and evaluating all options with respect to its repayment or refinancing and a further update will be provided before 10 May 2017.The shareholder loan has been made by long term and significant shareholders including AFC so it's in their interests to renegotiate on favourable terms. The $3m cash payment from SEP will then cover majority of overheads through to FC when balance of $20m will be received.

[cl0ckw0rk0range] 03/4/2017 15:21

The Company expects to make an update to shareholders once binding agreements have been executed. Financial Position Due to careful working capital management, the Company now has adequate cash resources to fund its activities until 10 May 2017, which is the date on which the Shareholder Loan becomes repayable. The Company has an existing $2.32m shareholder loan which is repayable at a 1.5x return before 10 May 2017, after which the loan becomes repayable at a 2.0x return. The Company is engaging with the lenders under the shareholder loan and evaluating all options with respect to its repayment or refinancing and a further update will be provided before 10 May 2017. Once it is signed and becomes effective, the Development Agreement will cover the bulk of Ncondezi's development costs over the next 12 months as well as some of SEP's costs. As a consequence, once the development funding is available, the Company's working capital requirement for costs not covered by the Development Agreement is expected to be reduced to approximately $300,000 per annum, to cover mainly corporate costs. Negotiations are ongoing with a number of potential funding partners to cover these reduced working capital costs that will not be covered by the Development Agreement, including corporate costs (as detailed above) and additional mine development costs. The Company is working on finalising a funding solution although it must be noted that whilst discussions are advanced no certainty can be given that they will be finalised. More information will be provided to shareholders as appropriate.

[nick rubens] 03/4/2017 14:52

"However, Ncondezi did warn that it currently has cash to last until May 10, when a shareholder loan is due to be repaid. The USD2.3 million loan is repayable at 1.5 times return, after which it turns to 2.0 times return if not repaid. "

Does this mean 50% interest? and possibly 100% Interest? How long has the company had this loan for? cheers NR

[cl0ckw0rk0range] 31/3/2017 11:50

Dozyduck you have it spot on. I welcome bearish views when they have actually bothered to do their research and can therefore present a reasoned case, skim reading a RNS and commenting on it without knowing the background presents a flawed argument. There's a reason why SEP want the plant and NCCL coal at that location. DYOR.

[dozyduck] 31/3/2017 10:28

I think KatyL has it the wrong way round. The project was initiated by NEL who still own it, and SEP is on board as a consultant initially, morphing to supplier/builder/operator with a 60% share only on FC and payment of its subscription. So its not a question of NCCL 'working' for SEP. As for SEP bidding, surely that would be blocked by AFC etc who won't want to lose the valuable remaining equity for peanuts.

[kibes] 31/3/2017 10:01

There is actually very little trading going on. Total trades yesterday around 9 million shares which is only £360,000 and not a lot so far today. Price drop has been a bit overdone by market makers in my opinion. Price could move back up when SEP have actually agreed the $3 million funding.

[deanroberthunt] 31/3/2017 07:38

NCCL, KIBO will all end up worth 0p

It's Africa ffs!! corrupt and lawless

[cl0ckw0rk0range] 30/3/2017 15:06

Yes an interesting posting history that one, if it's not one thing that's going to go wrong it's another, clearly has an axe to grind.Main points from the RNS1) SEP not trying to renegotiate the deal and committed to getting it done2) Positive momentum continues with key meetings between SEP, EDM and Mozambican government held in Shanghai and Moz3) $3m is a pre investment to the JDA and designed to assist NEL in closing out JDA4) Allows the power project to continue development as planned (will not cause a delay to FC)5) Happening despite challenging environment in Mozambique and tougher capital controls out of China6) Terms of financing well advanced and looking to close out soon7) Reduces NEL burn rate to a very manageable number over the next 12 months

[katylied] 30/3/2017 12:48

kibes - Fair enough, I think I have already spelled it out. However, horse, water & drink etc. You are entitled to your view. Hope it works out for you. Like I said, I think it will take some 'out of left field' event now, to rescue this company...

Over and Out...

[kibes] 30/3/2017 12:45

KatyLied - Can't see why SEP would have offered 40% of a significant power project to NCCL if no NCCL coal is involved. That is way over the top. If you are saying that what NCCL is doing is basically just consultancy services then SEP could have had that for a few million dollars or indeed just had the negotiations with EdM and the Mozambique government themselves. That they are not backing out or renegotiating the deal may surprise you (and perhaps me) but it is the case as far as I can see.

[cl0ckw0rk0range] 30/3/2017 12:14

1) SEP not trying to renegotiate the deal and committed to getting it done2) Positive momentum continues with key meetings between SEP, EDM and Mozambican government held in Shanghai and Moz3) $3m is a pre investment to the JDA and designed to assist NEL in closing out JDA4) Allows the power project to continue development as planned (will not cause a delay to FC)5) Happening despite challenging environment in Mozambique and tougher capital controls out of China6) Terms of financing well advanced and looking to close out soon7) Reduces NEL burn rate to a very manageable number over the next 12 months

[cl0ckw0rk0range] 30/3/2017 12:10

Pointless continuing debate with perpetual bear who won't even acknowledge bull view. Blinkered.

[katylied] 30/3/2017 11:52

This part of the JDA seems to have been a major miscalculation on the part of the NCCL BoD...

"The Subscription Price will be paid in instalments as per an agreed budget between the Parties for the period from 1 January 2016 until Financial Close. The first instalment will be funded once the JDA is effective, at which point Ncondezi will be refunded for certain agreed project costs incurred from 1 January 2016.

So basically, since Jan 2016 NCCL have been working for SEP to close out the loose ends and then NCCL expects to be reimbursed for at least some of their historical costs. Ooooppps! After more than a year of additional (debt funded) NCCL time and expense, there still hasn't been any repayment from SEP...

[katylied] 30/3/2017 11:30

kibes - Because NCCL had negotiated the IPP deal from conception and signed a power offtake agreement (now expired) with EdM, before SEP ever came on board. Since the JDA was signed, NCCL have in effect been working for SEP (so far without payment) to conclude the terms of the IPP with SEP and the Moz Gov. The IPP is organised as a separate company (Ncondezi Power Company) with the shareholding basically divided between SEP and NCCL. At no point has any part of the NCCL coal resource ever been formally included. As I stated previously, the IPP and the NCCL coal resources are currently 2 separate prospects. NCCL has kinda implied that some future agreement with SEP will exist over coal supply, but since it is at best stuck on a backburner, take that with a pinch pf salt, ultimately SEP will do whatever is best for SEP. In anycase, that small part of NCCL's coal resource intended for the IPP, is hardly likely to include export grade coal...

[kibes] 30/3/2017 11:18

KatyLied - So why would SEP entertain the idea of a deal with NCCL in the first place? And why are they apparently carrying on with a large team working on the project? The time to pull out if they are going to would be right now, but instead they are working on a further Development Funding Agreement with NCCL. Their commitment appears to be genuine. Furthermore the Chinese see it as a long term stake in Mozambique so would want to be seen to be developing local resources in an appropriate way. A clean coal fired power station using local coal meeting the best environmental standards sounds good.

[katylied] 30/3/2017 10:51

kibes - OK, well first off you are assuming that the PP has to be built on an 'NCCL' site. Actually, it can be located anywhere planning is granted and I imagine SEP will be granted, whatever they want. Secondly, NCCL thermal coal is almost certainly not the 'cheapest' since the bigger players in the Tete region who export 'coking coal' have vast amounts of 'thermal' already produced as a by-product. It is well reported, that it is in fact costing them money, to re-bury the stuff. Those big players are also a captive market for any PP electricity generated, in the event that future payments from an EdM offtake are considered risky (because of the Gov debt situation)...