Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks for the replies Nigoil and no, I wasn't aware that Desire was still going! I must say I was a little surprised to hear SPs name crop up again after all of this time. My understanding was he took up a back seat when FOGL took DES out and then seemed to fade away once RKH took FOGL.
Were you ever on the iii board when all of this was going on?
Nigoil
I must disagree. DES and young Phipps in particular did not do their job. He openly admitted to being more interested in establishing the geology. By ignoring his geologist (Bodgett?), he managed to avoid finding oil, which would have started this process fifteen years ago. He went on an intellectual fishing trip rather than being focused. When he found some oil (oil to water, side tracking) instead of pursuing it he wandered off to untried fields
This is the root cause of all our problems, and why we and the FI'ders remain poor.
Still glass 3/4 full
Cubane
Nigoil. That may be so. I do recall the days when Desire owned a vineyard, or something similar. Even his father no doubt saw Des as a means of enhancing the family fortunes via an AIM quote. To me Stephen Phipps came over quite spivvy and entitled. That may be reinforced by the somewhat closed ranks of FI hierarchical structures. I guess all that could still be forgiven if they hadn't made such a cock up of the Des situation for other shareholders when time was ripe.
So I don't doubt he may make some money for himself or his family, but I wouldn't ever say his hand on the tiller is a sign of quality decision making. Just my personal take on it.
Why anyone would think Stephen Phipps adds anything to the process, God only knows!
Yes, they would have respect for his father, and his role and career, but the father in this case is not the son. As we experienced with Desire he managed to make money for himself and his sister whilst co**ing it up for Des.
In the case of PMO TD eyes light up when he talks about Mexico and Zama in a way he never does when the subject of the FI is raised. Possibly because Mexico was discovered on his watch and Sealion became a thorn politically and financially in a difficult period, despite its promise.
However, it would mean a decent sized balance sheet write off if PMO were to walk away from it, and they are not going to do that any time soon. As they have always said they would prefer to farm it down. That way they get something to balance out the expenditure. Failing getting finance and a farm down, PMO will just stall about their write down until they are confident their balance sheet is looking a lot better.
All,
I should clarify that we probably wont hear anything official so early. I do think there will be some leaks to the Italian press though
Mogger
Thanks Mogger, my eye is well and truly off the ball lately, sitting patiently.... :)
Giblets,
Unless there is a 60 day delay, the award should be signed w/c 1st July
Mogger
Nigoil, could you expand a bit further on your comment re Phipps being behind the scenes?
If FIG did revoke the licence wouldn't we be protected by the energy charter treaty anyhow, as with Ombrina Mare?
Anyone know the time line for the result of the hearing? Surely we must be getting close to hearing the result......
Zama - Thing is, they are already partners involved with money and skills, in an area already with infrastructure. If I were PMO I would rather go with Zama than be the lead at opening a new basin.
Sabyam....... monetising Zama sorts out all their problems in one go quickly and easily. Of course they would love to develop it but they are already stretched and can’t afford to. Plus they won’t have the control they have the Sealion as they will be dependent on the other parents and a highly volatile and tax grabbing Mexican government.
The price they get may be higher or lower. Either way it sorts them out and enables them to control their destiny. They have other blocks there so may be able to develop those.
Bloobird. Some debt and gearing is positive. If the money borrowed delivers a rate of return over and above the cost of borrowing and repayment of the debt it’s a positive. It’s why companies borrow.
Regarding dividends, the whole point of buying shares is to get a share of the profits via capital growth and through an annual return in the form of dividends. If PMO start paying a dividend of say 10p a year based on distributed profits of £100m which they could do quite easily, then the yield at 70p would be a return or yield of 14%!
So you would see income funds coming into but the shares would also see a re-rating to circa 200p to bring the yield down to a more reasonable 5%. Still an extremely high rate of return with interest rates at 0.5%
Muchaboutmoney
Why would PMO prefer to pay a dividend rather than pay off more of their huge debt ?
Sabyam, you should be asking what your mate Carrot is smoking looking at his latest posts...I think he is getting desperate now. Perhaps he senses news is on the way and he still hasn't got his sub 20p shares yet lol
Muchaboutmoney,
One question. What are you smoking?
PMO will get £500-700mn for its share in Zama?? C'mon you gotta be smoking something.
Why do you think they will sell? I reckon they will hold on to Zama. They want to be involved in Mexico and have another block close by, so an ownership stake in Zama adds value to them, much more than just the value of the field will suggest. And yes, it is nowhere close to £500mn.
Hey Ralph .. just putting my Tony Durrant hat on with a few years until retirement and thinking 'what would I do' .....
Much:
Interesting view, but the condescension is real ! This is speculation.
Pretty obvious to me what is going down here whilst you all deliberate the price of eggs.
PMO need to get debt below £2bn to enable them to proceed and also start to pay a dividend which they would much rather do than keep paying down debt.
So the way this will play out is as follows:
1. Once Zama is proved (next couple of weeks) up it will be sold raising £500 - £700m plus and reducing debt to circa £1.5bn
2. PMO will see a re-rating on the back of re-commencing a pretty healthy looking dividend once complete
3. Reduction in debt enables them to push the button on Sealion which they will have complete control of in a politically stable part of the world. PMO total production will be around 200k barrels a day by 2025 making them big league producers with income per day of £12m per day or £4.4bn per annum at $60pb enabling them to develop the Falklands to its full potential
5. PMO will take over / merge with RKH
Not long now until the paint we have been sitting and watching intensely is finally dry
Just hang on in there ......