Member Info for 44RJ

Right, I've calmed down a bit now. I've semi come to terms with this bad deal. It's clear that the negotiating position was so weak that the board had to concede. I still feel that, knowing what we know now, the options to fund or farm down were probably never on the table and so I feel a bit "led down the garden path" but hey ho.
The question now is should I stay invested or should I cut my losses and go. Will the AD strategy deliver the 7 bag or so I need to recoup? Not sure. Particular considering that the Wentworth cash will take years to dribble in (if ever).
I do believe that non fossil fuel investments are the future so could that's a positive. But can SCIR deliver shareholder returns? History would say no I'm afraid.
In any case, no need to decide now as the sp is rock bottom and I imagine will fluctuate a bit in the short term. What a sad ending to this story. All a bit depressing really.

From 9th May RNS - "As previously communicated, the Company is progressing discussions and exploring options with interested parties for possible divestment and/or farm-down of Scirocco's interest in both assets, while maintaining our funding options in the event we retain our 25% interest in Ruvuma at the time of drilling CH-1."

We got pretty much the worst outcome from that bunch of options communicated to us, that's for dam sure!

I'm so furious at this rubbish deal that you can all count on my support to block the deal. I've got 713,165 shares. Now worth a pittance. I would rather forefeit these shares to the JV partners rather than let Wentworth rob them from us on these disgraceful terms.
I have zero faith in the board's ability to make any significant value in the biogas space based upon business acumen shown to date and this amount of cash on the table. If the deal had have been a 20m USD lump sum now I might have given them a second chance. But 16m USD spread out over the next age (if at all) will not equal lift off for the biogas strategy. It just won't happen, regardless of what they try and say.

Dear me BoD, you really misread the room on this one! How anyone can get it so wrong with such a valuable asset is totally beyond me.

Sorry for the rant. I'm having a very bad day over this. Is this really the reward I get after supporting the company since 2011? Blimey....

I think your post just about sums it up perfectly Sambo12.

I don't think there's any milage in opposing this Cashintime. It's probably this, or relinquish the asset for nada. I think my strategy will be to sell up and move into AEX (I already have a position there) for exposure to the CH1 drilland attempt to claw back some losses. No way will SCIR SP be able to hit my breakeven with the acquisition of another small AD plant, which is all they can afford. Why oh why did I not sell in 2017... Live and learn.
Thanks BOD, great job...

Still hate the deal tho...

Understood. Thanks mrc. Reading this whilst working so a bit tricky...

With this news I cannot see how I will ever break even on this share. I wouldn't have minded so much if the deal gave us some exposure to the CH1 drill. All we will get from the drill is a big fat loan to repay (unless I'm mistaken?).

Agree DPSOLO, this deal is dissapointing. I didn't invest in SCIR just to keep the lights on. Limited upside to this deal I'm afraid.

"Advanced discussions with a leading global drilling company for the provision of a containerised rig solution for drilling within the 2022 drilling season"

Its been almost 7 weeks since this news was released. Any update would be gratefully received, David.

My word, I hope the BOD come through with some clarity on the strategy for Ruvuma soon. Not just for the benefit of my portfolio, but also to shut down these dead-end and tiresome chat threads spearheaded by one particular individual on here. I don't think my mental health can take much more...

I check in on this share from time to time and I have done since the REM days. I cannot understand why the SP isn't much higher. What's holding it back?
Amapa is clearly a big deal. This RNS today suggests that there is 1.2 million tonnes of pre-refined iron ore product sat at the port ready to ship. That is a heck of a lot of money (approx. $100m profit?). Not to mention the reserves in the ground. Am I wrong?
So what will it take to get this SP moving? 50% ownership of the project? Confirmation of project finance for the construction work? I have no idea. The SP just seems to languish during all of these exciting RNS's and I can't work out what the missing pieces of this puzzle are. I have considered investing for several years now but even if the Amapa project is successfully delivered, would the SP bear fruit? Historic performance is keeping me on the sidelines. A real shame because, on the face of it, Amapa should be a game-changer but it just doesn't seem to be happening. Perhaps I'm expecting too much too soon.

Lots of the usual negativity on this board, but I'm quite happy with this RNS for the following reasons:
1) the rig contracts have been signed/agreed which suggests that the CH1 drill is almost a certainty to take place;
2) we now have a target month for the CH1 drill, rather than a target quarter, which is encouraging;
3) the 3D seismic for Kiliwani won't cost the company anything, but we will own the data output ("...will enable Aminex to link the new high-resolution 3D data to its existing 2D seismic legacy data...");
4) the fact that anything tangible is happening at Kiliwani is also encouraging for that asset.

I know that some voices on this chat board will harp on about delays etc, but really, what is 2 months in the grand scheme of things? If we could just now get some clarity on the funding strategy for this drill then that would be a relief. The "delay" might actually be a positive things whether it be to provide more time for farm down negotiations etc, or to buy time to realise more value from the forthcoming Helium One drill.

On the whole I'm feeling more and more positive about the direction of travel here. I'm looking forward to the more detailed update at the end of the month.

A bit negative there Mrc. That post is good news. There is clearly political will to get this asset producing. But yes, we would all like to know where the money is coming from (BoD take note; shape up and communicate a plan please!).

Hate to say it but Mrc has a point with that one though. The poor transparency surrounding funding for the drill is not good for the SP at all. The information in the early Feb RNS regarding this topic was too "high level" to be of much comfort to the marketplace at this stage (i.e. options are farm down, divest, fund the drill). We desperately need more clarity than that. I guess the story will unfold over the next few week though as the 3D data comes to light.

SP is really cheap though. I actually woke up in the middle of the night and agreed with myself that I should buy another 5 grands worth! I had just drunk several glasses of wine yesterday evening which may have influenced my night-time decision. The 5 grand is still burning a hold in my bank account for the moment. I may just spend it on more wine instead - history tells me that either of those purchasing decisions will be p*****d up the wall....

Steve, the AD plant will have a Design Life of something like 25 years. The mention of "6 year operational life" in the RNS means that the plant has been operating commercially for six years to date (pasted below for easy reference). The mixing of the digestate is an erosive process and so the tank agitators (mixers) will need some maintenance over the Design Life of the asset. This is totally normal. The plant has a long way to go yet before it is decommissioned. Judging by that previous RNS all seems to be going quite well with the AD acquisition from a technical and commercial point of view.
Admittedly today's RNS is another kick in the balls though.... I can't fault Mrc today, that's for sure! BOD need to get their skates on and deliver in my view, and quickly.

· Replaced a number of the mixers due to normal wear and tear experienced over the plant's six-year operational life. This will ensure good mixing and support optimal operational performance going forward.

MRC so the anaerobic digester asset that is currently exceeding the financial model expectations should be a "great concern to shareholders"? Well, I'm a shareholder and I have no such "great concerns". In fact I have great optimism for this strategy!
Where on earth do you get this stuff from...

Yes mrc, but maybe that time was used to prepare, negotiate and finalise the contract, and the final piece of the puzzle is the 3D results? The deal could be absolutely ready to roll.
But hold the 25% for the drill I say - almost there now!

Couldn't agree more bigpat.

Come on MRC, there is absolutely no basis for that. It's like saying that I will lose my house if I don't pay my mortgage. Basically stating the obvious and very unlikely to happen.