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I think so far it’s just standard loan arrangement with white oak,the giveaway will probably start when their term loan ends next yr ?
Unless things go in our favour for once!
And still only 7bn shares in issue. Thought it might have been more than that with White Oaks money.
No mention of any meeting in the UK now.
The AGM will be held at the Stockton Mine, 100 Hazlebrook Road, Hazleton, Pennsylvania, USA on Monday
22 July 2019 at 11:00 AM.
Adam Wilson said in an interview that they had been well paid by Pennsylvania Environment Governing Body to fight the fires and this boosted the accounts for 2016/2017.
Komatsu need ACG to use and lease their very expensive, but essential, earth moving and mining machinery ... so the relinquishment of the surplus ageing plant back to them is a good move and saves a significant amount ... looks like Seth has been doing some housekeeping.
White Oak are continuing to finance the day-to-day operations, but at a cost ... they would not be doing this if they could not recoup the outlay ... perhaps they are building a position to have total control of the company and put it up for sale, as a going concern, that would repay the increasing debt to them with a small premium.... us long term shareholders would only get pennies.
You do have to wonder if we ended up out of pocket fighting the bloody underground fires that nobody else would touch,that went on for 2yrs and used a heck of a lot of resources......yea good for the community and all that but we currently have books that don’t balance in our favour
Also noticed on page 38 the very high commission fees paid for the last share purchases :
" On 5 March 2018, the Company issued 100,000,000 ordinary shares of £0.0007 each for the price of £0.005 raising a
total of £500,000, less commission fees of £99,414.
On 17 April 2018, the Company issued 100,000,000 ordinary shares of £0.0007 each for the price of £0.005 raising a
total of £500,000, less commission fees of £100,906.
On 13 August 2018, the Company issued 20,000,000 ordinary shares of £0.0007 each for the price of £0.005 raising a
total of £100,000, less commission fees of £20,471. "
...... shows up on pages 52 and 53 of the report (last 2 pages).
Does make for grim reading; didn't expect this, but knew something was wrong when they held back the accounts. Good those 2 parasites are now gone! Also, don't like the part at the very end of the report:
" 30. Events after the reporting period
On 28 March 2019, the Company entered into the Fifth Amendment to the Loan Agreement with White Oak Global
Advisors LLC, its secured lender. White Oak advanced $1,500,000 under this amendment. The proceeds were used to
finance current operations.
On 16 April 2019, the Company entered into the Sixth Amendment to the Loan Agreement with White Oak Global
Advisors LLC, its secured lender. White Oak advanced $1,000,000 under this amendment. The proceeds were used to
finance current operations and support diligence activities under a proposed acquisition.
On 1 May 2019, the Company signed a temporary amendment to the mining leases held with Pagnotti Enterprises Inc.
The amendment lasts for one year and reduces the production royalty rate while increasing the minimum monthly
payments and providing for a bonus royalty if the average quarterly clean coal sales price exceeds a base amount.
On 10 May 2019, the Company entered into the Seventh Amendment to the Loan Agreement with White Oak Global
Advisors LLC, its secured lender. White Oak advanced $1,000,000 under this amendment. The proceeds were used to
finance current operations.
On 14 June 2019, the Company entered into the Eighth Amendment to the Loan Agreement with White Oak Global
Advisors LLC, its secured lender. White Oak advanced $10,000,000 under this amendment. The proceeds were used
to invest in improving current operations and refinance its obligations to Komatsu Financial LP and satisfy other creditors.
The Company also repaid a loan from George Roskos in the amount of $250,000. On the same date, the Company also
entered into a Revenue Sharing Agreement under which White Oak would be entitled to a share of future revenues from
clean coal sales.
On 14 June 2019, the Company entered into the Voluntary Collateral Surrender Agreement with Komatsu Financial
Limited Partnership. Under this agreement, the Company surrendered to Komatsu certain mining equipment and
reduced the loan balance by $16.3 million. The Company renegotiated its remaining loan balance of $19.1 million with
a payment schedule over 72 months and issued a non-interest-bearing promissory note to Komatsu in the amount of
$3.0 million. "
Unfortunately the whole sector knows the situation with ATC now,going back to market anytime soon is out of the question,but if Seth turns this around and makes it as viable as we believe it could be....a listing in the future is a very economical way of financing the operation not just perpetually knocking on the door of white oak......
We have had some expense this last 12months,railroad,fees for failed reverse takeover etc.....
Let’s hope we get some answers at the Agm......anyone plan on making an appearance if it’s UK based?
In the notes of the accounts, these were the recorded holdings of Best & Wilson at 31st December 2018:
(1) Stephen Best’s shares are held as follows: 3,730,000 personally, 430,338,327 by his spouse (Mary), 18,096,148 by Willoughby (465) Limited,
576,000,000 by Mayford Equities, 103,147,436 through Mount Charles of which his spouse beneficially owns 50% and 288,000,000 options by Mayford Equities.
(2) Adam Wilson’s shares are held as follows: 138,807,070 personally and 103,147,436 through Mount Charles which is 50% beneficially owned by him.
Since their departure in April 2019, I am expecting a new revised shareholders list to be recorded at Companies House as a Confirmation Statement (CS01).
No wonder the reverse take over fell through with DSS, it is not surprising after the revelations in these accounts ... if a listing had been achieved, there would have been immediate cash calls and placements that would have decimated the float price and market capitalisation.... so in hindsight we could have escaped a disaster.
With good management of the company under a new regime, there is no reason why this situation cannot be improved upon and the total strength of the group be consolidated. They have the product, the prices will keep rising on increased demand and there is scope for expansion in the future. If money is tight they could encourage other US coal miners to come in on farm-in deals to relieve the cash flow and steady the ship... Seth Schwarz is well placed and respected in the industry to encourage this, the reason for his appoinment.
Well I wasn’t expecting that....the liquidity event looks further away than ever now,the only positive I can pull from this is Seth Schwartz has identified value in this and is happy to put his name all over it......
Going Concern
The Directors recognize that its auditors have issued an opinion that there is cause for doubt that the Company can continue
as a going concern. The Company encountered severe financial difficulties during 2018 and early 2019 and required
additional capital to maintain operations, which was provided by its primary lender, White Oak Global Advisors LLC (see note
29 for details). While the 2019 refinancing provided the Company with the capital to implement its business plan, the primary
loans are due and payable in May 2020. The Company will require continued financial support from its lender or new sources
of financing to meet this obligation.
it would be easy to say i agree that a profit should have been made. looks like they moved alot of kit, started digging coal from a different place and bought more investments in that increased costs. if this overall creates reduced costs then great, i guess fustration is how long this takes? hopefully seth is on to all of this and understandable why they left. need to look at the detail to understand where all the money has been spent and why, + better pricing going forward
Rant over unvrkw. Thanks for the different take on things. I believe Seth to be much more concerned about the business than Boss Hog 1 and 2.
it would be easy to say i agree that a profit should have been made. looks like they moved alot of kit, started digging coal from a different place and bought more investments in that increased costs. if this overall creates reduced costs then great, i guess fustration is how long this takes? hopefully seth is on to all of this and understandable why they left. need to look at the detail to understand where all the money has been spent and why, + better pricing going forward
FFS. Cant even make a fecking profit when the best price for Anthracite in years!!!! What the feck were Boggit and Scarper doing with all that cash, no wonder the hogs stepped down. This is going absolutely nowhere for at least 2-3 years. And regarding the relisting, you can kiss that dream a big fat goodbye.
Roll on the new board.......................
Atlantic Carbon Group plc Annual General Meeting
I am writing to you to advise that the Annual General Meeting of the Company, scheduled for 26 June 2019, was adjourned due to a quorum of Shareholders not being present in accordance with Article 61 of the Company’s Articles.
A notice of meeting will be sent to Shareholders confirming the time and date of the reconvened meeting.
If shareholders have already submitted proxy forms for the original AGM, these will remain valid for the reconvened meeting, but shareholders can submit a new Proxy Form if they wish to change their vote.
The Statement of Accounts and the Reports of the Directors and the Auditors of the Company for the year ended 31 December 2018 will be posted to shareholders and a notice of General Meeting will be sent to Shareholders to convene a General Meeting to adopt the Accounts
2018 was a record year for Atlantic Carbon Group (“ACG” or “the Company”) in terms of revenue, however, our financial performance declined from 2017.
Revenue reached a new high at over $37 million against $31 million in 2017 and gross product sales increased from $29 million in 2017 to over $35 million in 2018. Anthracite product sales increased from 275,099 tons in 2017 to 310,429 tons in
2018, an increase of 12.8%. Anthracite product prices also increased from about $99/ton to over $105/ton, an increase of over 6% as the market improved during the year. The Company expects both demand and prices to continue to rise and has
seen average prices rise further during H1 2019.
The cost of sales, however, increased at a faster pace than revenue, growing from $18.6 million to $32 million, which led to a significant widening of losses from $1.6 million to $5.0 million. Operational cash costs fell from 2017 but this was more than offset by a negative change in the value of the coal inventory amounting to over $16 million. The change in inventory was primarily caused by the mining cycle of overburden removal to coal production, which was favourable in 2017 and negative in 2018, and the transition of operations from the Stockton Mine to the Wet Slope Mine.
The difficult conditions in 2018 and early 2019 strained the Company’s financial situation. The Company has implemented a new business plan in H1 2019. Existing royalty, sales and equipment debt agreements have been favourably renegotiated
and operational efficiencies are being achieved in both mining and processing operations. The Company financed the equipment and plant improvements with additional debt from its primary lender. Together with strong demand for our quality product and higher pricing, the new business plan should provide us with improved performance in H2 2019.
The Company still has high levels of debt which will need to be refinanced by May 2020. Earlier this year ACG sought to list on the London Stock Exchange by means of a reverse takeover by Daniel Stewart Securities but Daniel Stewart Securities was unable to approve the offer by the 31st March 2019 deadline and, under the
terms of the offer document, the offer lapsed. Consequently, ACG was unable to proceed further with the application to the UK Listing Authority to have the enlarged group’s share capital admitted to trading on the standard segment of the main market of the London Stock Exchange PLC.
I would like to thank all the staff at ACG for their hard work during the year and also Steve Best and Adam Wilson who stepped down as Directors of the Company earlier this year
So what were the results of the American AGM????
Guess next news post AGM took place today at 11am (4pm UK time)in US.
Next news will be delayed last years results and date for UK shareholder meeting in London end July earliest guess as need to give us normally 4 weeks notice.
Let’s hope things liven up after tomorrow,there’s more life in Dracula’s crypt at the moment.
Mid continent settlement order set for 9/10/19......both parties appear before magistrates to try and settle pre trial
Don't suppose we will hear much now until White Oak have verified the annual reports and from the AGM.
Latest price on the indices:
May 2019 ... 365.7
Apr 2019 ... 367.1
Mar 2019 ... 358.6
May 2018 ... 338.3 (1 year ago)
So a small fall on the month by month, but expected now the warmer weather has arrived and domestic demand falls. Is still strong compared to last year.