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If you think there is no deal that's going to take place under no matter what terms, then the answer's yes. There are signs of prioritisation of self-interest over company's interest (let alone that of shareholders), but they have done farm-out deals in the past. So let's not rule out some kind of deal. However, as it stands, they certainly take their time and given the recent remuneration deal, it would be in their interest to do so.
Also there is the option of putting the company or even Lixus for sale ... after all Anchois is valued at 59p unrisked (by Finncap). In my view that would be by far the best option given management's disappointing performance to-date. Re the performance, it's not what I think, the market says that through a loudspeaker.
On the positive side and despite their thick skin, it would be very difficult to face shareholders at an upcoming AGM without some kind of positive news. For example, and that's just one issue among many others, how would they begin to justify a valuation below cash value?! Hence, I suspect something is likely to be announced beforehand.
Reference has been made to Chariot's cash pile. But what is that cash pile intended for? After looking at this company's actual performance, I think the answer could be: management's salaries and pensions.
And here comes Whimax making up stories. Snide remarks?
I don’t know MrJinx, maybe because the 3 guys you are referring to are discussing things like grown ups and offering some kind of reasoned approach to these issues, rather than throwing around pointless snide remarks at every new poster that dares to comment on here?
Just a thought!!
How can PM agree with the other two ‘new’ posters, then go on to write two paragraphs agreeing with every word I said. This board gets weirder and weirder!
I remember the conference call in 2018. PM didn’t get stick off us for asking the questions. PM got stick for being a Larry apologist and promoting everything Chariot was doing was perfect. It wasn’t and over time, PM has slowly come around to Larry’s smoke and mirrors.
What I just don’t understand is why, when we’ve only ever been truthful, we’re the bad guys. Yet posters who ignore the past and guess at the future are lauded like long lost friends. Mental :D)
To that excellent set of questions let's add the one about conflict of interest re the partial payment of salaries at 2p whereas timelines can drag on and on. The lack of institutional investors may well have to do with the fact that the last thing the CHAR board would like is someone to challenge their performance (or the lack of it).
I asked LB these questions at the last conference call (Sep 2019), which didn't really get answered at the time but I would've expected them to be addressed internally. Sometimes you have to ask questions and not expect answers but action.
1. Do you recognise that relations with private investors, institutional shareholders and oil companies have been fractured?
2. If you feel that relations have NOT been fractured then why don’t we have any credible institutional investors on our share register and why hasn’t there been any partnering for 3.5 years?
3. If you feel that relations have been fractured – what steps are you taking to mend these?
I agree with your sentiments Michaelhighbar and donnodertrader.
You can ask what ever question you like at the AGM or Investor Call, it's irrelevant whether questions get answered or not as you're duty as a private investor is to apply pressure at any given opportunity.
LB may not give you market sensitive information but will mosty likely think about what has been asked and try to address it to the market. It's also worth noting that analysts and representatives of high net worth investors may be listening, they are likely to have access to other channels of communication with Chariot management and would want to demand answers to these questions themselves.
I pushed Larry during the investor call in late 2018 on an update in regards to partnering, I asked him several questions as we were weeks away from the drill and hadn't agreed a farmout deal. I got a lot of stick for asking these market sensitive questions but the fact is that we had a raise in early 2018 (at a 40% discount to the SP) to give us an upperhand in partnering negotiations for Namibia but Chariot could not finalise a farmout in a timely manner, it supposedly timed out. I didn't exepect him to provide the details of commercial negotiations, the purpose of these questions was to show my frustration and apply pressure even though LB hid behind the "commercial and legal reasons" excuse. The SP dropped by 40%, shareholders who didn't take up the open offer were diluted and Chariot drilled without additional partnering, which reduced a large amount of the cash balance and is the reason why the SP is 2p today. There was no accountability for these actions and no transparency around the partnering process, there may not even have been anyone in the data rooms but we will never know.
donnoderT
It looks that some feathers have been raffled. It's not difficult to see why.
Anyhow, asking the CEO why he thinks there is no conflict of interest between:
(i) issuance of a significant amount of shares at rock bottom prices to pay for salaries and
(ii) the fact that directors have a significant degree control over the timing that any conclusion in the negotiations for any type of deal (already timelines appear to be extending further and further),
can simply not be answered by "we can't reveal market sensitive information." He can answer so if you ask him the date that a deal is concluded.
Also, at an AGM will people vote in favour of the issuance of additional shares to pay for salaries through shares at 2p?
Fill your boots.
:- ))
as I said!
Or lack of research ?
MHB it appears that your analysis has proved too adult for some on the board!
Emoji with rolling eyes.
*not - have novotel. **invite...bloody phone!
I guess you’re not used to Larry blocking every awkward question with, “we can’t divulge market sensitive information”. He’s a first class gaslighter! But hey, you knock yourself out and try and right the wrongs of the last 10 years with a couple of questions. Maybe, Larry might have Novotel you on to the Board with your summer fresh ideas. What by that be nice! :D
It is critical for shareholders to be challenging at the agm. We need to be assured that the Board are being proactive with plans to kick this company into action and not to pursue their own interests at the expense of the company and its shareholders.
The market does not seem to think Chariot has any value! In fact it thinks that its management is capable of destroying value, even when that value is made up exclusively of ... cash!!
Some of the forgotten Falkland companies (or the elephant scale projects as Chariot management like to call them), e.g. Argos, have a market cap that's a multiple of their cash pile. In the case of Argos that price to cash ratio is over ... 8.
Maybe an idea to put that very issue to Chariot management at the AGM and see what they say? Some people prefer to complain in here but keep quiet at AGMs.