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Btw, I presume the tax bill is in Moroccan dirhams (MAD). Graham calculates it's about 10% less in dollars due to exchange rate fluctuations. That doesn't help SOU, though, because GBP has fallen about the same amount as MAD vs. USD. On the up side, iirc, the gas is priced in USD so a net benefit to SOU should rates stay similar.
It will be interesting to see if Sound decide to take it up with the Moroccan courts. Legal fees would be high though and I wouldn't be confident of a fair outcome.
Just to clarify though the RNS reads as if the $19.7m is in addition to the $2.6m to $22.3m total. Correct?
Ditto mebo2. That's what I've been wondering about for a long time.
ktf: "Morocco needs the gas, they're not going to shoot the golden goose."
The gas *IS* the golden goose. SOU is just its current minder. The ruling seems pretty grotesque but it is what it is. It seems a whole lot less likely now that SOU can wangle their way out of it. It's basically the worst case scenario.
Obviously it's completely manageable if SOU can spread the payments out AND defer the first one to 2025. That's the first year that SOU's net income turns positive according to the SP Angel valuation, assuming all other things go according to plan.
Yes he did say it wouldn`t be the end of Sound that`s why I don`t understand the wording of the RNS
He did say at the Agm if it went against us in the long term it’s not the end of the world.
I wouldn’t be surprised of a placing but I’m a tad worried that the big fish in the background want a hurry up on this & wish it was in bigger hands??
I would have liked to think Graham would have been wise enough to prepare for all scenarios. This was always an option so shouldn't come as a surprise. As always this share never fails to disappoint.
unless they have again gambled more than they can lose.
assuming the worst and sound have to pay the tax bill as it stands it will NOT finish the company.
a long payment plan will likely be agreed. Morocco needs the gas, they're not going to shoot the golden goose.
Hi Kirk,
You were lucky to start selling so early. I kept selling into the drops and had sold all my 100k shares well before they hit 50p. Parsons putting his shares jn the blind trust and Marco divvying up shares to all his partners was a sure sign that things weren’t going well. Brian was also very equivocal, like after the deep dive. Parsons kept telling him to be more upbeat. What stuck in my throat was “nobody is going to lose money investing at these levels” when the sp was 80p. I have that on video. There was a guy on PANR ADVFN first time round in Texas. He bought in the teens and sold at 80p. Made no secret of it. People cursed him, called him an idiot. He said he had enough to buy a holiday flat in Spain and build an extension on his house and he was happy with that. Price went to £1.82 before it fell to earth again. I made some money there too, sold on the drop well over a quid. But in both cases a small fraction of what the company had been pumping. Which hurts.
Ha ha parsons bit !
You may be right about RNS, who knows, well GL does obvs
do you think maybe the intended audience for the rns is not just sound shareholders?
I do.
btw, I stubbed my toe earlier walkimg the dog, I blame parsons!
There is nothing positive in the announcement. They seem to be giving up.
Can`t understand why it was worded like that, it was obviously going to trash the price
f***
they can't keep arguing it, gonna have to face the music at some point, f'ing parsons still screwing us over from his actions, guy's a crook.
placing to cover the cost ?
Well, that RNS was suboptimal :(
you seem to be a bit of a panicker!
tax ruling against SOU.. its now insolvent
Too many people want to blame someone else for their poor decision making and I lost a serious amount on Sound and blame one person only ..Me !!
Koozer, nobody told me when to sell! I had one year left on my mortgage & £60k to find. When the share price started to drop from £1 I sold a chunk at around 89p & was, therefore, able to pay the remainder of my mortgage. I even posted what I was doing - how much more transparent could I be? There was no conspiracy & nothing to see beyond what I explained at the time!
Good luck to all shareholders & ...
'GOD BLESS THE KING'!
Sound (me) has been through a share consolidation, in 2010 or 11. I was not happy then and I would not be happy now. I wish they would get a giddy up !!~
yes adding to that is JPs crony CrudeHope NHS worker who defrauded the shareholders. by mentioning many false statements and despite still supports JP he will never refute him because JP told him when to sell.
Forget any thoughts of share consolidation as I can tell you from experience that it never ever benefits shareholders on aim, but I do agree we have a ridiculous amount of shares. We have Parsons to thank for that with the mess he left!
I would actually favour share consolidation. We've got a ridiculous amount of shres issued, for a £25m market cap.
there was a 3m sell earlier and yet the bid has gone up.
I think we're just in a holding pattern until significant news arrives.
Hard to believe where the share price still is, it seems as though it is basically priced to fail.
Which hopefully, for the brave, creates an opportunity.
I read someone recently (it may have been a link here) that ENI are buying up large chunks of producing assets in Algeria to help secure europes energy needs. Surely this must spill over into them considering the longer term requirements and developing new resources? Assuming it does, then we would hope that there is a reasonable amount of industry interest in farming into the exploration and production parts of SOU.
Not many updates recently, so must be due a few….