Firering Strategic Minerals: From explorer to producer. Watch the video here.
IMO we won’t see a drop of oil out of Heron this year. MB sounded even more exasperated than usual. He said the governor said he didn’t take it personal being taken to court in 2019 but clearly is. And central government also seemingly holding things up. In all areas, it was delays, delays, delays.
The fact the cash situation seems ok for now might mean some stabilisation for the SP, but I would expect any slight rerate in the shares to result in MB going for a raise.
"Can we also stop people saying it's "any day now!!!!!!!!!!!!" "Soon!!!!!!!!!!!!!" "BOOOOOOOOOOOOOOOOM" too...EVERY.SINGLE.BL00DY.DAY?"
Indeed.
WOS - any contrition for getting this so horribly wrong, despite all your intel and research?
It's hard not to have some sympathy for MB when he goes through the sheer amount of bureaucracy and blatant blocking of MATD's trying to progress. And credit where it's due for answering all the questions.
The good news...
- we appear to have cash to run the business for a bit longer yet
- they have taken pay cuts while this is all resolved
The bad news...
- it seems clear this could go on for much, much longer yet
- MB seems hugely frustrated, even more than usual (and who can blame him) but it does show the perilous position we are in.
Aeschylus - I suppose it could be put another way to him, for example, what is the ultimate deadline we need to be producing oil by, and in what quantities, to ensure we are generating enough revenue/profit so that we don't deplete our current cash reserves and therefore require some kind of funding?
Oh, and how long once the green light is given does it really take for us to get everything up and running and oil flowing at 100%? Hamm always bangs on about a "two week workover" but I don't know if that is right or not.
DRCed - that also has to be a question for MB tomorrow - realistically, will we be producing oil and revenue this year, and in sufficient quantities to ensure we can continue as a going concern without the need for further borrowing? And even if the green light is given during May, how long exactly would it take for us to get everything in place and oil flowing at a sufficient rate?
Investor - I'm also not necessarily saying you are wrong. Just that as far as the Mongolian people (and those damned activists) are concerned, they view us as foreign.
A lot for MB to clear up tomorrow. I see a 20-25% swing in the SP tomorrow or for the remainder of this week, based on what he says. I just don't know which way!
Cybertrash - if they do a raise, it will be for more than £2m. The time/effort and general bad feeling a raise (for working capital) would bring would not be worth doing for £2m. I'd guess £5-6m, similar to before. They don't want to be coming back to the market for cash year after year if the delays continue.
Investor - according to our own website, Petro Matad Ltd is the parent company and is incorporated in the Isle of Man, a "British Crown Dependency", listed on the London Stock Exchange. The Mongolian people will absolutely consider us a foreign company. I mean why not just incorporate in Mongolia then? I know the answer to this...
But maybe one for MB to clear up at the AGM tomorrow?
As for this: "rather than just automatically taking it on board because it fits in with a narrative of wanting to portray MATD's immediate prospects in the worst possible light on here."
No need for anyone to do that. MATD and their RNS's do plenty for that!!!
Whoa, Investor. Frequently raise panic?
Firstly, MATD is not a Mongolia company:
“The company was incorporated in the Isle of Man under the Isle of Man Companies Act”. Petrovis might own 20% or whatever it currently is (built up slowly from all the raises and dilution to others!) but it is most definitely a “foreign enterprise” for the Mongolians.
As for if Petrovis would let it go to the wall? Maybe not, but that won’t come for free. They’ll want more shares, or more control, or a loan at a cost paying back etc.
The fact remains, we are not and seemingly will not be revenue making for at least a little while yet. A company can’t run on fresh air.
As ever, I hope you are right and I am wrong.
One of the pros for thinking this will come good eventually was that to not give MATD the right to extract oil they’d found would look very bad and could discourage inward investment into Mongolia. Reading that article you’d have to say they don’t seem too bothered if they get foreign investment or not. While labelled a nayer, I always leaned towards thinking this will eventually come for good… it was how quickly it might that I mostly disagreed with on here. However, I am now leaning the other way. MB is going to have to pull a big rabbit out of the hat on Tuesday to restore confidence.
“Jimi, so sell up and fk off you deramping sheet, very clear you deramping to get in lower scam”
I hope the one “recommendation” this post got was from Cybertrash himself. WOS calls me a disgusting individual but really, it’s posters like this. Should be banned.