Conference Call Highlights
Oracle Power Plc / EPIC: ORCP / Market: AIM / Sector: Mining
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Conference Call Highlights
Oracle Power PLC, is pleased to announce highlights from the conference call with shareholders held on 7 April 2020 . Due to the poor audio quality of the call the full recording is not being posted on the Company's website.
During the conference call, Oracle CEO , Naheed Memon , discussed various aspects of the Company's strategy and reflected on questions shared by investors.
Some of the key discussion points of the call along with additional context are set out below:
· Q1 2020 has seen solid progress and the various workflows continue to be advanced despite the temporary slowdown necessitated by the travel and work restrictions caused by the COVID-19 pandemic
· The Letter of Intent ("LOI") application was submitted in March 2020 to the Private Power and Infrastructure Board. Progress continues to be made within the relevant Ministerial departments and approval is still targeted in the current quarter ahead of the next Joint Coordination Committee meeting . The issuance of the LOI will be a major step in the development of Thar Block VI and would confirm the Government of Pakistan's commitment to purchase power from Thar Block VI.
· The Shareholders Agreement between Oracle and its partners ( China National Coal Development Company Ltd. and the private office of His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum) is also expected to be finalised in the current quarter. This will define, amongst other things, final ownership of the project and the path to Financial Close (being when debt and equity financing agreements are finalised) .
· Upon receipt of the LOI and finalisation of the Shareholders Agreement, the constituent parts are then there to achieve Financial Close with a clear pathway set and standard documentation to follow, with all project debt to be sourced by China National CoalDevelopment Company Ltd. in the ensuing period. It is also important to note that the necessary permitting milestones and approvals run in parallel to Financial Close and as such the vast majority of funds from Financial Close are not required until the ultimate construction phase.
· Whilst it is difficult to give a timeline for Financial Close given the many constituent agreements required to be finalised the CEO provided a conservative timing to Financial Close of anywhere between 12 to 18 months, in part driven by the global uncertainty around COVID-19. However given the prominence of the project within the China Pakistan Economic Corridor, the public displays of governmental support within Pakistan,and the financial wherewithal of the Company's partners, developments could happen considerably quicker following finalisation of the Shareholders Agreement.
· The Board is confident in its ability to effectively finance its participation in the project during the development phase - with the majority being planned in debt to minimise dilution to shareholders.
**ENDS**
For further information:
|
Oracle Power PLC Naheed Memon |
+44 (0) 203 580 4314 |
|
Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Jack Botros |
+44 (0) 20 7409 3494 |
|
Brandon Hill Capital Limited (Joint Broker) Oliver Stansfield |
+44 (0) 203 463 5000 |
|
Shard Capital (Joint Broker) Damon Heath Isabella Pierre
St Brides Partners Limited (Financial PR) Susie Geliher Catherine Leftley |
+44 (0) 20 7186 9952
+44 (0) 20 7236 1177 |
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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