Member Info for 44RJ

I hate to be the bearer of bad news, but sale of Ruvuma for £20m will never, ever, lead to an sp of 10p. Do the maths: an SP of 10p equates to a market cap of approx. £72M. We are currently at £6M.
We need to be around for the hype of the drill to hit that type of market cap. "End of" I'm afraid. Don't hate me....

The fact that multiple parties are still at the table, and that the process is still on-going, suggests that the negotiated figure is a reasonable one and that there is a will to complete the deal (at least in my head). Whilst this is encouraging I would still much prefer to suspend the sales process until after CH1 is drilled. If you project forward to when the drill hits the dirt in Q3/Q4 2022 (which in the grand scheme of things isn't that far away), things could get VERY exciting.

Either that or we simply give the asset away for a mere 20m dollars ish now. I know which I would prefer to do, especially as things really seem to be moving along well in country at the moment.

Good. I quite liked his well researched posts. There were several others too which I'm hoping will return.
Come on David, lets get cracking!

What happened to MrSpaceTomato? According to him we should be at 4 quid by now. Did he sell up?

Don't listen to mjapac Frank, you did a great job on that call and I doubt anyone else could have done better. I took a great deal of encouragement from that call which was all your doing. I look forward to more such calls in the future if you're game.
Mjapac is welcome to arrange one and try to do better but I imagine it would be full of accusatory, baseless, condescending remarks if the posts on here are anything to go by.
In other news, I'm glad that the sale has gone quiet as I'm hoping SCIR stays in the project for the CH1 drill in 2022. I've already waited 10 years so I don't mind waiting a little bit more!

I think you are taking a leap there mrc. Yes, fossil fuels will be phased out ultimately (and rightly so), but COP26 isn't going to have an immediate effect. Natural gas is still the predominant energy source world wide and its the least contributory to climate change when compared with the other fossil fuels. Net Zero is at least 29 years away so, like it or not, natural gas will play a big part during the transition. The UK's national electricity grid is currently supplied by 50% natural gas derived power and that won't change significantly over the next 12 months, so I see no reason why gas demand will drop off a cliff in Tanzania. Hence my view that if we hang around for the drill in 2022 we will almost certainly see a nice spike in the sp.
Hold on to the asset I say!

Fully agree cperkin

This is really really great news and should unlock future events. Could not be happier with this RNS.
But...
Why do I have this sense of foreboding that the board are going to give this massive asset away for a low ball offer? I was hoping that SCIR would hold its 25% for the excitement of CH1 drill and I doubt that a full divestment at this stage will allow me to break even (4.5p). Anyway, enough of my negative thoughts which are based upon nothing factual - let's enjoy this win which has been a long time in the making and wish for even better times ahead!

"chat board" I mean...

I've just got round to listening to your interview recording Frank. Very well done indeed. It was well structured and informative so thank you for taking the time to do it.
It's nice to see such a positive contribution being made - unlike others I could name on this board...

Agreed AA. Plus there's the moral element to consider too. I much prefer the carbon neutral anaerobic digestion synthetic gas strategy that SCIR has just embarked upon.

I understand your frustrations HM. My view is that there is a certain amount of faith involved when investing. It's the BoD's job to control expenditure and if it was to fail in that I would be the first in the queue to strongly air my displeasure (as I have done in the past when I have disagreed with a BoD decision). We will never get full transparency on these costs for the reasons I mentioned previously, and I'm comfortable with that at this point. What I want everyone to focus on at this moment in time is pursuing an aggressive strategy for AD acquisitions - I would rather the BoD focus on that now that there is a team in place to develop these deals.

Highland Matt

The RNS provides me with enough comfort that Gneiss are not charging excessive rates. It looks like a bench marking exercise was done as part of this deal (see RNS cut and pastes below). As I've said before you need a strong team behind you to push these deals through. Its not cheap - why should it be? These are professional services where technical hourly rates can be in the order of £150/h and legal services can be as high a £500/h. By putting a framework agreement in place SCIR must have negotiated competitive rates but of course we are never going to see the detail as its commercially sensitive. Those who think the BoD have engineered this whole pipeline of aquisitions to generate consultancy fees are way off. The BoD are shareholders too and we all know that the real value is in the assets, not the consultancy fees.

"This independent committee, together with the CEO, Tom Reynolds, believes the terms of the Letters to be in line with market norms and better aligned to the Company's current strategy and vision."
and
"This arrangement with Gneiss, which follows a detailed independent assessment of our advisory needs, is both flexible and cost-effective, and gives the Company access to a very experienced advisory team with significant capital market experience within our target sectors of sustainable energy and the circular economy. Their scope will enable us to assess and execute value accretive transactions in line with our growth strategy, utilising their network and expertise to access deal flow and capital as appropriate."

Thanks AA, and don't worry. I can see through the nonsensical, negative rubbish for exactly what it is. Just the ill informed with a warped/cynical view on the real world, too much time on their hands and nothing better to do.
Every consultancy firm in the world operates in order to make profit (like every business) so why should we begrudge Gneiss from doing the same? The fact remains that Gneiss is fundamental in assisting SCIR to complete these transactions which is absolutely key to the delivery of its strategy. In effect, Gneiss' success translates into SCIR's success. We have already seen the first transaction and hopefully this will be one of many in the not too distant future.

Just catching up on the posts following the RNS yesterday and I must say I find the negativity difficult to understand. SCIR does not have sufficient internal resource to perform all of these transactions so it must outsource. Would all the doubters prefer SCIR had 30+ full time professional staff on the books? Of course not. Its absolutely normal for an investment company to seek 3rd party help for technical due diligence, financial modelling, Lender's reporting, legal advice and contract preparation, technical advisory services, etc etc etc. To have a framework agreement in place with such a 3rd party (i.e. Geniss) has its benefits - I'd rather SCIR be an important client to Geniss and have its full attention. Imagine if SCIR went to the big consultancy players such as CapGemini, Deloittes, etc. I think those fees would far outweigh any retainer/fee payments made to Geniss.
Muir Miller's involvement in this RNS gives me confidence that it is the right move. The first transaction has already made it across the line and it seems to me like we are at the start of a flurry of good news here. Let's allow them to get on with it and enjoy the ride.

There are a lot on here who say that they never expected to hit gas with the first tranche of exploration drills, and that the purpose was to understand the geology. Come on, pull the other one! We ALL expected to hit that goldilocks zone at this "must drill" location.
The dissapointment is real. Let's not beat about the bush. Having said that I'm holding now for the long term as the Helium is definately down there somewhere!

I was under the impression we would have 3 exploration and one appraisal drill on a back to back basis this year! Where did the Phase 1 and Phase 2 (2022) strategy come from? Arrgh!

Great news, this is a step in the right direction Caddy1 in my view. Once the deal with GGL is complete presumably cash will flow monthly thereafter. Yes, it's small fry in the beginning, but you have to start somewhere. The beauty of this size of investment is that it's reasonably low risk, green, and repeatable, therefore provides a base to build upon.

That would be welcome news, Agent B. I do feel that some sort of "above and beyond" gesture would be a good idea here to restore the faith, such as an additonal rig at Tai (wishful thinking of course...). The sentiment here at the moment is that all is lost and no value will ever be realised. DM needs to change hearts and minds and bring the positivity back to this one. We all know that the prize is still down there, we just need to crack on and get it!

The word "exciting" cropped up several times in that video. Based on that alone I would support SCIR to hold on to its 1.2% until this story properly unfolds.
Glad I added this morning!