Member Info for foolsgold07

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.

I think it might be wise to take a step back ......
An article has appeared in the paper regarding discussions with a minister on the process of
an application.
The minister has not specifically declined the permit but is concerned about the general procedural
process employed. As the environment minister he is perfectly entitled to review procedures.
This of course maybe for future audit purposes and has no intention of declining the permit as ARSO
will of employed due due diligence processes already as established by the environment agency.
This may just need a good discussion around the table with all main parties to thrash out any last minute
observations.
Anyway that's what I am hoping for and could be as realistic an argument as any.

How fortunes change -at least for shareholders as opposed to Directors .........
Back in April 2013, Rurulec was a hot share buy at 12.5p with a market cap of 52m -
this was from a peak of 72p in 2008 (at the time of the financial crash) .......
This business should be wound up now - rather than using the company as a catalyst
for working capital (IE paying the directors and staff overheads) ....
But then again TURKEYS don;t vote for CHRISTMAS do they?????????

The last couple of weeks have been without doubt a positive turnaround ...
Or has it?
Yes the price and MCAP are a more realistic refection on the value of the
business than the 8.5M from 2 weeks ago.
However this share has been rising of sentiment.
Facts,,,
No offers are likely to have been made yet?
The amendments are to be re-submitted at the beginning of September
Delays or alterations or requests for further information could still be made?
The next operational report for August probably early September is not likely to
be favourable, production and income in retreat.
The Potential buyers or JV partners are looking at a bottom price entry.
(they are fully aware of the difficult position that AST are in, income declining and very
unlikely to cover current liabilities. Why pay top dollar.
Even a sniff of a delay in permits for the reworks, and well you know what will happen?
But then again the permits could arrive at the end of SEPT as CH has stated.
But history and past performance would indicate otherwise.

Its a simply formality for issuing the permits....
You may be right but the mechanics of the Slovenian government,environment agency
and ARSO have clearly been running a different agenda.
I agree the process should of been completed months ago but there have been
other forces at play here as we are all aware from the difficulties that CH has been experiencing.
Have these issues whatever they have been suddenly disappeared.
We have been here before with the positive feedback .........
Yes pressure profile has been applied by the various groups but until we get that RNS
that categorically states Permits issued I wouldn't hold my breath.

Whilst the permitting RNS was positive, ARSO have not as of yet look at some of the
amendments yet alone agreed to them & history as CH has pointed out does require
some caution.

A very informed answer and you are probably correct ......
Even allowing for the fundamentals there is likely to be some upward
movement over the next couple of months.
Just a question of timing

I assume this is due to share dilution as a result additional company
financing arrangements.
As raised earlier unless the business is in a position to provide an operating profit
at the P&L level its going have to eat into cash reserves or raise additional
finance through the banks/lenders or the good old shareholder for working
capital purposes. "Just to keep the lights on".
Question how much profit does this company make and is likely to make and
will this cover its company,s overheads.

Food for thought ?
Last audited accounts reflects an operating profit loss of (1.26M) for the year made up
mostly of administration expenses which are likely to be ongoing for this year.
Working capital is 1.28M (current assets less current liabilities)
The net worth is 11.5M of which 10.2M is fixed assets (no liquidity)
Unless they start to turn revenue into profit the working capital will be eaten up by
costs and we all now what that means?
Hence I come back to the subject matter, is the company financially viable going
forward or are we looking at another lifestyle company for the BOD.
Colin Bird & the BOD may turn it around but then again he may not ..........

The MOU is still in play and the due diligence process is well underway with a view to re-listing at the end of the 1st Quarter (31st March 2018) However this is a one asset purchase by Contango Holdings from CGH which will become part of the enlarged entity for re-listing. The concern is that at present CGH and its advisers have not as of yet provided details of the proposals to shareholders. Its a de-listed company so they are not obligated to keep investors informed through an RNS. Contango are only suspended and will be making further announcements in due course via and RNS

Yes its all encouraging ( 81% of Ordinary shares have been allotted). As a shareholder I made the decision to hold off on the additional open offer to shareholders due to the significantly enlarged shares in issue. Until there is a notable generator of revenue and profit this share may decline further as we have seen with the recent sell offs. I will buy back in if it falls below the offer price.

Its certainly pleasing to see a positive BB and no doubt the additional services of the new Board members will help sentiment. However between the 5th Jan and 12th Jan 2018 the shares in issue will be enlarged from 3.8 to over 5.2 with the increased MC to follow. In my opinion the share price might decline slightly as placings and issued shares normally result in a declining price for a short while to keep the MC suppressed. Any thoughts on this>>>>>>>>