Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
yea keep digging
I also forgot to mention your ridiculous trumpeting of the non-existent 85k bopd production asset with Delonex.
Do you genuinely get everything so bass ackwards because you don;t understand or because youre jumping at anything to fluff up the sp?
I suggest you just keep calm sit back and watch with the rest of us if the management team can pull something out of the fire
Look we all want this one to go well but coming out with a bunch of over confident garbage doesn't do anyone any favors.
You said they could acquire a field worth $100m+ without taking on debt - but explain to do this they would have to take on debt.
You confidently tell people cash burn is only $2m, but now say it's likely to be over $4m. Double that as a minimum then think of a number and add that on top. Its all in the H1 numbers.
You jump on "pre-licence costs" and proclaim an imminent deal not bothering to read the rest of that same line.
Really hope your wishful thinking is right and there is something good in the pipeline but we just have to be realistic, wait and see if they can pull something off or if we're left still high and dry this time next year with only 20-something $mil left in the bank an sp to reflect that.
One thing on our side is that new management team is hungry. Career wise looks like this could be the last roll of the dice for more than one of them. they'll be working it hard.
Dont get too excited rift, same period last year when Sterling were doing nothing $716 was booked as Pre-licence costs. So by your estimation they have done slightly more than nothing in 1H 2021.
Which is most probably true, making it a seemingly rare good call from you.
No comment on cash burn then?
Certainly is interesting Bottompicker. Top end estimate wild but I like your optimism . High risk high reward territory, a lot riding on how the government wants to play it.
Zanu-pf unlikely to lose in 2023 (no doubt will be disputed again), but possibility of Mnangagwa losing his position either before or after could cause some significant inconvenience.
Good observation SEA7 perhaps sp will just track cash value until rumors of a deal or announcement on securing finance. Particularly if oil price continues to climb.
Question then is what cash burn will be (or at least market perception of burn until next reported).
Guesses anyone? I'm going for 15% of cash year 1. That could be a good thing though as it would mean a deal is close, execs paid full bonus.
I'm sure he has an enviable contacts list but fair to ask how many would pick up when they see his name flash up.
Reading the expensive looking website and investor presentation he's obviously thinking big, real big and debt looks to be key. A pillar of the Proven Leadership slide is about leveraging the new CFO's experience with capital markets, bonds, RBL etc etc. Finance is a small world and don't forget the banks will have taken a good look under the hood at every RBL round and seen exactly how Tullow was run leading up to those successive production write downs.
Just saying I'd personally take low cash burn off the positives list and in addition to No guarantee management will secure any value accretive deals on the negatives list I'd add No guarantee management will secure finance. Shooting for big deals but being left high and dry after 18 months would not be a good look.
Still, one to watch and good luck to them. Fortune favors the brave.
Positives - low cash burn? Around £1m a year??
Er, the new exec's salaries with pension are over that alone, £2m with bonus. Looks like 4 more on the staff also. And that's without all the additional costs of evaluating opportunities and closing in on a deal. My guess closer to £10m than £1m.
Why isn't sourcing capital on the list of potential negatives? Mcdade wants not just 1000s but tens of 000s a day production, where's the magic money tree?