WTI (Jan) $72.01 -$2.24, Brent (Feb) $77.17 -$2.18, Diff -$5.16 +6c.

USNG (Jan) $5.72 +26c, UKNG (Jan) 390.0p +40.0p, TTF (Jan) €151.25 +€10.26.

Oil price

Markets are firmly in risk-off mode and comes across the board. After good but grim news from US services, in China the market is worried that despite significant moves on Covid closures observations such as poor Tesla sales worry investors.

In the US the inventory stats were again very mixed. A big draw in crude was offset by big builds in gasoline and distillates where demand has been poor, exacerbated by the refining rates of 95.5% being as high as ever. A cold snap would easily take the distillates out but even at $3.39 a gallon there isnt much demand for gasoline.

Chariot

Total Eren and Chariot, the Africa focused transitional energy company, are pleased to announce that, pursuant to the partnership entered into in November 2021, Total Eren and Chariot have agreed to work together on the development, financing, construction, and operation of a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe.

The solar PV project is expected to have an initial installed capacity of 30 MWp with a potential extension of up to 300 MWp. Construction of the Karo Platinum Mine has commenced, as marked today during an official ceremony in the presence of the Minister of Mines and Mining Development, Hon. W. Chitando.

Total Eren and Karo Mining Holdings have previously signed a Memorandum of Understanding as the first step towards implementation and signing of a long-term Power Purchase Agreement for the supply of electricity. Karo and the Partners will now pursue the next steps of development of the PV project.

Fabienne Demol, Executive Vice-President & Global Head of Business Development of Total Eren, commented:

“We are very pleased to partner again with Chariot on a new renewable energy project dedicated to the mining sector. Our solar project will enable the Karo Platinum Mine to be supplied in            low carbon electricity during its operating life, therefore reducing its carbon footprint and generating a competitive source of electricity supply in Zimbabwe. I look forward to delivering this solar project and wish to start even more renewable energy projects in this country where our strategic shareholder, TotalEnergies, holds a strong footprint.”

Benoit Garrivier, Chariot Transitional Power CEO, added: 

“In partnering with Total Eren on this project, we advance towards our objective of delivering a 1 GW renewable energy pipeline and developing some of the largest sustainable power projects in Africa. We wish Karo all the best with their construction phase and look forward to implementing the solar plant build in due course.”

Bernard Pryor, MD of Karo Mining Holdings, declared: 

“As part of our sustainable development plan, green power was always placed at the forefront of our energy strategy. Land designated to develop this type of power strategy has been allocated, close to the Karo Mine but also being mindful of a broader power strategy that we will develop with our partners and the government of Zimbabwe, to ensure stable and lasting green energy benefitting all our stakeholders and beyond.”

Chariot are powering ahead with its plan to deliver substantial renewables projects across Africa, this is another project in partnership with TotalEren in the mining sector. It is envisaged that the solar PV project will provide competitive electricity for the Karo Platinum Project, in Zimbabwe to an installed capacity of 30 MWp with a potential extension of up to 300 MWp.

The market has been concentrating on the Anchois development in Morocco but the company are building a meaningful renewable business here and this is another major piece of business that will substantially add to the value of the business. 

The shares have increased by some 50% in the last month but I do feel that this is only the start of a more significant upward move. I have always thought that across both businesses the value will ultimately be a multiple of current levels and so I remain happy with my target price of 100p split 75/25 in favour of Anchois. 

IOG

Yesterday I was very fortunate in my Core Finance TV CEO interview slot to chat to Rupert Newall, CEO of IOG. In a lengthy chat we covered everything both operationally and financially and he was able to update me across all parts of the business. The link to the interview is here.

Core Finance CEO interview: Rupert Newall of IOG plc