Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Government winning is good for Ncyt PI100. It means the contract between ncyt and DHSC is likely to be solid, so no risk of it being revoked. This changes nothing regards DHSC claim against Novacyt or our claim against them. It also means nothing in terms of timescales. It just means nothing as far as I'm concerned.
Our case is nothing to do with the GLP claim though. It just says that no corners were cut and the contract was offered correctly. This is not the issue for Ncyt. Our case is more about the finer details of the contract. The particulars. I'm not reading too much into the ABDX RNS at all.
Nuri, a £20m positive FCF is positive to be fair considering the last 2.5 years.
I'm actually pleasantly surprised with the 2nd highest revenue total in JDW history. £119m in cash from operations helping to fund c£70m in growth of new assets. Loan covenant waiver extended by another 12 months. Liquidity still around £190m Vs covenant requirement of £100m. A nice £11m one off VAT refund also helps with cash. That's unfortunately where the good news stops imo.
Second best year on record in terms of revenue yet still required a £50m loan to support the business whilst making a £30m loss for the year.
Liquidity is reducing and with £100m due back to the government in Aug23 I can see some real pressure on that particular covenant. They may need to take another loan to pay the gov back but this I suspect will drop the overall credit facility back to £983m with debt potentially forecast to be in excess of £1bn. Clearly those 2 numbers don't fit so TM is likely going to need to do some grovelling very soon.
TM references the pent up demand after lockdown not materialising well it did hence the £1.7bn sales. That includes the pent up demand. Going into FY23 with the current economics JDW will do exceedingly well to even match £1.7bn. I suspect their forecasting tells them the same hence the selling down of pubs to help fund the working capital and covenants in FY23. Whilst JDW has more than enough scope to increase prices and margins, are the people going to want to pay those higher prices given energy bills, mortgage payments, rent payments, pretty much everything is going up by at least 10%. Except if course, benefits and wages which will no doubt lag behind reducing people's disposable income.
Overall, great to see JDW get back to almost pre pandemic levels in terms of revenue but I feel the effects on the balance sheet will weigh on JDW for several years to come. One to watch for me is the liquidity and what happens to it when the government come knocking. GLA
WG, I guess it's somewhat a moot point until we get actual figures in Feb23. Let's face it, 12 would be super but 10 would be great and 7 would be enough to make us money and provide the SP solid support at 3.5-4p.
If we do get to 12 then yes maybe the plant won't be able to sustain that flow but even a few months of 12 would generate a significant increase in revenue. The pressure will eventually fade on the 2 wells and sidetrack so it may be out of Angs hands anyway. Although a booster compressor will help keep the pressures higher for longer.
There's talks of a 2nd sidetrack which could potentially put the capacities of the wells at around 18mscf so GL clearly believes the compressor capacity can be made higher than 10 otherwise what's the point.
I think this might go up tomorrow. Threat of placing now known. 2.85 is a great price and where we closed today. Fully funded going forward. Shares in sticky hands so little forward selling. 2.85 may be the new floor.
WG, one compressor can clearly run around 5.7 and potentially be pushed to 6. The 2nd compressor is a clone so naturally the capacity doubles to 12. Maybe the 10 was conservative but now we know 6 is in sight based on actually production rates.
Surely you can see it is just a matter of time. We plan to be digging Han**** in 6 months. That either happens or it doesn't. If it does, you'll earn. If it doesn't, you'll have to wait for the next bus which in our case would be either EH, MM, or Brockman. Plenty of buses due at this bus stop.
SL, the key point was that funding would be required which doesn't rule out a placing and yes loans are certainly an option as I've previously mentioned.
Ivan's comment suggested there wouldn't be a placing in the near term. I am simply suggesting that is not necessarily the case.
2 things Ivan,
The reference to paying off debt may simply be in connection to the £1.5m obligation they had to pay in September. This was an obligation and not a choice.
2nd, GL himself said if the sidetrack overruns then a placing will be required. We'll find out in 8 weeks. That's pretty near future.
Kaeren, not a clue I'm afraid. I think the variables are too many to even try and fathom that one. Placings aren't necessarily bad and the CFO should be able to negotiate favourable terms given we're likely to be generating substantial profits in the near future. Having said that, you'd think a short term loan would be an option also.
Wow, a lot of accusations here with absolutely no substance says more about you than it does me. I may make honest mistakes but I certainly don't lie so if you have something to say re Ncyt and Boom then let's go over their and thrash it out.
As for Kist. Yes I missed the $45m but it's hardly lieing and doesn't actually change my overall point which was that the amount they paid for 34mscf/D was significantly less than what some were proposing they should pay for Angs.
Gallder, you have just made a similar mistake. The 34mscf/D figure I quoted was the 20%. 6000boe/D. Look it up. Does that make you are liar. I don't think so, it was just a mistake which I have corrected. Not quite sure you needed to jump in with the personal insults and defamation.
A liar? A strange accusation to make. About what?
Yes, but is that how Angs and Merc do it. What if they do it by individual month. Your method assumes any over hedge production in September is spread backwards across Jul/Aug and given back to Merc. Is this really the case? I believe each month is separate and any over production in September would be taken as benefit in September by Angs. Not used to payback the liability. The liability isn't due for another few months and I'm sure Angs won't just give them the cash in advance of the agreed H1 dates.
Not sure why the name calling just because I don't agree with your calculations. No one knows the intricacies of the hedge so why get so touchy over £550k. £9m is a pretty fair estimation and has been calculated a couple of times by a few people on here to be there and there abouts.
Howey, it's unfair to call it waffle about the 10 days. GL is highlighting a risk to us that we shouldn't just skirt over. The reserves are partly depleted which can cause a lack of pressure when spudding. There's a coal seem directly above the drill that is prone to collapsing and causing huge problems (apparently this has happened in the past). A number of things can happen that can result in this sidetrack being delayed by at least 10 days. If that happens then knock, knock, a placing could very well happen. Maybe a loan of some kind. Who knows? It's then down to the CFO to ensure we get the best placing price. It's certainly not waffle but let's hope that things go smoothly and come January we're flowing 11-12mscf through them pipes. This risk is one of the reasons why we'll struggle to get over 3.5p before December imo. Just have to be patient and hope for the best.