Tlou Energy Share Discussion Threads

[andrewsr] 15/2/2018 14:25

bountyhunter, I assume Tlou will be the only producer in the near future if they get on with a pilot scheme.

[pjj71] 15/2/2018 14:09

going to take a punt.. seems a bit of an over-reaction, government issues an RFP for gas, sends out a coal RFP on file, bidders point out, government cancels and issues gas RFP to same bidders and market takes 40% off Market Cap, for a few months delay....you got to love AIM....

[wheniamfree] 15/2/2018 13:38

They are not

[bountyhunter] 15/2/2018 13:33

andrewsr - what makes you think that the other bidder is producing commercially yet?
...as far as I know from when I last checked they are not

[paleje] 15/2/2018 13:27

Cheers Philby1

[philby1] 15/2/2018 13:24

Podcast 12 min 36 secs in;

[andrewsr] 15/2/2018 13:01

If commercial production is a condition of the tender, there will only be one tenderer in the near future anyway.

[bountyhunter] 15/2/2018 12:53

Yes I agree, they should just press ahead regardless and sell the electricity to the highest bidder, then they will also be in a better position re the Botswanan government as the tendering process progresses ... incidentally who's officers' pension scheme has a direct investment here.

[andrewsr] 15/2/2018 12:43

The whole process has been slightly baffling, why not just press ahead and sell the electricity to whoever needs it most. Why even have a tender process when they need electricity so badly in the region? It's not as if the Botswana government are the only option.

[andrewsr] 15/2/2018 12:29

It sounds as though they just need to get on with a pilot project (10 MW or so) and sell the electricity to the highest bidder - Orapa, Zimbabwe, South Africa or even Botswana if they can get their act together. The bigger news as the FD said is really the reserves/resources due out soon.

[cezary] 15/2/2018 12:22

Good!!!

But what I cant understand is why has it taken this long for the Botswana gov to tell TLOU that their tender is non-compliant. THat would have been flagged up straight away! What were they waiting for??

[ch1rp] 15/2/2018 12:16

Peeps stocking up. This is going to bounce back up. Fundamentals remain unchanged:)

[cezary] 15/2/2018 12:12

Bigger bribe needed !!!

[wheniamfree] 15/2/2018 12:09

supercity they’ve already agreed to shortlist and retender process.

In the mean time a request is made for s fast track program let’s see what happens there.

SAPP offtakes still available in the mean time gas reserves and all approvals to produce still exist and still the only ones with the necessary goods and papers.

Reserve upgrade to come. No issue but a loss in translation which is no first for any program. It is a delay that is all.

[mr.oz] 15/2/2018 12:01

agreed ; I don't like belief's, suggestions and could do's

[supercity] 15/2/2018 11:58

What I don't likeFollowing the meeting, the Company believes that the Ministry is amenable to amending the tender document as required. No certainty..just a beliefThe Company will also suggest that the Ministry consider establishing a separate process for a smaller pilot project without the necessity for a long tender process. Once this pilot project is successfully operating, it could then lead to a re-tender in line with the Ministry's current plan.No certainty againYou can't help but think a third party is in the pipeline for this project who have only come about since the original tender closed...why has it taken so long and surely both companies who tendered would have known they were not compliant when they tenderedAll very strange

[adorling] 15/2/2018 11:53

Looks like the Botswana Ministry of Mineral Resources have used a copy and paste for their original tender document. I have no doubt TLOU will become the major provider of CBM to Botswana as it is critically short on cheaper energy than Diesel imports. They need this to work which it will for both parties. Ignore the lemmings jumping of the cliff and sit tight!

[bountyhunter] 15/2/2018 11:51

the prospective timeline has been extended but shouldn't take too long to get "a smaller pilot project without the necessity for a long tender process" up and running assuming this route is agreed

[ginko3] 15/2/2018 11:41

Its only a 'tender governance ' issue no biggie although it does just add uncertainty into the timelines.

[the deacon] 15/2/2018 11:38

Long way to fall for this one

[mr.oz] 15/2/2018 11:36

Too much uncertainty and everything to renegotiate with no guarantees that anything will change from today very quickly. Can see why this is being hammered

[ginko3] 15/2/2018 11:33

Don't understand why this is being taken negatively, a smaller pilot project would surely give TLOU an advantage over the other bidders and put it into a position whereby it could later satisfy all the compliance conditions . . sure there is a delay but then the timelines were never set in stone anyway.

[bountyhunter] 15/2/2018 11:27

from the RNS just out...

"...The Company received correspondence this week that the tender has been cancelled and met with the Ministry to understand why the original tender was cancelled and how a proposed re-tender would be conducted. This was a constructive discussion with engagement from the Ministry as to how best to address their concerns with the original Tlou tender.

The Ministry outlined that neither of the bids received had met their compliance requirements and detailed the areas where bids were non-compliant. The non-compliant areas were discussed, and it was clear that most of them could not be complied with, as the requirements could only be met by a party that was already in commercial operation.

Following the meeting, the Company believes that the Ministry is amenable to amending the tender document as required. The Company will write to the Ministry this week to respond to all compliance matters raised. The Company will also suggest that the Ministry consider establishing a separate process for a smaller pilot project without the necessity for a long tender process. Once this pilot project is successfully operating, it could then lead to a re-tender in line with the Ministry's current plan.

The Company is confident that a favourable outcome can be achieved due to the good working relationship with the Ministry and the eagerness on both sides to get the CBM industry up and running in Botswana.

Alongside this process, the Company will continue its efforts of connecting to the Botswana power grid and securing other off-takers regionally, who can be supplied via the South African Power Pool."