Ncondezi Energy Is Awaiting Clarity on China's Financing Position; Shares Fall
18 January 2022 - 01:24AM
Dow Jones News
By Ian Walker
Shares in Ncondezi Energy Ltd. fell 15% on Monday after the
company said that it is awaiting further clarity on China's
position relating to financing coal projects abroad before
progressing with the Tete, Mozambique power project tariff.
The African power-development company said the availability of
Chinese financing for coal-power projects abroad is critical for
the project and that it is ready to proceed with the tariff once
this has been addressed.
"We understand this to be a global issue affecting all Chinese
backed coal power development projects abroad, and that this impact
is under review by the relevant Chinese authorities," the company
said.
Ncondezi added that its partner, China Machinery Engineering
Corp., remains committed to the project and continues to lead the
financing process.
In the meantime, the company said it has started a
cash-conservation strategy to extend its working capital past the
first half of this year so that it doesn't need to raise extra
funds in the immediate future.
Shares at 1335 GMT were down 0.12 pence at 0.73 pence.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
January 17, 2022 09:09 ET (14:09 GMT)
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