Working Capital Extended & Seritza Loan Update
29/03/2022 07:00
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RNS Number : 2652G Ncondezi Energy Limited 29 March 2022
News Release
Working Capital Extended & Seritza Loan Update
29 March 2022: Ncondezi Energy Limited ("Ncondezi" or the "Company")
(AIM:NCCL) provides an update on the integrated Ncondezi 300MW power project
in Tete, Mozambique (the "Project") and the working capital facility term loan
("Loan") with Seritza Limited ("Seritza").
Highlights
· Seritza has confirmed that it will extend the period in which it
will not call in the Loan to 29 April 2022, whilst restructuring discussions
are still being finalised (the "Restructuring")
· Cash conservation strategy implemented potentially extending
working capital runway from August 2022 to Q1 2023, depending on the
Restructuring outcome
· China Machinery Engineering Corporation ("CMEC") has initiated
discussions with potential financiers for the Project not affected by the
Chinese Government's statement on financing coal projects outside of China
Ncondezi Chief Executive Officer, Hanno Pengilly said: "The Chinese
Government's position on financing coal power projects abroad remains unclear
at this stage. Regardless the Company continues to work closely with its
strategic partner, CMEC to identify a solution to move the Project forward,
including engagement with potential private project financiers in China and
elsewhere in the world who are not restricted by the Chinese Government's
position. In parallel to this, the Company is reviewing alternative
opportunities at the Project's site, utilising existing works that could
unlock additional value to shareholders whilst not affecting the main Project.
The Board remains fully committed to identifying a solution to break the
current Project deadlock.
The Company has held Project update meetings with Electricidade de Moçambique
and the Mozambique Ministry of Mineral Resources and Energy during the
quarter. Following the appointment of a new Minister for Mineral Resources
and Energy in March we now expect progress on finalising the Project's
transmission integration to be made during Q2.
A cost conservation strategy has been implemented by the Board and it is
expected to extend the Company's cash position into August 2022. Should the
Company be successful in its Restructuring discussions with Seritza this could
potentially be extended to Q1 2023.
The Company will provide further updates at the appropriate time"
Enquiries
For further information please visit www.ncondezienergy.com or contact:
Ncondezi Energy Hanno Pengilly +27 (0) 71 362 3566
Scott Mathieson, Edward Thomas, Kane Collings +44 (0) 20 3100 2000
Liberum Capital Limited
NOMAD & Joint Broker
Novum Securities Limited Colin Rowbury +44 (0) 20 7399 9427
Joint Broker
Elizabeth Johnson +44 (0) 777 56 55 927
Pimlico Advisory Ltd
Investor Relations
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon publication of this
Announcement and such information is now considered to be in the public
domain. The person who arranged for the release of this announcement on behalf
of the Company was Hanno Pengilly.
About Ncondezi Energy
Ncondezi is an African power development company with an advanced staged,
integrated 300MW thermal coal power plant and mine project located in the Tete
Province, Northern Mozambique.
The Company is focused on providing reliable, affordable and accessible
baseload energy to Mozambique and secure against the effects of water drought
and intermittency of new renewables. This project supports Mozambique's energy
strategy of universal electricity access by 2030. According to the World Bank,
only 30% of the Mozambican population had access to energy in 2017. The
Ncondezi Project would provide 300MW of reliable and available power helping
to close the infrastructure gap of the region and serving as a catalyst for
economic development.
The power plant will be designed to be equipped with state-of-the-art
emissions controls technologies that will reduce local air pollutants,
minimizing the plant's impact on the environment and ensuring its compliance
with the most stringent emission standards
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