am
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Post by am on Jul 17, 2017 11:22:21 GMT
18 month 12% construction bond with press coverage
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jj
Member of DD Central
Jolly Jammy
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Post by jj on Jul 17, 2017 19:54:48 GMT
Drill baby,drill.
Only 18 months to build one of these things. Perhaps its a small one.
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am
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Post by am on Jul 17, 2017 20:52:01 GMT
Drill baby,drill. Only 18 months to build one of these things. Perhaps its a small one. I don't know what the detailed plans are (perhaps Abundance's documentation will explain), but project completion is scheduled for 2020.
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greatmarko
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Post by greatmarko on Jul 18, 2017 18:51:42 GMT
I have a couple of initial thoughts/potential concerns with this project:
Firstly; the initial information on the project page states "Over the first 12 months drilling and testing will confirm previous assessments of the viability of the project..." ...what happens to the loan in the event that this drilling/testing results in the project ending up not being viable? ...will lenders be repaid in full, or would the loan likely "default"?
Secondly; given the level of objection there has been in recent times within the UK from certain groups protesting against "fracking", is a geothermal project - which would also involve drilling deep into the ground & pumping water in, etc - likely to draw a similar level of objection/protest?
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jj
Member of DD Central
Jolly Jammy
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Post by jj on Jul 22, 2017 9:40:42 GMT
Abundance just threw a fastball.
It's up and running.
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Steerpike
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Post by Steerpike on Jul 22, 2017 9:52:18 GMT
Groundbreaking project ha ha. Interesting and lots of potential for the future, drilling down 4.5km, plenty of heat there but recovery is unproven in the UK, is it worth the risk for 12%, maybe.
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pom
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Post by pom on Jul 22, 2017 10:08:58 GMT
Site-breaking more like....seems to be on a massive go slow..
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scc
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Post by scc on Jul 22, 2017 10:45:30 GMT
I have a couple of initial thoughts/potential concerns with this project: Firstly; the initial information on the project page states " Over the first 12 months drilling and testing will confirm previous assessments of the viability of the project..." ...what happens to the loan in the event that this drilling/testing results in the project ending up not being viable? ...will lenders be repaid in full, or would the loan likely "default"? Secondly; given the level of objection there has been in recent times within the UK from certain groups protesting against "fracking", is a geothermal project - which would also involve drilling deep into the ground & pumping water in, etc - likely to draw a similar level of objection/protest? There are some key differences. Fracking is essentially mining for a fossil fuel which seems somewhat counter intuitive given the publicly stated position of the government regarding climate change. Geothermal is regarded as a renewable technology. Other objections to fracking related to the possibility of earth tremors, contamination of water sources, increased traffic. I'm not clear whether any of those are relevant to geothermal. By my reading of the documentation, if the project doesn't go ahead - all money will be returned with 2% interest on top.
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littonowl
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Post by littonowl on Jul 22, 2017 11:22:05 GMT
I have a couple of initial thoughts/potential concerns with this project: Firstly; the initial information on the project page states " Over the first 12 months drilling and testing will confirm previous assessments of the viability of the project..." ...what happens to the loan in the event that this drilling/testing results in the project ending up not being viable? ...will lenders be repaid in full, or would the loan likely "default"? Secondly; given the level of objection there has been in recent times within the UK from certain groups protesting against "fracking", is a geothermal project - which would also involve drilling deep into the ground & pumping water in, etc - likely to draw a similar level of objection/protest? There are some key differences. Fracking is essentially mining for a fossil fuel which seems somewhat counter intuitive given the publicly stated position of the government regarding climate change. Geothermal is regarded as a renewable technology. Other objections to fracking related to the possibility of earth tremors, contamination of water sources, increased traffic. I'm not clear whether any of those are relevant to geothermal. By my reading of the documentation, if the project doesn't go ahead - all money will be returned with 2% interest on top. Seems there's a local presentation and open 'have your say' event being held this coming Tuesday in Cornwall, so we might get some indication of public support/opposition very soon. Article this week in The Guardian and Cornwall live give some detail on the project and company behind the scheme and The Guardian supports p15 of the Offer Doc's suggestion that investors will receive their capital back (and 2% interest) if the project doesn't go ahead beyond the injection well stage: "Investors can expect a 12% return on the bond, which has an 18-month term, and will have their capital returned to them if the geothermal plan does not go ahead."I'd post links to the articles above, but been pulled up by Mods before for doing so, but worth a read... The danger here, it seems, is if the injection well is promising enough to give the go-ahead to the scheme, but then the production well fails to live up to expectations/isn't commercially viable. At this point, if my understanding is correct, then our capital is very much at risk (see p23. Offer Doc).
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jj
Member of DD Central
Jolly Jammy
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Post by jj on Jul 22, 2017 12:01:59 GMT
My only real concern reading through the doc they seem to have excuses ready before the project has begun.
You'll get 12%, maybe. You could get 2%, definately maybe. Might lose your capital.
What is to stop the parent co paying the 2% not carrying out the project and selling the details on to someone else ?
The risk is as usual is at the front end i.e. our end.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jul 22, 2017 15:04:19 GMT
New to abundance and have a question. The documentation seems to indicate drawdown is in October for the debenture. What happens between the loan filling and debenture drawdown in terms of interest payments?
I like the offer. I see that they are crystal clear that once the second bore is done and tests are carried out then they will make a decision to build the power station. If data does not support then it will be repaid at 2%.
They also state that they are constantly monitoring for seismic activity connected to the drilling and expect it to be minimal. Rules out fracking probably along with other parts of the document.
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Post by robberbaron on Jul 22, 2017 17:23:40 GMT
New to abundance and have a question. The documentation seems to indicate drawdown is in October for the debenture. What happens between the loan filling and debenture drawdown in terms of interest payments? From their worked out example you are not earning interest until October.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jul 22, 2017 17:57:58 GMT
New to abundance and have a question. The documentation seems to indicate drawdown is in October for the debenture. What happens between the loan filling and debenture drawdown in terms of interest payments? From their worked out example you are not earning interest until October. Whats the incentive to invest in this loan now and tie up capital?
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pom
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Post by pom on Jul 22, 2017 18:06:20 GMT
From their worked out example you are not earning interest until October. Whats the incentive to invest in this loan now and tie up capital? None, but can't always predict how quickly the deals will fill, so up to you if you want to risk waiting
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scc
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Post by scc on Jul 22, 2017 18:06:24 GMT
From their worked out example you are not earning interest until October. Whats the incentive to invest in this loan now and tie up capital? Availability of loan chiefly. Some loans at Abundance fill up extremely fast, others can take months.
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