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Fernan, yes, I heard that. good question.
so.it seems we either win the case or we don't have to pay if we lose.
win win to Sound.
of course, it's better for long term relations and face etc. if the tax authorities agree there is no case to answer.
I suspect that is why Sound didn't just say sod off.
I asked the following question on the Q&A sesión yesterday (at 17.15), about the tax liability of the dormant subsidiary:
Question: Should Sound lose the tax case in court, is there any obligation on the Moroccan law for Sound Energy PLC to satisfy the tax payments due by the dormant affiliate?
Graham Lion: "Yeah, well, So Fernando is spots on on these questions….Sound Energy Morocco SARL.... is a Moroccan company, a standalone Moroccan company and there is no consolidation rule in Morocco for that company. So our understanding and our legal opinion understanding is that that´s correct. There is no obligation to any other Sound Energy company. If we lose the case, we don´t believe we will lose the case. But if you lost the case."
According to the news released on Sept 14th, 2022, the tax claim against the dormant subsidiary Sound Energy Morocco SARL AU ("SEMS") amounts to US$ 19.7 million.
It seem likely that, even if we lose the case, the tax authority could only pursue the assets (if there is any) of the "dormant" subsidiary, without any effect on the rest of the companies within the group, including Sound Energy PLC
Regards
Fernan
It’s only dropped because I topped up on Wednesday.
Down 8.3% on only 2.3 million traded. Rubbish.
and they didn't hold many anyway if they sold the lot this morning :)
of course he/she will.
they will be constantly banging on about fictional equity calls to try to justify their sale and help them buy back.
Goodbye - I hope you won't be posting on this board again!
A really disappointing Q&A session. Presentation inaudible at times and badly lacking on the issue of cash. Sold my holding on the basis of that because the sp will certainly be headed south. Once they sort the funding, the prospects will be much better for the business and the sp. I'll buy back at a later date, prob for around 1-25p
Unfortunately, the Q&A being not very inspirational, with, for me , no imminent news and inaudible for the best part, has i feel , and i sincerely hope not, stopped the momentum of the SP to get us over the 2p mark. I was hoping we could get the plant up and running sooner than predicted, but due to plant fabricated items being made and not being able to sell the gas before January, that is not going to happen. And i thought Morocco was desperate for gas.
We really need the JV /tax issue news soon, otherwise i see the SP drifting till then I know these things take time, but i am getting impatient now, like a few on here i guess, going over the same issues with no outcome.
no, 46 minutes is TWO options for very near term cah injection.
Rosso, I have asked this question a number of times and the replies have always been very rambling and politician like, so there remains a lot of uncertainty. Gary was very hard to hear and to understand. He seemed to be totally avoiding the central question by rambling on about how successful they had been at minimising running costs and how revenue would be coming in from the Badile land sale, but the drift from him and from Graham, is that they are very keen to avoid ANY further share issue and dilution of the assets, even with a farm-in partner. Gary implied that Sound's costs for getting Phase 1 to completion and revenue generation are being met by the Afriquia Gaz loan. Afriquia Gaz's considerable stake in the project is very dependent on Sound's continued existence.
From what I could understand, was that the expectation and hope is that a similar agreement can be reached with Attarijariwaffa Bank's funding of Phase 2. We don't have long to wait now that all Due Diligence issue should have been covered. Their decision will have a massive effect on Sound, either brilliant or disastrous .......so fingers crossed!!
Immediate concern is how do they top up the coffers which will shortly be empty. Short-term non-convertible loan or offtake prepayment would do the trick. Really don't want to see them hanging out the begging bowl and going for death spiral CLN stuff, or tossing out 100m new equity at 1p. Maybe I missed how this pressing cash issue is to be addressed.
keeptofacts 46 mins "phase 1 revenue of 23 million a year "
Distortion + scottish accent = couldn't understand a word
Did he explain where the cash is coming from in 6 weeks time in order to get things underway? 23m ok, but how do they get going with nothing in the kitty?
Thank you for sharing.
I have only listened to the first 15 mins so far.
GL has done a good job but we really need some action now....sounds like Phase 2 is gonna run and run on. I don’t think we need anymore messages about demand ( gas prices are dropping off ) for our gas and interest. Actions speak louder than words. I feel it will be vendor finance, which might be better in the long run?
I guess you missed the 2 opportunities mention at 46 minutes in!
rosso, I refer you to the same points.
to be blunt the phase 1 revenue of 23 million a year and phase 2 revenue of 130 million a year net to sound continues to be my focus. what's the market cap right now? what PE ratio is normally applied to gas producers? what does that mean for a realistic market cap target once phase 2 is up and running?
oh, btw, did you also notice that all the due diligence for AB to make it's binding offer for phase 2 funding has been delivered!
I thought the banks where queuing at the door to lend money .
Investor relations current up to date and completed --------------- tick that one off Mr Lyons
As I stated a PR Event
Nothing that wasn't in the public domain this morning before the Q and A.
What did you expect with no RNS preceding it?
All the question marks handing over the business were discussed, as expected. No different answers, as expected,
So, it is just back to the waiting for things to pan out, in the knowledge and reassurance that management have got these situations covered and will present us with positive solutions in time.
Very wishy washy on the current funding.
Crude. All that you state is correct. But the idiot Farage, and others did not realise, like any sensible human being would, that the Eu , especially Germany and France would fight, with every tool in their bags, to ensure brexit would fail. It is in their interest for brexit to fail. The better approach would have been the arduous task of regaining some sovereignty by fighting within the EU rather than outside. The Brits always played the 'agreements' by the book. eg EDF is the main contractor, with Chinese finance on the Nuclear PS Hinckley \point C, 2 new reactors, worth £30B+. This is crazy. There are no UK contractors who could have done this? Where are the big UK projects in Eu? None. Within the EU, there should, and should be now, a concerted effort by Govt to buy and use British. Germans buy German goods, sim. with France and Italy. The Brits buy from anyone. We are the biggest importer of Merc cars in Eu. Tesco failed in France and Germany. Lidl and Aldi are raking the money in. We need a sea change in our buying ideology, and act more like our European colleagues.
Rant over, Sorry for OT.
Watching now. Fair bit of detail being added to what is already known. The rest is all about hopes and expectations for the short and medium term. PR exercise reveals how they are moving forward, managing a Co. with lean resources. Stuff about share buybacks and dividends is irrelevant. Tax issue misunderstandings being constructively discussed in a cooperative manner . Why is it a Court case then?
Drilling schedule outlined, with targets, reserves and mention of a prospective partner. No dates indicated.
Biggest issue of finance pretty much glossed over. Ongoing talks with industry operators and alternative funding routes of debt/equity being considered.
Slides showing progress on the ground for LNG tank, proposed flowlines and civil works. No ref to the bad weather which is hitting the area atm. Gas is under huge pressure 300 bar, technical safety aspects discussed. Doubled storage capacity. Distribution choices under consideration for monetised gas.
Competent team moving the project on in stages. Getting main finance package in place is obviously the biggest mover. Talk is of field developments over the coming months ... but the Co. will run out of cash in a matter of weeks
Not any straight answers from the management yet.
I also agree with that Mr Pound but whatever they tell you as answers will never ever be close to bad news so the questions will be filtered for sure , the previous BoD did it all the time as Parsons told me they did so what's the point of you cant answer truthfully and yes each their own
Be prepared for an outline of the business strategy moving forwards. Let's hope it's not just another AIM Co. wishful-thinking exercise. Far better to have some meat on the bones, appropriately signalled via RNS, to update on latest developments than musing on some hoped-for targets. Prospects looking much brighter now than they were six months ago. Farm-in partner must be close.
Personally I disagree and am looking forward to gauging how negotiations are going from this Q&A.
Keeping investors informed (to me) is important and that's all they are trying to do.
The extension and deadline for negotiations was always set until 15th March and I suspect that Graham and the Team may have thought (as mentioned in last Q&A) that there would be a material update for us all in February.
Unfortunately this hasn't landed in the form of an RNS just yet (for unknown reasons to all) which seems to have upset a few (probably minority) with the timing of this Q&A .
I and its disappointing after waiting so long with the already extended timeframes but the expression' dammed if you do and dammed if you don't' springs to mind for the BOD's.
If Graham and the team negotiate the best deal for shareholders long term then I will be happy.
Attendance of the Q&A is optional is people think its of no benefit.
Each to their own.