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Ncondezi Energy Ltd on Thursday said that initial results from its solar project feasibility study were ‘very positive’.
Despite this, shares in Ncondezi were trading 19% lower at 1.24 pence each at midday on Thursday in London.
Ncondezi is an African power development company focused on the development of renewable and baseload energy solutions at its concession located in the Tete Province, northern Mozambique.
Initial results from a feasibility study into the company's planned 300MW solar photovoltaic power plant show a solar resource of 1,980 kilowatt hours per square metre, while the energy yield was over 2,000 kilowatt hours per kilowatt peak.
Ncondezi said that the solar resource assessment was ‘excellent for the region’ while the energy yield are in line with some of the most competitive grid scale projects in South Africa.
The results also confirmed that there is capacity in the Mozambican grid and more than one feasible solution for the power to be transferred to the grid. The next phase of the study will attempt to confirm the transmission solution.
The feasibility study for is on track for completion by the end of October.
No red flags were identified on its target plant sites nor on its Environmental and Social Impact assessment. The company confirmed that the target of first power by 2024 is achievable.
Pre-feasibility studies completed earlier in the year confirm significant potential value to shareholders with an estimated pre-money net present value between $60 million and $65 million, and fully diluted cash flows to Ncondezi of between $130 million and $180 million over a 25-year period for a 300MW plant.
Ncondezi Chief Executive Officer, Hanno Pengilly said: ‘Initial results from the Solar Project Study are very positive, confirming the project's excellent location for solar generation with no red flags identified.
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