The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
"Very soon" = "Almost imminent" ;0)
Not long to wait now RoJo and you'll be able to cross this one off your list as well, of things not done.
I like VERY SOON Lol
"We expect a Development Licence will be issued by the Ministry of Energy very soon"
The Lone RoJo 🙂
Well Ufufuo, if you can't work out that I'm not prosciutto, it doesn't exactly inspire much confidence in the claims you make in your rather long-winded epistles does it ?
If you think there isn't any doubt that Aminex will succeed, I think you're quite simply wrong.
As you well know, that is not what prosciutto (you!) said. prosciutto was in fact trying to convince people for over a year now that Aminex would either need to do placement and therefore dilute existing shareholders, or be forced into being bought out on unfavourable terms.
Myself and others argued for the last year that we had headroom to cover the year- this prove to be true. We also said that if more funds were needed, Aminex had options. Including a possible loan.
In addition to my posts on here, on 18th April, on Telegram I wrote: "I doubt that we have the cash to get to production now that has slipped to early next year. However, with CPR done and reserves booked, there would be no reason we couldn’t sort a small and short term Reserve Based Lending (RBL) loan. Running costs are super lean. So it should be a very small amount." Then on here more recently I wrote:
"The 12-month period from the last Annual Report finishes this Sunday. Fact is, no additional funding has been needed in the period – unless they reveal a loan or something in the next annual report, which is due in the next few days. So, the Aminex Board were telling the truth." and "If Aminex does need more cash, they should have plenty of options."
The loan facility (which is there “should the company need it”) provides security. The fact that ARA has provided it (on very favourable terms) is proof once again that they plan for Aminex to be around long term and to prosper.
You on the other hand have tried to create doubt and fear. For the avoidance of doubt, some quotes from prosciutto:
“It doesn't appear that cash flow will arrive in time for Aminex! What are they going to do?”
“A capital raise appears increasingly probable. The capital raise would trigger a significant drop in share price after the pump.”
“This carcass is already eviscerated. Without another placement, a single additional delay could cause this entire structure to collapse”
“If Aminex faces another setback, it will have to beg desperately for help. A possible scenario is that TPDC would be interested in some sort of agreement with Aminex. The current President could gain a political edge in the 2025 election by helping TPDC absorb a portion of Aminex. This move would appeal to many TZ voters”
The tide is rising.
Takes one to know one BG :-)
I guess he must do, I don't see a rns any time soon as they have just issued two , hope we don't get the usual drift back down . But am hopeful it wont
RoJo, do you realise how moronic you sound?
Delay, delay, delay and more delays.
More funding agreed to cover likely cash-flow problems...
Who was it warning about this ? Ah yes! Prosciutto.
Hope that we get the rns that we all wanted this morning soon . onwards and upwards .
They have had to borrow the money to cover costs up until first gas. That was first envisaged as 2024 end then 2023 end before being put back to 2024 end and now mid 2025.
This all being due to delays with the pipeline and issuance of the Development License. Which should be issued very soon.
Cash burn is circa $2.8m pa going by the annual accounts released. AEX had $3m left by December 2023.
So it seems prudent to have access to this cash should the need arise, which will most likely be the case come 2025.
On a positive note tax liabilities have been reduced to $8.19m from $9.92m last year. The remaining amount will be paid probably from gas revenues as any demand from Tanz Gov will face objections and take a while to settle by which time AEX will be generating enough revenue.
Delay in the pipeline build mainly yes
Thanks for your reply , so there has been a slight put back , probably down to the slow pace of the goverment .
Until 2024 end.... first gas now mid 2025
Share price is holding up well , but I am left wondering why the need to put this loan in position , when they already said that they had enough working capital until first gas .
A loan of dollars from ARA or Eclipse to TPDC doesn't have to involve AEX. It can be an independent financial deal, not linked to the field development.
Tanzania would have to start paying the loan back whether the field is developed or not, so that cannot be given as a guarantee or basis for the loan, in case something halts it.
Tanzania want a pipeline, ignore what it's for. ARA need dollars to pay for it. ARA lend them dollars.
...a tsunami of selling ?
Holding up nicely... Afternoon surge?
Have bought more this morning. Last chance saloon for cheap golden tickets, IMHO.
Eclipse owns Ara Petroleum and just under 30% of Aminex.
So it is our Major, the operator of our field and our major investor giving a sub on preferential terms. More support. If evidence were needed of the continued intention to keep Aminex in existence, as opposed to taking us out, this is more of it.
Preferential because there is no repayment. The loan is set off against the farmout.
All good with me. Removes a doubt for the numpties out there.
Also all good with me is how much of our farmout carry is left. Future looks bright.