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Congrat's Mr. 1st dog of the bridge! Is that your 7000 quid just recorded? Keep buying.....
Moved my average down slightly. I don’t think the seller will let it drop below current levels and plenty of news to come to encourage buying.
Yes, not unsubstantial i would say . Unfortunately the company, assuming being advised by its NOMAD /BROKERS /PR etc have allowed the sentiment and SP to be driven down so low here for such a sustained period , it all seems quite implausible to even consider there being a significant value attributed to the renewable division. That is the stark reality we find ourself in. The company have been so far of the correct strategy path imo, steaming headlong into a grey muddy path the market has no idea where its been going and being driven to it seems, by personal ambition , arrogance , bad advice and quite clearly poor business acumen. The JM we have been trying to promote for for to long has been that of a major independent/ major company with separate financial divisions /cash pools/capex and considerable profits/cash available for promotion and momentum in all these new assets .. ! guess what we have none of that !
What's a small utility company (with its own in-house renewable electricity production capabilities and water treatment facilities) worth in a G20 country that's just opened itself up to the free market?
I'd figure it's a fair amount to the right group.
A quick back-of-the-envelope calculation on what Chariot have already spent on the renewables business to date;
$4.5m in capex (Purchasing of AEMP, ETANA and the water treatment business).
$1.7m in G&A (circa $565k per year).
$6.2m Total.
They've also added a few projects that they tended and won over the last 3 years, so hopefully there's a decent chunk of value that's been added as well.
Or put another way, a £30m offer for renewables arm, gives it a a value equal to 75% of the total value of Gas & Nour combined 😂
I agree BDC.
The current SP is going to look the most ridiculous it’s ever looked if/when Cheriot get an offer for this part of the business.
Every £10m achieved in an offer is worth 1p (ish) of the current SP, so, as an example, a £30m offer (3p per share) leaves 4p in the SP for Nour & Gas 🤣🤣🤣🤣
5 positive RNS in 6 weeks and a tweet of the drill pads being completed and the share price is down. Dependable as ever.
Ajc,
Chariot have spent $5-$10m building the renewables business up.
To only receive $5-$10m for it would be beyond disappointing.
We've hopefully added a degree of value to it over the last 3 years.
The Transitional Power business was a successful start-up by AP, with minimal capital expenditure. With the support of major players, I believe it has the potential to generate 5-10m for Chariot and eliminate the need for further funding. Once the gas starts flowing, the business will become more attractive for potential buyers. It is puzzling why brokers like Stifel are not actively seeking solutions and bringing in more institutional funds given the low valuation of the company.
Sensible RNS today . These small AIm plays need focus and to execute on one value creating strategy . They are not suited to juggling multiple balls . That just gives the management too much wriggle room and leads to dilution as it consumes cash and takes time.
I am here for the Gas pay off. I aminclined to think that the managements confidence in acheiving that has increased hence they can entertain the Strateic Review the out come of which we can all infer.
I am happy with what has been released today
GLALTH
I made AP an offer he couldn´t refuse.
Regards
Fernan, you and surfit been have dinners with AP? ;-)
This is the first step in the right direction.
Green hydrogen next, I hope, as soon as they can prove the economics of the project. Green hydrogen is still way more expensive than other forms of energy, so they need to solve that before spinning it out.
Regards
With the recent power purchase deals I assume we can add more value to that area of the business now. A sale would be a very good outcome. I’m not surprised we want to keep the green hydrogen business.
Blimey whimax even I can see that!
Much more clarity for investors now (larger variety ones I hope)
Just need success on the upcomong drills then we will be up and away!
ALSO, if shifting this part of the business now, generated/freed up say £30m (made up number) over the next year, in terms of cost savings and sale proceeds, and that is equivalent to drilling an addition 10 Onshore Wells at £3m each, wouldn’t that be interesting??
Just saying.
Exactly BDC, they are in full process for rig arrival. and the strategic changes will keep focus on this.
Most folk in Chariot were not here for the sideshow, only for the hydrocarbon efforts, so it's back to the real business as far as I am concerned.
Reference is about now, not the debacle of the past.
Drilling foundations have been laid for Guafrette (drill 1) and they're now moving on to lay the foundations for Dartois (drill 2). Actual drilling will happen towards the end of Q1. 2-3 weeks.
Chill.
I also think this review is a wise move. I would support a split of the power and gas businesses. Neither benefits from the other (it's whatever the opposite of synergy is). IMO the power business could then attract funding from the many sources that would not otherwise be able to invest in fossil fuel companies, and the gas business would look after itself. For the same reasons, I wonder if a similar split off of the green energy business would also have merit.
A sale, rather than split, would enable Chariot's limited headcount to focus on the gas (& green) business, as I'm concerned that they are spread a bit thin at the moment - especially AP, who also has other business interests to look after (Petra, Rainbow, etc). Though I would be surprised if AP would want to sell off the power business while its still in its infancy. Interesting times.
Some folk still at it see. Any opportunity to inject a little bit more fear, and sow a few more seeds of doubt. Brilliant (there’ll be a couple of others along in a minute to chip in no doubt) 😂
“ As these divisions have grown, they have increasingly attracted different pools of capital and Transitional Power, which is now focused on the South African energy market, requires funding in the near and medium term to fulfil its potential.”
For those with IQ’s lower than 12, this review is clearly NOTHING to do with a placing or fund raise of any sort. It is CLEARLY (and the lowlifes already know this) the exact opposite. Chariot are admitting above that this part of the business “to fulfill its full potential” will require funding, and they are NOT prepared to divert that funding from the Gas pillar at this time, because that is their main focus right now, so are looking at alternatives.
But you knew that, right?
Not the RNS I think everyone had been expecting when they saw the red dot this morning.
What is going on with this drill? It's cutting things a bit fine
Yes and No.
They will raise funds at the subsidiary level via a spin out of the renewables business. So YES there will be funds raised, but NO there won't be any equity raise by CHAR (equity will come via other companies buying into the new renewables subsidiary)
Personally, I think it is very wise to push this strategic change through, they have a significant drilling program to start imminently, and all funds need focus on this, rather than spreading yourself too thinly.
Got an intense rest of 2024 ahead of us, gonna be VERY interesting times.