Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Somm, seems to have bottom draw cash waiting to buy. he must have sold today already.
isn't it somm????
Trade creditors reduced to 9m from last year 12m and reduced further to 5m through inflation as MH said in the last interview.
echo is currently producing 530000 equivalent of barrel of oil yearly and is expanding its production by the money it will get from this deal and previously generated income from production. Once production expansion and debt cleared echo will be in a much enhanced financial position I guess. They are working to restore good profitability.
As MH said echo has at the moment a very low production compared with the large asset is has.
and that need to change.
Where are the recent posts? we are two hours late.
this should be at least 0.065 today but traders take time to clear.
with trade debt reduced from 12m to 9m last year and reduce to 5m through inflation.
echo producing 530000 equivalent bop and working for more I can see this in 2-3p easy when management decide to
shift to share holders value rather than expansion.
0.25p and 0.50 are the start of recovery. I guess the new investor is faced with the 0.25p minimum to invest.
sp is affected by echo strategy:
echo choose growth over profitability. growth need cash expenditure up front to develop production.
share holder are more keen to hold shares that produce dividend rather than promised mid term growth.
when echo reaches maturity it will reduce expenditure on development and with more sales it will be profitable and sp will move up. but usually sp precede results as it is more built on expectations.
who want to miss this opportunity at these lower prices. Traders of course have no patience but long term holders are happy with this. the proof is in the volume. not a lot.
with approximately 530,000 equivalent of barrel of petrol sales last year:
echo has a health cash flow already, the problem is they are reinvesting it on developing more production in the mean time they were unable to sell it all. The need a partner who have the assets and know how to solve sales problem.
what difference it will make if you have 1m to spend in the new year or you have 1m ear marked for project to be executed in the new year. Not a dot. both are in your pocked but belong to someone else. what matters to you is the result from spending those money at the end of the year.
Knowing you have money to spend ahead gives you confidence to plan ahead that is all. the expenditure will be split on steps in the future.
given what CEO have said on:
'very large reserve position given our current level of production'
echo does not need extra fields to do research and development.
if the asset are tools of production and shipment this definitely will help.
echo main problem now and in the future is to sell more as they will be
able to produce more. we need sales and production tools only.
the business need vertical integration not horizontal growth for now.
just to correct quote 'very large reserve position given our current level of production'
as CEO said. 'Echo have a limited production given the level of assets it has'.
There is an urge in growing beyond this level of production, but echo can still conduct normal business given the current level of production. it can even shut down all development work and stay afloat for years to come.
selling 530,000 equivalent of petrol each year is enough to pay debt and generate shareholder value.
They want to grow this is the issue. and they looking for new partner not only to grow but to sell more.
They are not looking to raise cash, they are looking for new partner with solid input to the business.
The financial report is talking about facts due in last financial year.. like cash balance to date and expected £500,000.00 these are given 'facts'.
In the interview he is peaking about projection and cash flow and that is the management side of the business. They look forward and plan to spent and receive earning.
echo does not need cash for normal business but the new investor is likely to shift production to a new level and may bring with him a new asset to the business. Echo was developing production for the last two years with limited resources and it has last year produced 520,000 equivalent of barrel of petrol. that is a lot for this company size but echo want to grow beyond this level give the large reserves it has as declared by CEO.
remember the contract start in may and that is the source of the cash.
tombil1, I understand that echo have more than 1 m in January and that being spent to the last 100,000 but the new upfront 1m they could not have started spending it but it will be projected in the new financial year. so this is why it is not accounted for in the last report. You can not practically spend money coming next year in this year but what they have done is to spend more from their previous reserves knowing that they have a secure 1m by the next two months or so.
As at 17 April 2023, the Company's UK cash balances are less than £0.1m albeit the Company expects a revenue receipt net to Echo of approximately ARS$ 135 million (c.£0.5m) in Argentina on or around the end of April.
The one million advance is in the new financial year, as the contract it relates to. They could not have spent it already in the previous financial year.
so balance would be £100,000.00 + £500,000.00 + £1,000,000.00 = £1,600,000.00.
+ extra cash would come from the new contract and
possible entry into new tender to cover more demand as eluded to in the last RNS.
Volume is still dropping. short term holders bailed out already. This is very good news for sp movement up as there will be little half way sales.
I am full to the brim.
in fact only my eyes can pop up from the pile of shares I an in.
I feel rich and soon I will be ..
late traders need to bail out and volume drop to nothing before the trend changes slowly towards up and up and up.
MMs are in the front seat now and they know those frail fingers saying:
if only it return to 0.04 I will sell. I made a quick loss here
I don't know why people think others are not good enough to understand these facts.
It is highly oversold and this is why most are here and it needs low volume trade to start moving up
It wont generate a quick profit till the mob are out.
today volume suggest LO is at its last bits. today is the last day for his shares. End of day scramble may materialize today.
sit tight and enjoy.
sham189, this is your second post in this stock. You don't have a clue of the facts and yet you are providing advice.
shame on you!!!