Tlou Energy Limited ready to press on with power line construction says broker
“Tlou has clearly outlined its key objectives and we see excellent scope for important share price catalysts in the weeks and months ahead”
Tlou Energy Ltd’s () house broker Shore Capital has published a revised net asset value estimate of 7.4p (20p) for the Botswana-based power group.
“Our valuation nonetheless implies ~170% upside, so we see considerable running room if Tlou delivers anticipated news flow.”
The commercialisation of Tlou’s flagship Lesedi power project has clearly taken time says the broker, but having raised £2.6m of new equity in March, it is now positioned to press on with transmission line construction.
The “poles and wires” are a critical item of infrastructure and, with the transmission line scheduled for completion around the middle of next year, Shore estimates first power sales can be achieved at the beginning of calendar year 2023.
There is much to do in the meantime, including finalisation of a project financing package across two phases and a 10MW power purchase agreement (PPA) to facilitate expansion beyond the initial pilot scheme.
“However, Tlou has clearly outlined its key objectives and we see excellent scope for important share price catalysts in the weeks and months ahead,” said Shore.
Read More: Tlou Energy Limited ready to press on with power line construction says broker