Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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It is rather pathetic!
Think I might step away for a while, they're not worth the effort.
things are taking longer than I would like but as someone said yesterday the exploration licence wouldn't have been extended and with improved terms, if the powers that be weren't very supportive and happy with Sound.
In full flow !!!
Morning Kylie
Unusual for a none investor posting so early in the morning…….must be some good news going about!
Drilling
The RIG 101 is with Predator
MOU-5 is expected to be drilled between 1 April to 31 May 2024 in order to avail of in-country well services that will remain following the completion of the Company's rigless testing programme, which is currently underway, thereby reducing mobilisation costs for well equipment and services.
As PS20036 says no deal with Calvalley……….no drill.
https://oilreviewafrica.com/exploration/exploration/sound-energy-receives-onhym-approval-on-extension-of-anoual-exploration-permits
One further thing that became clear finally last night - the reason for the FEED study revision delays. There's no money for this. SOU are caught in a horrible place and having got far too close to CalValley I suspect they know it. SOU have no money to pay for the FEED update, without which there's no bank funding. Without CalVal there's no bank funding. Better hope GL and GD have a back up plan for all this. having listened to a few calls, yesterdays was by far the worst i've ever heard in tone and content.
One concrete ans timely outcome of the SOU call yesterday is that SB will no longer be posting under their latest login. crystal clear from below they'll be no more posting, despite the toungue in cheek reference to their 'repeputation'. As has been the case for years, the sceptics here offering objective rationale analysis and views get drowned out by posters who time and time and time again are shown to be nothing but snowflakes when it comes to understanding how companies and business works.
The only way out of this is an RNS stating SOU have terminated the now 10.5 month long engagement with Cal Valley and are activating plan B. Won't be pretty I suspect but better than entering a long term relationship (and giving away a massive proportion of the only asset the company has) with an entity that treats you like this at the first opportunity.
The post from SB that sealed his fate;
"Adam2911
Posted in: SOU
Posts: 184
Price: 0.78
No Opinion
RE: Investor presentation26 Apr 2024 13:46
Right girls and boys...I'm putting my reputation on the line here..
Cavalley is a done deal.clues were on the last rns..if its not then I will stop posting.thats a promise..."
And here's *my* summary of a few selected points:
I think Graham has to put a brave face on things but I he understands that Calvalley has become a serious risk as the conclusion of the deal drags on. It couldn't really be otherwise. I agree with him there's no reason for Calvalley to string SOU along. However, there was an odd-sounding statement that "the delay is getting a fully binding agreement that both sides are able to sign". We can't expect all plain sailing, but is there some sort of serious tension there? He and GD were at pains to point out that it's their job to ensure that there's a plan B. That's no guarantee that there *IS* one. Same with plan B for the LNG storage. The best laid plans can go awry -- the current delays are proof of that.
There were a lot of the usual platitudes: everyone is working hard, it's not going as fast as hoped, all elements of Phases 1 and 2 are complicated and interrelated. It may all be true but it's not very reassuring.
I thought GD's answer on how the bond was going to be paid was a bit evasive. We have to "look at revenues from Phase 1 and 2 together". But Phase 2 is very unlikely to be bringing in money when the bond falls due. We have to take his word that it'll be sorted out by a "corporate debt strategy". Overall there's a lot of stuff that has to be taken on trust. Everything will be fine until it isn't.
Anyone pinning their hopes on successful new drilling is being very optimistic. There's no evidence that SOU will have the money for it under their own steam before 2028 or later. And no sign of anyone rushing to farm into Sidi or anywhere else despite years of "talks".
Here is ChatGPT's summary of Graham's presentation and the Q&A:
1. Year-end results disclosed
2. Recent progress at Tendrara
3. Approximately 65 people on site
4. Safety measures in place
5. Two layers of tank construction complete
6. 11 layers in total planned
7. Jacking system in place
8. Well rig activities pending
9. Special metalogy for completion tubing
10. Safety and control system installation ongoing
11. Equipment awaiting rig arrival
12. Phase two work focused on office-based activities
13. Bank debt negotiations ongoing
14. Equity partner search in progress
15. Gas sales agreement modifications underway
16. Questions addressed in investor meetings
17. Recording and Q&A available post-event
18. Company directors unable to trade during closed periods
19. Cash flow management a priority
20. Placing to raise funds not confirmed
21. Share price improvement desired
22. Gas delivery targeted before year-end
23. Confidence in meeting development targets
24. Supply delays addressed
25. Temporary storage options explored
26. Customer readiness assured
27. Funding and debt obligations managed
28. Potential alternatives considered
29. Moroccan state support acknowledged
30. Funding adequacy for production assured
31. Project complexities causing delays
32. Partnering deal delay addressed
33. Corporate debt restructuring strategies explored
34. Director trading restrictions explained
35. Calvalley deal negotiations status clarified
36. Interest in City license discussed
37. Phase one cash flow projection discussed
38. Feed process not yet initiated
39. Calvalley deal closure timeline uncertain
40. Continued efforts to finalize deal with Calvalley
Video is here: https://www.youtube.com/watch?v=kJhxgBBjHP4
I fed the video to ChatGPT to summarise. Here is Gary's piece:
Gary Dempster presents an overview of the company's year-end results, emphasizing the strategic evolution since 2020. He discusses the company's shift from an exploration-based model to a monetization strategy, focusing on developing discovered resources in Morocco. Dempster outlines the challenges faced during this transition, including restructuring corporate debt and resolving a legacy tax issue in Morocco, which affected investor confidence.
Despite these challenges, the company has made progress in securing funding for its projects. Vendor financing and debt financing have been obtained for phase one of the project, with negotiations ongoing for phase two. Dempster underscores the time-consuming nature of these endeavors due to complex transactions and interrelationships with various stakeholders.
Despite being in an investment phase with no revenue generation, the company has maintained capital discipline, significantly reducing corporate expenses over the past few years. This disciplined approach aims to optimize working capital until revenue generation begins from the phase one project and subsequent phases.
Key financial metrics for 2023 include a pre-tax loss of £7.2 million, primarily attributed to the ongoing investment phase. Administrative costs have decreased compared to the previous year, reflecting the company's efforts to streamline operations while maintaining project development activities.
Additionally, Dempster provides details on the company's financial structure, including its market capitalization, cash position, existing debt obligations, and financing facilities. Notably, the company has managed to secure funding through various instruments, including a convertible loan facility.
In summary, Dempster emphasizes the company's strategic focus on project monetization, despite the challenges encountered along the way. The presentation provides shareholders with a comprehensive overview of the company's financial performance, strategic direction, and efforts to unlock long-term value.
I tend to agree that Calvalley appear to be taking the p***....I've mentioned before it looks like they are now just walking Sound into a corner...I would just walk away from them. Sound must have a plan B on hand just in case this happens...I liked the presentation though...it would be good if it
happens but the longer it goes on the weaker(financially speaking) the company is becoming.. GLA
Must admit I’d like a plan b coming online , as calvalley do need to step up or move over for someone else … yes I believe if we can drill some good accumulations will be found
M5 will do first
There’s far more to this company than you and I know-it’s political and the Moroccans will win out
The relative silence on this bb speaks volumes (pardon the pun). I actually feel slightly sorry for the team having just heard the call. It’s clear that the company is, as a few of us have pointed out, getting squeezed by Cal Valley. He was clearly talking to them tonight, but if he’s going to call their bluff he needs a back up, a plan b. My view is he should walk away from Cal Valley very soon, and tell them to fk off. They’re squeezing the company and SHs and he’s walking the company to oblivion by holding out. Time is money. The longer he’s duped by them the worse it gets. I’d put all efforts into plan b immediately and ditch them. There are clearly issues with reaching and agreeing binding terms, Cal Valley are getting greedy it seems. With that so critical to all Phase 2 and any drilling, things don’t look good at all.
The one positive is they seemed to be more honest tonight, but the situation is so bad they’ve unveiled a world of pain and massive SH risk. Fair play to him for finally telling it as it is, but fk me, it looks far worse than even I thought.
Gut feeling - holding pattern message??
Still interesting to hear what the plans are.
What’s your gut feeling?
No rampers on here tonight !
I too will be looking forward to the full presentation being made available.
GLA
Missed the call today - looking forward to listening to it once released.
Was it worthwhile?
All this excitement about drilling , well I think it’s air to keep us talking and distract us for another four or five months while Calvalley wait for phase one to come on line so they can be paid by our money
Can someone explain how they can’t deal for 30 days prior to a financial statement and publishing accounts ( after which they buy or sell as much as they want as long as they declare it via an RNS ) and there’s only been 2 such periods in many years . Nothing to do with sensitive information as that would have to be disclosed in such statements . Just doesn’t add up - Directors buy and sell all the time !
Https://uk.practicallaw.thomsonreuters.com/5-626-7359?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=Under%20Article%2019(11)%20of
From my post 15/04/2024 - 30 days before an announcement!
So it looks nothing special to call for the presentation!
Or 1.3 tcf Tincan!!... the same old twaddle, unfortunately...agree things need to fall into place and exploration is needed for higher proven reserves etc...but this is like pulling ya teeth!!!
Must be frustrated listening to GL waffle on…….he really is not great at presenting and given that he is chairman I really feel uncomfortable with him at the wheel.
Never sold a share in 13 years, but if the next 6 months provides nothing material, then I am out!!!!,
So they addressed the issue first and said that due to closed periods that was not possible over many years. In a follow up question they admitted there were 2 open periods in the last few years and directors bought shares. Can anyone point to the RNS’s they were legally obliged to disclose these purchases?
At mo I’d be happy with 3.1 tcf !!!
Exploration is the key to value.
My other Question was...
"Same old fellas.....where is Brian's 31tcf" ...haha