Oh well, I guess it can go lower. Another poor update, Baines is staying. Fortunately, my holding is v small here, so scope to buy more when this turns. Im sure they are running it in to the ground on purpose. Could still see an offer with HY results?
Not really followed this - have some shares via EKF. I cant determine if they are going to need to raise cash any time soon. It has been a long time since we heard from them, if I am wrong, please correct me and point me to details of why cash balance is ok. Would like some of these.
"Exited the quarter with a cash balance of $10,138,000, a bank debt principal balance of $31,000,000 and a net debt position of $28,913,000."
To me the 10M is what is left after drawing the full $7M RCF. Looks like they made a $1.5M quarter payment (as principle is 31, where as full amount would be 32.5). From the 10M, they will have made another $1.5M quarter payment. So we have 8.5M to account for. The wording here is that the amount was drawn for development, not necessarily spent. Payments could likely have been made from the $8.5M after June. The rest needs to cover operations that over ran by 2 months due to some un-explained phenomenon. Then cover CF until payment lands for initial gas flow. Next quarter payment will be also be due around now.
I agree there are other options and also that it is possible they may not need finance, but it is a close call and once again the company have not assisted with any positive news to the contrary. They may feel it is just easier to raise on the back of getting production up faster. Also a good opportunity for BOD to buy in (now it is all de-risked), I would expect them to go big at some point.
Ahh, threw me for a bit, but yes I posted on social media didnt I. Yes I wonder if they are holding off replacing management if they are negotiating a sale. I hope so, a quick hit would do me. What price would be agreeable for the II's here? 175M? (37p)?
Also bought SRC.
Trek, The RCF is already used up (from the quarterlies):
"Amended our Trinidad based loan agreement in May 2023, allowing for an additional $7 million revolving loan component that was fully drawn in June 2023".
It seems to me that the financial planning was based on CASC being online at the end of June. I wonder how the cash flow was structured around this date, regarding payment to contractors and suppliers. They have since had to make a quarterly loan repayment of $1.5M, which I think they would have hoped to be covered by fresh earnings. They may pull it off, but I expect the cash balance is partly what is dampening the share price. Add in that we have no guidance for flow rate, and we are back to trusting Mr 'No more rasies' Baay. Perhaps a raise would the best thing, to ramp this up quicker and unlock the future cash flow. Also, having thought about this since last posting, why no large buys in here from the board? Paul Baay owns less than 1%. So would he be concerned about dilution?
Does anybody know what the payment terms (duration) is for this new gas? hope its not something like 90 days.
Sturm, possible over simplifying a complex finance deal? What if the lender has criteria like income to debt, or debt to assets. How do you know these levels are not already at maximum? I think the principle is getting too high for the lender to keep extending finance without consequences. Conversely I think more II's will be eyeing this now, and wanting to buy in. I think it will be far easier to go to the market, which has none of the red tape I mention. Infact, even placing flippers will be happy to buy now. Not what you want to hear, but entirely possible.
By the way, I do not wish to buy back here yet, until there is clarity on these issues. If there was a raise, yes id take some to trade, but my reason to sell was to protect capital and existing gains. Plenty of other bargain stocks in this market. Im already heavily invested elsewhere.
When many of these companies raise, they always say that it is for some benefit, like the scenario you say of expediting drills etc. I think a lot of the time, this is used as cover for them running out of cash. There was no explanation for why this ran over 2 months, possibly covering up more recent costs incurred? I don't feel I'm missing out, by not being invested!
I too am wondering about the finances.
(May 26, 2023) - ...providing for an additional US$7 million revolving loan
The existing term facility component of the Amended Loan Agreement currently has a principal balance of US$25.5 million, with seventeen equal and consecutive quarterly principal payments of US$1.5 million outstanding.
Touchstone intends to use the revolving loan proceeds to maintain financial flexibility while we proceed with Royston-1X production testing operations and Cascadura facility construction where we continue to target for first production on or around June 30, 2023.
So this date has slipped by over 2 months, and I would assume that payment for gas must be somewhat in arrears. So I would expect that they have to make at least 2 of those 1.5M principle payments so far.
We also dont know the flow rate, or consequently the amount of cash they would start to receive. I would have thought money would be extremely tight.
My concern is that the presentation on the 27th September is planned to be a post raise presentation. I sold most of mine over the last few weeks, this has proved to be an excellent decision, each tranche I have sold, has seen the price drop.
https://www.lse.co.uk/rns/TXP/q2-2023-financial-and-operating-results-wwbxv2emswqwnip.html
operating and financial results for the three and six months ended June 30, 2023:
$5,135,000 in quarterly capital investments primarily focused on expenditures related to the construction of the Cascadura natural gas and liquids facility and two Royston-1X production tests.
Amended our Trinidad based loan agreement in May 2023, allowing for an additional $7 million revolving loan component that was fully drawn in June 2023 to provide liquidity while we complete construction of the Cascadura facility.
· Exited the quarter with a cash balance of $10,138,000, a bank debt principal balance of $31,000,000 and a net debt position of $28,913,000.
So had $10M at the end of June, but will have paid another 1.5M loan repayment. Will be due to pay another one as well.
So that takes it down to $7M, obviously we dont know what else has been spent, but I am assuming most of that is gone on CASC and Royston.
Kind of you to say, yes we have both been investing small caps for a while, and have been in several of the same stocks.
What you have to take in to account here Agri, is that without mentioning names, there are multiple 'promoter' accounts here, trying to dictate the conversation, especially to brush past misdemeanours under the carpet. I have had 2 reasonable wins on BVC in 2023, so not sore on the stock in absolute terms, but there are issues that hold this stock back and for me make it an unattractive investment. Most notably returning value to share holders. If you removed the promoter accounts, this board would be virtually dead.
What are they planning a stock consolidation? 4 for 1! ha ha. I think it closes that gap from today, struggles to break 30p. Multiple opportunities to trade this for 10%. Not one to hold for reasons I have stated at great length. See you all soon.
If we were kept informed (not by anonymous posters on discord) I wouldn't need to interpret these vague "99%" type phrases. Cant blame me for speculating. Until I hear otherwise, ill assume there is a problem. Price is not showing that everything is fine is it? Or maybe, it is, but discounting a huge % for liar liar Paul "2 weeks time" Baay.
I think its more likely an issue with the control system. Sign off's can be anticipated, software and hardware integration can not, - I know as its my job.
I thought this was wording was intriguing:
testing of all electronics, alarms, and systems at the facility to ensure full functionality is 99 percent complete.
Its clearly a figure of speech, rather than a precise measurement. So, what is the issue stopping the control systems from working? If they are trying to track down an issue, it could be preventing the operation from starting. This is why he.. 'anticipates' gas w/c 28th. If there were an issue, it could involve suppliers (even multiple suppliers).
Another vague timescale, and lack of detail about the progress I thought. I really would like to see PB replaced going forward. The level of reporting is just not good enough. Again, the 28th, now firmly anchored in most peoples heads, is just a best case timeline given by an extremely optimistic, inept manager. He really needs to go, to give this share any credibility going forward.
I find a distinct level of irony in the post from Chelsea11.
Regarding the acquisition, we have no details of what multiples were paid, or how it was funded, which I think is rather poor. Also could the headline names be approaching retirement age?
Bluerill, are you an official spokesman for BVC? Why do you have intel, that is not publicly available? Can you confirm whether you benefit in payment or kind from posting here?
@Agricore, the buy back issue was never addressed, so on that basis you have to be wary, even of RNS announcements here. You are right to point out that share based payments has increased, very contradictory to buying back shares isn't it, and contradictory to the argument that the share price is low. They seem happy to dilute here.
I think they have held off updates to the market to get this deal done. Probably wasn't as bad as they made out. I'm sure a handful of people have done well here at the expense of many. I sold for less, but the t.o. price is lower than what was my 3p average. Shows how these companies are investable floating over 1 pound and gone for tuppence.
What point do they become customers? When a NDA is signed? Or when a LOI is signed, or when an order is agreed, there are many steps before receiving the paid invoice. Previously when they RNS a big contract it said, X million, to be recognised in yy years revenue. Nowhere near the same is it. What is the average customer spend here? It cant be much if they have run out of money again. This stuff is quite simple to read through for a company like this. How many are PAM customers? did someone buy a single end point license for a toaster?
You know nothing about what the customers look like here, other than they were not juicy enough to warrant an RNS, which given the poor show here, id of thought 200k spend would of got a whoop. Stop putting lipstick on this turd please.