Ann: Terms agreed for Boikarabelo CHPP , page-5

Morning. A bit puzzled actually in that they usually wait to release complete news. BUT, it's chicken and egg with the project financers so my assumption is that RES is using carrot and stick 101.....The carrot of the g'tee to drive those discussions ahead, as they have clearly been in a state of near-paralysis for some time now. Financiers need a catalyst to finally commit and the g'tee is it. The stick is the fear of missing out in circumstances where someone else is backing 50% of the credit.

The cost reduction is great news.

And best of all is the Danish govt buying (oops - guaranteeing)the work. Gotta love export credit agencies.

My take is that the g'tee talks would not have been disclosed unless they were confident that it was close. If this doesn't drive finalisation of funding then I'm afraid nothing will. Finally, as far as raising $ is concerned things are still dreadful out there. Absolutely terrible. Worst I've seen them. So once again I think this is quite a coup. The usual detractors will conclude otherwise but some people are hard to please.

In terms of share price appreciation, I still think we're some ways off yet. The sector is still hated. As I said last post, why take risk and uncertainty (and no dividends) when you can buy a bank and get amazing returns? I'll be getting some more just as soon as I can as I think I'm capable of looking more than 6 months ahead (or at least I hope I am).