Ncondezi Energy Share Discussion Threads

[cl0ckw0rk0range] 12/6/2017 16:39

A little refresher perhaps..https://www.voxmarkets.co.uk/activity/71716?source=appHybridan posted a squawk about NCCL12:0930 MayNcondezi Energy: No longer just Shanghai or BustNcondezi Energy is focused on the phased development of its large scale, long life, integrated thermal coal mine and up to 1,800MW power plant project in Mozambique. Originally an export coking coal play, Ncondezi has invested significant resources in scoping the nearby 4.8bn tonne JORC compliant coal project. The mine is anticipated as being the sole supplier to the power plant. The shares are down nearly 80% over 3 months on the back of delays on closing a deal with Shanghai Electric Power (SEP). Nearly a year and a half after signing the Joint Development Agreement, Ncondezi last week announced that it had suspended exclusive discussions with SEP and will now engage with additional strategic partners who have expressed an unsolicited interest in developing the project alongside Ncondezi.• Time is of the essence for Ncondezi which has received indications of interest for an additional US$350k shareholder loan which would fund the company until 2 September. This has not as yet been finalised. Ncondezi is also actively engaging with Shareholder Loan holders to seek an acceptable funding solution ahead of loans expiring in September.• The project will require funding of circa $1bn to implement the 300MW plant and transmission line with optionality to increase capacity thereafter.• Sub Saharan Africa is woefully underpowered and the proposed site is ideally located to plug into the existing network with potential to extend supply into South Africa, Zimbabwe, Botswana, Namibia and Zambia.• This is a very advanced project and therefore has a good chance of securing high quality partners. The fact that the company has received unsolicited approaches is encouraging. A feasibility study and all technical documentation has been completed, a Power Purchase Agreement has been agreed in principle with a local utility, all relevant Social Impact and Environmental studies, land use rights and other permits are in place, the mine concession has been awarded and access to the power grid has been approved, indicating Government support.• The first 300MW stage of the power plant has been estimated to generate US$130m of EBITDA annually. Ncondezi's very existence hangs in the balance as reflected by the sub £5m market cap. Should it find a way through to financial close, even a 10% share in the project could be worth more than 10x this amount. We applaud management's decision to take back control of the project. Stimulating competition amongst potential partners may help to secure a favourable outcome for shareholders.

[cl0ckw0rk0range] 12/6/2017 16:38

Sonic grow up. What a sad individual you must be. Your obsession with NCCL is unhealthy. Run along back to KIBO it looks like your needed there.

[cl0ckw0rk0range] 10/6/2017 09:41

Exports from Mozambique to increase with inauguration of the Nacala coal terminal – Macauhub https://macauhub.com.mo/2017/05/12/exportacoes-de-mocambique-vao-aumentar-com-inauguracao-terminal-de-carvao-de-nacala/

[cl0ckw0rk0range] 09/6/2017 19:49

Coincidence? http://m.miningweekly.com/article/mozambiques-coal-fields-to-be-served-by-a-third-railway-and-port-corridor-2017-03-24/rep_id:3861They have a huge coal asset here, perhaps they are weighing up mining and exportation with the new transport links?

[novicetrade68] 09/6/2017 19:43

Could also be an expression of interest to develop a standalone coal mine? If I'm not mistaken one major railway line near Tete has now been completed. Should find out hopefully soon.

[123js] 09/6/2017 18:54

A very curious ride that just keeps on giving...it's against the odds but I'm still hopeful of them pulling it off...it has to be the powerplant though...no other options in my mind...

[cl0ckw0rk0range] 09/6/2017 16:18

A little refresher perhaps..https://www.voxmarkets.co.uk/activity/71716?source=appHybridan posted a squawk about NCCL12:0930 MayNcondezi Energy: No longer just Shanghai or BustNcondezi Energy is focused on the phased development of its large scale, long life, integrated thermal coal mine and up to 1,800MW power plant project in Mozambique. Originally an export coking coal play, Ncondezi has invested significant resources in scoping the nearby 4.8bn tonne JORC compliant coal project. The mine is anticipated as being the sole supplier to the power plant. The shares are down nearly 80% over 3 months on the back of delays on closing a deal with Shanghai Electric Power (SEP). Nearly a year and a half after signing the Joint Development Agreement, Ncondezi last week announced that it had suspended exclusive discussions with SEP and will now engage with additional strategic partners who have expressed an unsolicited interest in developing the project alongside Ncondezi.• Time is of the essence for Ncondezi which has received indications of interest for an additional US$350k shareholder loan which would fund the company until 2 September. This has not as yet been finalised. Ncondezi is also actively engaging with Shareholder Loan holders to seek an acceptable funding solution ahead of loans expiring in September.• The project will require funding of circa $1bn to implement the 300MW plant and transmission line with optionality to increase capacity thereafter.• Sub Saharan Africa is woefully underpowered and the proposed site is ideally located to plug into the existing network with potential to extend supply into South Africa, Zimbabwe, Botswana, Namibia and Zambia.• This is a very advanced project and therefore has a good chance of securing high quality partners. The fact that the company has received unsolicited approaches is encouraging. A feasibility study and all technical documentation has been completed, a Power Purchase Agreement has been agreed in principle with a local utility, all relevant Social Impact and Environmental studies, land use rights and other permits are in place, the mine concession has been awarded and access to the power grid has been approved, indicating Government support.• The first 300MW stage of the power plant has been estimated to generate US$130m of EBITDA annually. Ncondezi's very existence hangs in the balance as reflected by the sub £5m market cap. Should it find a way through to financial close, even a 10% share in the project could be worth more than 10x this amount. We applaud management's decision to take back control of the project. Stimulating competition amongst potential partners may help to secure a favourable outcome for shareholders.

[bionictwat] 09/6/2017 15:50

Another dead cat bounce

[cl0ckw0rk0range] 09/6/2017 15:24

Oh and here's another one.It's really quite sad that when you run out of mud to sling you resort to "it's a pump and dump". It hasn't been pumped.It's not being dumped.Two days of consistent buys of a significant undervalued company awaiting potentially game changing news with low volume of sells?Jog on.

[barts] 09/6/2017 15:12

This does have the look of a desperate pump and dump IMO.....DYOR

[bionictwat] 09/6/2017 14:22

Dung share its called a dead cat bounce

[cl0ckw0rk0range] 08/6/2017 17:53

Good day today, shows that this can really move on low volume. Think perhaps the drop was over done given the asset that they still have, and the shackles of a exclusive arrangement are now off which can only be a good thing. Agree a suitable partner, get the job jobbed. Coal export? Coal fired power plant? Optionality.

[cl0ckw0rk0range] 08/6/2017 15:02

Someone certainly seems to be loading up today..

[novicetrade68] 08/6/2017 13:36

Very tight spread at the moment, can sell 250k at 1.94p and max buy is 25k at 2p.

[katylied] 08/6/2017 12:51

This seems a bizarre story of failed intent. CIL (Coal India Limited - a behemoth coal company) is often described in terms of vast bureaucracy where political-agendas and business-purpose often get very confused...

As India's main coal provider to national Power Stations, CIL's main interest has always been Thermal-Coal. Unlike Coking-Coal, India actually has a huge amount of Thermal-Coal, but there are big problems increasing future supply. Indian coal is often not good quality (which impacts power-station design) and new sources often require the destruction of villages, forests and other politically difficult decisions. For some years, CIL has looked overseas for new coal supplies.

As the article below states, since 2009 CIL is said to have spent ~US$80m on the exploration of 2 Mozambique coal-blocks before concluding there wasn't actually any coal to be mined (out of a total 224 sq km, 170 sq km had no coal horizon above 500m depth). Both blocks have since been surrendered back to the Moz Gov. CIL was also an original partner with ICVL (International Coal Ventures). ICVL searched for foreign coal assets for a long time before finally buying the Moz Benga asset from Rio Tinto in 2014. By that time CIL had already left ICVL to seek assets independently, apparently on the grounds that ICVL was largely structured around SAIL (Steel Authority of India) whose only interest was Coking-Coal.

Fast forward. Some months ago it was reported that CIL were once again looking for overseas coal assets, but were excluding Mozambique. Then in Sept 2016 it was reported that CIL had applied to the Moz Gov for an allocation of new exploration blocks. To date, CIL have apparently had no response from the Moz Gov. I even read somewhere that they might even re-join ICVL (Benga will generate Thermal-Coal as a byproduct of the Coking-Coal). There is also comment that CIL may now actually be interested in being a Coking-Coal supplier. As I said at the start, CIL often come across as rather confused.



Surely, the answer is bleeding obvious! CIL should buy NCCL's coal assets. I have commented about this before. Compared to CIL's original blocks, NCCL is far better located for the Nacala rail route which is ideal for India. At this stage many NCCL shareholders would bite the hand off anyone making a half-way decent offer for the assets. Currently, NCCL's coal assets are not even tied to the SEP JDA.

So... NCCL say they have received some unsolicited expressions of interest. What chance I wonder, that CIL may be one of those?...

[cl0ckw0rk0range] 08/6/2017 11:54

Sonic / @ukbambammattWhy don't you take yourself off back to the KIBO boards where you are actually invested, seems as though you're hands are more than full there.

[cl0ckw0rk0range] 06/6/2017 16:59

A little refresher perhaps..https://www.voxmarkets.co.uk/activity/71716?source=appHybridan posted a squawk about NCCL12:0930 MayNcondezi Energy: No longer just Shanghai or BustNcondezi Energy is focused on the phased development of its large scale, long life, integrated thermal coal mine and up to 1,800MW power plant project in Mozambique. Originally an export coking coal play, Ncondezi has invested significant resources in scoping the nearby 4.8bn tonne JORC compliant coal project. The mine is anticipated as being the sole supplier to the power plant. The shares are down nearly 80% over 3 months on the back of delays on closing a deal with Shanghai Electric Power (SEP). Nearly a year and a half after signing the Joint Development Agreement, Ncondezi last week announced that it had suspended exclusive discussions with SEP and will now engage with additional strategic partners who have expressed an unsolicited interest in developing the project alongside Ncondezi.• Time is of the essence for Ncondezi which has received indications of interest for an additional US$350k shareholder loan which would fund the company until 2 September. This has not as yet been finalised. Ncondezi is also actively engaging with Shareholder Loan holders to seek an acceptable funding solution ahead of loans expiring in September.• The project will require funding of circa $1bn to implement the 300MW plant and transmission line with optionality to increase capacity thereafter.• Sub Saharan Africa is woefully underpowered and the proposed site is ideally located to plug into the existing network with potential to extend supply into South Africa, Zimbabwe, Botswana, Namibia and Zambia.• This is a very advanced project and therefore has a good chance of securing high quality partners. The fact that the company has received unsolicited approaches is encouraging. A feasibility study and all technical documentation has been completed, a Power Purchase Agreement has been agreed in principle with a local utility, all relevant Social Impact and Environmental studies, land use rights and other permits are in place, the mine concession has been awarded and access to the power grid has been approved, indicating Government support.• The first 300MW stage of the power plant has been estimated to generate US$130m of EBITDA annually. Ncondezi's very existence hangs in the balance as reflected by the sub £5m market cap. Should it find a way through to financial close, even a 10% share in the project could be worth more than 10x this amount. We applaud management's decision to take back control of the project. Stimulating competition amongst potential partners may help to secure a favourable outcome for shareholders.

[cl0ckw0rk0range] 06/6/2017 16:56

Thanks for that NT very interesting indeed.

[cl0ckw0rk0range] 06/6/2017 15:25

Interesting. What's the source of your post please can't seem to locate? Ta