RNS Victoria Boil the Gas is pleased to announce the successful purchase of 2% of the one third of 8% interest in something to do with a third of something else from Cameroon Holdings Plc.
VBG chairman and leader Sonic the Foo Dog issued a statement "I am absolutely ecstatic that I have been able to increase my royalty in this complicated way...... err I mean decrease the short term cost of my royalty err I mean VBG's royalty... errr does anyone want to talk about new thermal customers....(pause)... I've got a spreadsheet with a 5 on......erm CNG anyone??"
Like us all I really would like to see VOG rocket past breakeven into a brave new VOG era. I am struck by KYC's comment on the other one which essentially says a few more thermal connections is just scratching at it. Doubling/trebling scufs with a 2 year contract to supply gas to power stations ,after the 3 anticipated Bonaberri connections take us to group breakeven , will take VOG into group profits territory. The Bonaberri connections are almost immaterial. Dangote and its volume possibilities....we are not sure of but thus far we can have no short term expectations of large profit accruing from Dangote.
After the odd small elements of trading profit and skewing my portfolio abnormally towards VOG to average down, I am going to gate a very salutory lesson in portfolio investment theory in the next 2 years , or the news of and actual sales to power the grid should have a powerful effect on the SP. All the while the Bowleven drill results may have a marked effect on the achieveable gas price in Cameroon. Therefore medium term holders like me remain exposed.
KF nor the Board can demand a contract or details until those who have the power to grant the contract and conversions have the will to give VOG the deal. The oil price collapse wont be helping. Nevertheless it is not in Kevin's gift to ensure it happens soon. According to those chatting to Board members after this year's agm it seems as if all the ducks are in a row and a contract is expected to happen relatively soon. KF obviously wants that to happen yesterday, but we can not blame him if it does not. It would worry me if there was a need for an egm in the early course.
Me - if a contract with an adequate ROCE arrives in 2015 I shall be content. In the meantime a doubled reward before group profitability is, in my view, premature. Am not too chuffed about that.
RSM took the easier route first by using conciliation to obtain an amicable resolution. This failed, so they took it to arbitration to get a definitive ruling. The panel last met on Nov 17th and the ruling is pending. Of course, the ruling is confidential so we may never find out the result.
As far as tax is concerned, my understanding is that tax is not payable until capex has been covered. After that 38.5% is payable.
"The Corporate tax rate is 35% + 10% of local tax, which amounts the Corporate tax to 38,5%. In general, the minimum tax payable is 1.1% of annual gross sales."
Actually not saying any time frame ( coz have no idea), just using a " for instance if timeframe." Just saying the uncertainty may be a shorter repellant. ?? If so keeping us dangling may be in our interests.
Thank you,~ Did RSM loose? The article states "failed to resolve the dispute " then you mention its ongoing so the outcome will be very interesting concerning RSM claims of falsely assumed practices.
The money is almost sorted it will be interesting to see how much JG actually pays against the original claims for 28 million.
One query is when does the 10 year tax exemption expire from 2001,2004 or 2006 if it has expired there are no further exemptions .The rate is 38% plus 10% local taxes (not sure) There will be some mitigation as JG 40% will be paid gross
I too am giving him the benefit of the doubt at present , I have no choice IMO , though that doubt is increasing . I live in hope that KF has everything under control and has a master plan to deliver a raft of good news to propel us forward . That any day now he will pull it out of the bag . Here to hoping . GLA
Border So you are making your own time frame up , KF said contracts before christmas , you are saying late spring , connections and supply VOG are saying March April you are saying end of 2015 , remember KF only stated this 2 weeks ago
It's about time the company started to deliver on it's promises . We seem to be here again , expectations are high that before the end of the month we will hear of a positive outcome from the audit , we will have 3 new customers taking gas the other side of the Wouri and most importantly we will have a contract signed for big power . We now know that the Dangote hook up is almost certain to take place sometime early in the new year for reasons beyond VOGs control . There are also other hook ups planned on the Douala side of the river within the next phase of VOGs operations. Should the latest batch of promises come to fruition within the expected time frame then imo we will get the long awaited SP re rate that has been far too long in coming. With the now much limited number of shares in circulation , the rocket is bound to take of as a result of a string of good news. God help the bod if in order to ensure the consolidation they have fed us another batch of false promises that won't occur within expected time frames. They still have the benefit of the doubt from me . I still believe that these planned events will happen before the new year. But if they don't I will be the first calling for an EGM in order to bring about some changes. I reckon there are plenty of long termers here in the same situation as me giving the company the opportunity for one last throw of the dice . Fingers still crossed at the moment.
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