The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
& Holy you were right about the % I apologise, it is 4.28% + 1million options @ 2.84p the IPO was over subscribed.
No Holly that's not correct. I said very specifically carried for cost of the 2D and 3 drills as per the RNS, I said nothing about carried to production. You are just chucking out unfounded accusations again and then fail to apologise I suppose after.
So I will ask you one last time, you are saying SCIR are not fully carried for the 2D and 3 drills as per the IPO?
I think they have up until now done the very best that could have been done to exploit the He1 investment that was inherited from the Ritson era.
Chris - 300% would be better than any deal the BOD or solo has ever achieved. The shares are worth nothing until they are converted to cold hard cash. Nothing has changed since the IPO so the logical thing is to sell (or reduce exposure). They could cash in for a million and let the other 800000 ride for the drill.
AA - Yes a 60% profit in a day is pretty awesome return and i would have been happy for them to take it. As I have said - they have screwed up one way or another, either by undervaluing the asset at IPO or by looking the gift horse of 300% in the mouth.
No, I am telling you that if H1 need to raise additional funds for their drilling program then Scirocco will either need to put in more money to maintain their 4.29% shareholding (4.5% is an incorrect number) or they will be diluted down.
This is not a free carry. A free carry would be that the SCIR stake stayed at 4.29% no matter how much the drill program cost.
Scirocco are just shareholders in H1 they are not partners in the drill.
Maybe Colin, of course the market will decide how much HE-1 is worth in the run up to drilling in Q2 & that's drilling shareholders here have paid for. I would not be in a rush to sell if I did not need the money right now and with no news on the primary asset and thus no spend why panic.
We will soon see if they are as they would need to TR-1
Since when have the band of idiots that run Scirocco ever done anything prudent? They are just greedy little piggies with their snouts in the trough.
It's not misleading at all holy, SCIR sold a large % of their stake to pay for that 2D & drilling and to IPO. That's shareholders here who have already paid for that 2 D and 3 Drills through that effective dilution. Are you suggesting that HE-1 are not fully funded for the 2D and 3 drills Holly and thus SCIR's 4.5% is not also carried for that drilling?
The prudent action 300% profit ( yet didn't you say they should have sold at 4p,
Chris - I suppose the BOD could be selling at the moment so I will give them the benefit of the doubt on that. If they are not selling then they are insane. HE1 is non core and goes against their strategy of acquiring production and becoming a mid cap (LMFAO).
They thought it was only worth 2.5p a few weeks ago when they decided not to participate in the IPO. They are now being offered 3X that!!
The prudent action would be to take the 300% profit.
You can't call it till if & when they sell it mrc/d. Could come in very handy if no decent offer for Ruvuma on the table my mid year as SCIR might as well hold till the Ch1 drill.
Anyway heading is pants, there ain't one.
Mrc, ok if that's your opinion and you may prove to be right, personally I don't think it is overvalued in the longer term time will tell.
Holy I was talking abut SCIR being effectively carried for the 2D and 3 drills over the Helium-1 asset?
Either the BOD screwed up by letting the IPO happen so cheaply without maintaining their %.
Or the BOD is screwing up by not offloading their remaining % at what they believe to be around 4x fair value!!!
AA - I never said that he was not qualified to make a prediction. What I said was that since he is not a member of the Scirocco board then his prediction was irrelevent.
The supposedly highly qualified BoD did not believe in the project enough to have protected the Scirocco stake in it and so once again cost investors a lot of money through their own incompetence and have now left us under-funded for our Ruvuma obligations.
Everywhere you look, everything that they have touched has turned to a disaster and what I think is both misleading and financially irresponsible is those on this forum who pretend that their stewardship of the company has been anything other than an unmitigated disaster.
Aerial - no contradiction in my post. I would still like HE1 stake to be sold. It's a distraction and a gamble on the drill bit. Clearly BOD did not think HE1 is worth 2.5p, so why the heck are they not selling it now? It matters not what the original investment was - SCIR felt fair value was at or below 2.5p so they should be biting off investors hands to sell at 8p!!!
Personally I think HE1 is overvalued and the SP will drop. It didn't happen as I thought, but I would be very surprised if it is not below 2p in the next year or 2.
Holy if what you say is true then why go on to make a prediction where you are not qualified to do so which at the very least is misleading and ultimately financially irresponsible.
Interesting Ariel Arrow - you are criticising mrc for saying today that
"IPO was what 2.5p?? Whoever took part in it has made a killing? Why did our BOD not use SCIR FUNDS TO MAINTAIN OUR STAKE???"
by posting a post of his from 4th December when he said: "If they really like this asset they would have protected their share at the IPO.".
You have completely proved his point. It is totally reasonable for him to not believe that the share price would go up as he is not a member of the BoD - it is on them to have protected the stake if they believed in the asset and they didn't so SCIR was diluted down from having a stake of 12.03% of H1 to a 4.29% stake in H1 (those are the real percentages no need for Chris).
Yet another total c**k up by the BoD.
Post from 4th December
Chris - my feeling is that the board are trying to move on from the wildcat jam tomorrow prospects. They did well to sell UKOG and I think they will do well selling HE1 at 4p.
I appreciate you may have a flutter on drill results but I will be a bit disappointed if the BOD do. We all know rather too well that after the initial excitement subsides and the reality of development costs and problem of working in Tanzania rear their heads the SP will probably tank.
If they really like this asset they would have protected their share at the IPO.
Last point - 800k cash in the coffers would be handy to provide a bit of comfort in relation to Ruvuma work programme.
Chris can tell you real percentages
The same Ipo where you predicted investors would be impaled, wise after the event once again
Yes it is misleading to say we are being carried.
We were diluted by an equity placing (e.g the IPO) from 14% down to 5% (chris can tell you real percentages - this is rough from memory?)
Remember the IPO hugely undervalued the asset which is why we now own next to nothing of it!!!!
IPO was what 2.5p?? Whoever took part in it has made a killing? Why did our BOD not use SCIR FUNDS TO MAINTAIN OUR STAKE???
But our Helium 1 stake is just an equity stake. We do not hold any of the licenses. In fact, we are no different to any of the posters on here - just on a larger scale. It has a value if it goes up, but only if we sell it.
Should be named non shareholders action group
Seems our helium stake is fully carried for the drilling programme.
I would think we only have to contribute from appraisal stage onwards.
This would mean if we stay with Ruvuma to drilling we should have enough cash in place to see us through.