| Tue 31 Aug 2010, 15:53 | | IPS - IPSA Group Plc - Trading update |
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IPS
IPSA
IPS - IPSA Group Plc - Trading update
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA ISIN GB00BOCJ3F01
JSE Share Code IPS ISIN GB00BOCJ3F01
("IPSA" or "the company")
TRADING UPDATE
IPSA PLC (AIM: IPSA), the developer, owner and operator of power generation
capacity in Southern Africa, announces that its wholly-owned subsidiary,
Newcastle Cogeneration (Pty.) Limited has entered into a power purchase
agreement ("PPA") with Eskom, the South African electricity parastatal, under
the medium term power purchase programme ("MTPPP"). Under the new PPA all
electricity output from the plant would be sold to Eskom for the period to 31
March 2015, and is based on 13 MW of capacity.
NewCogen, which owns and operates South Africa`s first gas-fired independent
power plant, has consistently supplied power to the grid since the plant
re-started in June this year under a short-term PPA with Eskom which expires
today.
The start date under the PPA will be notified separately as NewCogen is in
the process of finalising a long term gas agreement with Sasol Gas and
negotiating revised terms for the steam supply agreement. NewCogen is expected
to refinance some of IPSA`s shareholder loans to the power plant once these
contracts are in place, thereby releasing funds to IPSA in due course.
With these agreements in place and the refinancing completed, IPSA expects to
be able to look forward to a period of sustained revenue generation at NewCogen.
Speaking today in Johannesburg, IPSA Chairman, Richard Linnell, said, "We
are delighted that this contract has been signed. We are grateful to the
tireless efforts of all those who have worked hard to enable us to achieve
this result. I am looking forward to a return to full operations as soon as
possible."
London
31 August 2010
For further information contact:
Peter Earl, CEO, IPSA Group PLC +44 (0)20 7793 5615
John Llewellyn-Lloyd / Harry Stockdale,
Execution Noble & Company Ltd +44 (0)20 7456 9191
Riaan van Heerden,PSG Capital (Pty) Ltd +27 (0)21 887 9602
Date: 31/08/2010 15:53:06 Produced by the JSE SENS Department.
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