Sunergy to Add Significant Non-Mining Revenues to Gold and Diamond Production
SCOTTSDALE, Ariz., April 22, 2014 (GLOBE NEWSWIRE) -- Investor and philanthropist George Soros has described Africa as 'one of the few bright spots on the gloomy global economic horizon'. It is, as Soros points out, the world's fastest-growing global middle class. The African Development Bank puts the stable middle class at 123 million, 13% of the population. By 2060, says the bank, the number of middle-class Africans will grow to 1.1 billion (42% of the predicted population).
Most investors--or companies for that matter--don't spend a lot of time thinking about or indeed considering Africa as a place to diversify holdings. While that may be fair given the usual news that comes out of that emerging continent, it's likely shortsighted. As far as resource rich and economically emerging West Africa is concerned, consider these facts:
-- Population 318 million. Forecast to 500 million by 2035
-- Twice the size of the EU
-- 2013 GDP 6.2%. 2014 average WA forecast 7.1%
-- Sierra Leone, 2014 GDP forecast to 14%
-- 60% Urban population by 2030
-- 66% of current population under 25 years of age
-- consumer spending forecast to reach USD 1.4 trillion in 2020
-- business technology development a major economic driver.
As its core business, Sunergy Inc. (OTCBB:SNEY) (OTCQB:SNEY) has made a transition from an exploration only company to a company now focused on production and cash flow. It now has four dredges operating, 2 in Sierra Leone and 2 in Liberia to extract gold and diamonds. A 5th dredge sits between the two countries awaiting the most favorable deployment opportunity for realizing fast cash flow.
"We intend on generating revenue through the production of diamonds and gold in Sierra Leone and Liberia. Recent findings of large diamonds in neighboring properties show more than possible potential for profits that would cash flow in excess of our expenses," stated Garrett Hale, CEO and President of Sunergy Inc.
Early results will begin to be reported as soon as the overburden is removed and the Company is able to process alluvial gold and diamond bearing gravels; projected to be available by the end of April.
Hale continues: "Running our company in the black is a direction we feel achievable with the mineral potential shown by recent neighboring operations. We run a tight ship with low overhead and feel we have an advantage over large scale mining companies, which means profit for our investors and shareholders."
While the Chinese have invested in Africa's natural resource extraction for more than a decade, it is only more recently that other international investors are waking up to the potential from Africa's imminent boom in consumer spending, which is set to rise from USD 860 billion in 2008 to USD 1.4 trillion in 2020, according to the McKinsey Global Institute.
In addition to its core mining activities, Sunergy has used those considerable contacts earned over the past 4 years to develop non-mining partnerships and agency agreements with major international businesses representing Airport Security, Affordable Housing projects and Solar energy projects up to 250 megawatts, in the five West Africa Countries of Ghana, Sierra Leone, Liberia, The Gambia and Senegal.
Sunergy's competitive advantage is really quite simple. The high level contacts, both private and government influencers gained in the region open the Company up to stellar business opportunities. As a result of successes realized in its mining endeavors, it has developed a reputation of being a preferred group when new initiatives are either proffered or discovered. And being the middleman in these transactions, the Company needs employ little or no capital. Earnings take the form of revenue sharing; particularly in the form of royalties, finder's fee or a combination.
Utilizing local mining expertise, the Company has been very successful finding the appropriate areas to mine and as a result of fair treatment of the locals, has developed an enviable pipeline to prolific diamond/gold rich areas.
Sunergy is already making significant inroads that will undoubtedly yield significant shareholder value.
One example--of many--is the deal struck with the Government of Senegal, who has a dire need for affordable housing. Sunergy, through its contacts made the government a proposal to build 5000 homes (all of which are to be 100% financed by the government). The proposal was returned to Sunergy asking for a proposal for 15,000 homes. A testament to the trust and business acumen the Company has developed in the region.
Sunergy's executive in the region, Stephen Parent stated: "We strive to ensure that our endeavors are not capital intensive. Sunergy is now a hybrid type of Development Company in West Africa. As a result of the work we have put in over the last four years, there is a very good chance we will be the first to see the best opportunities. Our experience further ensures that we can quickly act on these opportunities with the professionalism and transparency we are known for."
SCOTTSDALE, Ariz., April 22, 2014 (GLOBE NEWSWIRE) -- Investor and philanthropist George Soros has described Africa as 'one of the few bright spots on the gloomy global economic horizon'. It is, as Soros points out, the world's fastest-growing global middle class. The African Development Bank puts the stable middle class at 123 million, 13% of the population. By 2060, says the bank, the number of middle-class Africans will grow to 1.1 billion (42% of the predicted population).
Most investors--or companies for that matter--don't spend a lot of time thinking about or indeed considering Africa as a place to diversify holdings. While that may be fair given the usual news that comes out of that emerging continent, it's likely shortsighted. As far as resource rich and economically emerging West Africa is concerned, consider these facts:
-- Population 318 million. Forecast to 500 million by 2035
-- Twice the size of the EU
-- 2013 GDP 6.2%. 2014 average WA forecast 7.1%
-- Sierra Leone, 2014 GDP forecast to 14%
-- 60% Urban population by 2030
-- 66% of current population under 25 years of age
-- consumer spending forecast to reach USD 1.4 trillion in 2020
-- business technology development a major economic driver.
As its core business, Sunergy Inc. (OTCBB:SNEY) (OTCQB:SNEY) has made a transition from an exploration only company to a company now focused on production and cash flow. It now has four dredges operating, 2 in Sierra Leone and 2 in Liberia to extract gold and diamonds. A 5th dredge sits between the two countries awaiting the most favorable deployment opportunity for realizing fast cash flow.
"We intend on generating revenue through the production of diamonds and gold in Sierra Leone and Liberia. Recent findings of large diamonds in neighboring properties show more than possible potential for profits that would cash flow in excess of our expenses," stated Garrett Hale, CEO and President of Sunergy Inc.
Early results will begin to be reported as soon as the overburden is removed and the Company is able to process alluvial gold and diamond bearing gravels; projected to be available by the end of April.
Hale continues: "Running our company in the black is a direction we feel achievable with the mineral potential shown by recent neighboring operations. We run a tight ship with low overhead and feel we have an advantage over large scale mining companies, which means profit for our investors and shareholders."
While the Chinese have invested in Africa's natural resource extraction for more than a decade, it is only more recently that other international investors are waking up to the potential from Africa's imminent boom in consumer spending, which is set to rise from USD 860 billion in 2008 to USD 1.4 trillion in 2020, according to the McKinsey Global Institute.
In addition to its core mining activities, Sunergy has used those considerable contacts earned over the past 4 years to develop non-mining partnerships and agency agreements with major international businesses representing Airport Security, Affordable Housing projects and Solar energy projects up to 250 megawatts, in the five West Africa Countries of Ghana, Sierra Leone, Liberia, The Gambia and Senegal.
Sunergy's competitive advantage is really quite simple. The high level contacts, both private and government influencers gained in the region open the Company up to stellar business opportunities. As a result of successes realized in its mining endeavors, it has developed a reputation of being a preferred group when new initiatives are either proffered or discovered. And being the middleman in these transactions, the Company needs employ little or no capital. Earnings take the form of revenue sharing; particularly in the form of royalties, finder's fee or a combination.
Utilizing local mining expertise, the Company has been very successful finding the appropriate areas to mine and as a result of fair treatment of the locals, has developed an enviable pipeline to prolific diamond/gold rich areas.
Sunergy is already making significant inroads that will undoubtedly yield significant shareholder value.
One example--of many--is the deal struck with the Government of Senegal, who has a dire need for affordable housing. Sunergy, through its contacts made the government a proposal to build 5000 homes (all of which are to be 100% financed by the government). The proposal was returned to Sunergy asking for a proposal for 15,000 homes. A testament to the trust and business acumen the Company has developed in the region.
Sunergy's executive in the region, Stephen Parent stated: "We strive to ensure that our endeavors are not capital intensive. Sunergy is now a hybrid type of Development Company in West Africa. As a result of the work we have put in over the last four years, there is a very good chance we will be the first to see the best opportunities. Our experience further ensures that we can quickly act on these opportunities with the professionalism and transparency we are known for."
