Member Info for CrustyPete

Even if TL's supposition and resultant allegations are ultimately proven correct it is obvious to me that, even with success on the next Itumbula drill, I am highly unlikely to meet my previous average of 5.5p yet for a relatively small additional "investment" I have been able to take my average to below 1p. This was always a 100% binary play and remains so - the difference now being that most investors here are now looking at recovering their investment rather than making a significant profit.

So whilst there is no-one to point a finger at but the BoD for that change in fortune it is senseless to look at this in any way other than rationally; how to get out with your short intact? Invest a little more methinks....

Or desperate....

Speaking of Turkeys, I certainly have invested in a few!! Unfortunately many have cost me an awful lot of money (NUOG, DDDD and most recently He1) but honestly I have never seen a Board that have so egregiously and blatantly fleeced a company of shareholder value more than this mob. Thankfully this is one BoD that I saw through early on and managed to leave before I lost my shirt here too....

This last episode is simply shameful - whilst I recognise the logic of AGE's post below I do have to say that, if by voting for this proposal it ultimately means that the Ruvuma proceeds can and will be returned to shareholders then surely that is the only way to go. To bring this extended debacle to a close. If not, then you only perpetuate the continued fleecing of shareholders by the current BoD?

But surely winalot you cannot claim to be surprised?! Those of us with a that have critically observed events of the last 14 years will have seen it coming a mile off.... so much for FOMO eh?

@earlofaim you say "lots of AIM companies with no revenue are still listed," - yes - we are one of them! We have zero income and never have. But after the next drill, if that is a "duster" there will be no way that the company can continue n- you cannot raise another $6m when your MC is virtually zero as it would be with a failure at Itumbula.

Farm-out or sale would be the only thing to keep it alive and that would probably wipe out the current shareholders totally - we have already been diluted by 70% today and any further dilution would leave us with next to nothing.

One final roll of the dice left.

"Next drill is the last throw of the dice for management." The face facts the next Drill is the last throw of the dice for everyone.

Skippsy, just for your information when I attended the AGM last week all but two people were precluded from voting for any of the resolutions - the only people allowed to vote were those who had their shares registered with Compushare (I think?). All of those who came with a letter of representation from their nominees were precluded from voting!! So my shares with HSBC and Interactive Investor did not get voting rights despite the letter specifically stating that I could...

What am I getting at? I am simply trying to highlight that your statement "Probably they aren’t that short of financial raise" is grossly optimistic as, based on what was stated at the AGM we already know that "they have well overspent on Tai3 and rig repairs…" They have spent a "considerable" amount!! Plus the additional cost of the Tai3 long lead items, so hasiba there is no "probably" about it...

Oh and thanks but I can more than stand it.

Nighty byes ;0)

All there; for me at least RJ...

Pedantic perhaps hasiba but you say "No one knows how much they want to raise…this is a fact.." Well actually it is NOT a fact, someone knows what we have overspent and what we need to raise but that is not us shareholders.

If you actually listen to the AGM recording you will in FACT hear that our CFO admitted that the overspend on the Tai3 drill was "considerable" though would not confirm the rumours that it was in the order of $4m. Moreover we now do not just need to fund the repair of our Rig and the Itumbula drill but the re-entry of the Tai3 well with a new set of long lead items. So rest assured that the sum needed is NOT peanuts.

Anyway one and all, enough of this nonsense I am expected in the Pub very soon, so I will leave you all to it.

"My issue is not with the bad luck events, but the financial shenanigans and the so called professional advise provided." Quite right RJ, the NED's at these companies are just money for old rope most of the time; it bloody amazes me how these people ever get appointed.

@hasiba you say "Probably they aren’t that short of financial raise unless they have well overspent on Tai3 and rig repairs…"

Where have you been hiding?!? That is exactly where we are; as was clearly explained at the AGM only last week.....

"on the brink"? Well whilst we have some cash (amount unknown) in the bank we may not be "on the brink" but let's be clear, without capital to drill either Itumbula or Tai3 He1 is simply a dead man walking.... Raising capital in today's market is not easy, it is a "buyers" market and cash is expensive.

@skippsy you say "seems to be support around 1p" yes but so too was there support at 5p and then 3p..... i dpon;t think these usual conventions still apply in our current circumstances; **** or bust here, funding first, a result at itumbula next, without both we are buggered... with tai3 to follow of we can get the funding but, in my view if we do not raise that at this next funding round we won't get another opportunity. you cannot go to the market 3 times in what will be less than 6 months.

I agree LW and have said so over recent days but in response to your point, that is why we need a Farm-Out and to a player with deep pockets, then He1 avoids having to go "to market" every time they need $10m to drill a new well.... We may end up giving away a huge %age of the company to conclude a farm-out but that avoids the inevitable ever decreasing circles, death of a 1000 cuts process of never ending dilution at lower and lower Market Cap (if it could actually get any lower).

Yes skippys I realise what you are saying and I am not suggesting that I would necessarily have expected an answer BUT without such knowledge it is extraordinarily difficult to adjudge what likelihood we have of raising the capital we need .

" it impacts negotiating position for a lot of reasons." Really? Do you honestly think that any potential lender or equity partner is not going to ask exactly that question? Yes, I know from personal experience that you need to play your cards very close to your chest when in a funding round but these are very basic questions that will need to be aired for anyone to take the risk of "investing". They would normally be an integral part of any "Investment Memorandum"....

Someone at the AGM stated they had heard that the Tai3 drill had run $4m over budget and asked the BoD if that rumour was true? Naturally and predictably they did not confirm or deny it but, if that were to be true, they will have very little cash remaining for the Itumbula drill... :-(

I firmly believe that a farm-out is the most suitable solution but was rather concerned at the AGM to find that this outcome has already been pursued and that the process died a death.... will the Tai3 outcome change anyone's mind? I would doubt it.

Contingent on the drill being fixed and ready for use? Maybe, after all without a drill we may as well all pack up and go home; however I think the drill being repaired is a given and only a question of when and, as an asset, itself has little value relative to the likely funding requirement.

This last point is the "elephant in the room" for me and was disappointed that the BoD refused point blank to respond to questions at the AGM about how much cash is left from the Tai3 drilling campaign and, hence, how much they are looking to raise for Itumbula and Tai3 drills. I do not accept that this is sensitive information and that it's revelation would compromise the fund raise more, I think, that they do not want to state what they need to raise because that would put them and shareholders in a vulnerable position when it proves they cannot raise it.....

I sincerely hope they can raise enough for Itumbula and Tai3 re-entry because if not it puts the future of all and sundry at the vagaries of one spin of the coin and how many likely funders are going to take that risk - a binary outcome on the spin of a coin?