Long time since I last posted so figured it was about time... for what it's worth my thoughts are as follows:
I'm actually quite optimistic as we have a few price catalysts pending:
Our last update indicated the next update will be 18 May unless there is something to ann prior. Therefore I'm not expecting news until next month, however if we do see some sustained interest over the next few weeks it could indicate someone is "knows" either:
1. Finance term sheet approval - last update was: First Rand Bank Limited, was appointed lead arranger and work on a new base case financial model and term sheet has begun based on the recommendations of the Technical Committee. The support that we have received from all members of the debt club continues to be positive and encouraging. We could be close to term sheet approval.
2. IPP proved economically viable - last update was: we are fast tracking the preparation of a bankable feasibility study for the construction of a 260MW independent mine-mouth power station to operate as an approved independent power producer (“IPP”). Should the feasibility study confirm economic viability, construction of the IPP will provide us with optionality with regard to our domestic coal production and an additional revenue stream. The project would also transit the Company from the coal sector to the energy sector. Supply agreements with both the public and private sectors are being explored. -we could be close to BFS being released and/or agreements reached.
3. Richards Bay approval: Discussions with TFR concerning the project’s access to the Richards Bay Coal Terminal are in progress. If these negotiations result in a positive outcome our costs of logistics will be substantially reduced from earlier plans. - positive news on this front would improve the economics on the mine as it would reduce our OPEX.
If we can secure all 3 above, I believe we would be back at multiples to where we are currently trading.. at 4c that's not difficult!
It's been 8 years... what's another 1 !
RES Price at posting:
4.3¢ Sentiment: Buy Disclosure: Held
