Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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4.4m shares traded at the sell price on 29/1/24. Also the following resolution was passed at the June AGM
Purchase of ordinary shares (Resolution 10)
The Company is also seeking authority to make market purchases of its own shares up to an aggregate of 59,939,642 shares (being approximately 10 per cent of the Company’s issued share capital on 5 June 2023 being the latest practicable date prior to the publication of this document)
Still going up. there was a trade today at 1.15
The price at which individuals are prepared to acquire this share continues to go up. However, in order to manage people’s expectations, the Nigerian economy and currency are really struggling and dollar generating businesses operating within Nigeria are probably economic targets for a government seeking dollars to help mitigate the ongoing Naira depreciation. The risk of seeing a multiple of your money from this point forward is centred around Lekoil’s ability and willingness to lift oil, get it to the refinery, get paid for it and for a percentage of those proceeds to get into Fenikso’s bank account. Whilst I remain bullish that this will end up at a 3.5 - 4.5p moneitisation event at some stage in the next year or two, there remains real risk for Fenikso that can’t be easily mitigated and where Fenikso is completely dependant on others. This is not a one-way bet and certainly not for widows and orphans!.
I'm in profit. its rising. no reason to sell at all whilst in profit and its on an uptrend. I see today a buy at 1.25
Still ticking up. 1.25 paid today. good to see the recent gains have held.
Should be some more to come!!
Hope so. up 6% today. 1.30 paid
oil price got a bonce today. seems to have regained the uptrend.
Remember the old adage.. let profits run. 1.40 buy spotted today. think this is heading towards 2p. should get another payment from Lekoil before end of month.
Yes agreed, 2p on horizon.
A 2p share price implies a mkt cap of £10mn, still a very substantial discount to the book value of the business. With the current oil price, the borrower will have no difficulty making the repayments.
Looking very undervalued. Rising on little volume. 4/5p would look more like fair value atm. The next few months could get very interesting!
Has anyone any thoughts on why the company has stopped all announcements? I’ve tried contacting them but got no reply. Silence must imply either good news or bad news (ie debt repayments have ceased). If the latter, surely the company should have announced that already? I’ve wondered whether our Directors would be open to a RTO of the borrower’s assets, whereby the borrower is able to strike out its debt, whilst getting a majority shareholding of the (UK listed) enlarged group. We shareholders exchange the loan for a minority holding of the entire oilfield (currently we get 8.65% of its revenues for a limited time). Some kind of transaction with the borrower would explain the silence; either of the kind I’ve described or simply a one-off payment to cancel the entire debt.
They didn't reply to several emails I sent. But you will see from url on their website: https://feniksoplc.com/investors/aqse-growth-market-rule-4-14/significant-shareholders-table/ that there are now only 4 significant shareholders and if Savanah Energy Investments Limited still had an outstanding loan they would have voiced their concerns by now I would have thought. In the Interim Report 26 Sep 2023 they say: As at the end of June 2023 LOGI had complied with all conditions of the Settlement Deed save for the cancellation of certain shares in the Company owned by Lekoil Nigeria, Lekan Akinyami and Samuel Olutu. The total shares that should have been cancelled are 107,658,847 ordinary shares. On 2 August 2023 the Company announced the surrender of 106,443,637 ordinary shares held by Lekoil Nigeria to the Company for nil consideration had been completed. The Company has agreed to extend the period during which the remaining 1,215,210 ordinary shares that are required to be surrendered by Lekoil Nigeria in accordance with the terms of the Settlement Deed until no later than 15 December 2023 so the fact that is not listed among significant holders is positive. Finally, if you click the HOME page on their website they make a statement: This website is currently under reconstruction and will be updated in due course. They would not be bothered to update their site if their were any serious problems I rightly or wrongly assumed . You could phone Brian Stockbridge +44 (0) 20 3855 5551 being the point of contact on the last RNS ie RNS Number : 8370A Fenikso Limited 25 January 2024 . If you get any info before the next RNS please e kind enough to post it on this Share Chat message board. Good Luck
New RNS today. Payment due in Feb was just late it seems, no explanation given. Another payment due this month, so back on track.
Nothing from the latest RNS or the delay in receiving the ‘monthly’ loan repayment instalment from Lekoil has altered my view. As of today, $29.9m of net receivable ($43.5m gross and $29.9m after taking into account the SAVI loan balance of $13.6m, payment of which is conditional on actually receiving money from Lekoil) and $3m of cash gives a nominal NAV of $32.9m. Take off that number the costs of running Fenikso (which ought to be small) for the period before either the remaining loan balance has been fully received or a corporate event of some kind, all means to me that there is value available in excess of the price which you can buy these shares in the market. However, things are not guaranteed so caveat emptor and we will find out in due course. The end of your accounts will be helpful when they come out in the next month or so and if/when the Board presents its revised strategy of how it intends getting value back to us shareholders.
I’ll speculate that the delayed receipt of US$, due in February but not received until April, is related to the sharp depreciation of the naira at the end of January. It’s possible that to stabilise the currency, the government stopped businesses transferring US$ overseas. The naira has strengthened recently, maybe allowing dollar outflows to resume.
A bumper payday. Still a net $29mn owed and cash balances are now roughly 50% of the current mkt cap. We should be hearing fairly soon what plans the company has to utilise its rapidly growing cash balance.
This is a funny one. Owed 50 million and to pay back Savannah 12 million and the have 4 million cash on balance sheet. Surely something very wrong? Where has the other 35 million gone? Smells dodgy
It's not gone anywhere, we are receiving it in monthly installments from Lekoil's oil sales. There's US$42,248,833 still left to come.
So we've got approx $1m/month income and an Mcap of $9m. This has got to re-rate soon even if the BOD can't figure out what to do with the cash
If the same amount ie US$1,290,672 dollars received this month is repeated for the next 11 months then the income will be US$14,197,392 then the US$13,298,493 outstanding loan might be paid subject to the ongoing administration costs levied by the directors. This is a fair punt but not for Widows and Orphans! I am prepared to see what happens and not cash in but would not increase my existing holding.
We only seem to be giving Savanah less than 30% of the Lekoil repayment and building cash reserves with the rest.
I've started to average down on the off chance to BOD have a something up their sleeves.
I could very well be throwing good money after bad, but I'm willing to take the risk.
Agreed Tim000. US$32.9m of nominal NAV that should be fully converted into cash over 4-6 years at the current rate. You can currently buy these shares at a M/C of cUS$7.5m so in theory a > 4x from here (as there are corporate running costs eating into the NAV over the period until all cash has been returned).
I anticipate the Board saying something soon about their proposed options or strategy in how to accelerate getting value back to the Fenikso shareholders when they present their 2023 end of year accounts and report.
I have plenty of these shares already so won’t buy anymore but perhaps a punt for some others but only with money you can afford to lose as the realisation of cash to Fenikso is totally dependant on receiving cash from the oil liftings that Lekoil is undertaking in Nigeria so doesn’t come without risk.
DYOR.