Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Probably the reason we always traded at such discount?
I believe when we *are* paid in NGN, it's at the prevailing fx rate at the time; so whether taking out purely NGN debt on Accugas is a good hedge is debatable. There appears to be a currency fluctuation risk and a liquidity risk in all this.
Question at the agm I guess. Some senior posters will be attending.
My understanding is that the gas contracts are in USD, but counterparts may (and do) choose to pay in NGN which, historically, we have been unable to sell for USD.
Thus the desire to restructure Accugas debt into NGN. It appears the fx horse has bolted (the peg has gone) before we've been able to shut the gate (restructure to NGN).
I'd be delighted to be corrected on this as it looks rather adverse to the 2023 p&l.
35. Financial instruments continued
(d) Foreign currency risk
Foreign currency risk arises because the Group’s subsidiaries operate in Nigeria, Niger, France, and the United Kingdom, and enter
into transactions in currencies are not the same as their functional currency. The net assets from such overseas operations are
exposed to currency risk, giving rise to gains or losses on retranslation into the functional currency.
Foreign currency risk also arises when the Group enters into transactions denominated in a currency other than its functional
currency. The main foreign currency risk in the year ended 31 December 2022 relates to transactions denominated in Nigerian Naira.
The primary exchange rate movements that the Group is exposed to are US$:NGN, US$:XOF, US$:XAF, US$:GBP and US$:EUR.
Foreign exchange risk arises from recognised assets and liabilities.
Group
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities were as follows:
GBP XOF XAF NGN EUR
As at 31 December 2022 US$’000 US$’000 US$’000 US$’000 US$’000
Cash at bank 3,105 1,442 4,947 198,085 377
Exposure assets 3,105 1,442 4,947 198,085 377
Trade payables (2,128) (45) — (13,046) (119)
Borrowings – current — (12,264) — (803) —
Borrowings – non-current — — — (7,097) —
Exposure liabilities (2,128) (12,309) — (20,946) (119)
Net exposure 977 (10,867) 4,947 177,139 258
GBP XOF XAF NGN EUR
As at 31 December 2021 US$’000 US$’000 US$’000 US$’000 US$’000
Other receivables 65,796 — — — —
Cash at bank 16 (1,705) — 128,857 78
Exposure assets 65,812 (1,705) — 128,857 78
Trade payables (4,994) (38) — (13,844) (126)
Borrowings – current (942) (9,916) — (875) —
Borrowings – non-current — — — (8,608) —
Exposure liabilities (5,936) (9,954) — (23,327) (126)
Net exposure 59,876 (11,659) — 105,530 (48)
As described in note 2, the limitation of information with respect to the Chad Assets has not allowed for complete analysis of the Group’s foreign currency denominated monetary assets and liabilities.
Found. Think I need the knowers to elaborate. Zengas, Zone, Trust…
Can you please link? Thanks.
*NGN
See note 35d, page 176.
Net NFN exposure at year-end: USD177m.
Not good.
Directors
talk
interviews
.
com
off topic while we wait and not for me. reference to save and sudan.
https://www.***************************/wildcat-petroleum-ceo-100-expects-profitable-dividend-paying-company-with-no-debt-video/4121121880
I hope so to Zen
I suspect or hope it's in context of the AI report that i posted here on 6/6/23 at 8am where Chad was requested to cede a stake in COTCo in accordance with promises made to Cemac.
Yes. Both Chad and SS. Wonder how long more before we can have some clarity. Not good start to the week.
All very worrying but hopefully we get clarity out of the AGM, can't actualy attend myself but trust the likes of Porsche, Zen and hopefully Agadem to push AK for some answers to some very serious questions.
TiL
These are questions I will be asking at the AGM.
If there are other questions posters would like me to ask then please post them.
If any other posters are going to the AGM it would be great to meet up for coffee beforehand to divvy up the questions in case I am limited in the number of questions that can be asked.
It's important that Savannah are explicitly able to clarify the position in regards to this, as investors if a company can't let it's shareholders follow the pound as I like to call it than that creates uncertainty amongst the investor base.
Zengas - It would just be as important to hear from Savannah not only about the 10% sale of Cotco to SNH but also what happens to it's interest in Cotco as I believe that chad want to block board sits and freeze accounts so Savannah doesn't get access to dividend revenues, whether we sale 10% or not doesn't bother me it's whether we will continue to benefit from it's revenues and have access to these funds.
From 'N'Djamena Actu' this evening
The Transitional President, Mahamat Idriss Deby itno, has dispatched the Minister of State, Secretary - General of the Republic of Chad,
Gali Ngothe Gatta to Yaounde. He had intense interviews with President Paul Biya at the Palais de L'Unite on the afternoon of June 19 2023.
Speaking to the press, Mr Gali Ngothe Gatta says " We have come to carry a message from Chads Transitional Preident tp President Paul Biya to thank him for all the support he has given Chad in the transitional process of managing its oil". He said that the incident between the two countries is "finally closed".
I suppose we may hear what Cameroon in due course re SAVEs interest in COTCo and the proposed 10% interest sale that was suspended supposedly last week.
any way before anything happens they would have to consider china as china and cnpc is critical to oil production and infrastructure that runs through sudan and south sudan. so the question is whether there is appetite for either warring parties to **** off the chinese when they also rely on the chinese heavily to also arm them.
i am not saying that a temporary shutdown cannot happen but there is a lot at stake for either warring parties to go against the chinese. you will never silence the headlines as unfortunately that’s the jurisdiction of assets that we are intending to acquire even if we complete south sudan acquisition stories like these will be a daily occurrence. so a lot will need to be able to filter as much as possible until official confirmation is received from the south sudan government that oil is being blocked from exports until then be ready to hear stories like this pre and post completion of acquisition. also it will be important to see to what extent it would be shutdown for as far as i can tell both sudan and south sudan would be on there knees so there will be no winners out of a prolonged shutdown.
June 16, 2023 (JUBA) – South Sudan has announced that it will import essential oil supplies through Djibouti and Kenyan ports instead of using Port Sudan due to ongoing conflict.
Minister of Petroleum, Puot Kang Chuol, stated during a press briefing that the Ministry, with the approval of the cabinet and the country’s top leadership, including President Salva Kiir and First Vice President Riek Machar, has formed an Emergency Response Team.
“The Emergency Response Team, guided by a well-defined and structured contingency plan, will proactively mitigate the impact of the fighting in Sudan by rerouting all logistics and transportation of critical materials, chemicals, and equipment,” said Minister Chuol.
He emphasized that the crisis has caused mild disruptions in the logistics and transportation of essential supplies to South Sudan’s oilfields through Port Sudan.
“To avoid delivery disruptions, especially of chemicals used in production, we have decided to import essential supplies through the Mombasa port in Kenya. We are also exploring the utilization of Djibouti’s port,” explained Chuol.
The minister assured that the current inventories of critical materials, chemicals, and equipment in the oilfields are sufficient to sustain smooth production and exportation of crude oil for the next three months. The Emergency Response Team is actively working with stakeholders and their Sudanese counterparts to ensure uninterrupted crude oil production in South Sudan amidst the ongoing conflict.
Chuol further reassured that all oilfield facilities, including pipelines, pump stations, field processing facilities, field surface facilities, and the export marine terminal in Sudan, are well-protected and safe from damage. South Sudan continues to produce and export an average of 169,140.81 barrels of crude oil per day from its oilfields.
The Emergency Response Team maintains constant communication and cooperation with relevant authorities at the Port of Mombasa in Kenya and the Port of Djibouti to ensure timely clearance and transportation of critical materials, chemicals, and equipment destined for South Sudan’s oilfield activities, if any are present at those ports.
Given South Sudan’s heavy reliance on oil revenue to finance its annual fiscal expenditure, the country is currently facing economic challenges. The crisis in Sudan arose from major disagreements between the Sudan Army Force and the Rapid Support Force (RSF), particularly regarding the integration of the RSF into the army.
In a separate but related matter, South Sudan’s Minister of Presidential Affairs, Barnaba Marial Benjamin, urged investors to consider opportunities in the country. He highlighted the vast natural resources available, which could benefit South Sudan, the region, and beyond.
https://sudantribune.com/article274486/
Slightly different take though it is 3 day demand and wants a share of the oil revenue or halts payments to the Sudan Govt.
JUBA, June 19, 2023 – South Sudan refrained from commenting on reports that the Sudanese paramilitary Rapid Support Force (RSF) issued a three-day ultimatum to shut down oil pipelines in the militia-controlled areas unless South Sudan shares oil revenues or halts payment of transit fees to the military-led government.
Mayen Wol Jong, Sudan’s undersecretary of the Ministry of Petroleum, stated to Sudan Tribune on Monday that oil continues to flow to international markets, with Sudan being the guarantor and protector of all oil infrastructure passing through its territory.
“As of now, the oil is continuing to flow. There are no disruptions,” said Jong in response to media reports.
He declined to provide further comments regarding the RSF’s conditions for the oil to continue flowing through Sudanese territory. None of the parties involved have officially confirmed these reports. However, officials familiar with the situation informed Sudan Tribune last week that RSF representatives have been pressuring for a share of the rental and transit fees.
Lual Achuek Deng, a member of parliament from South Sudan, expressed concerns on Saturday about the ongoing conflict in Sudan, fearing it could negatively impact oil revenue generation. Deng, a former Sudanese Minister of Petroleum prior to secession in 2011, shared his views with United Nations-sponsored Radio Miraya during a discussion on the annual budget. He suggested that the conflict in Sudan might have contributed to the delay in presenting the budget to parliament.
Observers and economic analysts have voiced concerns over the potential risks to South Sudan’s economy and budget, as the conflict between the RSF and the Sudanese armed forces puts its oil, the mainstay of the economy, at risk.
The RSF has demanded that South Sudan either stop funding the sovereign council’s military leadership or share resources, or the pipeline infrastructure will be shut down.
This presents a critical dilemma for South Sudan, with fears that the RSF may disrupt the oil flow if their demands are not addressed in time. Compliance could lead to retaliation from the Sudanese armed forces, potentially preventing South Sudan’s oil export through Port Sudan and crippling the nation’s economy. Conversely, if South Sudan continues to provide funds, the RSF threatens to shut down the pumping station at Heglig, obstructing the oil flow to the port of Sudan.
The RSF controls the pumping stations at Heglig of South Kordofan, while the Sudanese armed forces oversee the transport routes to the port of Sudan, where the oil is loaded onto cargo ships for international sale. The consequences of a shutdown would be enormous, affecting the government’s ability to function and provide essential services to the people.
https://sudantribune.com/article274555/
Https://www.zawya.com/en/press-release/africa-press-releases/nilepet-to-become-an-energy-operator-by-2027-says-director-general-dg-during-south-sudan-oil-and-power-ssop-hsniitax
This was the session in which Andrew participated, I believe.
Https://www.reuters.com/article/southsudan-oil-idUSL4N3873UU