GMC 0.00% 0.6¢ gulf manganese corporation limited

Ann: Gulf Signs Power Purchase Agreement, page-10

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  1. 4,695 Posts.
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    You blokes need to learn how to read an announcement, you cannot read anything you desire into an announcement.
    THE ANNOUNCEMENT SAYS IN PLAIN ENGLISH
    "Under the contract, PT PLN has agreed to provide continuous electrical power of up to 20,000 kVA to the Kupang site,"

    "Gulf Mangan Grup (“PT Gulf”) has signed a five-year agreement with national power provider PT PLN (Persero) Wilayah NTT (“PT PLN”) for the supply of 20 MVA power to the Kupang Smelting Hub Facility Site."

    The announcement doesn't mention anywhere about more power than the 20 MVA, end of story.
    The announcement says that PT PLN must supply that amount of power, I'd doubt whether PT PLN would have further capacity and wouldn't build more capacity until such time that GMC requires more and negotiates a new power contract. These power contracts have a take or pay clause as I've already pointed out. Which is hopefully for GMC shareholder is well and truly covered, otherwise you won't even make tea money for the Indo officials.
    The agreement states that if PT PLN doesn't supply the 20MVA and consistently then GMC has the option to build its own power generation source.  If PT PLN can supply the 20MVA then GMC has agreed to not build its own power generator.   
    How many more GMC shares would need to be issued to build a 20MVA power supply? No way will GMC ever build a power station, so its a bit of a dumb statement.

    "PT Gulf has also agreed not to build its own power generator, so long as PT PLN can provide the amount of electricity power required by PT Gulf."
 
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