Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
@straycat,
you say: "...We've no debt and a vision for the future which is self-funding."
Well, of course that is almost certainly the case - but visions are funny things, they don't always work out as you hope, or dream, or plan. Lots of things can go wrong, are going wrong, that can make the parameters on which your vision is based invalid.
Others are now in control of "the future" of the oil industry in N. Iraq, and the KRG/MNR together with APIKUR had better be careful that some producing companies don't start to "reach out" to potential new friends down South; yes, I know, that's too strong a word to use in view of how Baghdad works but you get the point I'm making.
GKP seem to be making the best of a bad job - at the moment, but that's nothing to praise very much. The local market is very finnicky and controlled by others who are not your friends.
SOMO is the new boss and, while there may be Strength in Unity there is also the danger of going down together.
Well, aiming to develop and successfully accomplishing that are two very different things - if and when the competition does get its act together (don't hold your breath) the SP will not crash overnight either; it will be a painful journey with many lessons to be learned.
Given a fair wind and nothing going crazy in the Middle East or with China / Taiwan, I see 1000 by Christmas as absolutely possible and 1200 by Feb-25.
A great company.
@****eye,
well for a start they have never believed the inflated krg figures for population, public service employees, etc.
i see this as just a continuation of that "we don't believe a word of anything you say" attitude.
re oil, they have already lost the complete sovereignty they had - any softening around the edges will surely be minimal?
Rudaw is reporting that the Iraq Federal Court just just issued a ruling that the nr of seats in the Kurdish Parliament (currently 100, incl 11 for minorities) is unconstitutional and must be reduced.
They also say that Iraq’s Independent High Electoral Commission (IHEC) will replace the Kurdistan Region’s electoral commission to manage the Region’s elections.
Stirring the pot, yet again.
I see Kozel's application for a reduction of sentence has been denied.
I see that Masrour Barzani has now been officially summoned to appear in court in the USA (District of Columbia) on wide-ranging charges of corruption. Also named as one of the plaintiffs is Ashti Hawrami.
If you are a US resident, or have a Green Card, you are obliged to comply with the summons and appear to answer the corruption charges.
Should be interesting - the case is estimated to last about 18 months.
Case 1:24-cv-00278 Document 1 Filed 01/30/24
@invstrat,
I don't think we are quite there yet, but it's certainly worth keeping at the back of your mind.
@Invstrat,
interesting question.
The Amended and Restated Bye-Laws from 2016 (Byel-Law 170.11) allows the Board (in a serious financial situation) to agree an urgent "rescue operation" which involves the issue of new shares to, or the acquisition of existing shares, by, the rescuer without Approval by Resolution of Independent Shareholders, and which would otherwise require the rescuer to make an offer pusuant to Bye-Law 170.1, The Board may waive the requirements of Bye-Law 170.1 in such circumstances provided that either:
170.11.1 shareholder approval is sought and obtained as soon as possible after the rescue operation is carried out.
OR
170.11.2 ome other protection for Independent Shareholders is provided which the Board considers satisfactory in the circumstances
Serious Financial Situation...
Just to add,
"around the neck" is a tad less provocative than "around the throat". No matter, it will still be viewed as unncessarily provocative by the Baghdad folks.
@TM,
this is what I heard at 1:20 into the 1:38 video:
"Baghdad is currently STRANGLING, got its hands around the neck of Kurdistan region..."
@TM,
true, he is not (yet) a director but only a Chief Commercial Officer...but one who has been told he will soon be CFO.
He possibly has even more detailed knowledge of "what's going on" than does the CFO...
Insider Trading rules surely prevent Mr GPL from buying shortly before any news of importance to which he is privy...
Pop over to Ekurf net where you can read what's happening:
"Did the Barzanis **** a US government employee in cold blood?
The Kurdistan Victims Fund, a charity incorporated in Wyoming, filed a lawsuit Tuesday against the Kurdistan Regional Government. Co-defendants include many, but not all, members of the ruling Barzani family and their top aides. While Iraqi Kurdish Region Masrour Barzani will likely claim sovereign immunity, the fact that he is, according to the lawsuit, a permanent resident of the United States negates that claim."
$17M is a piddling impairment.
"Progressively written out" won't wash anymore, I think the market is telling you that already...
Will this be the year when the company auditors are finally forced to qualify the accounts - as the payment expectations of outstanding monies must now be almost zero?
putup, i tend to agree with you here; financial smoke & mirrors.
re fixed asset register
see the psc, article 20, title to assets.
20.2 "during the development period, subject to article 21, all assets acquired by the contractor for the petroleum operations shall become the property of the government upon the completion of the recovery of their costs of all such assets by the contractor, or the end of the contract, whichever is the earlier."
it's tempting to consider the asset as a single, ****geneous entity but is that really the case?
(art #21 concerns the use of the assets)
consider;
the hole in the ground (the well) is not an asset, but the steel casing and the esps within it are, as are the wellhead gear at surface and the flowlines leading to the processing facilities.
the processing facilities are the main assets, but even they have been installed at different times, in different phases, and have been modified / extended several times since their 1st commissioning. same goes for the crude loading / unloading facilities and the storage tanks.
the point that surely should be considered is that, in the event of a severe difference of opinion at some point, some of these “assets” could be considered as having already been paid-for. skilled advocates could have a field day with such considerations, don’t you think?
perhaps it suits the krg/mnr at the moment not to push the point, but it's pretty thin ice here i would say.
"For western ethics "a contract is a contract", and when IOC's invest billions in exploring and drilling they don't expect Iraqi officials to try and backstab them in changing contracts after they have met their side of the contracts."
Well, Nothing is sacred, nothing is written in stone.
When the facts change, change your mind / your agreement.
When your information changes, alter your conclusions.
In any contract, when one partner becomes unwilling or unable to fulfill contract terms, there are only 2 ways to go: attempt to reach as amicable an agreement as is possible, or resolve the issue in court. I'm sure Iraq can afford the best international lawyers, should it ever come to that
Iraq isn't too bothered by a threatened court case and, as can be seen by the steadily declining offtake (local sales) numbers, that low-hanging fruit may be slowly withering on the vine.
Putup,
we are now in Bid Round 5(+) and almost ready with Bid Round 6.
The buzz expression down South is now "revenue sharing" - but, again, conflating the two revenue streams.
I've run the numbers at nominal parameters for Aug-24 and they look pretty dire.
I would be more woried about too much SH heavy being barred from the pipleine for the reason I gave.
The widely reported (and almost certainly misrepresented) $20/bbl) agreed "contribution" numbers need careful study when officialy confirmed. At the moment, it appears that CO plus CO are just being lumped together to give that number.
Leaving aside the BOTAS demands for much higher pipeline tariffs (which they will get IMO), the revenue flows from anything like $20/bbl will be WELL down on previous numbers - perhaps down two thirds.
That means project implementation schemes will have to change (slow down) which will not please either KRG/MNR or SOMO. If SOMO push hard for reduction in Flaring, with associated gas capture and -processing, that will hurt some OilCos badly. The SH and Atrush FDPs will need re-writing and agreement, and the future Kurdish Blend (that SOMO would dearly like to return to near-Kirkuk grade, 32API) will mean that not all of SH Heavy will be wanted in the Ceyhan pipeline.
Still lots that could could go wrong here IMO.
$30/bbl was yesterday.
More like $25 - when you can get it...