Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
The critical component at this moment in time and an area the company should be
completely focused on if they have the interests of the shareholders at heart is the
re-stimulation of those wells,,,we need continuing monthly revenue streams to avoid
eating into the cash reserves. Forget more strategic reviews (yes as and when the company
is in a position to look further afield of course all well and good.) CH needs to shore up that
balance sheet and ensure the lights stay on from well production and not the continual
generosity of shareholders. Get around the table with the key players and make decisions.
Short to medium term Bar Chart signal indicators are rating this
a BUY between 80% in short to 100% medium term.
You may recall CH valuation on the entire asset being valued at 200M.......
This business is all about the Permits ....further strategic reviews and looking at
other opportunities as per CH podcast is all about attempting to gain some
longevity for the company and allowing the BOD to maintain their lifestyles off the PI's.
The interim accounts to 30th June 2018...recorded revenue streams of 2.1M for the year,
Cost of sales at 400K and ADMIN (WC-costs at 888K)
We can now say the revenue streams have reduced to no more than 100K per month (
based on Nov being 96K and Dec 84K ..allowing for some improvement in GAS prices.
Based on current trends we are looking at a diminishing revenue return but with a
still very high Executive cost base,,,Re-stimulation permits are needed and yes I know
the BOD are looking at other methods of increasing production without permits but time
is running out. Yes they have generated some more cash through PB, so we are OK for now
but all this does is cover the high cost to revenue returns and by May/June the recycle will continue.
CH has delayed the legal route because he knows that the threat is more important than the
action (even if it is win scenario) as no result will be forthcoming for many years especially if
this is politically motivated,I just cannot see a way out without the permits. I hope I am wrong as
i am invested ...It would be good to hear from CH as to what ARSO are now doing with these permits .
Bar chart Trading system averages are currently showing ....
a 72% sell as an overall average signal.
This is based upon a variety of popular trading systems as to whether to go
LONG or Short the Market.
This is not a recommendation just Trending patterns,,,,DO your own DUE Diligence
ALL IMO
Yes they have done a runner with shareholders funds, becoming quite an epidemic on AIM
No CH is unlikely to wind up the company "Turkeys don't vote for Christmas, where else
is he going to earn his current salary.As long as PI/s continue to fund his lifestyle he's on a winner.
What is striking is that in every RNS and PODCAST, there has been a lack of detail.
There has been no specifics in relation to his dealings with ARSO just general bland statements.
Whats reasons have ARSO provided for delays, surely as CEO with many years of
experience in the region he must of built up some relationships>>>the fact that they are not
responding indicates his lack of credit-ability. IMO
The IPPC permits has to be CH main goal, the fund raising via placings and primary bids
just buys us a short amount of time.The legal compensation factor is the threat that hopefully
provides the catalyst for ARSO and the Slovenian gov to issue permits. CH knows that whilst we
have a strong legal case with a high probability of a successful outcome any payment awards
will be years away. In the back of CH's mind is the unknown factor (and this was alluded to in one
of the earlier presentations on LSE) that if this is in any way politically motivated then for all of AST goodwill
we will have no further business to conclude in Slovenia. The environment ministers appointment at such a
crucial time for AST is another indicator that political factors could be in play. These new appointments and CH moving to a Full time salary will be absorbing even more working capital and yes the new ventures, whilst necessary
to move the company forward strategically are not going to be cash generative for sometime. Which begs the question whose going to be PAYING to KEEP the LIGHTS ON,.,,,?????
ARSO will be fully aware of the legal implications should AST choose to
invoke proceedings. Providing AST have followed the environment agency's
own procedural application process they will not be wanting this to enter into litigation.
Once litigation commences ARSO will be well aware they will be liable for costs on the award of permits.
That is why IMO, permits will be issued or a very good reason provided that must be
based on solid legal grounds as to the reasons why permits have not been issued.
AST cash position is not as problematic as originally thought and a new technical team
in place strengthens AST's position. Pressure will now be mounting on ARSO to issue.
ARSO will be fully aware of the legal implications should AST choose to
invoke proceedings. Providing AST have followed the environment agency's
own procedural application process they will not be wanting this to enter into litigation.
Once litigation commences ARSO will be well aware they will be liable for costs on the award of permits.
That is why IMO, permits will be issued or a very good reason provided that must be
based on solid legal grounds as to the reasons why permits have not been issued.
AST cash position is not as problematic as originally thought and a new technical team
in place strengthens AST's position. Pressure will now be mounting on ARSO to issue.
Many thanks for the information....it would appear that this should be one of their
priorities .......
New LSE....it is my understanding that re-stimulation permits are separate and are still required
to enable access...
Until CH returns to the MARKET for more funding........
Diminishing revenues from existing wells will not cover costs....
Yes we have 400K CASH so OK to cover working capital for now but without
the permits to re-stimulate wells it will not be long before more cash is required.
Yes I thought so,,,money for working capital, yet again....
Once delisted just take it as a capital gains loss and offset against your
profits for the tax year.
Once delisted just take it as a capital gains loss and offset against your
profits for the tax year.
In the short term REVENUE is not the key....
I agree that the business model and trajectory of the business...
increasing top line turnover and reducing costs are all looking favourable so why is
the market not reacting to this in a positive way?
Because they have a short term problem ...there is no operating profit.
Will there be a need to raise some short term finance to cover short term costs before
they enter into operating profit? That needs to be answered and in my opinion that should of been
addressed in the latest trading update.
Finance is again the BIG issue here....
CASH balances to trading end JUNE 2018 was A£424,000 now A£112,000 .
How are there going to fund working capital for 2019?
As always it is not what is addressed but what has been omitted from the trading updates
that is key. Uncertainty = a falling share price.
With only a MC of 4.2m, this has potential - possible acquisition interest ???????
The next couple of months could be very interesting and potentially very rewarding for
shareholders. IMO
These results to Sept 2018 are very disappointing but not entirely unexpected.
Whilst the business is not technically insolvent due to its fixed asset base the Negative
working capital of 3.4 million is why the begging bowl has been out with recent placings and
of course the bridging loan. The next 6 months are critical IMO...needs to be a significant turnaround
or sell the asset. All in my opinion of course.