Oh Dear I read the reports back from the AGM. And sold out my 400k “fun purchase” of shares this afternoon. Was a waste of time. Gensets still stuck and scuff targets for this year likely to be out of the window yet again. Overall company cash burn still $300 K a month.(on sales of 2.9mmscfd) Whatever type of loan they might manage to arrange the pressure will be on to get the scuff sales up to meet the loan repayments. Depends on the size of the loan they take and the repayment schedule. Roughly speaking it looks like this 2.9mmscfd covers RDL expenses in Cameroon 0.6 mmscfd covers the cash burn $300k for the rest of VOG 0.22 mmscfd covers a $5m loan @7% over 5 years 0.44 mmscfd covers a $10m loan @7% over 5 years
So VOG need to get somewhere between 4 to 5 mmscfd to at least feel in a more comfortable cash position and above that figure to start boasting about a profit.
In case anyone is still confused about the withdrawal of resolution 5. In a nutshell the “withdrawal” means that VOG cannot now make a placement without getting shareholder approval first . To get shareholder aproval Vog would have to call a general meeting to get a vote passed. If they couldn’t get resolution 5 approval this time round then asking again at a general meeting would presumably still be difficult. VOG can however offer some shares direct to all shareholders by way of a rights issue. Once again this is costly and unlikely to happen. So it looks like now VOG have to find a lender. Back on the fence So whats new. IMO DYOR etc
I've just picked up this TwitterAccount Link from - StephenPKendal who provides followers with Instant Alerts for shares that reach exceptionally high volumes at any time that results in a significant SP rise.
This table states that VOG is the No1 most undervalued Stock. Just copy and paste this link into your web browser
Voger As I recall the Kev mentioned or JS that the hire of gensets was for approx 2years until income allowed for purchase. (Purchase of existing hire sets or new ones was not clear. This was since the Feb shake up when the ii's and is were first involved. Probably needs confusion or (dare I mention his name l&g) to trace the announcement. You were maybe too busy counting your chickens at that time,
Neither VOG, local industry or Cameroon was going to fork out for brand new power gens for the gas. a: VOG does not have the money b: Guinness etal are not going to jump in feet first until proven its reliable, cheaper etc. c: Cameroon need to see that the power via gas works
b2: If it works well Guinness etal may buy out the contract and the machinery long term at end of 2 years once proven reliable c2: More pressure on local HFO power grid to be converted to gas to maintain the 'INDUSTRIAL CAPITAL' in electricity/power 24/7 when seen the gas can maintain the correct level. Frees up local grid excess for the locals
Voger .Not sure but it may have something to do with when he said it . Was it recently or a time of some off target predictions . Maybe he thought some power station would be up and running or converted , I don't know but one thing for sure is that gas to power generation was always going to be where the main income is coming from . Once any of these companies go for their own power generation they will keep them until a reliable and cheaper grid system is available . Maybe KF thought /thinks this is possible after a couple of years who knows . Just estimations . Perhaps the rental contracts may change or whatever but these companies once hooked up to their own generators will keep them until a better solution appears . Any timelines on that is just guesswork IMO and not relevant to VOG operation . A reliable bigger capacity grid will hopefully be using VOG gas at the right price to VOG and also to the end user . Did I hear something fairly recently that the company responsible for the grid is trying or getting pushed out , if so someone might think big improvements would happen overnight ? IMO
well done voger...your starting to think like an investor the market thinks that way all the time one of the reasons shares go up and down, keep asking the questions because you cant just buy a share and be guaranteed a winner its always subjective.
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