The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
We don't know at what rate the debt will be repaid, what we do know is that £12m is the total amount, which is only likely to be drawn down in full when ANGS undertakes work on the sidetrack.
Loan duration is indicated as "nearer 3 years" than 4.
Say the average outstanding total amount is £6m over 3 years 3 months, interest at 10% will total £1.95m, 51% of which is ANGS's, ie. £994.5k, say, £1m.
Mirasol
Ocelot it's all in the SFB CPR page 54 - in the first 4 years of production SFB will generate net ANGS, post tax around £ 21mm total - out of that they have to pay back the £ 12 mm loan + Interest.
BUT, the money is being lent to Angus AND SFB Energy and so the repayments will be made out of ANG AND SFB Energy's share i.e. £21m x2 = £42m.
There seems to be a lot of confusion here viewing the loan as Angus' when it is being granted to both parties. Another way of looking at it is that economically (ignoring joint and several liability) Angus' loan is £6m if you only want to look at Angus' share of the revenue stream.
"We would hope to have soft commitments or so-called strong indications for the larger part of the facility during October, however we can’t guarantee third party timetables. "
So let's say Christmas? Whoever is lending will have a technical team crawling all over the numbers - especially after the enormous screw-up on costs estimates. They wouldn't believe ANGS if they told them the sun rises in the East without checking.......
Ocelot it's all in the SFB CPR page 54 - in the first 4 years of production SFB will generate net ANGS, post tax around £ 21mm total - out of that they have to pay back the £ 12 mm loan + Interest.
This will be around £ 15 -£ 17 mm so they have to run the rest of the company on less than £ 1mm a year - or dilute further. It's very close
Rastuss question "If the big banks don’t lend less than $20mm, which is about £15mm, why not just take the extra £3mm?" is simple - any bank (and these won't be BIG banks) - will only lend against security - and it looks like £12 mm is the max that ANGS can offer. In most cases the number is done by taking the Proven reserves (as determined by the Bank 's people not ANGS) and applying a multiple to account for risk - say 65%
Just my musings to your questions Rastuss:
- debt servicing will be met by both partners i.e. out of 100% of revenue stream (rather than Angus' 51%).
- a lot of Angus' running costs are going to be tied up into SFB economics inevitable i.e. staff required for SFB etc. So these should be factored into SFB P&L costs I guess.
- I'd bloody hope they don't need more cash on top of £12m!
Whilst final maturity is likely to be of the order of 4 years, loan duration (a measure of how quickly the investors recover their money through coupons and repayments) will be nearer 3 years.
Does confirm the kind of cash flow they forecast Saltfleetby will generate.
GL ended the conference call by saying that any more questions could be put to him via Investor Questions: he has done as he said he would.
Haha!
I agree the answers help. It would seem that the loan financing route is not the only option available, but that they'd prefer it as it addresses all future site funding needs upfront rather than having side track costs for 2021 hanging over the share price et al.
Well, don't I feel silly now, Gallifreyan, for suggesting we wouldn't get any answers this quick (not the first time)!
Good to see some clarifying on the points raised, hats off to the bod.
Perhaps a small rise in the SP will be on the cards today?
Gla
We have already had a number of instiutions express keen interest, had face to face meetings and a thorough examination of our data room; so, at this stage, we remain confident of a successful conclusion.
We would hope to have soft commitments or so-called strong indications for the larger part of the facility during October, however we can’t guarantee third party timetables. We would expect that the documentation should be significantly simpler and quicker to execute than a traditional Reserves Based Loan which tends to carry a lot of highly technical language suited to funding exploration opportunities, whiereas this is a single asset with a well understood existing production history and carries negligible exploration risk.
Whilst final maturity is likely to be of the order of 4 years, loan duration (a measure of how quickly the investors recover their money through coupons and repayments) will be nearer 3 years.
At Balcombe, our planning application was made in August is likely to be dealt with in December.
gkb47 - who carried out the due diligence? Ex- interns?
Q&A answers up
Oh, ok. Thanks for confirming.
Why 20th Oct out of interest Rastuss?
True, although I'd be amazed if they aren't answered in next day or two. Angus seem to stick them all up at end of month and then answer. To put things bluntly they wouldn't publish if they didn't intend to answer.
6 Investor Questions now:
http://www.angusenergy.co.uk/media/investor-questions/
Gallifreyan,
The IQ's were only put up today. Per their IQ guidelines, they could stay open until the next deadline date on 20/10, and not be answered until 30/10 (not today), but as per my earlier post, hopeful that we will get a response on these prior to then. News is expected on these fronts anyway in the coming weeks.
gla
Some 15 million shares plus have been bought yesterday at .83 level in lumpy trades. Surprised the SP has not risen irrespective of the placing. Some smart/clever money is moving in urgently. Good omen I say.
Could some of the interest of institutions in the debt facility spill over into ANGS's equity?
One would hope there is some update to provide on the loan facility given most of the questions relate to it.
Investor questions up - should hopefully get answers this evening.
I am a long-term investor in ANGS, I tend to interpret what they say in a positive light.
You are a disgruntled investor in ANGS, you tend to interpret what they say in a negative light.
If that constitutes spin, then we are both communicating it.
It's rare to find someone who appreciates spin.
gkb47,
If you've got a question to put to management, why not put it to management?
Why put your trust in an anonymous poster on the board?