Yup, 'ol Nick always talking it up - I wish he could execute gas production as well as he can talk. KKO seems to always be shooting themselves in the foot through underdelivery and poor management choices.
Firstly they partnered with FFS Refiners, a heating oil distributor, with no LNG capabilities. They are also a liability with KKO's potentially biggest customer, ESCOM - as Sunday World 27 September 2021 points out; "Mkhuseli Faku, chairperson of one of Eskom’s biggest suppliers of fuel oil for its coal-fired power stations, has been caught in a double-dipping scandal with the power utility also caught napping on how it scrutinizes its suppliers.Faku is the chairperson of FFS Refiners, one of the largest suppliers of industrial heating fuels in South Africa. FFS Refiners is majority-owned by Faku’s investment vehicle, Calulo Investments.. . . Eskom’s spokesperson Sikonathi Mantshantsha said Eskom had not been aware of any relationship between FFS Refineries and Kepu.“This was brought to Eskom’s attention by Kepu on the afternoon of 8 September 2021, in a letter to Eskom advising of Kepu’s intention to withdraw its tender on a transaction that is under evaluation. This was less than an hour after Eskom received an enquiry from a newspaper last week on this alleged relationship, he said".
Then they partnered with Vutomi Energy, some sort of two-bit startup that grabbed the generating module part of the ill-fated apartheid Karbochem synthetic rubber factory, and who were obviously incapable of developing a new facilities - thank goodness the Vutomi deal has fallen through.
The Sproule Reserves report is endlessly overdue and becoming obsolete by the minute as they make gas discoveries while waiting for it. Why not just issue the report already?
Their other gas production partner is the mysterious Gruner Energy group which does not list any completed projects on its website, but shares the same name as a big Swiss Consulting firm - is it the same organisation?It better be.
Sasol is right on their doorstep, and has the resources and capability for producing gas - they already participated in the Pande and Temane gas fields with a 120MG/annum processing facility and 900km pipeline in Mozambique.For goodness sake Nick, stop buggering around, dump all the two bit partners and make a deal with the elephant on your doorstep!
KKO Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
