Roundtable Discussion; The Future of Mineral Sands. Watch the video 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.
They said $3m per well with four planned. Existing spare capacity on infrastructure so just cheap pipelines to tie in.
Good profitable add on opportunity but bad timing.
I'm sure that fraser is a top notch fella so it saddens me to say it's not me.
I don’t believe the “new onshore opportunity” is to be purchased. As below, from the RNS, it will be a license award (by the Moroccan Govt). Yes, there will be drilling costs (I don’t know how much it costs to drill on land in this area, or depths etc) which Chariot may or may not end up going it alone on, and also development costs, and some other “commitments” but we’re not buying it.
“The net proceeds of the Fundraise will be used as follows:”
For near term onshore drilling and development planning on a new onshore Moroccan Licence, expected to be awarded imminently;”
Fraserd - don't suppose you are the fraser from acc - - - by any chance?
Yep unfortunate timing. They had to cover both onshore drilling and decent cash balance to complete negotiations simultaneously. Lot of gas around that SDX acreage in the Rharb though and as the new SDX gas sales agreement showed there's a lot of demand, could probably drill and produce within a year given existing 3D and past exploration.
Don't think it was their preference to do it this way but needs must. Will be drilling this year with a couple of rigs available nearby and hopefully we will have public info on Anchois soon, feel we may surprised by the final candidate.
Do we think this opportunity for onshore drilling has only come up very last minute and was an opportunity too good to ignore? If so I can understand and live with the fund raise.
The fact is though the RNS also says the money will be used for the other areas as well. Maybe the board thought it’s best whilst they are doing the fund raise to ask for a bit more to give them some spare cash capacity.
Or is the onshore drilling always going to be something they were going to bordered and it just makes a good cover story for the fund raise. It’s worth remembering the new gas project mentioned in the presentation at the end of 2022.
I really want to believe it was a last minute opportunity too good to turn down but I really have my concerns. Adonis needs to give us much more info what it’s costing. What percentage of the raise is going to that etc.
None of this was mentioned or even hinted at in the end of year results report just 2 and a half weeks ago
Cheers Surfit.
So you wouldn’t even invest for the Anchois project once the dust settles?
Are you suggesting that this raise for the new adventure is a smoke screen?
I am near the bottom of the food chain in terms of technical knowledge in comparison to many others here but my instincts have never let me down, unfortunately. Market sentiment and SP is a good gauge.
I didn’t even bother to watch the promo video as I just cannot stand his smug face or believe what he says.
I still believe it’s a decent opportunity though for pi’s despite of him.
Looking forward to Malcys spin on this one!
Hey GP,
Yes the gas is our ONLY real potential income generator but the cash from this will not be "ring fenced" to gas growth alone (AP answer to a question I posed on a QnA, he laughed at another; on future share buy back also).
I do appreciate this onshore purchase MAY be an excellent opportunity (purchased from whom?? and for how much 🤔) IF its not a duster.
What and for how long has a contracted geologist been working on that suprise gem?
I belive the 4 million cash left is more the real reason.
I, even more so now, belive the market ii's will steer clear: There is too much risk, lack of fiscal prudance/planning and visible disclosure and all in done in third world country's with high levels of corruption.
A very disappointed but not surprised Sft.
All the best Sft
Surfit I have never trusted him and I believe Bottomley was made a scapegoat back in the day.
This “new” Chariot hasn’t changed but at least we now have a proven asset. My belief is that not even AP can deny shareholders some reward in the long run?
The fund raise explains the tick down of the share price as the market got wind of the requirement for cash. The company still offers an upside for retail investors but we are left at the end of the queue when it comes to what is happening - this dilution will not impact management because in due course they will be given more generous options at an attractive price - this is small cap investing
Well AP has well and truly dragged us over the billion shares in issue now: 1,064,010,779 will be the out there after this latest cash grab round.
With only 4million left in the bank as of 31st of May it is obvious they were also running out of cash (wages) fast.
"Any funds raised though the Open Offer will be used to supplement the Group's working capital. As at 31 May 2023, the unaudited cash balance of the Company was US$4 million."
Who will the LATEST closed offer have been made to...wonder if the Chariot IR have to tell us?
These types of last minute fund raises with a company that has never made ANY cash will really undermine confidences, apart from all with most (us) private investors just hammers home CHARS fiscal prudence.....they have not really started on the Transitional and Hydrogen elephants yet, but of course, I must not worry as they will secure seperate financing for that 😉
"Proceeds from the raise will also support the wider Chariot group as we continue to deliver on milestones across each pillar (ELEPHANT) of our business for the benefit of all (Of my family, African mates and Westland Investments, oh thats me) stakeholders."
Of course if us private investors vote against the latest placing it could get voted down? Bit unlikely of course but I would advise when you do vote to vote against the reappointment of AP.
It would never get a majority but it is a protest none the less.
Again AP in my opinion is not to be trusted.
Rgds Sft
Personally I don’t expect fireworks in the short to medium term and I’m not that fussed as I am in it for the long term. No doubt we’ll see some more pain in the SP for a while yet but hopefully in the best interests for a sustained long term gain 🤞
Just glad we have got it out if the way now albeit disappointed at a raise 4p lower than the last 😕
The onshore Morocco basin with 80 to 85% success rate near a pipeline is the rharb/gharb basin which is described well by onhym at
https://hydrocarbons.onhym.com/sites/all/themes/hydrocarbure/images/pdf_onshore/Hydrocarbon%20Exploration%20Opportunities_Onshore.pdf
Jimmy
Agreed redeyemines
“ Our overriding objective remains to build further value for shareholders and we are therefore looking to raise funds for a new licence onshore Morocco as we continue to expand our strategic footprint in-country. This licence will give Chariot near-term drilling opportunities with the potential to accelerate Chariot's timeframe to first gas. The acreage shares geological similarities with our offshore assets so we benefit from unique insights on existing 3D seismic and on-block well data and have already high graded targets for a first phase drilling campaign.”
Maybe thi is an extension of the e isting field and they just couldn't say no.
. Onshore would produce much quicker than offshore.
. We need more details.
I'm with Surety on this :--
The key criteria for selecting a preferred partner include (in order of importance) (1) the capability of the partner to fund and deliver the project rapidly, (2) the stake in Anchois that Chariot would keep and (3) the amount of the upfront cash payment.
Note the 3rd criteria point is cash.. I would prefer they did a fund raise now and prioritised the first 2. If they are getting squeezed on point 3 this can only help..
Let's hope they know what they're doing!
Easy to be critical and there are grounds to be so. If the deal with a partner involves that partner pumping in up to £50m why does BOD need another £14m ? If the partner has been decided on, maybe part of the agreement is Char need to show a healthier BS - their cash must be low now. Difficult to justify but of course we will not have been told everything by a mile. Do they think they will even manage a full subscription of this £14m? I think Institutions only hold 25% so if they have agreed there is a risk the PIs will not play. They must have thought of that. There are a lot of scenarios. They certainly need to prop up the price above 14p while this is going on or the raise will cause a further drop. But there may even be a predator about to bid for the Company at 25p if the BOD can force the SP down enough. I think something will happen imminently.
I'm not defending them.. I dont like it any more than anyone else.. but worth nothing the below in the last Auctus broker note :
The key criteria for selecting a preferred partner include (in order of importance) (1) the capability of the partner to fund and deliver the project rapidly, (2) the stake in Anchois that Chariot would keep and (3) the amount of the upfront cash payment.
Note the 3rd criteria point is cash.. I would prefer they did a fund raise now and prioritised the first 2. If they are getting squeezed on point 3 this can only help..
Like Hubenstein the prospect of drilling and accelerating first gas timescale (potentially only adds value)
I'm not ramping... just giving a slightly different perspective..
IMHO
In their last presentation, think it was December, they had a new gas venture on the timelines for this year. I thought it was the Vivo JV when that landed but clearly not and they have been working on this for some time.
Adonis has some explaining to do about the overall strategy now as this doesn't quite fit with his 3 pillars to the company that he keeps talking about.
Got to give them credit though for lowering the share price before the annual option giveaway!
Obviously the placing is disappointing. However having read the RNS thoroughly it does give the impression that the opportunity to acquire the new licence is too good to turn down and if it's being granted imminently (and I sense certain nods given) then it may just have been a timing issue. It also potentially gets us to cash flow quicker and the vast majority of the money is for the drilling. It's nice to be in control of your own destiny so any farmout of Anchois will likely leave us playing second fiddle, a major partner may not be as desperate as we are to get to cashflow as quickly. I appreciate we will likely get a big lump sum with the farm out but I do see sense in the raise, IF everything is legit. I do feel a bit hoodwinked as I'd have put a lot of money on the next RNS being the big one, but the placing price isn't too bad considering and it gives us a bit more negotiating power as we only had $4mil in the bank.
I'm in this for the long haul, so I appreciate others may feel differently.
----If a JV was almost done, then you would think that the other party would snap up the whole of this issue.
-Chariot's famous DATA ROOM seems to be like a Worm Hole----people go in , and are never seen again.
-Suddenly we are off on ventures anew (again)----wonder if we will need more cash for our other two side lines.
-One things for sure, their timeline is slipping, and the prospect of first production by 24/25 looks like it could be fading into the distance.
-
-Really don't know why they stuck their neck out with those predictions, -----life will always find a way to scupper you, or at least slow you down.
-Where now with the SP if we start looking at 25/6 for first production.
Hummm. sudden interest and urgency in onshore, why not fully focus on getting Linux (Anchois Gas Development Project) over the line. OK, fund raise, but used for drilling on a licence we are yet to be awarded @$3m a pop !! Sounds like to me we are lining up the full sale (or at least full carry to production with ~5% retained) of Linux (Anchois Gas Development Project) and going after other fish. So in turn would suggest return of cash to shareholders via special dividend on completion of gas project sale, could easily be in region of ~40 to ~50p/s. Who knows when it comes to AIM stocks, not me for sure !! atb
aimo & dyor
What? Let's drill another hole! Let's see the colour of the money first, so may prospective Farminee's, money until Q4, but we going to screw the PI's first, and lie through our teeth.
Yes.
But why isn't the potential partner not seduced by this opportunity and thus sealing a deal...is Chariot offering a sweetner?...as clear as mud!
So they place at just above year low on the grounds it "fundraise providing an improved financial position ahead of finalising negotiations..." Really, should of place at least to VWMA100 @ 16p/s if we are indeed "finalising negotiations" .... has to be mates rates, lots of opportunities to place above this pathetic 14p/s in recent weeks. We all know following placing 9/10 times the SP falls below at some point in the near future too.
aimo @ dyor