Thursday, 6 August 2015

PM Bolt-On: Good news for Zambia + ZESCO & First Quantum Minerals

Good Evening, 

ZESCO have managed to source additional power to replace the hydro shortfall. First Quantum (FQM) are prudently quick to update the market on their power improvements. Over to FQM, full power supply was restored to its Kansanshi operation and Sentinel project by ZESCO, Zambia's state-run power company.

TORONTO, ONTARIO--(Marketwired - Aug. 6, 2015) - First Quantum Minerals Ltd. ("First Quantum" or the "Company") (TSX:FM)(LSE:FQM) today reported that, on August 6, 2015, full power supply was restored to its Kansanshi operation and Sentinel project by ZESCO, Zambia's state-run power company. This follows the receipt of notice of the declaration of Force Majeure for the supply of electricity from ZESCO to Kansanshi and the subsequent reduction in electricity supply to both Kansanshi and Sentinel as reported on July 27, 2015.

While the Company believes some restrictions may be re-imposed during the remainder of 2015, ZESCO has stated that it has contracted independent power producers such as Maamba Collieries Limited and Itezhi Tezhi Power Corporation through the signing of Power Purchase Agreements to procure more electricity by the end of 2015.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall, President

Although not necessarily permanent, at least ZESCO are being active. Admittedly with parliamentary discussions in Zambia showing knowledge of likely electrical generation problems, could it could have been completed sooner? A very healthy bounce post the news, can it be sustained? ZESCO have not confirmed whether the new supply is online now or whether they have increased production at Kariba et al. (Source:Hydropower.com/Zambia)

We shall await news from Glencore, Vedanta and Barrick. 

Atb Fraser

3 comments:

  1. NATURAL GAS WEEKLY UPDATE REPORT – August 6, 2015

    Injections of natural gas into storage since April are 20% higher than the five-year average (2010-14), but trail last year's record-high levels
    During the first four months of the 2015 natural gas storage injection season, which typically runs from April through the start of November, injections have totaled 1,436 billion cubic feet (Bcf). Injections this year are 20% higher than the five-year average, but are 7.5% lower than last year's record-high levels over the same period. Inventories as of July 31 were 2,912 Bcf, 535 Bcf, or 22.5% more than 2014, and 64 Bcf (2.2%) more than the five-year (2010-14) average for the week ending July 31.

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    1. The above is from http://www.eia.gov/coal/production/weekly/

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  2. Hi Fraser- one of your favs is at it again today--

    http://www.investegate.co.uk/phorm-corporation--phrm-/rns/equity-fundraising-of-approximately--3-2-million/201508070748164115V/

    Isnt the definition of madness doing the same thing again and again and expecting a different result?? Your Phorm have form quote gets another showing today...

    The £3.2m is all going on "general working capital"- board salaries in plain English??

    Cheers. The Leggie

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