Ann: India Coldry Project Receives Positive Overseas Ruling, page-135

It’s good to see something go ECT’s way for a change.

My opinion on today’s announcement is that it is of significant importance in the progress of the India Project. To explain this I have always thought that ECT’s ability to fund the $10m slice of the project has presented a significant risk to our partners, and personally, I have always been sceptical as to why our partners would enter a deal with a party that is at the time unclear about their ability to satisfy contractual financial obligations. Sure enough Res 6 has been sitting in the background, but let’s be realistic, it was not the preferred option from any of the three parties involved in this project. Further to this, working with a partner who has a preferred option financing plan that contingent on a tax ruling is not the biggest confidence builder.

I’m only speculating on the feelings of our partners, however as of today, it really doesn’t matter as it is all irrelevant. ECT received a positive ruling and will now proceed with their first option.

To focus on what today’s announcement will mean going forward, my thoughts are on future rulings, progress of the MPA and potential benefits stemming from the latest delay.

Regarding future rulings, I don’t think there would be many out there that would care to debate the likelihood of a positive Mator ruling. A ruling which I might add we should be seeing in the not-too-distant future as ECT anticipate the “review will take no more than a few months”. Being a long term holder of ESI/OB I won’t hold my breath on this happening after a few months but I am confident it will happen.

As I highlighted in the above, I struggle to understand how our two partners could feel 100% confident in going into business with a spec coy from Aus that has some serious question marks above their ability to honour funding agreements. This might not have been a problem but if someone were to tell me it was a problem I wouldn’t be even be slightly surprised. Now the question marks are gone I speculate that the process will start to speed up. Uncertainties have been taken out of the equation so now the cautious ones can get things moving at full steam. This might not be the case at all but to me it makes sense so I guess we will have to wait and see.

Finally what is an ECT announcement without the inclusion of a new delay? The new delay announced today feels a little different from all others so far. I see this one as top Indian Government looking to be perceived as playing a supportive role in the launch of our little tech. It’s like spotting a perfect score group assignment at uni that is due for submission and somehow popping your name on it. The India government are moving in the same direction as ECT, and despite our partners being state owned; there has been little connection between the two. This added review by NITI Aayog creates a connection between ECT and top level government and in my eyes will lead to seriously good things in the near future.

Just on timing of this added review, I can’t see it taking too long. Modi has been working to cut red tape in Indian business so let’s hope he keeps it all going by making this review a quick formality. It wouldn’t make sense to me that he would allow our project to be drawn out any more than it already has.

Again it was finally good to see something go ECT’s way – let’s hope this becomes a trend!



All of the above is in my own opinion and full disclosure I own approximately 7.8m ESIOB.