Member Info for Corryvreckan1

Just by way of caution as a lot of posts refer to an anticipated dividend (and I made the mistake myself on Friday) - I can’t see anywhere that they have announced an intention to specifically pay a dividend.

The circular states that the Reduction of Capital will “provide the Company with the ability to make distributions of profits by way of dividend and/or to make purchases of its own shares…”.

Until they explicitly state that the $70 million in Q1 will be all, or even partly a dividend - and that might not be clear until after the Court Hearing anticipated to be on 17 January - then it’s important to be aware of the other equal possibilities being a share buyback or a combination of the two. The phrase “a significant capital return programme” suggests to me that buybacks may be more likely, at least in the short-term, with dividends to come later.

It also states “up to” $70m, so it could end up being less, but you can hang me from the pedant tree for that one.

Of course, all this could be academic if the FSP is ‘successful’.

There will be dilution – it says so in the CVA and the terms of the new financing. How else do you think they are going to pay their debts?

They have no cash other than that now being provided by EHGO and the only asset they appear to have is the GSN website which is not worth very much. There is some computer equipment and GSN merchandise in a storage unit in London but the Administrators left it there because it would cost more to recover than it was worth!
That’s it. That’s all that is left of the company’s past activities.

And they may have a stock market listing, IF the FCA permit it, but their listing is only an asset if they can make the new version of the company profitable and we don’t yet know what form the company will take. But there will be dilution before that happens, there has to be per the CVA.

[Share consolidation is a red herring, it doesn’t in itself change the total value of your shareholding, but granted the market often takes a dim view of the process.]

AIMO and everyone can check these things to the official documents themselves.

Yeah, BoE and Fed interest rate announcements in next few weeks might well play havoc with any predictions on that one!

Reply to deltalo, RE: 13:54 yesterday

“Will be classed as a dividend when it’s a capital reduction?”

The capital reduction needs to happen first, that’s the process the GM is being called for to start. Any subsequent dividend is classed as a return of capital, rather than a reduction. Different processes and accounting treatments.

Not sure what you mean by 3.1p for all the share capital? The 3.1p equates to just the initial $70m return they have indicated.

asi – as it should be, and to be clear, I already knew all of that and I wasn’t asking for financial advice. I merely pointed out that your earlier post read as if you were trying to give advice. Good of you to now qualify it as not advice as it was partly erroneous and potentially misleading, as indicated by the last sentence of your 16:38 post amongst other things.

I still think you need to revisit your maths, but that’s obviously up to you.

"the protesters put children and women ahead as human shields"

I had several other words in mind but the LSE censors wouldn't let me even type them!

The last sentence there being very important, and a point missing from your earlier post. It also read a bit like financial advice, particularly the parts “the way to protect yourself” and “buy them back when everybody else sells and the price drops” – it’s way more complicated than that and will also depend on each individuals personal circumstances. Maybe worth qualifying?

Also: “you can also buy back up to 40% more shares for the same price as you sold them.”
Any chance you could revisit the maths in your last sentence? (I'm not referring to the rounding of the divi yield to 40%)

All meant with best intentions.

Not thick at all, that's a good question to ask. But it's about tax and that's way above my pay grade, sorry.

I would say that the $645.2m is accumulated deficit/losses, not necessarily the value of tax credits available, particularly where some of them could be ring-fenced.

Also, if there was a tax credit implication then I would have thought it should be mentioned in the circular. The word tax doesn't appear anywhere in there at all - read into that what you will but I think that's a perfectly valid shareholder concern and perhaps Hurricane can answer directly.

“Pros and cons”
In Hurricane’s case it will allow them to return capital to shareholders by way of the potential dividend announced, and share buybacks if they choose to. They can’t currently do that as they have an accumulated deficit of $645.2m (per circular issued today) and therefore no distributable reserves.
I can’t currently think of the cons (brain fade) but happy to hear from anyone with a better handle on this.

“Is it required to facilitate increased dividend payouts ?”
Per above, in Hurricane’s case it is currently required to facilitate ANY dividend payout.

“Does it affect the value of the company to a potential purchaser ?”
It doesn’t, in itself, change the value of the company’s assets, but the subsequent payouts that it permits will. What the BOD are proposing is essential a paper exercise to cancel the Share Premium account ($822.5m) against the Accumulated Deficit ($645.2m) creating potential (important word here) distributable reserves of $177.3m (all numbers from circular and there are important caveats to this on page 4 as well).

(Also, by way of my own caveat, how a purchaser might value the company is obviously far more complex than just the level of distributable reserves, and each purchaser will have different methods of valuing the company that will include how it fits into their own company structure/activities/operating locations as well. What offers more value to one may not do so to another.)

All IMO but defo worth reading the circular.

Direct link to their GM website section:
https://www.hurricaneenergy.com/investors/general-meetings

And direct link to the Circular PDF – WARNING – this link will automatically download/open the pdf:
https://www.hurricaneenergy.com/download_file/force/717/224

Travel sector broadly up today, some economic data maybe improving, oil price down helps travel stocks generally, London/Europe/US exchanges all generally rising today. Any or all of these possibly.

Today's TR-1 records them selling only up to Monday, may not have sold any since and relatively low overall volume today.

Was half expecting a fall today due to train strikes announced last night, but maybe they were expected and baked into the SP already. Trainline with more international exposure now also helps soften impact of that.

They normally issue a summary TU in mid November (on 24th last 2 years) so that may be where Investing.com got their date from. So possibly tomorrow (they don't announce date in advance) or possibly not given the CMD presentation was so recent. Also Lemos may have a different approach from this year on? If nothing tomorrow then Jan FY TU would be next likely as Trouts said.

Expect Atome will be fine. CPH2 have identified the potential issue (still to be confirmed) and are working on a solution to retro-fit to the first 2 units built, just a bit late for Octopus who wanted theirs last month (other customer affected looks like it could be AFCryo in NZ).

Delivery of Atome’s electrolyser is not due until end Q1 2023, only a small deposit paid with nothing else due until Q1 2024 and a free upgrade to the next generation tech at that time as well. All info from various RNS, think I’ve summarised it correctly but DYOR obvs.

Good news Bob:

From 13 Oct Q3 OpsU - “The Company expects to continue increasing its monthly Brazilian export capacity […] to an average of 600,000 barrels per month in 2023, without reliance on the ONP.”

“Average” for 2023, so up from current 400-500kpm to possibly c.700kpm by end of next year, depending on when the new barges come on ‘stream’ (yeah yeah, I know) and with the potential improvements to the barge round trip they are targeting from 60 days to under 50 days (slide 13, Nov presentation).

Disagree with several of your points CT.

“they could simply walk away without even notifying our board”
That’s an absurd thing to claim. Yes they could walk away from a non-binding MOU, but these are major, professional, international organisations with reputations to uphold. If they did walk away it would be after dialogue or negotiation and they absolutely would notify our board of their change of intent.

“distracted by this empty promise of an offtake”
It’s not an empty promise at all - it’s not even a promise so can’t be empty - it’s an indication of possible intent. I’m sure we all know that an MOU is standard business practice at this stage, it’s a procedural step on the way to potentially, as the RNS states, “subsequent formal bankable offtake agreements”.

“stuck where it is and no MOU will change that.”
It doesn’t need to. Yes, the ESIA is vital and key to opening up the potential to follow but there are many other things that also need to happen, in parallel, and this is one of them. It stands alone on its own merit as a significant step in the process of developing a mine. I don’t see it as a distraction, and it doesn’t need to be criticised in the same frame as the wait for the ESIA.

I am now notifying you that I am walking away from this thread as I have a new MOU with my bed :)
'til morra

Remember that's only declared shorts, above 0.5%, per the notice in the green banner at the top of shortracker's page. (The same data is also in the link at the top of this page, although that is normally a day behind.)

WorldQuant have been gradually reducing but only dropped to 0.48% on Friday so need to keep that in for now. Will never know if they continue to reduce or hold at that level undeclared.

But yes, recent short-term (4 weeks) trend is for the declared shorts to be gradually reducing, although PFC seems to be responding to the oil price as much as anything else, today's mid-day reversal a case in point. Blue horseshoe's love unrequited!

The stock market never reports the direction of a trade - whether you are buying or selling - it just reports it as ‘a trade’.

The Buy/Sell section on this site, and many others offering a similar service, is just running a simple algorithm to compare each trade price to the mid point of the reported spread at the time of the trade. If your broker got you a price below the mid point of the spread then LSE will display it as a ‘sell’, if above it displays as a ‘buy’, if bang in the middle or late reported then it's normally ‘unknown’. It's just a guess/indication that works some of the time but by its nature is of limited use.

Date also confirmed in 14 Nov RNS so looks to be good.

"We will be holding a Capital Markets Day on 29th November 2022 to outline our updated strategy in detail."

From RNS 21 Sept.

Eh?

How did they get from 13.913243% on 26 Sept up to their 15.002808% position prior to the selling notified in today’s RNS, without issuing a TR-1 in-between for the purchase(s)???

Sumitnotright there methinks!

My thanks too laser, that's a great summary sheet.