re: Ann: KEN: GDY: Geodynamics Takeover Offer... So at last it has happened, Geodynamics’ take over Kuth Energy as a subsidiary. It implies that GDY is very serious about developing Pacific island projects and that the Savo Is project is not just a stop gap measure. These are all smallish projects with power demand in the range of 4 to 30 MW but with the consumers near at hand as distinct from the Cooper Basin. GDY is at a stage where it definitely needs sources of revenue. The local people will not initially create a high per capita demand although the elimination of diesel generators should reduce charges considerably, so that night lighting and use of electrical household items could ramp up signficantly.
Technically, these projects are also highly do-able but getting all the regulatory approvals on a reasonable timescale is a nightmare, as Kuth Energy has found out. In one sense it seems a pity that Kuth was so close to commencing actual construction on Vanuatu that it now misses out on the kudos for having achieved great things on a shoestring.
One wonders which was the stick that broke the camel’s back? Was it further approval delays, did a potential funder walk away, did the Kuth CEO come to realise that he could get proper salary paying job elsewhere? It is also possible of course that he could stay on as manager of the Kuth subsidiary. He is a very capable and experienced person and could be most useful to GDY in Savo Is negotiations as well as in seeking international development bank funding. The name, Kuth is familiar to the Vanuatuans as also is David McD personally so that consistency would be something to strive for.
(The Kuth AGM on 3rd Oct may provide some further enlightenment.)
Juke
RNE Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held
