Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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My main concern with TXP is not the quality of management (very happy there) or the assets (looks strong across the board) or even the tax regime (not good but profitable nonetheless as long as Brent stays at a decent level) - it is where are we going to find new investors to buy into this story, which is a positive one in my view. Liquidity and risk appetitie are low just now so I am just encouraging patience all round as we will see value reflected in the sp at some point. It m ay even have been rossannan who made the new investor point and if so thanks for that. It is important thought to take a balanced view of the positive and negative and always re-visit. I enjopy challenge to my views but not repeated points which have already been debated - that just clogs up the Boards. Signing off for now - GLA.
In4 May I add your are a great addition to our board , I do feel your anguish,however it’s fool hardy to promote past runnings with any individual, as it paves the way for nonsense here.
That said I feel were in for a very exciting ride in the coming months at TXP.
GL
Rossannan - didn’t you tell us you threw your TXP shares out of the pram the day after the budget- aren’t you just trying to get the price down for your re- entry.
As for getting the best handle you can on financials clearly that means completely disregarding what the CEO says ( Koot told us on CERP no placing required before first drill on South West Peninsula- that was almost a year ago and rossannan has been telling us for most of that time that wasn’t possible - rig is on site, due to Spud imminently- need I say more!)
Good news for you guys is that after a while readers realise rossannan is not to be trusted and the SP also ignores him but we like to challenge our trolls over on CERP!
I’m with you guys Sunday and Zeus - ref my earlier post today!
First divi tomorrow from RRE-it’s going in here ! GLA
zeusfurla
Are we on here to discuss TXP or just to promote it? I wouldn’t be invested if I had a fundamental problem with TXP - as I said I have a lot of time for Paul Baay. I am though always interested in getting the best handle I can on the financials, particularly funding.
Good post Zeus, well said.
I don't know aboiut others but I am getting fed up heariung the same negative conversation about funding and placing for weeks on end. Either you trust Paul and the team and invest or go away and invest elsewhere. To repeat myself, Royston will be delayed by a quarter (in 2020) if needed (according to Paul) if Brent prices don't allow earlier drilling. There is cash for Casca and Chinook. If Coho and Casca are a success a tactical placing may be possible to accelerate future development drilling and in my view that would be a very good thing. It's obvious that after significant buying yesterday and minimal selling today that the MM's are happy to keep the sp down just now. It's only 1-2 weeks for results and I am happy to have added c80k shares earlier in the week. Good luck to all!
Goodbody
What do you think TXP’s current cash balance is?
I Remember you said they needed a placing for CasCadura and yet they are drilling it (feb place doesn’t Cover the cost before you start) then they plan to role straight into Chinook, which wasn’t even in the original plans. Some how they are managing to avoid your unavoidable equity placings!!! Perhaps they are different to the aim masses you do often benchmark them against...
LEXION
Funding is unavoidable and the old adage of equity for exploration and debt for development is a useful guide to how it usually plays out. There is nothing wrong about any of this but folk often fail to appreciate that much of what AIM O&G CEOs have to say about funding is merely aspirational and that financial realities will often dictate something else.
In other Trinidad news.
RRL sell their rigs for a fraction of their cost and the price goes up, AIM is crazy.
Rossannan
I have been in business 30 years and many times have borrowed for capex when the “prize” is right
Please don’t assume that controlled borrowing for capex is in any way wrong
Maybe I have got the wrong end of your posts but many are angled towards the wrongs of borrowing/ fundraising etc
GLA - next 2/3 weeks could be awesome!
Alchemyex
Yes, my apologies for assuming that everyone caught the October webinar. I might not have tuned in myself if I had not been keen to hear what Paul Baay had to say about the budget (which was not much as it turned out other than to downplay it rather unconvincingly, IMO). You are probably right about a spike, the up being generated by dawning realisation of the magnitude of Ortoire and the down being generated by the subsequent realisation of the magnitude of the associated CAPEX!
The 5m could be used to fund Royston but they aren’t planning on it. They think they can fund it simply through positive cash flow between now and then, so the VAT return is just a bonus to be used as seen fit at the time. They also now think they may be able to drill Royston with the existing rig, which would be great as they can continue with the momentum they are gaining on this four well programme.
Ross.
Re puff piece.your .. your initial statement did not include the word “Most”
Aim shares unfortunately rise an fall with the Herd mentality, amongst other factors eg potential, Funds reliability ,timing etc.
I’m very happy with this latest article from valuethemarkets ,I believe many have sold out with the hoping of returning,an this will be soon,some shareholders leave an forget to return.
The more coverage on this fantastic company the better.The magnitude of Ortoire has not been priced in.
Unfortunately I think we will get a spike in the coming months.
I cannot play with timings myself. So I’m in for the long hall.
GL
Thanks Sunday Roast
I was also not aware of the $5m vat refund
Enough to fund the BIG one next year
Here’s to 2 great RNS in next 2/3 weeks
GLA
I would query the accuracy of this statement by Ben Turney:
“At the end of last quarter Touchstone had around $7 million in cash”
The market has not been given the end Q3 cash balance. I doubt very much that it would come out this way. I suspect that Ben Turney is referring to the end Q2 cash balance of $7,250,000.
Sorry, October webinar, not September.
Alchemyex
As I said, it tells us nothing that most of us on here don’t know already from the September webinar (e.g. the VAT repayment). It is just some of that information repackaged. Perhaps though it will, as you suggest, bring TXP to the attention of a slightly wider audience.
It was mentioned in the last value the markets presentation. A very good listen if you have time.
https://www.valuethemarkets.com/2019/10/09/video-touchstone-explorations-paul-baay-details-trinidad-focused-firms-plans-for-ortoire-in-exclusive-valuethemarkets-presentation-txp/
May I add, that personally I was unaware of the 5 million, and I’ve been a shareholder for a quiet a while now, so thanks for posting Sunday roast.
“That valuethemarkets Article is a bit of a puff peace”
I beg to differ, you’re assuming everyone should be aware . This article was very informative, and can only be a good thing spreading more light on the Progression of TXP.
Sundayroast
I deliberately used the word “funding event” rather than “placing”. It is always useful to compare and contrast. You cannot evaluate a company like TXP in isolation from peers such as CERP. That valuethemarkets article was well spotted. It is a bit of a puff piece - it tells us nothing that we don’t know already - but it explains the volume this morning.
It's like they were listening to me ha ha
https://www.valuethemarkets.com/2019/10/22/5m-vat-repayment-adds-significant-strength-to-touchstones-balance-sheet-txp/
Yes they have already had a raise in Feb to kick off the drilling campaign.
PB has said he doesn't mind blowing money to make these commercial but he said that might not be a placing.
The development program he wants to fund from cash flow.
We also have that big VAT rebate coming our way. I believe that's circa $5mil.
Not sure why you're giving all CERP's figures here? Lets concentrate on TXP.