Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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tonynorstrom,
Apology accepted. You are correct, I did only paint half the picture. That was deliberate. None of the recent contributors seem so wet behind the ears not to realise that, so I left it 'provocative.' I remain a shareholder because I believe Majid and Graham are playing an absolute blinder. It is high stakes, I'll grant you, but I have not gone 'all in,' far from it, so I'm at ease with the risk. If I wasn't, I would have cut and run. Recent manoeuvres have been interesting and I look forward to them being played out fully. Until then, I shall keep my cup half-full. Good evening to you all.
Fastfood,
Good post on funding / Toscana. I have been pondering also how existing shareholders will retain their fair share of the Company. I have emailed I3E with a couple of questions and will share if I get a response.
My thoughts were that they will try to agree a valuation with the major shareholders / investors and announce a debt / equity deal agreed for the major portion of the deal and relatively small offering for existing shareholders.
Snott,
With the greatest respect - you asked the question “what am I missing”. You posted something painting only half the picture which would be completely misleading to anyone looking at what you had posted at face value. I think I3E has suffered as a result of blatant ramping. I am a shareholder but I will call out any posts that I think are intended to deliberately mislead shareholders / potential
Shareholders. If your post was genuine then I appologize if I caused offence.
I would like to comment on your clarifications on the point you were trying to make which in my opinion as still overly optimistic:
With regards to reserves - yes I3E could potentially significantly eclipse RRE subject to successful appraisal.
With regards to production and earnings - I think you are way off the mark:
1) RRE are at 20,000 bbl / day now with funding and prospects to increase that substantially in the near to medium term.
2) I3E if they pull off the transactions will probably still be at less than 10,000 bbl / day. Take a look at Toscanas 1st Qtr production figures and you will see production down 20% over the reported 2019 figures. 2nd quarter numbers are likely to be considerably worse due to the lower oil prices. IMO Gains numbers are also likely to be significantly down on the 2019 numbers.
3) Production from the North Sea at this point does not look likely in the next year or two . So all in all , even if I3E pull it off - I think you 3 - 4 years away from eclipsing RRE if at all.
It’s certainly an ambitious plan. My concern is the dilution and what cost it will come at for current shareholders. Nothing we can do now anyway except hope for the best!
I agree with you FF - IF and whats not to say its a sizeable IF but so what IF it does come off this could be 'itransformational' (to use a BOD word that is bandied about like confetti) BUT it could be?? IMO but GLA - lot of buts in there BUT so what lets wait in patience and see!!!
Yes Snott. I don’t agree with the Cheapshots or the likes attached. You shouldn’t have to defend yourself on here but that is what mild bullying does.
It certainly is a bizarre situation. Attempting to buy a Canadian Production Company with no cash / whilst at same time managing to bag the debt of another one that’s in default (Looks tremendous deal) and then attempting a T/O of that Company with just 4% Dilution to S/H. Whilst at the same time trying to raise Finance for both the substantial Canadian Production (Fee already agreed - Tick) and/or F/O for UK Operations.
Something tells me if it all goes I3 way (It rarely does) then the Value of Toscana may be ring fenced and retained to current S/H 6p and thus factored into Any Raising of Funds at Price of acquiring Gain.
But what do I know ? Mr Heath seems very Talented. All they’ve done is offer hope in a time of exceptionally bad circumstances. Their Strategy is so dynamic. If they Transfer it to Reality then ...
Fastfood and pauldrayton, thankyou, I had read RRE's annual report and know Serenity and Liberator West still need work. The point I was making is that i3e appear to be on course to eclipse RRE both in production and reserves. RRE's operational profit last year was £115million, so i3e's borrowing seems almost insignificant. The purpose of my post was to provoke debate, not provide a balance sheet.
Tonynostrom1 and munchbox54, those were cheap shots, but be my guest: I hope they made you feel better about yourselves. Good manners cost nothing.
Tony loool. It’s guys like him the markets love. Investing is definitely not for him.
RRE have over 300m in cash and zero debts. Also 20k bbl / day production from multiple assets.
I3E have 2.4m in cash, 22m in debts and zero production. What else have you missed?
Both Serenity and Liberator also need appraising.
RRE were fully funded with £200m in the Bank and were Producing.
RRE have 60.8 MMBOE 2P and 21.2 MMBOE 2C reserves and are being bought for c. £247.5 million.
Toscana have 4.65MMBOE 2P reserves
Gain 26.4 MMBOE PDP and 69.4MMBOE 2P reserves
I3e have Liberator c. 15MMstb and Serenity 197MMstb STOIIP with c. 400MMstb STOIIP at Liberator west and a Mcap of £6.6 million.
What have I missed?