Positive 2015, page-22

Drawing on the recent share price decline (from a closing of 44.5cents to today’s 38 cents) a few observations may be pertinent:
1. Shorting has recently increased (reaching up to 50% on some days). Such action may, at a first glance, be counterintuitive, but may also indicate that the shorters know only too well, that ‘their days are numbered’, given the following recent developments:

A. PalmTrees’ reference to DownstreamToday’s 21 April, 2015 article highlights firstly, and most importantly, that the Philippines Department of Energy believes that the first 200MW turbine will be operational by the end of 2015 or early 2016 and, secondly, that an Australian Energy consultsant believes, in his words, that “this [EWC] project appears to be real.” He said that the LNG storage and regasification facility is nearing completion and the power turbines are reportedly already on-site. “First production is expected as early as Q4 2015 and the plant could be fully operational (at 650MW CCGT) by mid-2017,” he said.

B. On 28 April, 2015the Capital Group purchased a further 18million shares in an on-market share purchase;

C. EWI’s proposed $25million working capital loan facility (as per the recent half yearly report) should be close to being finalized (ie. ASX announcement).

D. $550million Phillipines Development Bank loan would need to be finalized within the next few months, given the DOE assessment as to the operational commencement date of the first 200MW turbine.