Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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It would be nice to see some chunky director buys.
We need something to happen just too keep the faith if anything??
Great post, a presentation on Investor Meet Company or a similar platform would be very useful.
The continuing share price slide is remarkable -- down to a third of what it was as recently as June. It may be no more than a reflection of the deteriorating macroeconomic situation. However, I still maintain that the future prospects are all about the dilution. In June SOU issued 200m shares to raise £4 million. That only keeps the lights on until next April (as per RNS of 08-Jun). Raising the same amount at current SP would represent a further 33% dilution. If the eventual target SP fell pro rata, it would be down to under 5p. That is a fifth of the estimated value when SOU first announced plans to monetise the assets and, despite the good (but slow) progress that has been made, reflects the creeping dilution ever since. Time has not been on SOU's side.
I got as far as “a little 50k top up”
Crack on, KTF. Good luck to you
I take issue with "incessant ramping ", I have never ramped.
I AM generally positive, which to my view is only logical.
If I was negative on Sounds prospects I would sell and not waste my life posting here.
I guess compared to the usual negative b0llox posted by the bitter losers my posts could seem like ramping, but I would challenge anyone to point out any ramping posts I've made.
my average is my business, but I did have a little 50k share top up earlier.
I now have north of 1 million shares, but as I've said before if iot all goes t!ts up, so what, it's only spare money and even after today's rate rise and sp drop, I think it's better here than in a savoings acount paying peanuts.
btw, you say "Is your average still close to what you’d pay for a “good meal?”
given that even if I'd only ever bought at the peak and therefore had an average near £1 it wouldn't buy a crappy McDonalds burger, it's highly unlikely it would pay for a good meal. where on earth do you eat :)
Surely Moroccan energy minister and Moroccan finance minister will have a conversation at some point and do the right thing?
Impressive to see you still posting after your years of incessant ramping and cheeky top ups, KTF.
Is your average still close to what you’d pay for a “good meal?”
GL to all non rampers here. Sad times but U write this off post T-10
.....I commented briefly yesterday on Sound who are continuing to fight off a legal process in Morocco which seems to have little or no common sense to it. I am reminded that the subsidiary being investigated is the dormant company of sound that hasn’t traded in many years and is unlikely to have any recourse to the Group or parent.
So, it’s all process rather than substance and hopefully tax authority will realise this legal process is doing Morocco no favours, after all there are many companies and projects which actually will provide both revenue in-country and ease the considerable energy shortage in an area which is desperately short.
Utility
firstly the main demand is against a dormant moroccan company. I believe there is no legal way for the tax authorities to enforce payment against the UK listed company we have invested in.
also. there is no benefit to the tax authority seizing a dormant moroccan company with no assets.
so, as I see it the possible route this will take is
1: appeal in court at the same time as making informal appeal
2: if not thrown out by court or informal appeal, sound agree to pay and look for payment plan
3: it is in tax authority's interest to agree.
4: if they don't sound tie it all up incourt by saying 'sod off' it's a dormant company we won't pay
5: this takes years and whatever the outcome sound have decent cashflow before any possible payment needed.
to be clear sound don't want to go the nuclear route unless they have to as it will sour in country relations.
to also be clear the tax authority want cash, not dormant companies with no assets and will also be getting pressure not to sour the country's immage for future investment.
so, I don't see the tax issue as a problem, let alone a binary win or lose all.
Saipem has sold its OnShore business (includes Tendrara) to Scottish company, KCA Deutag
https://www.moroccoworldnews.com/2022/11/352165/tendrara-gas-project-saipem-sells-onshore-drilling-business-to-kca-deutag
keeptofacts. I assume that when or if Sound can no longer pay their bills it would result in another company either buying the company for peanuts or the bank in Morocco taking it over. Perhaps siezed is the wrong word but i am more than willing to listen to what you think might happen if no plan is agreed
The update last week confirmed that the GSA with ONEE for phase 2 remains in place and the deadline for conditions to be met has been extended to 30 June 2023. Sound has plenty of breathing room to have the financing package from Morocco's largest and leading commercial bank (Attijariwafa) signed and in parallel to bring in a JV partner to fund the remaining equity required. The pieces of the jigsaw are falling in place.
Folks seem to forget that phase 2 is a project of significant scale, low complexity, and national interest; both the government and banks are very supportive of it. I don't see how this project won't break ground by next year. The project has significant value to Sound - multiples of the current £50m enterprise value.
In my view Sound will find a JV partner for the remaining equity, the share price will rise significantly, then the company will raise some additional capital to cover admin expenses until the projects deliver cash flow.
For all anyone knows Sound might accept an offer for the entire company, as interested third parties probably would like to be operator themselves.
Only a fool would short Sound today.
"Phase 2 Development Gas Sales Agreement
The Company announced on 30 November 2021 that it had entered into a binding gas sale and purchase agreement (the "GSA") in respect of the Phase 2 development of the Tendrara Production Concession with Morocco's state-owned power company ONEE (Office National de l'Electricite et de l'Eau potable) for the sale of natural gas from the Tendrara Concession in Eastern Morocco over a 10-year period.
The GSA remains conditional upon, inter alia: (i) all necessary authorisations and permits having been granted for the construction of the Phase 2 gas installations; and (ii) the final investment decision, when taken, by the Tendrara joint venture partners, being approved by the Moroccan Ministries of Transition Energy and Sustainable Development and Economy and Finance;
Pursuant to the terms of the GSA, the Company announced on 9 March 2022 that it had agreed with ONEE a 90-day extension to the period by which the conditions would be required to be satisfied in order for the GSA to become effective. Whilst good progress is being made in order to satisfy the conditions, the Company announces that it has agreed with the parties to the GSA to extend the date by which the conditions should be satisfied to 30 June 2023."
@utility "Just remember without a repayment plan agreed Sounds business in Morocco would be seized"
this is factually incorect!
@sundance "or they have just simply had enough of this and took the loss ,moved on and be done with it "
move on? that would be a first for this company's shareholders!
With the exception of yesterday there have been similar periods of increased volume each day this week. We’ve seen this sort of thing a lot over the years. Never gets any more enjoyable.
Maybe it is the same seller offloading both moroccan based natural gas developers
Regards
Maybe its just 1p stop losses being triggered?
Strange indeed. Or is that no soones does Sound announce it1s intention to refute the tax charges in court we have this large drop. Stinks of something. Just remember without a repayment plan agreed Sounds business in Morocco would be seized
I think you’re right Sundance. I can understand why as I’ve lost a fair bit myself. However, work is progressing - we just need to be patient and I’m reasonably confident I’ll recover some of my losses. . Not impossible to think that some will double their money if they invest now but I won’t be one of them.
Yes there is absolutely no reason whats ever unless of course that the people who have just dumped a relatively small amount of stock ( certainly no high rollers there thats for sure as if it was a major investor - if there is such a thing in this company now - it would be millions not million and we would be sub .1p not sub 1p ) have actually been told some thing bad which of course is illegal or they have just simply had enough of this and took the loss ,moved on and be done with it
I think the latter is the correct thought
It does seem a big drop this morn... no news to go on... is it an absolute bargain now or good money after bad?
what has changed to make people want to sell now?
especially the persom who sold £8 worth of shares,
very strange.
Everything Parsons has touched ends up at under a penny ——- says a lot that does ..imho
For those that are interested, I wrote to sound yesterday and I asked about lead in times regarding the new LNG facility by questioning that 2 years was an achievable timeline for both Phase 1 LNG facility and Phase 2 pipeline projects.
The summary received from the company was:
24 months is achievable to build and start producing LNG from new facility
Sound are on target for Phase 1 LNG by end on 2023 - Italfluids would be keen on achieving this timeline to avoid penalties incurred from Q1 2024.
Phase 2 pipeline project - achievable in 24 months from FID
Sounds issue and current aim is getting all funding in place and confirming signed binding contracts with lead bank by
15th Dec 2022
Purely IMO - Sound has a lot of sensitive information that they can't currently disclose, but did ask if a future Shareholder presentation to give investors a further snap shot of information to date would be useful?
If investors are interested in this then i suggest could email GL directly.
As we head for under 1p , I did not think we would see it , but we nearly are , let’s hope for some upwards movement