Rolling blackouts are a thing of the past, the ANC has so...

First 47 Last

Share
Profile

Follow
pitman

1,113 Posts.

13/01/17

01:29

Post #: 21863882
Share

Originally posted by robmillion ↑

RES received credit-approved offers of project finance in March 2013 but PJ rejected them as being unacceptable to the company. At the same time, PJ was jumping into bed with Noble by way of off-take contracts, $100M+ loan facilities and a substantial shareholding in RES. Because the finance offers were rejected, the resulting 2013 cap raise brought PIC & Altius on board. In a strange twist of events, it would ultimately be PIC, Altius & Noble that ousted PJ in order to install their own representatives to the board and gain full control of the project.

In retrospect, PJ should have accepted the credit offers in 2013 and today Boikarabelo would be in production. Ironically, we lauded PJ at the time for playing hard ball with the debt club in the name of preserving shareholder wealth. I wonder how much influence Noble had over PJ in making his decision to reject finance?

Having painstakingly watched this story unfold over the past decade, first as a shareholder and now as a spectator, I am becoming increasingly skeptical of the current Board's motives and future intentions for Resource Generation as a publicly listed company.

Admittedly, Boikarabelo is a huge project, but for a country in the midst of an electricity crisis where 'load shedding' and 'rolling blackouts' are becoming the norm, you would think that a massive, low-cost coal mine with all regulatory approvals in place and close to existing rail networks and water sources would be a top priority.

Expand

Rolling blackouts are a thing of the past, the ANC has so shattered the economy that demand is down.
The rail line close to RES can carry about 3million tons per annum, very little upgrade has been done, Exxaro use all this to transport coal to Richards bay for export or to the SA steelmills for coke oven feed.

The water supply pipeline is still under feasibility study and earliest for construction 2021.

I don't see any new coal production out of this coalfield for the next 4 to 5 years.

RES Price at posting: 9.1¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

Reply

Top Stories

FHE

Frontier Energy achieves key milestone for Waroona energy project

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

STX

Strike Energy secures $153 million for Perth Basin gas projects

EMD

Emyria's Empax Centre chosen for mental health clinical trial

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

BRX

Belararox delineates another porphyry in Argentina at Tambo South