Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Ahh so that would be booked before old loan settlement i assume KOM ?
Do we have difficulty in getting the money of the country?
CYB, don't forget about the exchange rate true up.
'These losses are in part recoverable through a foreign exchange “true-up” clause in the Calabar NIPP gas sales agreement (“GSA”) whereby realised foreign exchange losses on this contract can subsequently be invoiced back to Calabar and recovered and recognised as a reduction in foreign exchange losses. '
An initial cost we will have is settling the original debt which is in USD with money we have from the new naira, 30% of £300m+ is nearly £100m ? although the freeing of of Capital flows can only be a good thing medium long term.
The whole point of the nigeria de peg was it wants to attract a lot of foreign capital, and places in good stead now if we go on to acquire a few more nigerian assets.
I see what you mean; good point!
Unless as far as I am aware that savannah has fixed dollar pricing for it's gas so it may mean that the purchasers of our gas are paying us dollar equivalent without and if our operational costs is naira than we could definitely see the de peg as a positive. Long term the de peg is a good thing as it makes financing more market driven and competitive
TIL, I believe that revenues are contracted in USD, but customers pay in NGN at the prevailing spot rate when due. We then are lumbered with Naira.
I would welcome others' interpretations of this material and complex aspect of the financials.
Also if we are after another acquisition in Nigeria depending on how we finance that acquisition it could make it cheaper to finance debt
Every day, there's a new issue with this pos.
In Savannah's case, considering that a significant portion of their revenues come from Nigerian operations, a devaluation could impact the value of those revenues when converted back to US dollars. However, if the company also has significant costs in Naira, these could potentially decrease in US dollar terms, partially offsetting the impact on revenues.
Probably the reason we always traded at such discount?
I believe when we *are* paid in NGN, it's at the prevailing fx rate at the time; so whether taking out purely NGN debt on Accugas is a good hedge is debatable. There appears to be a currency fluctuation risk and a liquidity risk in all this.
Question at the agm I guess. Some senior posters will be attending.
My understanding is that the gas contracts are in USD, but counterparts may (and do) choose to pay in NGN which, historically, we have been unable to sell for USD.
Thus the desire to restructure Accugas debt into NGN. It appears the fx horse has bolted (the peg has gone) before we've been able to shut the gate (restructure to NGN).
I'd be delighted to be corrected on this as it looks rather adverse to the 2023 p&l.
35. Financial instruments continued
(d) Foreign currency risk
Foreign currency risk arises because the Group’s subsidiaries operate in Nigeria, Niger, France, and the United Kingdom, and enter
into transactions in currencies are not the same as their functional currency. The net assets from such overseas operations are
exposed to currency risk, giving rise to gains or losses on retranslation into the functional currency.
Foreign currency risk also arises when the Group enters into transactions denominated in a currency other than its functional
currency. The main foreign currency risk in the year ended 31 December 2022 relates to transactions denominated in Nigerian Naira.
The primary exchange rate movements that the Group is exposed to are US$:NGN, US$:XOF, US$:XAF, US$:GBP and US$:EUR.
Foreign exchange risk arises from recognised assets and liabilities.
Group
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities were as follows:
GBP XOF XAF NGN EUR
As at 31 December 2022 US$’000 US$’000 US$’000 US$’000 US$’000
Cash at bank 3,105 1,442 4,947 198,085 377
Exposure assets 3,105 1,442 4,947 198,085 377
Trade payables (2,128) (45) — (13,046) (119)
Borrowings – current — (12,264) — (803) —
Borrowings – non-current — — — (7,097) —
Exposure liabilities (2,128) (12,309) — (20,946) (119)
Net exposure 977 (10,867) 4,947 177,139 258
GBP XOF XAF NGN EUR
As at 31 December 2021 US$’000 US$’000 US$’000 US$’000 US$’000
Other receivables 65,796 — — — —
Cash at bank 16 (1,705) — 128,857 78
Exposure assets 65,812 (1,705) — 128,857 78
Trade payables (4,994) (38) — (13,844) (126)
Borrowings – current (942) (9,916) — (875) —
Borrowings – non-current — — — (8,608) —
Exposure liabilities (5,936) (9,954) — (23,327) (126)
Net exposure 59,876 (11,659) — 105,530 (48)
As described in note 2, the limitation of information with respect to the Chad Assets has not allowed for complete analysis of the Group’s foreign currency denominated monetary assets and liabilities.
Found. Think I need the knowers to elaborate. Zengas, Zone, Trust…
Can you please link? Thanks.
*NGN
See note 35d, page 176.
Net NFN exposure at year-end: USD177m.
Not good.
Directors
talk
interviews
.
com
off topic while we wait and not for me. reference to save and sudan.
https://www.***************************/wildcat-petroleum-ceo-100-expects-profitable-dividend-paying-company-with-no-debt-video/4121121880
I hope so to Zen
I suspect or hope it's in context of the AI report that i posted here on 6/6/23 at 8am where Chad was requested to cede a stake in COTCo in accordance with promises made to Cemac.
Yes. Both Chad and SS. Wonder how long more before we can have some clarity. Not good start to the week.