Oracle Coalfields: Oracle Coalfields plotting course to financial close at Thar project

Oracle Coalfields PLC (LON:ORCP) continues to plot its course towards financial close for its huge Thar coal and power project in Pakistan, it revealed in half year numbers. The period to end June saw it sign a key shareholder agreement with new and existing Chinese partners. Under this plan, the Chinese will take a 70% equity interest in the project and will act as Engineering, Procurement and Construction (EPC) contractors for both the mine and plant, details of which are currently being agreed. In addition, the Chinese partners are now taking the lead in discussions on debt financing with Sinosure - the Chinese Export and Credit Insurance Corporation. The period also saw the Thar Coal and Energy Board set the initial coal price for the project at US$60.23/tonne. Notably, there are also tax incentives in place which mean Oracle can expect a project based internal rate of return (IRR) of 20%, in US dollars. In keeping with a firm at this stage, the operational loss after tax was £448,139 (2015: loss of £528,476). As at June 30, the group had cash and equivalents of £1.098mln(2015: £1.469mln).