Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Massive buy by the billionaires being worked in the background. Sheesh.
The billionaires must be thinking all their Christmases have come st once.
"Capital management
The Group funds its capital requirements through the issue of new shares to investors."
Ain't that the truth!
And if we really want to test the honesty of the Board then we will await to see how much of the following statement is true:
"The investments in the shares of the subsidiaries are long term holdings and supported by the underlying assets of the
subsidiaries. In the Board’s opinion, those assets and their future potential are such that no impairment provision is required against the carrying value of the investments in the subsidiaries."
The higher the impairment the bigger the lie.
Riz, Notes 10 and 11 give the net asset values of the assets carried on the balance sheet and they show the following:
Note 10 shows the carried value for East Denver at £1.4m.
Note 11 shows the carried value of all the other guff at £3.4m (including £436k of patent values)
I am inclined to view both these figures as suspect and expect them to fetch a pittance when the entire charade will be finally exposed. At which point I fully expect the cheerleaders to inform us that it is all behind us and that there is a new Yellow Brick Road.
NT quite helpfully gives a couched hint as to the possible realisable value when he says in the latest RNS:
"The cashflow and the potential capital value of the East Denver project exceeds these liabilities but it is likely that the net future capital contribution to the Company from its natural resources portfolio may be limited in the absence of any potential upside from the earlier stage projects."
We are given a further hint that the totality of the sales price may be just north of $500k when he informs us:
"It is expected that any sale of the natural resources assets will generate sufficient surplus funds (after taking into account the liabilities above) to repay the bank facility."
So roughly a £4.4m write down and loss being flagged on the carrying value of the "assets".
Fundraising anyone?
25/7/19:
"Since our IPO in 2015, we have consistently stated that our strategy is to establish a portfolio where 80 per cent. of the Group's operations should be comprised of production assets capable of providing a stable income, with the balancing 20 per cent. of the portfolio providing significant potential upside, albeit at a higher risk. For the first time I am delighted to report that we are very close to realising that ratio."
"We remain a small and focused management team and naturally every week we must make decisions on where to focus our financial resources and time. Whilst Zoetic has dominated our commitments since the end of the last financial year, I want to assure our shareholders that our other projects remain as viable as they always have been and, even though work may have slowed, the team at Highlands has not lost sight of their potential."
Six weeks later, 4/9/19:
"in the coming months, it is the Company's intention to carry out an orderly sale or closure of its natural resources business, thereby freeing management time and financial resources to concentrate on Zoetic."
"As part of a financial review into the Company's operations, it has become clear that the natural resources business has several liabilities that will need to be satisfied, particularly taxes on production at its East Denver project and potential plugging and abandonment costs at its Montana operations (if it is determined that the project is not viable). "
So were those 80% of assets not "capable of providing a stable income" as suggested in July? Was it a lie? How very odd indeed!
"Hopefully the October numbers will pave the way!"
I will stick my neck out and guess that CBD income will be less than £50k.
Anyone else care to hazard a guess?
"Some CBD oil companies have P/E’s of over 200"
Let's find the elusive E first.
All they have done so far is take the P.
JJ, Who is this Eric fellow?
NT will no doubt dig deep and buy some shares to align himself with the shareholders interests and show trust in the company. I await imminent confirmation via a TR1.
Should that not happen then everyone can surmise what message he is sending to the shareholders.
osg,
"I don't expect any cons here."
You must be the only one as everyone else recognises it for a giant one.
“A Scottish novelist once wrote that we can best pay our debt to the past by putting the future in debt to ourselves."
As he has done with every single one of companies. You couldn't make it up.
God help the Brexit Party!
trill,
"Nick didn't say that was a good thing. Could argue he was blaming him in that comment."
If you find that the ground is above you then that is your clue that you have dug enough.
trill,
"I'm a little lost Spear."
It's ok. I'd suspected as much for a while now.
"he has been instrumental in bringing the Company to where it is today"
He forgot to add - "on its knees".
Good old NT - cut from the same cloth.
I wonder if more billionaires have lined up, knocking on the door, clambering to offer them more money.
I suspect the billionaire client list of Optiva may have dwindled somewhat.
trill,
"Spear, do you seriously expect him to take a poll on these type of decisions when not even in control?"
So as an officer of the company he was making such a statement with a total disregard for the shareholders?
How curious!
trill,
"Any reasons not to believe he is honest and could move us forward?"
From NT:
"As an aside, and irrespective of FCA/LSE rules, my career as a financial adviser impressed upon me the importance of consulting with shareholders ahead of any significant corporate action a company may take."
So were you, or any shareholder, consulted before the fundraising? Was that not a "significant corporate action"?
Hmmmm...................
Honestly!
trill,
"Spear, RP has gone and we're selling all those troublesome assets. Thought you'd be celebrating. If you was running HNR what would be your strategy?"
Why would I be celebrating the fact that a Yank has disappeared with people's money??
If I was running HNR I would shut it down and return whatever crumbs are left to the investors. But then again I am blighted by having a conscience for which I blame my parents.
I suspect the incumbent management may wish to continue with the gravy train for as long as there is something in the trough.
But that is only my opinion.
OSG,
"Derampers here - you guys are lower than worms."
What about rampers?
Higher or lower?