Member Info for BeanCounting

The recent divestment was very encouraging:

-> Giving credibility to the recent updated valuation of the assets at £71m

-> Reducing debt 38%, taking away any issues over potential debt issues and reduces interest cost for 2025 and going forward when the higher interest rates kicks in.

-> Further divestment are likely in the near term, which would reduce debt even further

Its troublesome that we are getting these poor test result now when the company is start running lower on cash after the extensive drilling and testing program during H2. The company should have raised more earlier this autumn when the news moment was stronger. Risk that this turns in to HE1 where they have to raise from a point of weakness.

The company have said so many time that MSC and Valkor will move forward and they missed deadline after deadline, why would it be different this time?

HEMO request AGM to be able to issue 50% more shares.

Jason Miles explaining why there has been basically no progress during 2024

https://www.youtube.com/watch?v=REpNTi-9oRQ

Maybe it time to replace top management

Argo Blockchain reported some horrendous Q3 result this morning. Operating cash burn of $2510k in Q3 and interest payments of $1277k. Taking down cash to $2.5m by the end of the quarter. The company is about to run out of cash. Meanwhile they are losing 85% of their mining capacity by the end of next month.

The company had net cash outflow of £1.78m in H1 2024 and ended the year with £2.56m. The cash burn in H2 is expected to continue at the same pace as in H1, taking down cash to £0.78m by year end.

The company will have to deal with the cash situation soon. Equity raise or CLN seem like the most likely options.

Indeed

Lets not talked at all about the elephant in the room

How is QBT going to addres that both bonds £2.2m + £5.5m is maturing in December? The first one 15 Dec and the other one 31 Dec.

They have no funds to repay them, will it be debt converted into equity?

"As announced on 1 November 2024, a binding memorandum of understanding was signed with the Government of Mali to confirm the transfer of the mining licence to KMUK's subsidiary mining company that will operate the Bougouni mine and the first half of the US$15 million settlement payment has been made by KMUK to ensure we finalise this transfer shortly. Kodal and Hainan are continuing discussions regarding the off-take agreement and who will have ultimate responsibility for the settlement payment to the Mali Government."

Revising, think it will be down 30-40%

Heron-2 testing

Heron-2 well testing operations commenced on 25 October following completion of a stimulation programme. Seven days were subsequently lost after the test rig suffered a major engine problem but repairs were completed and operations resumed. By end of the test, the well was producing a mixture of oil and what is interpreted to be stimulation fluids with productive potential estimated to be around 30 bpd. This is significantly lower than the rates observed in Heron-1 although it is in line with flow rates reported from some other wells in the basin. Pressure data recorded during the test and the details of the stimulation operation will be reviewed to determine if the flow rate is an indication of low reservoir permeability or some other down-hole issue. Heron-2 is now being suspended and once the data evaluation is complete, the forward programme for the well will be determined.

Down 20-30% today

I think a placing is the more likely solution but we will see as we come closer to funding decision.

The company had net cash outflow of £1.78m in H1 2024 and ended the year with £2.56m. The cash burn in H2 is expected to continue at the same pace as in H1, taking down cash to £0.78m by year end.

The company will have to deal with the cash situation soon. Equity raise or CLN seem like the most likely options.

There is an RNS

https://www.londonstockexchange.com/news-article/RSG/company-statement-regarding-mali/16756883

RSG paid $70m in taxes to Mali govfor 2022. Have they paid less than they should, I dont know. But business friendly countries doesn’t detain the CEO of a company based potential unpaid taxes. Mali gov if they are serious should just take RSG to court.

RSG mine is in Mali so Mali gov has all the card in their hand if they want to recover unpaid taxes or increase government take.

The bottom line is that the Mali risk premium has gone up a lot since they decided to detain a CEO of one of the biggest miners in their country.

The read across from Resolute Mining CEO being detained in Mali by the junta is incredibly bad.

Will other miners like Kodal mgmt even dare to travel to Mali going forward?

The risk for delays to the Kodal project now must be significant.