Gas and Coal Economics, page-5

Shrewd,

As always, your post is insightful, relevant and appreciated (shame it has been nearly 12 months since we last heard from you!)

Skeoch (and others) have posed some very good questions and at times provided some good factual information.

From my perspective the two key questions that remain unanswered to any degree of accuracy are;

1. What is a realistic date then the Philippines and Indonesian Projects will become operational, namely, generating Cash?
2. Can these Projects generate a positive Net Cashflow (after funding and operating costs)? If so, how much? (note First Gen’s recently commissioned Gas Plants are now projected to operate at a loss!)

At pervious AGM’s the EWC Management have provided information around question No1 above. Unfortunately, the projected timelines have never materialised and the projects have dragged on from one AGM to another with little or no information from the Management between each AGM. To my knowledge, Management have never addressed the subject of the potential Financial Matrix of these projects. Maybe understandable when they have been unable to get these projects operational.

Until such time each of these questions are answered with a high degree of accuracy the Share Price will continue to be at the total mercy of the Hedge Funds and Short Sellers.

At a Strategic level these projects make perfect sense, as you have articulated in your posts. The real issue is timely and successful execution. I fully understand the challenges of undertaken these type of projects in Developing Markets. However, the execution of these projects has been woeful and the lack of communication from the Management down right disgraceful.

Hopefully at the upcoming AGM the Management can finally provide some frank and honest information to its Shareholders and answer the two questions I have posed above.

As a shareholder I want these projects to be hugely successful and would like to support the Management but based on the track record so far it is becoming increasingly difficult to remain optimistic!