Member Info for Brasso3

I think the RNS is just referring to the Paraguay farm out.

AIM IPOs now showing up to the 14th Dec.

https://www.londonstockexchange.com/live-markets/new-issues

It is not so easy for Argentinians to get out of Pesos into other currencies as there are government restrictions. Clearly there is a loop hole with bonds and this works for both sides.

They are obviously receiving a lot of questions from investors about the dividend in Atome shares. Its an unusual situation but in fact very similar to any normal cash dividend. You have to be holding on the record date to get your entitlement. The record date will likely be some time in December.

They needed to find $17.5m to cover the 5 PG wells so raising funds was not a surprise. The surprise is that they have done it at 1.24%! Great move but it highlights how unfavorable PPCs other debt instruments are above 10%.

You will get exposure to Atome (after the record date TBC) via your PPC shares and also through a dividend (issued in Atome stock). If you want more exposure to Atome then it is probably best to buy more PPC stock now (before the record date).

There will be an opportunity to get Atome stock through the Primary Bid platform by registering. I would not recommend that though.

NM

Nothing really new in that Sky Interview but obviously reaching a much wider audience.

I did not know Malcy was interested in green hydrogen. I know he has experience with hot air!

Olivier Mussat, the recently appointed CEO of ATOME Energy Interview

https://www.share-talk.com/olivier-mussat-the-recently-appointed-ceo-of-atome-energy-interview/#gs.gp8ogd

DRichi

I think the positive news was that the PG well is close to completion.

The Paraguay news is neutral is it was already known by the market.

The gas workovers indicates to me that the gas production from any of these well is going to be modest at best.

Argentine debt situation?

I think the gas production at RN has been very disappointing given how much PPC has spent in infrastructure there. Clearly that strategy has not worked out and that is why we are now back drilling in PG. I think if we can get 250 BOPD from each of these 3 PG wells and get Triche back online at least H1 2022 should generate some good figures at these oil prices. That will provide a foundation to go into the Paraguay drill in H1/H2 2022.

Hopefully in 2022 Argentina becomes less material and a sideshow to Atome and Paraguay. I have never likes the over exposure in Argentina and it has failed to generate meaningful cashflow.

At least we know that there will be a flood of RNS in the next 4 weeks.

comeonvog

I would add to your statement "Last thing we want now is talk of acquisitions".

The last thing we want now is any further expansion/ acquisitions in Argentina! Atome has brought some diversity to PPCs portfolio. The 9 GBP will soon get used up after a year or so and no doubt PPC will have to provide a bit more financial support later. I would prefer PPC start focusing on debt reduction and building a cash balance now.

I wonder if a lot of the small sells were limit orders being triggered or spreadbet positions being closed out. I cannot see any PIs that invest on fundamentals selling based on the RNS + presentation. If the placing goes ahead at 9m GBP valuing Atome around 45m GBP that almost makes all if PPCs other assets valued at 5m GBP. Maybe some will look a bit deeper over the weekend and have a light bulb flash before Monday morning.

DRichi

Tell that to the people who were selling at 2.2 - 2.25p this afternoon!

DRichi

The valuation obviously depends on demand for the IPO. Lets hope SP Angel can drum that up.

Its also important for PPC to start promoting the Atome story to a wider audience.

If they raise 9m GBP for 20% of the share capital that suggests 45m GBP.

DRichi

I think 3.5p - 4p is fair value for PPC + Atome. Its going to be interesting to see how both share prices react at IPO. They will need to get the word out regarding Atome to ensure there are new investors joining from day 1.

I have increased my target to 4p on the back of todays news.