Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
In October 2022 they predicted gas flowing from A1 and A2 by the end of the year/early 2023 .....now they have no gas from those wells plus a lower gas price average going forward for future gas prices.....of course the gas price is relevant......when they have have covenants to maintain on the bond....H2 is vital for the company going forward and is no way guaranteed and is still 3 months away from production.......I question the whole validity of these gas fields they are drilling which are the left overs from the big gas producers from yester year.....not for the faint hearted...
True,,,,,but not all companies have IOG liquidity concerns....
From the presentation.......gas prices do not seem to be in IOG favour going forward,,,,,some of the gains in production from H2 could be lost in the lower gas price compared to the average price in 2022
• IOG 2022 average realised price of 203.5 p/therm, with
very high volatility
• Market recently stabilised in 120-150 p/therm range
- Mild winter
- High LNG supply (and Freeport restarting)
- Demand destruction
- High European gas inventories
• Forward curve prices NBP at >100p until 2026
If they secure funding and the SOA then this should increase the market cap of the company before they have to pay the claims via issuing more shares in june 2024.....1 for 19 will result in there roughly being 2.6 b in issue......with the claims paid and the company back in profit....what will the shares be worth then?....remember this company used to have a market cap of £180m plus when trading normally......plus the competition has gone....not for the short term or the faint hearted but could do well over the next five years if they survive......imho
I would like to see him buy more than 225k shares.......not a great vote of confidence......it does look cheap at this price but there is not much headroom on the finances and if the sales of hotter continue to decline due to the economic environment then they have nowhere to go except for another cash raise....
What happens if it is withdrawn....
"The Matched Bargain Facility will operate for a minimum of twelve months after Cancellation. The Directors' current intention is that it will continue beyond that time but Shareholders should note that it could be withdrawn. Further details will be communicated to Shareholders at the relevant time"
A buyer before the SOA is agreed?.......today Amigo have announced they are still struggling to find funding......
They are proposing to issue 19 shares for every one share held....meaning the current mkt cap at the time of dilution will be x 20 post dilution.......so present market cap of 1,25m x 20....equals mkt cap £ 25m post dilution and so on depending on price at the time of dilution.....
The current valuation is £1.25m.......post share dilution this equates to £25m........for a company that will have revenues around £80m to 100m if it gets back on track post funding...........a share price of say 2p a share now roughly doubles the market cap figures ......to around 50m. post dilution.....then you have to throw in the delisting scenario as either a positive or negative?
Take your bets.....
LOL..... good luck on your pump and dump.....
Does not look like the capital raise will go through........nothing for shareholders.....
The market is pricing in a dilution of stock similar to Amigo share price which is facing a 95% dilution.....
From RNS concerning ch 11......still everything to play for especially if you have bought in at these levels...
"Any such filing would be expected to allow the Group to access near-term liquidity and support the orderly implementation of a fully funded deleveraging transaction. Cineworld would expect to maintain its operations in the ordinary course until and following any filing and ultimately to continue its business over the longer term with no significant impact upon its employees. As previously announced, any deleveraging transaction would, however, result in very significant dilution of existing equity interests in Cineworld.!"
Cineworld's evaluation of these strategic options remains ongoing. A further announcement will be made if and when appropriate.
FGS Global:
James Leviton
James Thompson
Ed Treadwell
+44 (0)20 7251 3801
cineworld-lon@fgsglobal.com
From RNS.......POTENTIAL FUNDING IS STILL ON THE CARDS...
"Despite a gradual recovery of demand since re-opening in April 2021, recent admission levels have been below expectations," the company said in a statement, adding that it was still in talks with parties over potential funding, or restructuring of its balance sheet "through a comprehensive deleveraging transaction"
Yes... the mkt cap of Vue in the debt for equity restructuring is £650m......CW is x3 the size of Vue......plus they have the option of selling the european division to reduce debt......ch 11 does not always result in shareholders receiving nothing look at hertz!......
Andy111......where as the company said ch 11 will wipe out shareholders ?
Most of the FT article has been mentioned before and is only supposition....the only interesting fact was the potential sale of the European Division which has a value of what ?
Correct and the remaining amount was put into an escrow account....