Golar LNG Limited (“GLNG”) builds, owns, and operates marine infrastructure for the liquefaction and regasification of LNG. It currently owns 2 out of 5 existing FLNG ships in the world, which posits it perfectly for the projected LNG deficit in Europe.

Floating liquefied natural gas vessels (FLNG) have been designed to facilitate the production, liquefaction, and storage of natural gas at sea. If you have a producing well at sea, you can add an FLNG vessel and liquefy the gas for transportation on the sea.

Golar LNG is both a short-term and long-term investment opportunity:

• In the short term, the company should re-rate with the delivery of the second FLNG vessel, which is scheduled to deliver in this quarter ( in September), and in 1Q24, it should start its 20-year contract with BP.
• The market pricing indicates that this may not be fully reflected in the share price. The 2024 revenues and profits should double by the delivery of the vessel. Historically, GLNG was trading around 8-10 times EV/EBITDA. It trades around 8 now on 2023 projections and around 5 on 2024 projections. It indicates that 2024 is not fully reflected in the share price.
• The short-term trading opportunity is supported by the 150 million USD buyback and by the fact the company just announced its first dividends in 5 years. The yield is 5% now, and the dividend size may increase with the increased profits next year due with the operation of the second FLNG.
• GLNG is a long-term attractive play as well. Due to the Russian war, Europe is now dependent on LNG. That dependence will drive demand for FLNG. Golar is planning to add more ships. It already bought one vessel for conversion, and two other projects are assumed by the brokers.
• The second ship delivered this year is not in the price, and the additional vessels are not priced at all. Golar is the global leader in FLNG and should be the beneficiary of the LNG demand.

We are long GLNG, and our entry price is around the current share price.

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

Q2 are seasonally the weakest quarters for Linkfire. Despite that the company delivered strong – its best Q2 ever, +25% above 2Q22. Other metrics show strong improvements on all levels.

Linkfire produces the best investor materials in Scandinavia. See yourself:

Linkfire’s one slide summary of 2Q23:

Linkfire two minutes video summarising the business and 2Q23:

Linkfire 2Q23 resources (webcast, presentation, detailed report)

https://bio.to/LINKFI_IRLI

Why we like Linkfire:

• Dominates one global business segment – smart links for sharing music on social media. All global music stars use Linkfire.
• All major music streamers work with Linkfire (Apple, Spotify, Youtube…)
• Linkfire just announced it is entering a new business segment. It enters in partnership with Apple Podcasts. The new segment is not priced in.
• Linkfire is growing strongly – 56% last year. Our base case is similar growth rate this year

• Creative management – we are one of the top five investors. We talk to Linkfire management regularly. They are very strong.
• The CEO of Band Lab became 4th largest shareholder in Linkfire. Band Lab is the largest a online Cloud Digital Audio Workstation tool for creating music with over 60 million users, including professionals like Dr. Dre or Jay-Z.
• Profitability is the main goal for 2023. With the current cost base, the revenues need to grow only by 22% above 2022 to reach profitability.
• After partnering with Amazon Music and Apple Music, new majors partnerships should be announced in 2023.
• Linkfire is cheap – Linkfire is 80% down from its IPO. It trades at 1.7xRevenues. It should trade at least 5 times.
• Plan to realise the value – the company talks about delisting from Sweden and IPO in the US to achieve a higher valuation.

We think the biggest opportunity for this year would be to look for solid companies, whose share price was beaten up severely last year. Linkfire is the best example of such investment case.

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Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

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Mintra delivered strong organic growth to post the highest revenue quarter. Mintra has very good acquisition track record – its past acquisitions played very well. The latest acquisition of Seably announced a month ago together with strong organic growth may cause revenues to almost double in H2 23vs22.

Mintra also announced a capital raise of about 20% of equity fully underwritten by the two largest shareholders placed at 5% above mkt price to finance the acquisition. The two largest shareholders will increase its position to potentially 60%. They currently own 42%. The two shareholders mostly own privately held companies. Both analysts that cover Mintra believe, that Mintra will be taken private by these two shareholders. Only question is when and at what share price premium. The capital increase is another step in that direction.

Mintra Offical Statement Today

Strong organic growth and M&A activities summarise the first six months for Mintra, a leading provider of digital learning and Human Capital Management solutions for the Maritime and Energy industries. The group delivered mNOK 145 in revenue, representing 16 per cent organic growth vs the first half of 2022.
Adjusted EBITDA was MNOK 48, representing a 33 per cent EBITDA margin.

“We are excited about our performance in the first half of 2023. Remaining true to our strategy, Mintra is focused on driving group performance by expanding compliance and accredited/certified materials on our platforms to onboard new customers,” commented Kevin Short, CEO of Mintra.

Growth across the business

In the period, the group secured several multimillion NOK contracts across all business segments, eLearning, HCM software and Consulting, which has resulted in revenue growth across the business. ADNOC, Equinor, International SOS, OKEA and Prudence Marine are among the signed customers.

Strategic progress and new partnerships

Mintra has also strengthened its ecosystem, adding Furuno, Meridian Maritime Training Center LLC and ARuVR to its roster of partners. These partnerships underline Mintra’s continued drive to bring relevant and exciting partners to its customers to provide required and planned learning technology from a one-stop supplier.

Successful acquisition of Seably 

Closing out the first half of 2023, Mintra announced the acquisition of Seably, a Swedish SaaS-based marketplace for online maritime training. Seably has demonstrated strong growth in the maritime sector and brings good growth opportunities to Mintra, representing annual revenue of more than mNOK 45. The purchase price of Seably was SEK 79.7 million and the investment is expected, on a short-term basis, to increase Mintra’s net working capital by mNOK 15-20. In the upcoming months, Mintra will drive the integration process to extract synergies.
Kevin Short added: “The terms of the Seably acquisition are favourable and strengthen Mintra’s growth in the maritime market. It also provides existing and new customers with new capabilities to meet the demands of digitalisation and automation in the sector.”

Link to the webcast and presentation:

https://mintra.com/investors/reports-presentations-2

Review the previous blog posts for further ideas.

We are very bullish on Biovica International. They have the first-ever FDA-approved biomarker cancer test. Biomarkers will change the way cancer is treated. Biovica is one of the global leaders. They got Medicare signed up two weeks ago – that covers 50% of US breast cancer patients. Great achievement. Very very cheap. Worth the look. See:

Biovica – One of the Most Interesting Scandi Pharma – Notes from the Call with Mgmt

Do look Havila Kystruten – one of the most read posts this quarter

Havila Kystruten – Resolves Debt and Equity Concerns: Share Price to Double

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

Havila Kystruten (HKY) operates 4 ships on the Norwegian Coastal Route. The share price is down 90% in since April, driven by concerns whether HKY could refinance its debt and raise new equity. It did both. Under our base case, the share price could double in the next few months.

Why is the share price down 90%?

Havila was IPOed at 25 NOK two years ago. This year the share price slid from 20 NOK to 1.2 NOK. There were several reasons:

• Sanction-driven need to refinance quickly Russian debt financing
• Financial constraints resulted in delayed delivery of ships.
• Dilution risk
• Earthquake in Norway

The uncertainties have been resolved

During the last few weeks, the company made material progress on all fronts:

• Refinanced 305 million EURO debt
• Raised 65 million EURO equity
• Settled all payments for the two ships to be delivered
• The ships should be delivered in 17 days from last Monday

Why invest now?

HKY raised 65 million Euros at 1 NOK per share. The shares became tradable on Friday. Short-term traders sold, causing the share price to decline from 2 NOK to 1 NOK. There is plenty of reasons to buy:

• The issues that drove the share price down have been resolved – both debt and equity have been refinanced.
• Two ships are in operation, and two brand new ships are on the way from the shipyard in Turkey to Norway. They should arrive within 14 days. The arrival should be a major catalyst for the share price.
• Sound business proposition – there are 15 ships on the Norweigan coast road – the competitor has ships on average 11 years old. Havila has 4 brand-new ships.
• Highly profitable route – HKY´s competitor runs the route with 80% utilization. HKY has more modern ships – its utilization should be at least similar. At 80% occupancy HKY should generate SEK 600 million EBITDA per year.
• Government subsidized route – Norwegian Government provides 25% of all the revenues as a subsidy – 411 million NOK per year till 2030 with monthly payouts.
• Fuel price capped – cruise ships run on LNG, and the LNG price is capped by the Norwegian government.
• Compliant with Norway’s zero emission regulatory framework, and eligible to receive ~NOK 328m (~EUR 29m) from NOx fund, of which the remaining 50% is expected to be received later in 2023
• Strong shareholder – Havila family owns around 60% of HKY. They have always participated in all capital raises.

HKY valuation

According to the HKY, the cost of the four ships was 442 million EURO. The current replacement value would be 600 million EURO. Net debt is around 300 million EURO. So the book value of equity should be around 300 million Euro. The current market capitalization is 120 million Euro. If you assume that the share price should be trading at book value to equity, the share price should go up by 250%.

The three cruise companies (Royal Caribbean, Norwegian Cruise Lines, and Carnival) trade on average at 9.8x 2024 EV/EBITDA multiple. If you would take HKY´s EBITDA estimate (slide 15) of 0.6 bln NOK, then the company EV should be around 550 million EURO. That is still well over two times above the current share price.

I spoke to one of the analysts that were part of the syndicate. His price target was around 3 NOK – triple above the current share price. The reason is – HKY has a modern ship portfolio which should result in higher fees and higher revenues and higher valuation.

Leverage in line with other cruise operators

Peer leverage (measured by Net Interest Bearing Debt / EBITDA) of Royal Caribbean, Norweigan Cruise Lines, and Carnival is between 4.4X-5.5x on 2024 estimates and 5.5x-7.1x on 2023 estimates.

Fearnley estimates the 2024 EBITDA of HKY at around 50 million EURO, which represents around 6.5x NIBD/EBITDA multiple. HKY 2024 leverage is in line with the peers on their 2023 estimates and a bit higher on their 2024 estimates. In summary, the HKY leverage is in line with the peers.

Company presentation from the capital raise

Summary

We bought in the capital raise. We believe there are plenty of catalysts for the investment story. The first will be the delivery of the ships.

We will start selling around 2 NOK per share, hoping for an average exit price well above this.

Review the previous blog posts for further ideas.

We are very bullish on Biovica International. They have the first-ever FDA-approved biomarker cancer test. Biomarkers will change the way cancer is treated. Biovica is one of the global leaders. They got Medicare signed up two weeks ago – that covers 50% of US breast cancer patients. Great achievement. Very very cheap. Worth the look. See:

Biovica – One of the Most Interesting Scandi Pharma – Notes from the Call with Mgmt

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

Xbrane today announced a termination of partnership with Bausch and Lomb for the US market. The share price went down by more than 25% on the news. The company had today a very positive call that pushed the share price up. CEO confirmed that Xbrane would find a new US partner before the US launch in 1Q24. The terms of the partnership should be better than BL deal, as it was signed in 2020 before Xlucane was comercionalized in Europe. We bought the dip.

Link to the Xbrane presentation

https://ir.financialhearings.com/xbrane-press-conference-2023?seek=1

Main points from the call

• BL terminated the partnership due to their change of priorities
• Comercionalization agreement with BL was signed in 2020 – since than xLucane has made a great progress – new agreement should have a better terms than current BL agreement
• CEO is confident Xbrane will find another strong partner
• FDA Approval expected in April 24 – there is time enough for the partner search
• The Lucentis US market opportunity is over USD 8 billion. Biosimilars are only starting – 1Q23 sales were around USD14 mln only.

Pareto estimates that the xLucane (Ximluci) European business is worth SEK134 – double from the current share price.

We believe today is the opportunity to increase position. We did.

Biovica

We had a call with Biovica management last week. Yesterday we published on this blog our minutes from the call. Today Biovica posted our blog post on their social media platforms. As we wrote yesterday, we believe Biovica is one of the most interesting pharma opportunities in Scandinavia. We recommend to study Biovica:

Our post from yesterday:

Biovica – One of the Most Interesting Scandi Pharma – Notes from the Call with Mgmt

Biovica investment case

https://seekingalpha.com/article/4584325-biovica-fda-approved-breast-cancer-test-can-detect-tumor-progression-60-days-earlier-than-imaging

Vicore Pharma

We are very bullish Vicore Pharma. Below is a link to our last blog post on Vicore:

Vicore Raised 500 mil SEK with Specialist Investors – Stock up 15%

Disclosure:
The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

Biovica is one of the most interesting companies in Scandinavian pharma sector. It has the first ever FDA approved biomarker test for breast cancer. According to Bloomberg (link in SA), Biomarker testing will change the way cancer is treated. Biovica should be one of the main beneficiaries. Pareto estimates Biovica sales to exceed USD100 million in six years.

Biovica Investment Thesis From SeekingAlpha:

https://seekingalpha.com/article/4584325-biovica-fda-approved-breast-cancer-test-can-detect-tumor-progression-60-days-earlier-than-imaging

The Notes of the call with the Biovica management

We had a call with Biovica management last week. The notes from the call are bellow

Summary

• “We are doing great in all business areas. We will deliver on all targets in USA – the hospitals and Medicare”.
• In Europe, we are negotiating with partners to take new territories.
• Pharma collaborations – in a year or two, this should be a major business line for us. Not reflected in analyst’s forecasts.
• We’re constantly looking into the best possible financing option. As the landscape has changed significantly the last 2 years, we’re looking broader than just equity financing.

Medicare Announcement – what does it mean

On Friday 21/7 Biovica announced it received a PLA code from Medicare:

• It is a Major milestone for Biovica – Medicare is the largest insurer in the US with around half patients being covered by it. 
• Rubber stamp on Biovica’s DiviTum® TKa test for other US based insurers
• Strongest price reference for other US based payers
• Faster reimbursement of DiviTum® TKa test for Medicare beneficiaries (50% of all breast cancer patients.
• Major sales driver in the coming quarters, together with commercial agreements. 

US Hospitals

• We’re on track with getting agreements with hospitals in US in order for them to start using DiviTum TKa.
• Some of them are networks consisting of several hospitals.
• In the coming months we should be able to announce the first agreement, and by the end of our fiscal year (April 2024) we should be able to announce perhaps 10 hospital contracts.

Price of DiviTum® TKa test

• Average sales price of $400 per test seems to be a reasonable assumption. Agreements so far supports this conclusion.

Q2 Revenues 

• We are selling, but still not in big volumes as we’re focusing on getting commercial agreements in place that will more quickly take us to greater volumes of sales.

Europe

• Territories that we have agreements with:
  • Launch activities are ongoing, such as Italy, Netherlands and Poland
  • Training sessions with local sales staff
  • Communications and event with KOL and oncologists
  • Setting up logistics, e.g. lab facility and sample shipmen

• Work ongoing to expand into new territories, focus on Europe’s largest markets (Germany, Spain, UK, etc)
• Factors important when selecting market and partner:
  • Market: Price level, time to market
  • Partner: Need to have required abilities such as sales force oncology, testing facility, market access capability, etc
• You can expect additional announcements before end of FY23/24 (ends 30/4-24)
• For each market: start with out of pocket market, in parallel you work in order to get reimbursement coverage

Other breast cancer tests

• We are focusing our resources on metastatic breast cancer. 
• As previously communicated, we have data outside MBC and oncologists are using it wider than the intended use we’ve got from the FDA.

Pharma Collaborations and Companion Diagnostics (CDx) for Specific Drugs

• There is enormous potential in being able to sell the assay as a companion diagnostic to one of the cancer drugs that is currently under development. 
• We are currently in 17 projects with different pharma companies in different stages. This projects have the potential to be developed into a joint development project for a new CDx product.
• Process: Biovica gets funding from pharma to develop a new test for specific therapy. The test and the therapy would be sold as a combined product, i.e. CDx.
• CDx should be a major business line for Biovica in the coming years.

See the blog for other posts on Biovica

Biovica latest presentation:

https://biovica.com/investor-relations/financial-reports/#english

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

Chile accounts for a quarter of the world’s mined copper and has the most reserves. Los Andes Copper is located in Chile’s Central Copper Belt between three large copper mining operations by global majors. Last week Los Andes announced they are “considering options to finance development… including potential sale”. Historically such processes lead to significant rerating. Los Andes is up 40% in last two month, but still trades at 0.1xNAV. Strategic partnership with a major or a sale could multiply the stock price. Definitely worth further look and research.

Link to Los Andes latest Investor presentation:

https://vrify.com/decks/12765

Latest Bloomberg Article:

Los Andes Copper Is Said to Weigh Funding Options Including Sale
2023-07-03 18:41

Dinesh Nair, James Attwood and Vinicy Chan
(Bloomberg) — Los Andes Copper Ltd., a mining exploration
company, is considering options to finance development of a
deposit it owns in Chile, including a potential sale of the
asset or the company, according to people familiar with the
matter.
The Vancouver-based firm is working with advisors to study
strategic options as it prepares for the next stage of the
Vizcachitas project in Chile, said the people, who asked not to
be identified because the information is private. Los Andes
Copper isn’t currently running a formal sale process, but may
start gauging interest from potential buyers, the people said.
Los Andes Copper declined to comment.
Vizcachitas is expected to become a 180,000-metric-ton-per-
year mine, roughly the size of Andina owned by Chile’s state
miner Codelco, the world’s largest copper producer. Development
costs for a project of that size are likely out of reach for Los
Andes Copper, which has a market value of $380 million. The
company’s stock has jumped about 30% in 2023.
Supplies of copper, the metal used in everything from
electric vehicles to wind turbines, are expected to tighten
significantly as the transition away from fossil fuels drives a
surge in demand. That outlook has led large producers to step up
their interest in beefing up reserves both through acquisitions
and exploration. Newmont Corp. recently secured a A$28.8 billion
($19.2 billion) deal to buy Australian rival Newcrest Mining
Ltd. in a move that will help boost its resources of copper.
Read More: Copper M&A Heats Up as Lundin Pays $950 Million
for Chile Mine
Los Andes Copper was recently authorized to restart
drilling at Vizcachitas after fulfilling conditions laid out by
an environmental court.
Read More: Billionaire Friedland Sees Copper ‘Train Wreck’
as Supply Stalls
Chile accounts for a quarter of the world’s mined copper
and has the most reserves. Companies are weighing investment
decisions in the nation as regulatory risk subsides. An initial
constitutional process that threatened radical changes has given
way to a more conservative format, and the government agreed to
limit tax hikes.

SeekingAlpha Article on Los Andes Copper:

https://seekingalpha.com/article/4613709-los-andes-copper-the-train-is-leaving-the-station-to-a-higher-destination

We are long Los Andes Copper.

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

I asked Chat GPT to summarize Biovica Investment Thesis. The result is below:

Introduction:
Biovica, a leading diagnostic solutions company, recently released its Q4 2022/23 interim report, showcasing significant advancements in their US launch. The report highlights the company’s achievements, future sales projections, financing plans, and collaborations with healthcare providers and pharmaceutical companies. This blog post summarizes the key points from the management presentation and Q&A session.

Strong Interest in DiviTum:
DiviTum, Biovica’s innovative diagnostic test, has garnered strong interest among oncologists. The company has presented DiviTum to approximately 350 oncologists in recent months, resulting in positive feedback and growing anticipation. Sales are expected to commence within the next two months, with a significant uptick projected towards the end of the year.

Path to Profitability and Financing:
Biovica aims to achieve self-financing and profitability in the coming months. The company is considering financing options beyond equity, indicating a potential debt structure. This financing would not only support Biovica’s operations but also allow for the expansion of their sales team, further accelerating the adoption of DiviTum.

US Sales Process:
Biovica has been actively engaged in discussions with 56 National Cancer Institute (NCI) designated cancer centers, with 60% of these discussions reaching an advanced stage. Additionally, discussions with 18 other cancer centers in the US are underway. Presenting DiviTum to 1,500 oncologists, Biovica has successfully captured 23% of DiviTum’s addressable market. In the next two months, the company expects to receive first orders from hospitals through contracts that will be announced publicly. By year-end, Biovica anticipates securing up to 10 such contracts.

Approach to Reimbursement:
Biovica has signed two commercial agreements with large network providers, granting them access to payers. The company has also applied to Medicare for a proprietary laboratory analyses (PLA) code, a crucial step to facilitate simple reimbursement through Medicare. The reimbursement process is expected to reach a material level later this year, further supporting Biovica’s market penetration efforts.

Valuation and Investment Thesis:
Redeye Equity Research maintains a buy rating on Biovica, with a target price of SEK 32 per share. The updated valuation indicates a potential upside of over 200% from the base case of SEK 28. The investment thesis highlights Biovica’s rapid penetration potential in the distinct patient group of advanced breast cancer, supported by scientific evidence and ongoing clinical studies. Challenges regarding recurring sales and reimbursement are acknowledged, but the overall outlook remains positive.

Expected News Flow and Catalysts:
Exciting developments lie ahead for Biovica. The company anticipates signing direct contracts with US hospitals and centers, with the first contract expected within the next couple of months. Biovica has already secured two preferred provider organization (PPO) contracts, expanding their market presence. The process to secure proprietary laboratory analyses (PLA) codes is ongoing, and Biovica aims to obtain them in the second half of 2023. The company’s collaborations with pharmaceutical companies are progressing well, with the expectation of advancing into formal co-development partnerships in the next 12 months.

Conclusion:
Biovica’s Q4 2022/23 interim report showcases significant progress in their US launch, with strong interest in their DiviTum diagnostic test. The company’s sales outlook, financing plans, and collaborations with healthcare providers and pharmaceutical companies position them for future success. With a positive valuation and ongoing developments, Biovica continues to demonstrate its potential to make a significant impact in the field of diagnostic solutions, particularly in advanced breast cancer treatment.

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

South Africa´s New24.com published yesterday an article that Eskom is asking for bids to convert its Mossel bay power station from diesel to gas. Block 11B/12B is the only potential gas supplier nearby. Eskom would not be planing a diesel to gas conversion if it did not have a certainty of gas supplies.

It indicates that Eskom is getting ready for gas supplies from Block 11B/12B. Africa Energy share price has been sliding, as the off-take agreement has not been reached, yet. This may indicate the waiting may be over. Very positive for Africa Energy and its shareholders.

Last week we published notes from our call with the Africa Energy management. It described that Africa Energy/Total have three potential customers for its gas from Block 11B/12B:

• Eskom – its Mossel Bay power plant is burning diesel. They have enough diesel, but it is more expensive than gas. Eskom could save around 30% by burning gas.
• Petro SA – is the owner of the Block 9 infrastructure. Total/AEC will need to use the infrastructure to supply gas to Mossel Bay. Petro SA owns gas to liquid plant in Mossel Bay, which is out of gas, as Block 9 is depleted – they do need gas.
• LNG liquefaction plant for export to Europe or Asia

As mentioned there is no other nearby gas supplier for Eskom than Block 11B/12B. Eskom is now asking for bids to convert its power plant from Gas to Diesel. Eskom would not be doing this if they would not believe their gas supplies are secured. It may mean that the off-take agreement may be coming soon. If correct, Africa Energy share price should be moving. Very positive.

The article important quotes:

Eskom has finally put out a request for proposal (RFP) to supply Gourikwa power plant in Mossel bay and Ankerlig power station in Atlantis with natural gas. 

The two power stations run on diesel, but have been converted so they can also use natural gas. The utility hopes to switch from diesel to gas by December 2027.

“The intent is to have a gas main feedstock which will be supplemented by diesel as and when it’s required,” Eskom stated in tender document published this week. 

It is hoping that gas will be a cheaper and more environmentally friendly source of fuel for the two stations than diesel. 

All bids for the RFP will need to be in by 31 July. 

Full article:

https://www.news24.com/fin24/climate_future/energy/ready-steady-gas-eskom-kicks-off-bid-to-switch-two-plants-from-diesel-to-natural-gas-20230612

Minutes of the call with Africa Energy management:

Call with Africa Energy

Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

Vicore share issue was in big demand. Most investors got zero allocations. The stock was allocated mainly to major specialist pharma investors from the USD and Europe and selected existing investors. The issue was placed close to market price. Strong rubber stamp on the investment case. Vicore +15% today.

We are bullish Vicore. Our family office got allocation in the share issue.

Pareto and Carnegie raised 500 million SEK for Vicore last night. The issue was placed at 1% discount to the closing price. That is big success – in these markets companies raise at 10-20% discount to closing prices. The stock has been slipping last two weeks as investors were concerned about the capital raise. That is now resolved. The issue was backed by specialist investors from the US and EU. US healthcare specialists such as OrbiMed and Suvretta, invested in the round while existing ones such as HBM (Switzerland) participated. We heard that the issue was very tightly allocated – most investors got zero allocation. Less than 20 investors bought the whole 500 million SEK issue. Very positive for the case. The stock is 15% up this morning. The share issue’s core intention is to finance the next larger step, a 52-week phase2b trial in all-comers idiopathic pulmonary fibrosis (IPF) patients.  Full investment thesis is below: https://fitinvestmentideas.com/2023/05/23/vicore-first-drug-that-cures-ipf-trading-at-1-7-of-its-peer-with-worse-results/ The latest presentation by the company:  https://stream.brrmedia.co.uk/broadcast/645cb5017935152b5ae742f1 Disclosure:  The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.