Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
MIF
Good post.
Lot of things going on in the background. Govt wants to promote their local oil company.
Good post, I noticed that the Hu got a mention too :-)) will be going to see them soon,. Sorry bit off topic I know. GLA
Yes, I also think that a bank loan, and indeed the issue of raising capital is a contrived topic. Money can never be a problem even if you have a great business idea, not to mention an oil deposit with millions of barrels. Therefore, in order to understand what is happening, and even better to change today's abnormal situation, Mike and his team must not lose sight of the strategic goals first of all. And, secondly, to work anticipating not only possible failures but act ahead of the schedule of possible results. That is, you need not to wait for the appearance of these results, but to predict them and be ready to act promptly and not lag behind events, as is often the case with Matad.
Here are some news sources to backup my statement:
1. https://www.reuters.com/article/mongolia-refinery/mongolia-launches-construction-of-first-oil-refinery-with-indian-aid-idUSL4N1TO1TO
2. https://montsame.mn/en/read/206453
Indeed, in fact the Price Minister U. Khurelsukh who supports the construction of oil refinery in Mongolia just recently visited Petro China oilfield to get acquainted with their operations. I believe he is eyeing his next big move of making the oil refinery project a success in Mongolia. FYI, this Prime Minister is known for his strong leadership and willpower to take the country's development to its next level. He even tackled the country's air pollution issue this year, but this news hasn't reached the global spotlight yet.
Good point MIF. And it only means that the Mongolian govt has every incentive to get a domestic oil producer up and running as they currently import all their oil - even that which is drilled in their country goes over the border to be refined and is then sold back I believe. And don't forget they've just started building their first oil refinery to be complete by 2022 or so. Hopefully it's big enough for raptor and fox!
Mongolia was put on FATF Grey List mainly due to their lack of ability to effectively combat money laundering activities and not necessarily because of their economic risks. I would say "significant shortage of USD and other currencies" is very misleading as Mongolia's economy has strengthened significantly in the past few years with net increase in foreign exchange reserves by USD3 billion (as stated in this IMF report https://www.imf.org/en/News/Articles/2019/06/28/pr19251-imf-staff-completes-2019-article-iv-mission-to-mongolia). I am a local BTW.
Presumably as a London listed business the company could borrow from a uk bank or syndicate and then manage its hedging requirements as normal?
Bonum, you do understand Mongolia has recently been put on a Grey List, MNT continues to slide, there is a significant shortage of USD and other currencies in Mongolia, and regardless of what you think lending from Mongolian banks is a process many have tried and failed with.
There are significant others on an international scale such as EBRD and ADB who especially have a long history with Mongolia and understand investing in country,
Am I am expert, probably not, but in terms of years of working in Mongolia and continuing to work there I can only share the slippery slope associated with an unpredictable banking system that can add significant risk to any project or long term investment.
Also bear in mind any deals with Petro China or others would have to be concluded in USD not MNT. I don’t need to explain to you FX risk.
Bonum
My own view is things might happen in this order.
1. Fast track exploitation licence
2. Get Petrochina OR oil oil majors get in who would pay upfront cash as in normal Farm-in deals, generally speaking.
3. Get to production ASAP.
Could be wrong though .just a hunch.
Woukd be nice to know these 'other' companies Mike refers to
Thanks Guys, I believe we will see a bounce back this week, I can be wrong of course, but any positive news regards to, bank loan, Petro China agreement or even Petrovic add more shares into their Portfolio will take us back to 5.50p - 6p range.
Have a nice day all, take care.
Obelix
We have a better than expected oil find - a clear message from the CEO that ge wont be reliant promarily on any placing route - a confirmation by the CRO that talks are underway with PetroChina on the production sharing facilities and which will also include Partnrrship discussions.
On the flipside, we have anonymous posters here giving their own 'expert opinions' as to why the CEO is wrong!!
I expect the CEO to do exactly what he states he'll do - secure funding from the Mongolian banks, likely sort out a Partnership with PetroChina at some point and conceding a very limited placing to make up any shortfall needed.
Isn't that what the CEO stated himself......or should we listen to 'little earn' and the abundance of other 'experts' suddenly frequenting this BB??
Have a lovely day all
Obelix, over the past year all of my predictions were wrong and only one has come true - the discovery of oil at Heron. And the same with the SP. When I thought that it should grow, it was falling like a stone. Taking this in account I decided to build my assumptions using the reverse method.
Therefore, I firmly declare that from tomorrow and til the start of oil production nothing good will happen and the price will fall. And it will be for the joy of our stray dogs that will start to bark even more furiously and loudly. Lol
Big hopes for this week.
Any expectation for tomorrow? Tuesday meeting, possible another news to be out (not only) AGM notice