If this was just FOO'S company would he really pay GM $250,000 a year for advice? I don't want to bang on about this but here lies the fundamental problem with VOG as a whole.
For the sake of dots, IMHO cost need to be stripped to what we actually need to run a streamline business and deliver shareholder value. I have no idea what that is, but I know if I was in Cameroon for one month and could see who does what then i'm sure we would strip costs out.
You know why this would happen? Because I have put my very hard earned cash in the game, that's why!
Sounds like the board are still going all out for growth to secure vog's monopoly. Totally agree with their strategy, try and get all the industrial customers and as many power stations sewn up before the competition get established.
It's going to be an expensive 2016, if I remember correctly vog subcontract the pipe laying at around 1 million dollars per km? 2 wells to drill and plant upgrades, but the cash generation for connecting these customers now and hopefully Dibamba will be significant.
Vog's one of those shares you just don't want to sell because you know that RNS for another power agreement could come at any time and the share price will rocket. If they are going to release an RNS saying vog is now profitable it will be at the next update I think.
Unlike some I'm willing to give them that year and see what happens. It's an exciting time for the company.
The 4.5m KF stumped up was in 2009. The royalty deal was negotiated later. He said he hadn't got his money fully back yet from the royalties. He could have lost the lot.
as far as II's are concerned he said they had done around 100 presentations but there was no appetite for investing in AIM companies.
I thought the results of the proxy votes were interesting. All the resolutions had around 25m votes cast. The re-election resolutions were passed with 99.8/9 % in favour. The re-election of the auditors by 80% ish.
I would have expected more dissent if they were PI votes for re-election and less dissent for the auditors. PI's are not really bothered who audits a company but an II is more likely to look for a periodic change.
This suggests that perhaps there are more II's holding than is known to be the case.
Thanks to those attending the meeting and reporting events.
I notice the validity of what was said has already been questioned with negative spin being inferred, if the BoD sign legally binding statements saying all is rosy I'm sure some would still say it's all going to fall in a heap.
WRT the phase increase in throughput at the processing plant, perhaps it's because a single step increase would take too long and limit sales and gradual increases are aligned with demand growth forecasts. Also the cost of increasing capacity would be offset be sales. I suppose it may also be less disruptive to gradually increase in the full upgrade required shutdowns,
I hadn't considered a phased upgrade before but it does make sense to right size the plant, as long as it can cope with sales there is no problem.
Following the AGM and the remarks made by Foo in a side meeting about the company now being in overall profit, I would still like to see an rns to support this if it is fact or just a throw away remark made by Foo in a meeting where he is not held to account. Either we are in overall profit or we are not. This is a very big thing and the market needs to know.
To put it simply CHL put some of the costs for the initial drilling along with Foo this was when VOG had no cash , in return they were promised a royalty that is front loaded, without this happening there would have been no VOG so understandable they want their cash back(plus profit) via this royalty, but new comers don`t understand and keep questioning why all this cash is going on royalties and say it is a drag on the SP and II participation and want rid of it!
This 4.4 million by KF worries me not gives me heart. For if cash flow rich then this would pay back the amount due. Worried also that if KF not have the money then the mother of all cash calls and dilution of shares would need to take place as happened a couple of years back. How did Foo etc get in a critical position where suddenly needing to payback 4.5$ mmillion, this should be pplanned in advance.
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