Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Indeed, a grave warning;
"Material uncertainty related to going concern
We draw attention to note 2b in the financial statements, which indicates that the group will require additional funding in the coming twelve months to meet their ongoing cash requirements. Whilst the directors anticipate that such funding may be obtained from a number of sources, there can be no certainty that such sources of funding are obtained in the timeframes necessary. As stated in note 2b, these events or conditions, along with the other matters as set forth in note 2b, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. "
My translation; Its going to be tough raising anymore cash and we could collapse into administration.
That was quite a big reservation in the annual report (see note 2.b) so all have been warned that UKOG is "speculative".
While it is treated as a going concern, the book net assets remain there, at £40.852m, which is nearly 20 times the current market cap of £2.1m.
The story hasn't changed: any positive news from whatever source could see this share price shoot up.
Another lot as I don’t trust these, not many left now
The GM allowed £1,627 nominal which is 1,627,000,000 shares
1,627,000,000 - 206,965,282 = 1,420,034,718
Deltavegatheta
They have already issued 206,965,282 of those
https://www.lse.co.uk/rns/UKOG/loan-reduction-via-equity-share-subscription-q0o32tyoed5rmo3.html
Looks like the Closet Queens buy trades yesterday @0.0594 have dropped in value already if they are only selling @0.055. Live and learn.
Currently UKOG has authority left to issue 1,420,034,718 shares.
RP/YA will want to ask for tranches of shares every month or so, probably around 6% of total outstanding like last time so that they each stay below the 3% reporting threshold.
That will of course put continued additional downward pressure on the SP.
But UKOG needs to raise cash of it's own as it only has about 4 months cash left.
New money from RP is definitely closed and I suspect YA has had enough as well. Last time UKOG used CMC at a 20% discount as did Alba recently.
But how much and at what discount? Alba had to offer a 30% discount to raise just 6% of marcap.
Currently at a 30% discount the most UKOG could raise is around £570k, which barely gives them a couple of months opex.
No-one is going to farm-in to Loxley without better test data which will cost a few million
BB restoration could cost a £1m
Hopes of HH farm-in seem to be dead given PPP's current markcap of £575k
Progressing Portland planning will cost a few million and UKOG need to appear financially solvent in order to attract needed partners.
So I think the next (or one after next) fund raising is going to be for several million, at a very heavy discount. Here's a raising through CMC at a 65% discount:
https://www.cmcmarkets.com/en-gb/capx/deal.html?id=3sV9AbBjnVGzvvJ7P72swH&symbol=LSE:MXC
The raising might happen as part of a rebranding of UKOG (maybe as UK Oil & Hydrogen Feedstock ;-)) or even splitting the company in two with UK Energy Storage being spun out.
For existing shareholders it will mean wipe-out. Getting it through the AGM will be brutal.
Lyin' Steve's made 'em redundant.
Where have they gone ? Are they all on a holiday with SS? Do UKOG no longer have sufficient funds to pay the chaps in the boiler house marketing team? Has the penny finally dropped? We wait to find out. Meantime - UKOG drops further.
How's the averaging down going chaps?
Taverham
You do realise the Portland stone is above where they are going to drill.
https://wessexcoastgeology.soton.ac.uk/gif/portsec.gif
When Steve Sanderson trotts off to Buckingham Palace to recieve his knighthood he might look at the architecture and ask why it still looks so great after all these years and be shocked to learn it is constructed from Portland Stone a very hard limestone. Hopefully at that stage the penny will drop [ or in UKOG's case the 0.0575 penny will drop] and he will realise that all construction costs on Portland are prohibitely expensive making the storage project un competitive with those elsewhere imho.
Up to another 500m shares will be need for the final £1m from YA under the original agreement. You only need to look at the trades since consolidation, especially those sold, to realise YA are having problems offloading. It will be clearer after another 2 days on the 1m graph.
https://www.lse.co.uk/ShareChart.html?sharechart=UKOG&share=Uk-Oil--Gas
I can't see YA carrying on once the £3m has been cleared so UKOG will have to find another source of funding.
UKOG clearly sees the Portland Port Project as its core business, or at least the priority for investment, judging by the importance placed on it in recent interim and annual reports.
However there's a disconnect, with money raised and spent on Portland Port via CLN or placings although the shares semm to be predominantly sold to pi hoping for short term rewards (based on the activity during P&Ds) on news about the oil and gas projects they are not spending money on to advance.
The excuse, at least for HH, is said to be waiting for the Supreme Court decision, but there is zero expectation SCC will lose - will that decision result in a burst of activity at HH, or rather a (re)announcement of plans for activity at HH? The farm out to PPP has not progressed since it was announced in March 2023 and PPP may have difficulty funding HH-3 even if they scrape together enough for the 3D.
Loxley's challenge was defeated in January. This has been on offer as a (pre-planned) farm out since mid 2022. There are still outstanding planning conditions to be addressed and whilst UKOG has RNS'd and tweeted about interest in Portland Port no expressions of interest in Loxley have ever been made by UKOG.
Turkey seems to be floundering and perhaps there's another disconnect between what UKOG and AME would like to do.
As for Portland Port - UKOG appears to be betting the farm on their subsidiary UKEn getting something from the Q3 2024 Allocation awards, though when anything is 'allocated' may be much later, but how that will help (fund) the O&G business hasn't been explained if none of the farm outs happens.
"they are working stock "out" for someone "
Probably right. Anyone notice yesterdays late reported 32 million and todays late reported 15 million?
Someone dumping big time. Pretty obvious why....
3 times more buyers than sellers yet we are down 13.5%
Uncleal,
If there were 3 X more buyers it would NOT be down 13.5%, you simply look at the automated buys & sells, when in reality they often set the spread deliberately skewed to throw sells on the wrong side of the mid point, thus it'll show as a buy. same if they want to play with buys the other way....
Bottom line is it's worthless, and they are working stock "out" for someone !!!
3 times more buyers than sellers yet we are down 13.5% Thank you aim mms clearly you have a shortage on your books so mark them down. I hope you get stung !
Even the Dreamers are finally waking up to
this Scam
My £100 is now worth £2.50. Prick!
When is this total muppet sanderscam getting the sack?
Nothing to look forward to in this dog just more down side.
No more money for lying steve👎👎
"UKOG ONLY needs $1 BILLION"
Lyin' Steve could pop that in from his pocket money last year.
"It will not be long before there is more dilution. "
Of course; lets be frank; this company loses a FORTUNE every year. It can not go on without selling increasingly devalued shares.
UKOG explained this in their results RNS;
"The group's continued future operations depend on the ability to raise sufficient working capital through the issue of equity share capital or debt financing. The Directors are confident that adequate funding will be forthcoming with which to finance operations."
UKOG depends on persuading others to part with their cash to progress dream chases. UKOG needs to find £7 million to gamble drill Loxley to see if its commercially viable.
As for Hydrogen; UKOG ONLY needs $1 BILLION; its ludicrous .
Why would anyone want to partner a company that has a LONG history of inflating their pet projects prospects yet has a record FAILING again and again.
Who’s going to buy them ?
This is going to keep falling. Surprising why people voted for consolidation. It always allowed them to do another fundraise. Some people seems to have not realised the company now has authority to issue 50% more of the company shares. The funny thing at what price? As the shares fall they raise less and less. We can guarantee though that the company will sell more shares. It will not be long before there is more dilution. And guess what? Shareholders voted for it. LOL. I bet they never vote to give the company further authorities. This company will not see out 2024. Forget these grand plans about hydrogen storage. The company has too little cash, and Horsehill is really non commercial.
Expect shares to continue to fall. Down and down they go.
"Iceland is already a long way down that road, moving towards a Hydrogen fuelled vehicle society using their abundance of geothermal power."
50.1% of car sales in Iceland last year were EVs, hydrogen sales are too small to register, see
https://www.acea.auto/pc-registrations/new-car-registrations-13-9-in-2023-battery-electric-14-6-market-share/
Global sales of hydrogen cars fell by 30% last year, see:
https://www.hydrogeninsight.com/transport/global-sales-of-hydrogen-vehicles-fell-by-more-than-30-last-year-with-china-becoming-world-s-largest-market/2-1-1599764
ZYX WTF has this all got to do with UKOG? The company will have ceased to exist long before there is any chance of making money from hydrogen generation and/or storage as an alternative fuel in the UK. LOL