GreenRoc Accelerates their World Class Project to Production as Early as 2028. Watch the full video here.
Share buybacks are likely to be fairly minimal in my view. The cash balance at Dec 31 '23 was just shy of 1.4m. Most of the income generated is from staking with the rewards being in the underlying token. The only cash generating activity is from asset sales. Most of the assets are being held for the long term. Any spare cash is being used to fund purchases such as the $550k for MODE (congrats to the 2 guys). So I don't expect any significant support from buy backs.
KR1 is a medium to long term play. I'm happy to see it unfold in the coming years.
COG's share of Monument has fallen from 28% to 25% as a result of the £1 million fundraise. There might be a bit of rounding going on but this implies that a 3% stake is worth £1m; so Monument has been independently valued by the incoming investors at £33m, valuing COG's stake at £8.25m. COG's current market cap is £18.28m.
Per the latest audited financials at Dec 2022, the value of COG's investments was £49k. Per Note 17 to the accounts, "The Co recognises its holding in Monument (at the time 28.88%) as an investment.....it does not have significant influence over the business due to the control exercised by all the other major shareholders to the exclusion of the company.
The accounting policy for investments per note 3.17 to the financials is "The Group measures equity investments at fair value, with changes in fair value recognised in other gains/(losses) in the Consolidated Statement of Comprehensive Income.
The 2023 financials haven't been issued yet. They might include a bump in value for the Monument transaction. One way or the other its nice to know that we have an £8m side investment in the wings.
Presumably she was responsible for the technology platform that has now been ditched so found herself in a fairly untenable situation. She wouldn't have done herself any favours by selling shares at the same time that the pivot was being made.
Been asleep for awhile!.
Another alternative would be to simply distribute the BGEO shares in specie to the CGEO shareholders.
CGEO "managing" this investment adds zero value . As far as I know they don't have a board seat so what exactly they do is beyond me.
The BGEO stake is currently worth £440m = just over £10 per share of CGEO. In theory the CGEO share price would drop from its current £13.00 to £3.00 after the distribution. So the remaining portfolio of £709m / £16.50 per share would be trading at £3. Something would have to give.
No more than Mr. Market, I'm always very dubious about the claimed NAV per share (£24.23 at Dec '23 and will have increased as the value of BGEO has risen in Q1'24). One way to sort this out would be to sell the BGEO shares which have a current value of approx £433m. At Dec 23 CGEO had debt of £86m. This gives a net surplus of £347m after repaying the debt. CGEO has a current market cap of £562m. Do a tender offer for its shares to the value of £347m. In theory the revised market cap = £215m or £5.00 per share v the current trading value of circa £13 per share.
Per the Co's NAV statement at Q4'23 total portfolio value = GEL3,672. BGEO accounted for GEL1,226 of this leaving the remainder at GEL2,446 = £709m. This is nearly triple the revised market cap which should surely be revised upwards in due course.
All of the above are approximates but you get my drift. I suspect that there are multiple reasons for not doing this such as debt repayment covenants and timetables, restrictions on the ability to do such a a large scale tender, ability to place such a stake in BGEO, etc, etc.
However the status quo is deeply unsatisfactory. We are currently paying the management team in CGEO to mind our investment in BGEO which is possibly the biggest stumbling block to any portfolio reshaping. Only sorry that I ever divested my stake in BGEO into CGEO a number of years ago.