Thomaslloyd Energy Impact Share Discussion Threads

[cc2014] 16/8/2023 10:14

Definitely worth a read

[cc2014] 11/8/2023 09:52

This is a right bun fight

[cc2014] 31/7/2023 07:54

What an RNS. The Board really are not happy with the investment manager.

[cc2014] 12/7/2023 06:24

I won't repost today's RNS but as far as I can figure it's more bad news this time around a) the assumptions provided by the investment manager provided to the valuer and b) the valuation model that the assumptions are put into.

All on top of the previous $8m and $33m previous issues.

At least that's the way I read it. I'm not a holder and I shan't put any more time into trying to understand the detail.

My thoughts are with holders.

[cc2014] 06/6/2023 10:25

The Investment Manager has indicated that, on the basis of the significant reduction in equity returns and the increased risk profile, it would be inappropriate for the Company to proceed with the investment in the RUMS Project. Based on currently available information, the Board has therefore concluded that it would not be in the interests of shareholders for the Company to commit to funding SolarArise to enable the construction of the RUMS Project, as currently configured, and that the Investment Manager should continue to evaluate the options for the RUMS Projec


If construction does not proceed, the SPV could be subject to liabilities for non-completion of up to approximately INR 2,750 million (US$33.5 million) but these should be substantially lower after mitigating actions. These liabilities comprise various charges and damages, including delay liquidated damages, generation shortfall liquidated damages, transmission capacity relinquishment charges and solar park charges and penalties. If construction does not proceed, SolarArise has exposure in respect of the SPV of INR 100 million (US$1.2 million)


I feel sorry for holders here. This is a complete mess and reading between the lines one the fund manager must have been oblivious too when it bought the additional 50%ish of Solar Arise. It does make me wonder about the quality of some of these managers.

[cc2014] 26/5/2023 07:48

A month now since the suspension and not a word.

That's not usually a good sign.

[cc2014] 11/5/2023 07:56

This is taking a long time to sort out

[cc2014] 24/4/2023 11:06

In the process of preparing its annual report and accounts for the year ended 31 December 2022 ("2022 Accounts"), the Company has been made aware of material uncertainty regarding the fair value of certain of its assets and liabilities. This uncertainty relates, in particular, to the 200 MW construction-ready asset owned by SolarArise where price rises in relation to the components and construction costs of the 200 MW plant indicate that additional equity is likely to be required in order to construct the project, potentially decreasing the project returns and its commercial viability. In addition, the Company wishes to undertake further work to assess the quantum of certain of its liabilities.

SolarArise is the Delhi-based renewable energy platform owned by the Company which, in turn, owns seven solar power projects in India with capacity totalling 434 MW, of which 234 MW is operational and 200 MW is the construction-ready asset referred to above. On the basis of the 100% interest in the project now held by the Company, the 200 MW construction-ready asset was valued as at 30 September 2022 at US$13.9m, prior to provision for any non-completion penalties. Any reduction to the fair value of the Company's assets, or any adjustments to the quantum of the Company's liabilities will affect the Company's net asset value.


Ok, so my burning question is how can a construction ready project be valued at $13.9m?

If it's construction ready that means to me they haven't started building it. I suppose they could have already bought the solar panels by Sept 22 but they would have known about the cost inflation then. I suppose it could include the cost of legal permission to build it an the design but that wouldn't come to anything like that sort of number

But it does say that price rises mean it can't construct the project for the original amount. Has it started or not? It says it doesn't know the extent of it's liabilities.

I give up. Maybe I'm being obtuse but why do RNS's have to be so oblique? And if the price rises mean the project is now not going to happen because they haven't got the equity to do it or have to find a partener or instead not do another project is it possible their $13.9m is worth significantly less than that second-hand.

[cc2014] 24/4/2023 08:46

Not a great RNS

[grimespt] 10/3/2023 16:06

I have had a small holding here since the start. Now not looking so good and whilst dividends are paid, they are not at "income stock" levels that a number of similar businesses are paying. With a big dip today in pricing, and for a reason I cannot find, how are people feeling?