Rurelec Share Discussion Threads

[giant steps] 03/3/2015 07:34

#note4gs

02 MAR 2015

[swooped] 02/3/2015 14:44

No I am not out of PRG, very much invested still

[festario] 02/3/2015 14:21

Swooped, do you mind me asking, are you out of Paragon Diamonds now?

[swooped] 02/3/2015 12:40

Rurelec now top riser on aim for the day, should get some notice

[swooped] 02/3/2015 12:38

Rurelec To Pay Off Short-Term Loan As It Eyes Return To Dividends
LONDON (Alliance News)
Alliance News 2 March, 2015 | 9:01AM

LONDON (Alliance News) - Rurelec PLC saw its shares rise sharply early Monday after it said it will pay off its short term loan agreement with Radix Investment UK Ltd, and would now work towards the resumption of dividend payments.

In a statement, the power generator in South and Latin America said its combined loans with Radix are now GBP550,000 and will be repaid on March 31 from the USD6.5 million proceeds Rurelec expects to get for the contracted sale of a controlling equity stake in its Canchayllo hydroelectric plant in Peru.

Rurelec has also agreed with Radix not to issue the 16.8 million warrants to subscribe for new shares in Rurelec at an exercise price of 7.3 pence per share that the parties agreed last December. The company will also pay IPSA Group PLC from the proceeds of the plant stake sale.

Last December, Rurelec got a GBP3.05 million short-term loan agreement from Radix, allowing it to make a final payment to IPSA for the two gas turbines that Rurelec bought for its Illapa generation project in Chile. The Radix facility had been due to run until the end of March.

The company has had a tough few years since its Bolivian assets were nationalised. It has been working on building its asset base elsewhere in South and Latin America through partnership agreements. It hasn't paid a dividend since its 2007 financial year.

"Our partnership negotiations are finally producing signed contracts. Rurelec has always intended to work in 50:50 partnerships in Latin America, as we have since our flotation in 2004, and that 50:50 policy continues with the exception of hydroelectric plants where our target has always been to own no more than 20 per cent of any one plant. This policy allows us to maximize our involvement with the minimal cash investment per plant," Chief Executive Peter Earl said in a statement.

"We never intended to have so many greenfield developments on the go at any one time but that policy was forced upon us by the 2010 nationalisation of our Bolivian power plants, which were the main cash generators for the group. We are now building new capacity to replace lost megawatts and we are successfully selling down stakes as we always planned to do. Radix has helped us to achieve our goals. The next step will be to conserve cash on our balance sheet in anticipation of a future return to dividends," he added.

The company said the highly-anticipated Proinversion large hydro tender process for the award of new capacity contracts has now started in Peru and Rurelec's wholly-owned Santa Rita project is expected to participate.

While the award of power purchase agreements under the tender isn't expected until the end if 2015, the release of official tender documents has allowed Rurelec's investment bank adviser to put a firm timetable in place for the selection of a partner or partners to subscribe new equity at the project level. It said participants in the partner selection process includes large regional electricity utilities, private equity funds and Asian multinationals. Rurelec expects to pick preferred partners by May.

In Chile, meanwhile, Rurelec's preferred partner for the purchase of a stake in the Illapa project has received investment committee approval to proceed to detailed binding agreements for the acquisition of a 50% stake in the project. The offer values the equity of the Illapa project at USD60 million, Rurelec said.

In Argentina, the company said it continues to work on a transaction intended to release and repay in US dollars the bulk of the company's project loans to its Energia del Sur combined cycle gas turbine power plant. It said Energia del Sur continues to perform well and remains one of the highest availability plants in Argentina, meaning it has been able to continue monthly payments to Rurelec to reduce the project loans. Rurelec has now initiated a 40 megawatt expansion project in Comodoro Rivadavia for the installation of a cycle gas turbine under a new contract with payments denominated in US dollars.

Rurelec shares were up 21.6% at 3.80 pence early Monday, making it one of the best-performing stocks on the AIM All-Share index.

By Steve McGrath; [e-mail]; @stevemcgrath1

Copyright 2015 Alliance News Limited. All Rights Reserved.

[swooped] 02/3/2015 12:18

yes the warrants being cancelled is good news and avoids any dilution at any stage

[vyke82] 02/3/2015 11:58

Fantastic news and well worth the wait. I am glad the warrants are cancelled.

[swooped] 02/3/2015 10:57

And don't forget the most important point here as the share price rises, there will be no shareholder dilution and a return to dividends will allow th funds to start buying in. Always knew Rurelec had a bright future and this is imo only the start, PE didn't buy 7 million shares for nothing and I think his average is in double figures!

[swooped] 02/3/2015 10:52

The rise will continue, Current shareholders that understand the company will do very very well out of this RNS and moving forward, as the detail needs to be understood thus why such a chance to still get in at a low price, its not like an oil company that just releases news on a well and you either know if a high api is good or a reserve value is good or the number of barrels produced. To understand how good some of these deals are for Rurelec you need to understand the company, give this a few days for the analysts to cast their slide rules over this and we will start to see a re-rate imo.

Still seriously undervalued look at Santa Rita, remember the $30 we will receive for Illapa is for only a 50% stake, Illapa is 256MW. Santa Rita is 255MW so would be worth at least the same $30 million for 50%, I also believe that SA has the ability to be increased in output.

We also have 40MW at Arica. I am also not making the assumption that the sale of the Canchayllo was 80%, PE really needs to give a clear steer on this but I would expect it would only have been what is required to get to financial completion.

My view is this is worth way in excess of 10p assets only unless you want to value the company only on assets alone and not forward potential, income or dividend creation. 10p in itself would be hugely undervaluing the company as a going concern.

[here and there] 02/3/2015 07:51

Chile listing will come following firm project development in Chile

[gerhart] 02/3/2015 07:49

Well Swooped..."imminently" wasn't far wrong! Wonder is the Chile listing now completely dead? No mention of.

[swooped] 02/3/2015 07:49

Excellent update

$6.5 Million for equity stake in Canchayllo hydroelectric plant in Peru...wow this was only just over 5 Mw

How much will santa rita be worth to Rur at 255MW wow wow wow!!!!

$30 million to come from Chile Partnership deals

new 40MW expansion in Argentina.

[here and there] 02/3/2015 07:36

great update, should be trading above 10p a share here, v under valued

[swooped] 01/3/2015 10:26

should get one imminently

[cyfran101] 27/2/2015 22:52

Looking forward to an update myself. So many things to hear progress on!

[vyke82] 27/2/2015 20:56

What do you mean no debt? Look at the last RNS about the loan.

[here and there] 26/2/2015 10:14

So I have bought a bunch and averaged down.

Market Cap is $26million

no debt, $6 million cash as of june 2014, Argentinian assets, peruvian assets, 3 turbines which are on the books at $30million.

projects in progress in Peru(several small and one big) Chile (v big) Argentine expansion. Sell down and partnerships in these deals all in progress and due over the next few months.

this must be grossly under valued

[temmujin] 25/2/2015 11:46

abit of buying today

[temmujin] 24/2/2015 07:54

might take a punt in rur...seems a snip at 3.25p

[vyke82] 09/2/2015 23:27

The equity divestment is taking long.

[mbaxter] 04/2/2015 08:54

Earl's wording '...as soon as we sign our final....' suggests that they are looking to have all the agreements in place before making an announcement. Perhaps that is why things appear to be taking so long.

I have taken advantage of what seems to be little more than option money prices but still have a niggle at the back of my mind about the ability of the BOD to deliver on their very enthusiastic statements, given what has gone on before. Hey ho,if I wanted a quiet life, I would have put my money under the mattress (safer than some of the banks). Here's hoping everything is a rosy as they claim.

[giant steps] 04/2/2015 08:37

Thanks vyke, most appreciated.

10 NOV 2014



The bit i find most interesting is this:
(approx transcript)


Q. How is business generally ?
4:47 PE:

We said in a trading statement and we followed it up in our interims, that the directors are really happy with the progress we have made, and we are happy in particular that the projects that we have developed over the last few years in Chile and Peru have excited an awful lot of attention from very serious blue-chip potential partners, and we are in the magnificent position of being able to choose, as if it were a beauty contest, from the strongest most eligible partners.

As soon as we sign our final partnership agreement, then we will make instant announcements, but we are in a very good place right now in terms of the enthusiasm and the appetite for the projects that we put together which are hydro projects predominantly in Peru and strategically important thermal projects in Chile. In the case of Peru we are looking at over 400MW worth of approved hydro projects, which gives us a big portfolio there, and in the case of Chile we have two thermal projects with an initial capacity of 300MW that we can take to over 500MW, which again are absolutely in the right place at the right time, and that is recognised now by the partners who have been negotiating with us and pushing for us to select them.

[mbaxter] 02/2/2015 13:56

They seem to have an ongoing problem with timing things. Hope we don't get another haircut.

[gerhart] 28/1/2015 08:10

Thanks for that reminder Vyke.

[vyke82] 27/1/2015 21:56

It hurts to see this fall and surprising directors not buying. Hopefully, because inside good news being prepared.Listened to this recent interview where Peter soft promises to pay divi in 2015. http://bit.ly/1EvscOt