Tlou Energy Ltd (LON:TLOU) is making good and steady progress, broker Shore Capital said following the exploration and development company’s first-quarter operational update.
Tlou announced that Phase 1 financing for its Lesedi project is at an advanced stage with due diligence underway. It is seeking project finance to build infrastructure to connect the Lesedi power project to the existing electricity grid in Botswana.
“With the Botswana government having expressed strong support for the Lesedi project, we continue to believe that Tlou is making good and steady progress despite the obvious COVID-related impacts and continue to see excellent scope for important share price catalysts as the company works towards key project development milestones including project financing, conclusion of the 10MW power purchase agreement (PPA) process and transmission line construction,” said Shore Capital analyst Craig Howie.
“We are in the process of fully overhauling our models on Tlou, and look forward to finalising this work to demonstrate the significant upside that we see.”