Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
...One of my favorite Marlon Brando quotes, straight from The Godfather...and I didn't quote him for no reason.
It truly is a sad sight to see this company bastardized by the very people we swore would benefit us, the shareholders. Gone are the prospects of further exploration, all that's left is a diminishing cash cow (not a very good one at that) with little to return to its shareholders.
In January we had the empty promise of a new CEO in the form of Tony Buckingham and everyone thought that was a bad idea. Now, what made CA change its course of action here? I assume that no one was interested in being the CEO of Hurricane (unsurprisingly). Then CA had to double down and back a two-bit stinking deal. I know that I'm not even scratching the surface here and I know how hurt LTH is with all the lost hope...this certainly dissuades potential investors, probably why the share has never gone back to 12p. Utterly ridiculous.
End of rant.
The fact that the only producing well is running dry is bad as it is...Add to that a shambolic deal backed by a cretinous board and disillusioned ii's
Sorry, typo 2026 at the least, could be faster if Prax use tax credits sooner and production is outperforming
Shareholders are escaping this shambolic deal. Sure 12.5p will be eventually delivered (probably in 2023). But the shares are locked away in a private entity plus no guarantee of return.
The deal is heavily derisking Prax, most likely derisking CA & Kerogen. However, the deal is putting PIs at huge risk.
After one year in this stock, I too have derisked
They say there are no stupid questions, only stupid answers...
Let's assume that vote goes through and we are locked into this convoluted remuneration process.
- What happens to our shares once they get transferred to a private entity?
- How do we get access to our dividends if a private entity is holding them?
- Do our shares get liquidated and we "magically" get paid biannually (as stated on the RNS)?
Early April 2023 - Scheme Document Posted to Shareholders
Anticipated in Late April 2023 - General Meeting of Hurricane Shareholders (Vote)
Anticipated by Mid May 2023 - NSTA & NSIA Approval
Anticipated by the End of May 2023 - Court Sanction - Scheme Becomes Effective
From Prax investor relations presentation
Indeed Haggis and this quote says it all:
"The obligations of each of Crystal Amber and Kerogen under their respective undertakings shall remain binding in the event of a higher offer, or any other bid or offer for Hurricane."
This sweetener deal is only valid with Prax and no other potential offerors.
Why does CA & Kerogen think this is a good deal?
Do they know something we don't?
Is the well running dry faster than we think?
I'm HOLDING....but...This is a sh*t offer. I'm voting AGAINST this deal.
It's also the only offer we've seen in a while. Fear uncertainty and doubt came over me when reading the details.
...
It's the only RNS we've had in a while and it's looking desperate for BoD, CA, and Kerogen. They also want to instill this feeling into shareholders.
I'm going to digest this further before making rash decisions.
I can't guarantee but I have an inkling feeling we'll get at least 1 RNS before the month ends.
It will probably contain:
- Announcement that FSP talks are ongoing
- Delaying the special dividend until FSP talks conclude
- Operational update
Now I'm not one to judge....but...the ones that want the good of the forum are being attacked and reported (posts being removed) which is frankly silly. It's a sad sight when wholesome posts go missing because some members would rather report a post than admit to their fault probably due to fragile egos. Won't name call but they know who they are.
At least there is a conversation going on, some emails are being sent, and some investigation is being made. This is still miles better than posting random share price figures without any factual support.
The question also remains - if Hurricane ISN'T one of the 'large' production assets, then who might it be? There probably is a series of candidates that are considered 'large' assets. Maybe with the expertise on the board, we can narrow this down and deduce whether it really is Hurricane and not some other 100m cap oiler
Interesting, then it looks like 12p got rejected. good job
Spoke too soon
Sefton
Agreed, HUR has more oil in the sandstone and that itself points to more upside potential in the long run.
HUR is a cash cow with the option of moving up to a star but it would need to utilize the cash reserves for further oil exploration.
On the flip side, this is a for-profit company and SHs deserve to get a piece of the pie they invested in.
The biggest - CA, want to cash out, and judging by their language they want it soon. Ideally with dividend plus FSP.
It will be tough to get the best of both worlds. The three options are Dividend, FSP, and new oil exploration.
All 3 options happening seem slightly farfetched but who knows?
I believe, the optimal option for HUR is the FSP and the new oil exploration route
Is this why the SP dropped?
Maybe the smartest move we've seen from Management for quite a while.
1) 3.1p per share special dividend will bring the institutional investors to the yard
2) Low shambolic 7.7p For sale sign will bring more buyers to the yard. This is a bit like an auction start low finish high.
That for-sale sign price has not aged well.
Hurricane Energy launches its own sale after unsolicited bid
https://www.reuters.com/markets/deals/hurricane-energy-launches-its-own-sale-after-unsolicited-bid-2022-11-02/
This is the media attention HUR deserves
"Hi xxx,
Many thanks for your email. If you want to engage with us, the best way would probably be for you to speak to our private client desk, in the first instance. If you would like me to put you in touch with them, please let me know.
Best regards,
Dan (from arden partners)"
asked to be put through, days later... still no reply