Ncondezi Energy Ltd (LON:NCCL)

Ncondezi Energy Ltd (LON:NCCL)


Share Price
8.25 p
Change
1.2 (17.02 %)
Market Cap
£26.69 m
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Ncondezi Energy Ltd

Ncondezi is a power development company with an integrated thermal coal power plant and mine project located on the Ncondezi licences in the Tete Province, Northern Mozambique. 

The power plant project will be developed in phases of 300MW units, up to 1,800MW. The first 300MW phase ("300MW Project") will use existing transmission capacity to meet current demand on the Northern Grid in...

EPIC: NCCL
Market: AIM:NCCL
52-week High/Low: 10.300p / 3.290p
Sector: General Mining - Coal [T3]
Market Cap: £26.69 m
Website: www.ncondezienergy.com
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Big Picture – A Deep Dive Examination of Ncondezi Energy Ltd


Ncondezi Energy Ltd Snapshot

Strategy

Ncondezi Energy is focused on the phased development of its large scale, long life, integrated thermal coal mine and 1,800MW power plant project which it believes offers the most achievable and financeable route to production.

300MW Project

The first phase of development is a 300MW integrated mine and power plant project (“300MW Project”) that will use existing transmission capacity to meet local demand in the North of Mozambique. This scenario maximises Ncondezi’s control of project delivery in a reasonable timeframe and is not reliant on the development of third party infrastructure projects.

The 300MW Project has unique advantage over other potential power projects in the region as it is solely dedicated to meeting Mozambican demand, it is scalable in 300MW units ultimately to 1,800MW, it is close to existing transmission infrastructure with available capacity and, perhaps most importantly, it is not dependent on the development of rail and port infrastructure projects.

Aligned to Government Strategy

The 300MW Project is closely aligned to the Mozambican Government’s stated objective of accelerating the electrification of the country and increasing access to electricity as the country is only 20% electrified. Mozambique currently has the largest percentage demand growth in southern Africa, forecast to grow by 2000MW over the next 10 years. Over recent years the southern Africa power sector has benefited from increasing de-regulation and an upward trend in electricity tariffs, which have increased by up to 50% in the region as a whole and by 10.3% in Mozambique over the past two years, driven by a growing shortfall in generating capacity and continually increasing high demand.

Development of Export Product

Production of an export thermal coal product and associated capital expenditure will be initiated only when rail and port infrastructure in Mozambique is sufficiently advanced. This approach has the dual benefit of an expected reduction in the start-up capital outlay for the mine and reduces Ncondezi’s reliance on third party rail and port infrastructure development for project operations to begin.

Since initiating the Mine DFS in Q3 2010, the macro-economic environment has changed considerably with capital constraints for mine development projects and the weakening of seaborne thermal coal prices. The developing coal basin around Tete has not been immune to these changes and the large, capital intensive export rail and port infrastructure projects primarily for coking coal projects are developing more slowly than originally envisaged.

PROJECT OVERVIEW

Ncondezi is developing an integrated thermal coal mine and 300MW power plant, located in the Tete Province of Northern Mozambique, to supply electricity to the Northern Grid. The project is approximately 85km from the existing power transmission grid.  The Company is targeting commissioning of the power plant in H2 2017 and commercial operations in H1 2018.

The Ncondezi Project has gained significant momentum since signing the Power Framework Agreement with the Government of Mozambique in April 2013, with the granting of a Mining Concession, approval of both the mine and power plant Environmental Social Impact Assessments and the signing of the Coal Supply Agreement Heads of Terms and the Power Purchase and Transmission Agreement Heads of Terms. The Power Purchase Agreement and the Power Generation Concession are anticipated in Q3 2014, with project close targeted by the end of 2014.

The development of the Ncondezi Project will see a substantial investment into the Tete Province, generating domestic revenue streams, stimulating regional development, creating employment opportunities and strengthening and diversifying the country’s production base.

Location:

Project Map_November 2013
 

BOARD OF DIRECTORS

Michael Haworth

Michael Haworth

Non-Executive Chairman

Michael Haworth was been appointed to the Board as Non-Executive Chairman in June 2012. He is a Non-Executive Director of Zanaga Iron Ore Company and is a director of Strata Limited (“Strata”), a major shareholder of the Company.

Mr Haworth has over 12 years' investment banking experience, predominantly in emerging markets and natural resources. Prior to establishing Strata in 2006, Mr Haworth was a Managing Director at J.P. Morgan and Head of Mining and Metals Corporate Finance in London.

 

Jacek Glowacki

Jacek Glowacki   

Non-Executive Director

Jacek Glowacki has over 30 years of international experience in the power sector and is currently Chief Executive Officer and Chairman of the Board of Polenergia Group, a Polish Independent Power Producer (“IPP”) and a subsidiary of Kulczyk Investments S.A., a major shareholder in Ncondezi.

During his career, he has held senior executive positions at Kulczyk Investments, AEI Corporation (USA), Trakya Elektrik (Turkey), Prisma Energy Europe. Mr. Glowacki’s operating experience includes General Manager of the Nowa Sarzyna, which was owned by ENRON and Chief Production Engineer at Cracow Combined Heat and Power Plant, owned by EDF. He holds a degree in engineering from the University of Mining and Metallurgy in Cracow and an MBA from the University of Chicago.


 

Picture to come

Aman Sachdeva

Non-Executive Director

Aman Sachdeva was appointed to the Ncondezi Board on 21 May 2015 and brings a wealth of experience having spent more than 20 years in the infrastructure industry, specializing in the energy sector; ranging from project finance, management consulting, regulatory affairs, mergers and acquisitions, power system planning, energy conservation and marketing. Mr Sachdeva is currently the founder and Chief Executive Officer of Synergy Consulting, an independent consulting practice with a focus on project finance, which has to date closed projects worth US$12 billion.  Mr Sachdeva is also an advisor to the World Bank, Energy Sector for Central Asia, South Asia and Africa on a variety of projects. 

 

Estevao Pale

Estevão Pale

Non-Executive Director

Estevão Pale has more than 30 years' experience in the mining industry. He is currently the Chief Executive Officer of Companhia Mocambicana de Hidrocarbonetos, S.A., a Mozambican natural gas company. Between 1996 and 2005, he was the National Director of Mines in the Republic of Mozambique’s Ministry of Mineral Resources and Energy, where he was responsible for the supervision and control of mineral activities as well as the formulation and implementation of the mining and geological policy.

Mr Pale has been a director of numerous companies in the mining sector including Promaco SARL and the Mining Development Company, as well as the General Director and Chief Executive of Minas Gerais de Moçambique. Mr Pale has a postgraduate diploma in Mining Engineering from the Camborne School of Mines, and a Masters degree in Financial Economics from the University of London (SOAS). He completed a course in Gas Business Management in Boston at the Institute of Human Resources Development Corporation in 2006.
 

SENIOR MANAGEMENT

 

 

Hanno Pengilly

Hanno Pengilly

Chief Development Officer

Hanno joined Ncondezi in early 2010, just prior to listing, where he has been responsible for corporate development as the Company has grown from a coal exploration company into an emerging power development company.

He is currently leading the Company's strategic partner search. Prior to joining the Company, he was an investment banker at JP Morgan, based in the United Kingdom and South Africa, and predominantly focused on natural resources. He holds a BSc in Economics.

 

SIGNIFICANT SHAREHOLDERS

 
Shareholder Shares       Percentage
Africa Finance Corporation 54,988,520          17.17%
Polenergia International Societe A Responsabilite Limitee* 29,111,719          9.09%
Scott Fletcher 19,353,428          6.04%
Michael Haworth** 16,759,462          5.23%
           
* Jacek Glowacki NEL's non-executive director is executive director of one of Polenergia's group subsidiaries
** Michael Haworth holds 3,649,329 shares in his own name and 13,110,133 through a trust

 

CONTACT US

General enquiries:

[email protected]

 

aDVISERS

Nominated Adviser and Broker
Liberum Capital Limited
Ropemaker Place
Level 12
12 Ropemaker Street
London EC2Y 9AR
United Kingdom

Broker
Novum Securities Limited
8-10 Grosvenor Gardens
London SW1W 0DH
United Kingdom

Registrar
Computershare Investor Services (BVI) Limited
Woodbourne Hall
PO Box 3162
Road Town
Tortola
British Virgin Islands

Depositary
Computershare Investor Services plc
The Pavilions
Bridgwater Road
Bristol BS13 8AE
United Kingdom

Auditors
BDO LLP
55 Baker Street
London W1U 7EU
United Kingdom

Legal (UK)
Berwin Leighton Paisner LLP
Adelaide House
London Bridge
London EC4R 9HA
United Kingdom

Legal (BVI)
Ogier
41 Lothbury
London EC2R 7HF
United Kingdom

Enviromental & Social
Impacto Av. Mártires da Machava, 968
Maputo, Mozambique

CONTACT US

General enquiries:

[email protected]

 

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