Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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People keep bringing up Pantheon Resources (PANR)
Let us compare. I cannot do 88E with XCD at this moment.
But comparison is interesting as at today:
Successful oil flow test? 88E – none; Panr – 1 (one) last year
Founded as Alaska focused exploration: 88E – 2014; Panr – 2006
Years in Alaska exploration: 88E – 6; Panr – 14
Both on AIM
Current MC: 88E - £19.5m; Panr - £85.7m
Operating area size: 88E – 385,000 acres; 200,000 acres
Shareholder money spent: 88E – £ 79m; Panr – £ 158m
Expenditure over MC: 88E -
Peak SP: 88E – 4.10p; Panr – 180p
Current SP: 88E – 0.28p; Panr – 17.1p
Times drop, high to low: 88E – 4.00/0.25=16x; Panr – 180/8.9=20x
Debt: 88E – none; Panr – none
Cash in bank: 88E – plenty; Panr – 1 year overhead cost.
Number permanent staff: under 10, both
Use of contract staff, special expertise outfits, etc - both
Out of season hibernation cost: 88E – high; Panr – very low
Distance, centre of site to highway/pipeline: 88E – 35miles; Panr – 0 miles
Experience of team in oil bus: 88E – 30 yrs?; Panr – 300 yrs
Without PB, our true oil exploration experience dropped to nil. Rebuilding?? Contractors??
Panr have a very experienced and diversified team.
In 6 years, 88E has not quite done a commercial Oil Flow.
It took Panr 14 years to achieve first Oil Flow (100 bopd)
Oil resource type: 88E - conv and unconv; Panr – conv only
Panr and 88E are fully shareholder funded.
88E have high drill cost with average 35 mile ice road and deep resources.
Panr have a low Drill cost with shallow oil resources and right on the Dalton Highway
Likely average cost of oil recovery: 88E – US$ 30+; Panr – US$ 25
88E SP is hammered by past mistakes and misfortunes.
(share dilution, Yukon, Western Blocks, too much land, expensive staff).
Panr SP also hammered by 13 years to first Oil Flow. But Oil Flow brings confidence.
88E can only regain shareholder confidence and trust with a successful Oil Flow Test.
Once successful, our MC should be worth as much, or more than Panr
If MC increases to equality – 4.4 times puts 88E SP at 1.23p
Panr’s value is expertise, experience, caution.
Panr have a declared strategy to be long term oil producer.
Panr’s weaknesses – no FO success, aging ‘team’.
88E have no declared strategy, other than get some successful oil flows…
88E’s value is massive ‘oil soaked land resource’, ummm.
88E has proven Field Drilling experience, in sub-zero Arctic conditions.
88E has proven FO negotiation experience.
And (IMHO), 88E is extremely close to Oil Flow success.
Continued, Phrontist
Amen to that flex, we need good solid results this month and that figure at the top right pushing northwards.
Shaa
I appreciate your comments & contribution to this board, always a balanced view!
You say he’s in the last chance saloon, with investors almost certainly, but above him.. Micheal Evans Non Exec Chairman, I want to know what he thinks? He must know shareholders aren’t happy after the last two years votes at the agm regards re-electing the BOD.. but then he’s also brought shares in XCD prior to the takeover bid, so he must be satisfied or are they both (DW & ME) feathering their nest so to speak. I hope for a positive change of tact for all of us!
Can’t argue with your post, the one thing DW has been consistent with time and time again is disappoint - the facts speak for themselves.
We are all at different stages in our minds regarding DW and I feel he is in the last chance saloon but I do not wear blinkers and accept your view of point and it’s validity.
June is a big month for 88E and an even bigger one for DW.
Shaa
In my opinion, we are experiencing disappointment now & has been continued disappointment, a forward plan will all be regards farm outs, unless we’re in for a surprise the farm out process of any prospect will take us into next year (IMO based on the length of time it took to get PMO) so what will we be doing this winter to enhance our acreage? Seismic? Funding for this...
All (or a good portion) recognise or realise we need income as a business to succeed, income to fund exploration, even the takeover that we’re experiencing. Do you not think an Oil guy coming in with experience would have this in mind, they’d go for the easiest option to get us up and running, yep Alpha prospect, 3 things immediately going for it - TAP’s, Franklin’s Buff pad & Daltons Highway next to it possibly on top of it, does our MD even consider or mention it? Not that I read or hear, doesn’t appear to be on the radar other than a prospect.
A good example of an Oil guy coming into a company that was pretty directionless & had experienced poor results was LGO, now CERP, Leo Koot came in, made immediate changes, set a 5yr target to be a £500 million pound company (3yrs in) & he’ll make sure it is (IMO), has anybody heard of a market cap target from DW within a timeframe? Another example of Koots knowledge/experience was on their recent drill, the drill ran into trouble, he’s openly said he made changes as the drill happened from his ability to interpret seismic data & his experience from drilling to complete the drill successfully & hit target as planned, would the last two drills we’ve been part of had the same disappointing outcomes if we’d had an Oil guy at the helm?
I hear what you’re saying about timing, but change is needed!
09:24 Agree, bit like those who quote our fall from our market high as if we are unique, plenty of similar or even worse cases in AIM, need to look at full context and not just the headlines, which often give a false impression.
Do you think the spread of between 11-15% of last week is putting off buyers? MM’s hold it like this until they are ready to move on results. Does anyone see further downside to the SP?
IMO - wrong time for a change, critical time for 88E, let’s see what June brings in terms of results and forward plan.
If disappointment all round, then it would be the right time for this kind of discussion.
Hi SeeVee,
I see what you are saying about the change of the CEO but I think there are other things involved at AML other than just the change at the top. There is a strong talk of a bid for them. Also, just before Covid-19 the price was about £2.70 and it was about £6.00 at the beginning of the year. Don’t forget Covid-19 has hammered the SP. I’m a bit surprised the SP hasn’t gone higher considering who the new CEO is. AML has been a pig of a share since it went on the stock market a couple of years ago. Since AML was floated, in 2 or so years, they have performed worse than 88E, the SP has a 98% collapse since it floated on the stock market less than two years ago.
As you have spotted there are opportunities elsewhere to make your money work for you even some FTSE100 companies have offered great returns post the lows of Covid-19 with ultimately very little risk.
AML has been dealt a great hand of cards, a billionaire as Chairman who has topped up the kitty, the appointment of Moers and I believe Toto Wolff giving his support to the appointment and indeed taking a stake, its all positives for the market.
Could we entice a similar industry big hitter, indeed would we afford one and the facts in terms of assets and finances would ultimately remain the same, yes a change at the top might produce a flurry but even a 134% increase on 0.3p will only ensure that those standing at below 0.7p will see a profit :-)
Have been following events at AML recently. SP on 14/05/20 is 30.70p. CEO replaced very soon thereafter. New man appointed. Previously Director of Performance at MB. SP on 05/06/20 is 72p. Increase of 134%. A man with credibility at the helm, and the picture changes, almost in the blink of an eye.