Rurelec sinks on liquidity concerns
25/01/2023 09:14
** Shares of power producer and developer Rurelec RUR.L
down as much as 27% at 0.4p, their lowest levels in 10 months
** Co says its liquidity position will become acute during
Q2
** Rurelec says it has not received anymore cash from
Argentina, and now has 400,000 pounds ($493,080.00) in its bank
** Says it expects current cash burn to provide sufficient
working capital to the company until Q2 of 2023
** Co says it does not have the flexibility to access equity
capital markets for funding, and hence, will not be able to
raise working capital on reasonable terms
** Rurelec is in talks to agree heads of terms with an
overseas counterparty to dispose of the co's ultimate interest
in EdS in Argentina
** Co has a majority interest in Energia del Sur, S.A.
("EdS"), which owns and operates the 136 MW Southern Patagonia
CCGT power plant in Argentina
** As per last close, stock up 10% YTD
($1 = 0.8112 pounds)
(Reporting by Sinchita Mitra in Bengaluru)
((Sinchita.mitra@thomsonreuters.com))