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2p Per share to takeover
2p ?
There will be a number of investors here who would vote for a sale of all assets - if an offer came in now for 2p I think it would pass
Exactly AA, As if shareholders would ever vote to accept to less than $20 mill. If not sold by the summer, hang in for the $60 to $100 mill post C1 imo, the old BOD believed it is worth $100 mill on the 2C alone.
They have said on numerous occasions that they won't let it go at a unreasonable price, if no reasonable offer comes they will see it through to production if necessary.
Fact of the matter is shareholder destruction in share price. There is no chance they will get £20m. Think we will be lucky to get £5m for our 25% stake.....this group are not interested in value
Agreed, Malcy is a paid ramper IMHO. How does he make his money? He certainly seems to eat well.
He pumps any old dog IMHO.
If they sell Rumuva for £20 million... then what value has been created in the last 5 years. Isn't this what we as a company put initially? Anyone can sell a £10 note for two £5 notes.
The fact of the matter is the board has done nothing in the recent years except change its name!
I do wonder my malcy has this on the bucket list as a good way to play Rumuva (rather than Aminex). Scir wants to sell when, aex is carried free to production!
Full ask paid, hidden with the UT and showed SP and BID at the same price all afternoon.
Its only been 3 weeks since they updated shareholders and they said months or weeks,
Say nothing for months.
Come up with a plan. Plan doesn't work.
Change of BOD.
Come up with another plan. Release a shiny presentation.
Build up some hope.
Plan B doesn't work.
X5
Chris
Absolutely, BUT, they should not sell Ruvuma if they believe (as you do) that it is a 5-10 bagger in the next few years. With debt finance for the new assets they can potentially generate enough FCF to fund Ruvuma.
LTH will never see their money back if Ruvuma is sold for $20 million. We will be lucky to see 3p.
All about control of the future, they have little control over Ruvuma with a 25% stake and the Zubair corporation running the show with the Tanzanian Gov.
Of course whatever happens the sp should rise accordingly.
Millions of directors share options can then be cashed in.
Mr Fitzpatrick still showing as a director at companies house.
Double maybe treble what they were granted them for.
300% salary increase for doing not a lot IMO.
We are now well into March and seems the board are back to their usual silence.
Maybe we do have a buyer for Ruvuma. They certainly have had enough time to look at the figures.
I think your confusing arrogance with optimism.
Typical of this arrogant BOD to think they can do better than a potential 6-10x return over 3 years.
Indeed, it would be 2023 for a 25 year development licence at the earliest I would expect. Hence why the BOD are looking to sell now. I don't see the Zubair corporation and new operator looking worried about any risk with all their exposure/leverage in Tanzania beyond just gas.
If it's not sold by the summer then they may as well wait till the C1 spud imo and I would be very surprised to see them spend £20 million on the first 5 assets this year. Happy if they do of course.
A close one to call imo.
Its whether a sale for $20 million can generate the additional profits by acquiring assets that generate cash and profits from day one.
I still think they talk to much about what they are going to do but so far have achieved nothing.
The battery storage assets are becoming more expensive by the day so less will cost more.
Next week maybe.
Hi Chris,
It sounds like you are not aligned with the new strategy?
So your options are....
1. double the SP in the near term, with low risk
2. 5x the SP in 2-5 years with high risk ( holding an unproven asset in a risky jurisdiction)
Option 1 is attractive at current SP but it does screw LTH.
Option 3 is to use a mix of debt and equity to buy the new assets and hold on to Ruvuma, using income to fund development. I think this is the most likely. So say a £10 million pound placing at 0.8p, and new debt facility for £10 million. They don't have a great record of achieving the best price for new equity (e.g. scandalously low IPO for HE1.)
Agreed steve, my take is that they should drill C1 before selling with it being conditional on the 25 year development licence. I would expect $60 to $100 mill at that point.
The BOD seems to want rid of before and for $20 mill+
So basically we sell Ruvuma and get back the $20 million we have spent on it since 2012.
What a farce.
Morning Chris,
So the plan as you see it is sell Ruvuma for your read a cross of $20 million, and make these 5 deals? Maybe need to get rid of HE1 as well to fund all 5 with cash?
Great if it can be done but it seems like an awful lot of work for the BOD we have currently installed.
Beyond that the deals need to be good ones. I'll need to look at the presentation again...did they say what sort of return they hoped to generate from the assets?
Also if they get rid of Ruvuma then that is the high impact asset gone. Basically best case I see is a SP of around 2p and possibility of dividends in a few years time.
Don't know if you have read the presentation Colin but the first 4 projects cost an estimated £10 mill with the 5th a further £10 mill which about meets my 20 mill estimate as it happens.
Yes it is negative, but it's my opinion of this new strategy.
I will obviously look at any deal that arrives and reassess.
Colin, that's being negative, anyone would think that you want them to fail.