Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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That post says it all Rift. If we can't find a suitable acquisition in these times well I'll be flabbergasted.
Apart from the YF guys buying, no volume apart from a massive trade last Friday. Who knows what other trades are being worked?
Its got $45mm in cash and MCAP £20 million , no Oil assets that can waste that cash and primed for a distressed deal!
It seemed to get a bit of interest recently and has gone quiet again.
Atb,
Northern
Guys another massive trade there £65k's worth, 700,000 shares blimey
VOG does not make any sense in my opinion ... they are looking for a company maker asset or larger play OR will pay out cash .... with this cash SEY shareholders can do the next capital increase at VOG or something better :-) .... why should they give away the listing here to merge with a small London listed junior? Time will tell us
Happy sparrow we wont be giving away cash for anything less than 20p
Thanks for the comments, rifteastafrica - and, yes, if Syrian sanctions are lifted then Gulfsands is the likely option - but to me that is a big 'if'.
And, yes, many, many companies - the whole world is your oyster with $45m. But VOG fits nicely imo.
And, yes, nothing will happen without Kroupeev's say-so - but these are all very rich people with fingers in many pies, and deals and strings-pulled that could be done in many ways. YF have their entry ticket now. And I believe they'll use it successfully to realize their interest in VOG.
It's a punt for me - not something to put life savings on.
Happy Sparrow thanks for all the information but if you think anyone can get hold of Sterling Energy's cash without cash value + being paid, (ie a double on the share price ) then dream on, in this environment.
What about Kroupeev's (Waterford) ownership of 37% of Gulfsands? THats much more and Syrian sanctions review date is end May.
The VOG drilling upside fits nicely but so too do many many other companies. The YF Finance guys have taken 2.56% - all eyes still on Kroupeev the controller here with 29% through Waterford
But interesting nonetheless.
(cont:)
- Vog (Gaz Du Cameroun) has the production, and opportunity to expand production, that SEY seeks, together with low-risk exploration (same structure), to use SEY's technical capabilities, and to expand into other blocks, and partner with New Age (and AKSA) in other projects in Africa.
- YF Finance has a stake in VOG (23.71%) and SEY (3.56%). Likewise Zion SPC Access Fund has SEY (16.64%) and also VOG 5.05% (@Oct 2018, but now?). SEY also use to run the Ntem Concession adjacent to the Southern Maritime Border of Cameroon (hence familiar with the geology, economics and politics). Note too, that Russian Kroupeev's Waterford Finance (SEY 29.3%) has invested in Kazakhstan (Jupiter Energy 30%), that YF Finance is Kazak based; and that VOG own legacy assets in Russia (still hoping to farm this out, or sell) and Kazakhstan ($35m provision in books as write down of licence they hope to regain - YF influence possible?). Too key VOG / GDC management, Kate Baldwin and Eric Friend, have both worked in Russia/Kazakhstan.
- New VOG CEO, Roy Kelly, is undertaking a complete operational and strategic review. I expect him to report on this at the June AGM. YF Finance took their stake in SEY on 24/04/20, have now shown their hand. Thus I expect a merger or RTO very soon - before VOG's June AGM maybe - but at least before 2020 is out.
I have taken a stake in VOG.
(cont:) Here are some points worth noting:
- VOG is a Cameroon- based company - they have legacy interests in Russia (Koupeev is Russian) and Kazakhstan (YF Finance is Kazak/(Russian)).
- VOG has new management - CEO Roy Kelly is ex-Kerogen (key shareholders in New Age, with Etinde block); and Robert Collins is a corporate transaction specialist (VOG is in no position to make acquisitions, only mergers).
- Vog is a typical distressed company (that YF Finance and Hadron Capital specialise in investing in. They have some great assets and opportunities, but insufficient cash. See the big map on the VOG website. They need $11.3m to drill an exploration well by end 2020, to retain their Matanda block (same structure as producing Logababa field - thus low-risk exploration). They also need debt funding to build a 60km pipeline linking (and taking a cut as pipe-operator and processing plant) to link New Age / Bowleven's Etinde field (FID end of 2020) with a AKSA - build (end of 2020) power station. They also perhaps have $10m+ legacy legal liabilities to cover (too, they might want to buy-out their difficult Logbaba partner, RSM Production); a possibility to regain the 44km2 of the relinquished Logbaba Field; and perhaps an opportunity to pick up the entire Bomono licence that New Age are in the process of returning to government.
(continued):
Sterling's $44.9m cash - this will definitely been spent in 2020 on M&A - too many distressed opportunities not to (the Genel decision on Somaliland is not material to this) and money will not be returned to shareholders but exchanged for a distressed asset - which will take time to perform. Thus the major quick money will be made not by investing here, but my investing in the distressed asset that will get the $44.9m funding. 80% of SEY is owned by 6 shareholders - they will determine the distressed asset to be purchased. Given Kroupeev's you might expect it to go to GXP; and Zion's interests perhaps LEK, but now I believe the frontrunner is VOG {Note: Hadron Capital has taken a punt on both - Vog (10.7%) and Lek (3.86%)].
24/04/20 YF Finance took 3.56% in SEY. This Kazak outfit owns 23.71% in VOG; and they will push for the $44.9m to be invested there. This is what you need to know about YF Finance: https://www.occrp.org/en/paradisepapers/kazakhstans-secret-billionaires
[They also own 17.2% of RUR - power plants, power generation and rural electrification (not unlike VOG/GDC)].
SEY wish to partner with an 'onshore low-cost operator who will benefit from our cash to develop and explore their existing portfolio'; looking to 'leverage a production foothold and include low-risk exploration commitment.' They have 'a good technical, commercial and financial team with a full set of operator capabilities'. Their preference/experience is Africa. VOG fits the bill perfectly on all of the above. (continued):
No Easy what about these Kazakhstan billionaires (YF Finance ) disclosure last Friday that they've now accumulated over 3.56%.
Very exciting. No doubt about it, they know Michael Kroupeev (Mikail Kroupeev used to work in Soviet Energy Ministry)
MMs are holding quite tightly onto stock here. Wonder can i put in a few lazy orders around 9 and pick up a few
Overall this has weathered the crash very well with all its cash. They're primed to pick up a distressed acquisition this year and roll up nicely ala Rockrose Energy with Oil Price recovery that is inevitable on COVID19 restrictions easing
'Since my appointment in June, Sterling has progressed its efforts on securing a material M&A transaction. The appointment of GMP FirstEnergy as co-broker, coupled with the engagement of Pinsent Masons, adds to strengthen Sterling's ability to achieve the mandate.
We have a clear strategy and can move quickly and decisively for the right opportunity, leveraging our full cash balance of ca.$47 million and technical capabilities to good effect. We remain very focused on finding a suitable acquisition.'
Well that was from the CEO in 2018 so they cannot be accused of just throwing their (our) money at any old acquisition so I agree Rift I'm expecting an excellent purchase in today's climate, one that will be cash appreciative very quickly. The upshot of such should reflect very well on our current SP.
They've had an eye on Egypt for some time be interesting to see where the penny eventually does drop.
Interesting buy, do they know something? Are they after a seat on the board to guide the company maybe? Shows confidence in the company and hopefully attracts more interest.
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/SEY/14515888.html
MCAP only £19 million
Hold onto your seats. Sterling could be AIM's biggest gainer of 2020 / 2021
Share Pr uphets article
Very bullish on Sterling . Echoing the annual results yesterday on potential for a Serica type distressed asset deal
https://www.*************.com/views/48457/sterling-energy-has-plenty-of-cash-and-the-opportunity-to-pick-up-a-producing-asset-on-the-cheap-buy
Sterlign Energy Results out today. Shows strong preservation of cash, 16 pence and 50 deals looked at and a keenness for once to do a deal
i originally thought they'd try RTO Gulfsands petroleum due to Kroupeev's maasive interest in both companies but i think all Syrian assets will be un operational for a long time
trading at 16 mil. market cap. while sitting on 45 mil. cash - there are just 2 ways ... buyback as much as pos. shares or pay back the cash OR the guys involved here plan to steal the money what should make no sense for them as they are the largest holders ... BUT who knows ... time to get DETAILS from our BOD!
Sterling Energys cash of $45 million
DUE ANY DAY
someone nibbling away
Time is ticking on Sterling. It will soon become an AIM cash shell as Odeywayne licence phase expires November 2020. Sooner or later it will become a cash shell. (cash shells have 6 months to find an asset or de-list)
The expiry dates of the relevant exploration periods under the PSA shall now be:
Third Period: 2 November 2020;
The next phase involves drilling a well which no way will sterling be doing