Zenith announces new Power Purchase Agreement
On 17 April 2019, Zenith Energy announced it had signed a new Power Purchase Agreement (PPA) with existing customer, Silver Lake Resources, to extend and expand its Build Own and Operate (BOO) power station at the Daisy Milano Gold Mine. Zenith has provided Silver Lack with BOO remote power since 2012 and this new contract will extend the relationship for a further 4.5years. Under the terms of the new, expanded PPA, Zenith will BOO an 18.3MW power station (previously 12MW), the new station will consist of 13.2MW of gas fired production and 5MW of diesel back-up generation.
The PPA will have an initial supply commencement date of 4Q19 and following the commencement, Zenith will have a total contracted BOO capacity of circa 219MW. We view this announcement as positive for Zenith and it follows a number of contract wins and extensions over the FY19 to date.