Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Un-investable!
Have to say that vike has really called it how it is here. Very knowledgeable and honest posts. I'm coming to the conclusion SCIR is investable.
Really pulled down the pants of the perma bulls on the board!
Also true, but with a 25 year development licence in place and a GSA along with an updated CPR post CH1, reserve based lending as an example becomes available. I don't think funding post those 3 events would be an issue.
Yes, you are probably right there, but there is also time to get those in place and drill before first gas. 2 years after ch1 results.
Maybe vike but you don't know that.
I don't expect they will drill more than CH1 without a 25 year development licence and GSA in place matherdj? Of course once those two pieces are in place the asset will be worth a fortune compared to today.
It's total bunk. There's no FFD prepared yet. None of us know what the plan is. Zubairs can enjoy that luxury, SCIR can't.
Whether it's called an EPS or not, first gas is supposed to be September 2024. I'd of thought they'd have drilled additional wells by then exploring other lower targets as mentioned by JB (a long time ago!).
EPS is in the brokers note from the other week Vike. $35 million is the full 8 well production which includes the cost of CH1.
Quote
"The Ntorya gas discovery is the most important asset within the Ruvuma PSA. The joint
venture partners are committed to progressing the Ntorya gas discovery rapidly via an
early production scheme and then to full field development. "
I've not seen the term 'EPS' used since the JB/Ritson days and wouldn't bet on it here. Zubair Co doesn't need to rush anything.
They need to cut a cheque for $5MM in next 12 months just for 3D + drill. Then find another $35MM to get to production in 3-4 years from now. Existing shareholders would be diluted to the point of extinction to get there.
Hi CP, I disagree. I've not seen anything that shows they have the funding. He1 is a block holding that isn't easily sold. They would likely need to sell to another institution to get a fair price. We've not seen their Balance Sheet lately, and 'maybe' have $2m cash. The loan option is an abomination at the coversion price we'd pay and is more of a backstop to insolvency rather than a legit funding source.
If mgmt have stated they have funding in place, they're bluffing. The idea of SCIR paying its way to Ruvuma production is inconceivable
Hi Vike, I agree there are risk, however.
1.0 they have the funding for this years budget already, which includes the 3D + drilling prep for CH1
2.0 They also have additional funding that they can draw down from the loan with the potential to increase.
The issue I have with the "Green" energy space is not the sector but the 5 years + to see the ROI and the cost for the first 4 deals alone is £10 million with the 5th costing another £10 million.
Based on their numbers Ruvuma is cheaper and is just as likely to be in production before their ROI and pay back based on even only the 3 well EPS is very fast.
All in all, it would be a massive risk to wait. Plus, no progress towards their stated strategy in the 'green' energy space
No sale until Ruvuma licence extended, which should come later this month I hope. IMO a sale could get announced soon thereafter.
Unftly SCIR has no means to pay for an expensive seismic + drill campaign. And even if they did (cash + HE1), the only buyer in town may still be Zubair, which may not want to pay much more, regardless of success. In 18 months time, SCIR would then have less than $0 in their accounts despite a more valuable asset. If a deal was then struck, they'd have to wait for TZ to actually approve the sale (which they don't always do) and could take ages. SCIR = dead duck in this scenario.
I hope Mr P a miracle come out from our 4%, I`m keeping some for that "Trapped Gas" scenario as "you got to be in it to win it" so I hope they do the right thing (Fingers Crossed) but we need as much as possible towards the drill as we can get, are they DYOR and taking the best advice god only knows but they won`t take a punt like many of us do it will be on the straight line, anyway HE1 rising soon I feel and everyone ready for above 15p+ once the profit takers leave :o)
"I think whats closer to reality is that Scirocco is stuck with Ruvuma"
I hope so SS!
I think whats closer to reality is that Scirocco is stuck with Ruvuma and so has no choice. The BOD have made it clear that they will not take a loss on it, so that means more capex on the project and possibly being locked in until seeing this project through to maturity.
It would be nice to end the quarter with a cash generative deal being completed rather than more talk of investment opportunities.
For a company that isn't generating any money, they sure do like spending it.
Just reviewing yesterday’s posts and IMO this is where we stand. As more time goes by it makes more sense to keep Ruvuma until after the CH-1 drill. I don’t believe the SP will hit 10p like BD. NT2 peaked high because NT3 was was expected a few weeks later. A lot of investors would see CH-1 as a way out, suppressing the SP. The SP may get to 5-6p and if the BoD had any sense they could organise a Placing on the run-up to the drill, to obtain monies to get us to production.
Will the BoD drop their current strategy? I don’t think so. The Green Energy presentation from a couple of months ago showed 6-8 projects on there and that is a lot of consultation work for Gneiss.