swooped
02 Mar 2015
Top riser on AIM today Should get them noticed and not surprising really, massively undervalued
Allisfair
02 Mar 2015
another carrot and stick rns hook line and sinkered. meanwhile its a cash generating asset sold for peanuts and more debt to pay off loans.
swooped
02 Mar 2015
Morning Star [link] To Pay Off Short-Term Loan As It Eyes Return To DividendsLONDON (Alliance News)Alliance News 2 March, 2015 | 9
1AMLONDON (Alliance News) - Rurelec PLC saw its shares rise sharply early Monday after it said it will pay off its short term loan agreement with Radix Investment UK Ltd, and would now work towards the resumption of dividend payments.In a statement, the power generator in South and Latin America said its combined loans with Radix are now GBP550,000 and will be repaid on March 31 from the USD6.5 million proceeds Rurelec expects to get for the contracted sale of a controlling equity stake in its Canchayllo hydroelectric plant in Peru.Rurelec has also agreed with Radix not to issue the 16.8 million warrants to subscribe for new shares in Rurelec at an exercise price of 7.3 pence per share that the parties agreed last December. The company will also pay IPSA Group PLC from the proceeds of the plant stake sale.Last December, Rurelec got a GBP3.05 million short-term loan agreement from Radix, allowing it to make a final payment to IPSA for the two gas turbines that Rurelec bought for its Illapa generation project in Chile. The Radix facility had been due to run until the end of March.The company has had a tough few years since its Bolivian assets were nationalised. It has been working on building its asset base elsewhere in South and Latin America through partnership agreements. It hasn't paid a dividend since its 2007 financial year."Our partnership negotiations are finally producing signed contracts. Rurelec has always intended to work in 50:50 partnerships in Latin America, as we have since our flotation in 2004, and that 50:50 policy continues with the exception of hydroelectric plants where our target has always been to own no more than 20 per cent of any one plant. This policy allows us to maximize our involvement with the minimal cash investment per plant," Chief Executive Peter Earl said in a statement."We never intended to have so many greenfield developments on the go at any one time but that policy was forced upon us by the 2010 nationalisation of our Bolivian power plants, which were the main cash generators for the group. We are now building new capacity to replace lost megawatts and we are successfully selling down stakes as we always planned to do. Radix has helped us to achieve our goals. The next step will be to conserve cash on our balance sheet in anticipation of a future return to dividends," he added.The company said the highly-anticipated Proinversion large hydro tender process for the award of new capacity contracts has now started in Peru and Rurelec's wholly-owned Santa Rita project is expected to participate.While the award of power purchase agreements under the tender isn't expected until the end if 2015, the release of official tender documents has allowed Rurelec's investment bank adviser to put a firm timetable in place for the selection of a partner or partners to subscribe new equity at the project level. It said participants in the partner selection process includes large regional electricity utilities, private equity funds and Asian multinationals. Rurelec expects to pick preferred partners by May.In Chile, meanwhile, Rurelec's preferred partner for the purchase of a stake in the Illapa project has received investment committee approval to proceed to detailed binding agreements for the acquisition of a 50% stake in the project. The offer values the equity of the Illapa project at USD60 million, Rurelec said.In Argentina, the company said it continues to work on a transaction intended to release and repay in US dollars the bulk of the company's project loans to its Energia del Sur combined cycle gas turbine power plant. It said Energia del Sur continues to perform well and remains one of the highest avai
TheGreatGame
02 Mar 2015
Re: So pleased .... Good update.Well done LB, GFDLooks like you were right to be positive here.
Leicesterboy
02 Mar 2015
Re: So pleased .... I think PE stated that he only wanted to keep 20% of Hydro Projects and 50% of other Power generation projects, not sure much has been spent on Santa Rica by RUR but plenty spent on Illapa 2 Gas Turbines at £16 million for starters, but he did say he expect to get in excess of NAV for assets, one thing for certain is that RUR are in safe hands, and on the road to a significant recovery plus we also have Independent Power !Great to see 36% today I can afford a beer tonight.LB
swooped
02 Mar 2015
Re: So pleased .... Seems reasonable gfd
Wout
02 Mar 2015
Re: So pleased .... Been following this one down from 10 p and finally bought in. If only for some excitement in my portfolio. Need to read the news more carefully as dont understand all of the impact but nice to be investing in something a bit more wacky,Not sure institutions will buy in - this share is probably too small for most investment houses. Any decent chunk of shares will move the share price a lot.
Leicesterboy
02 Mar 2015
Re: So pleased .... Hi Swooped so is Sterling's nearly at 9.6 pence per share looking at that for first base mind you I have some at 12 pence but bought 1500000 over last few weeks which makes me feel a whole lot better than I did on Friday after I bought 50000 at 3.14 pence I might actually make a Profit on this Share.LB
goodflyingduck
02 Mar 2015
Re: So pleased .... Time, now, is pressing for me so I'll do the research this evening but I have it in mind that the long-term holders here had more or less settled on a sp of 13p some time ago. Anyone have a note of that ?Surely, a return to Dividends will see us there.GFD
swooped
02 Mar 2015
Re: So pleased .... And don't forget the most important point here as the sp rises, there will be no shareholder dilution and a return to dividends will allow th funds to start buying in. Always knew Rurelec had a bright future and this is imo only the start, PE didn't buy 7 million shares for nothing and I think his average is in double figures!
goodflyingduck
02 Mar 2015
Re: So pleased .... Yes, you're perfectly correct swooped. I'm going to leave the maths to the mathematicians hereon in. The sp's up 32% at the moment and I hope it continues to rise such that the increase alone draws attention. GFD
swooped
02 Mar 2015
Re: So pleased .... GFD I think you seriously undervalue Santa Rita, remember the $30 we will receive for Illapa is for only a 50% stake, Illapa is 256MW. Santa Rita is 255MW so would be worth at least the same $30 million for 50% not 80%, I also believe that SA has the ability to be increased in output.We also have 40MW at Arica. I am also not making the assumption that the sale of the Canchayllo was 80%, PE really needs to give a clear steer on this but I would expect it would only have been what is required to get to financial completion.My view is this is worth way in excess of 10p unless you want to value the company only on assets alone and not forward potential, income or dividend creation. 10p in itself would be hugely undervaluing the company as a going concern.Additionally, current shareholders that understand the company will do very very well out of this RNS and moving forward, as the detail needs to be understood thus why such a chance to still get in at a low price, its not like an oil company that just releases news on a well and you either know if a high api is good or a reserve value is good or the number of barrels produced. To understand how good some of these deals are for Rurelec you need to understand the company, give this a few days for the analysts to cast their slide rules over this and we will start to see a re-rate imo.
alltold9
02 Mar 2015
Re: So pleased .... Looks an amazing turnaround to me. Good old days returning.
Allisfair
02 Mar 2015
3p by wednesday then? once the fluff dies down.
Allisfair
02 Mar 2015
lol...30 mil of equity...not cash...30 mil of debt....honestly
