This deposit repayment from a gas contract made in 2013 I think has gone completely unnoticed by the market.
As per interim results this £485k incoming plus £540k in cash means £1.025M cash take off say a conservative £200k cash burn in the past 5 months (i think its much less than this now due to directors being paid in shares) gives £825k cash in the kitty vs £450k MC, no debt, and a new focus on fintech investments as of 3rd of march if voted through.
Thats all completely ignoring the £560k they have in O&G investments... you can chuck these in for free.
Could be potentially quite an exciting period coming IMO.
Interim results here have some pretty important and material information hidden in them
If you read section 7 for receivables:
"On 10 January 2013, the Group entered into a contract to purchase 20,000 cubic meters of Gasoil at a price of US$775 per cubic meter. On entering the contract the Group paid a refundable deposit of £499,900. If the Group chooses not to perform on the contract, the deposit will be refunded. The contractor, at their sole discretion, has the right to impose a 2.25% fee for any amounts refunded for non-performance"
So that's £485k net cash to be received if they opt out of this contract.
Then go to section 12
"The Company on December 3rd notified its intent not to perform on the Gasoil contract and has requested to be refunded the amount owing. These funds will be received in early January 2016."
So according to this MMO should now have around £1M in cash, £500k in assets, liabilities I get down to around £100k as were paid in October using equity...
MC of £400k and as of 3rd march look to be going in to Fintech investments...
To me this is very materially significant for the company that £500k cash payment incoming so I wonder why not RNS?
The fact that directors are being paid now in shares at a nice premium is also encouraging.
Resolution 1 to be proposed at the AGM seeks to amend the Investing Policy by extending the policy to enable the Directors, in addition to making investments in the natural resources and energy sectors (with a focus on oil and gas), to make investments in the financial services and financial services technology (Fintech) sectors, these being sectors in which the Board considers it has sufficient experience
Fintech very hot sector. With MMO £500k in cash and £500k in an investment this could start moving bigtime IMO.
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