Member Info for GLR1990

Didn't expect the market to react this badly, could do with another interview from the TLOU team, was all very positive in November and December

Morning all
Not sure why we are down 12% on that news, people expecting gas flow rates I presume however pretty much what everybody knew - the gas is still too inconsistent to officially release/confirm flow rates

Currently have 2.9m in cash, should last 6-9 months although likely to raise before that of course, so guessing a raise will likely come in Q2

The company still predicts solid newsflow for Q1 posting the following

· Power purchase Agreement (PPA)
· Generation Licence Award
· Finalise Project Finance

That would be seriously healthy for the SP so, based on what I have read, I am happy to hold for the time being as nothing has really changed, aside from a 12% fall in SP

Some decent buys here today
be nice to get back to the 5.5p-6p levels before RNSable news
Surely gas flow update due this month - as ever, I remain optimistic

TU caught my interest here but was put off by the admin expenses, however after investigating further, am I correct in the following statements
- Location Assets have moved on to Xmode, where LSAI will retain a revenue share but with none of the costs? The costs seemed extremely high for this buisness as per the interims which showed a loss of 850K for this asset?
- Verify costs circa 250K in the interim's but the revenue set to be up 9x vs 2018 which would be circa £450K - even if we assume £500K cost for this, with the current growth in revenue in this side of the business, one could easily forecast this to be very profitable in due course
Secondly, is there a revenue share with Xmode? This arcile suggests so
https://adexchanger.com/mobile/x-mode-acquires-location-data-assets-from-uk-based-location-sciences/
Quote "Although terms of the deal were not disclosed, the relationship will be structured as a rev share arrangement"

Any pointers welcome, nowhere near clued up on this company, but the recent TU suggests it could start a nice steady climb

How on earth would the MM make a margin picking up £200K worth of shares a fraction below the ask, The broker would be sacked within minutes

There was potentially positive news from the trade however, it would appear someone with a £100K holding is potentially willing to hold a bit longer

That's a good point NTM and a 1.1m cash injection is certainly needed - good business over all to be fair getting that price for the asset, did they only pay £400K for it?

For the first eight months of the current financial year, Furnace made a loss of £193,000 and received capital investment of £218,000.

8 months so 2/3 of the year, one assumes 300K investment per annum and costs of Circa 300K per annum, should save them £600K per annum to the bottom line

It's a start... but it's not much, total comprehensive operating loss for H1 2019 was 1.546m - even with the reduced costs going forward, there is still much work to do

Agree that if the 'promised' solarwinds revenue does start to flow in, at any point in 2020, then they should hopefully be able to breakeven, although they would need at this rate Circa 3m revenues at 80% margin from New Business (e.g. Solarwinds) to achieve that, so Circa £250K per month

They do mention an update in the Interims

'SolarWinds is live and additional improvements are expected to commence in the first calendar quarter of 2020. The mid-market product continues to grow, and we are also expecting this to progress in early 2020.'

No mention of the previously mentioned significant ramp in revenue, and the figures they was quoting in 2018 (Wasn't it 200-400K per month?)

Who knows, good luck to all those invested, if there isn't any Solarwinds revenue in the next 6 months here (significant amount) now they have said its live and ready then it will be clear in the results

Just had a read of the RMS RNS's statements over the last month, if you don't recall it used to be AERO before being rebranded, on the 19th December they proposed the sale of their GeoCurve business because the capital required to improve a loss making business was a risk they considered not worth taking (competition among one of the reasons) - they used to have Geocurve down as the game changer as well

Made me wonder if this could be the future of FLX? They do have some parts of the business that are doing OK (Assynt for example) but overall, the losses are mounting and 4m GBP was not enough to straighten this company out, would another £4m GBP be enough and at what point, do they simply just start selling off the assets?

The current MCAP is just over 5m, how much more cash does this company need?

All the best not advice do your own research

Good points

Yes timelines are always a bad idea on AIM, very rarely does a company meet these especially in certain operating territories, shoot in the foot moment there
Gas flows I am not sure, the interview was very bullish, maybe I have a different perspective as I have only been invested here a couple of weeks vs LTH who have been waiting longer, and likely have a lot more to lose? Personally, I am not too concerned and believe they are going about it in the right way, although ask me again in 2 months and I might be tad more stressful!

Not surprised, not sure if anyone seen my investment case on twitter but I did finally buy in at an average of around 4.8p

In Summary
- Botswana fund 10%+
- Advanced discussions for 2MW and 10MW project financing, 10 USD/30 USD injection either way
- 2MW allows them to ramp up over time, if market reacted somewhat subdued to this (versus full 10MW) then another opp would present itself
- Gas flows appear to be positive but obviously this is the risk, CC seemed very bullish only as recent as December and said he expects it to not only match but exceed commercial rate
- PPA delays frustrating but likely IMO to come after gas flows and project financing
- Project financing potentially coming from the BDC which is an arm of the government, the backing this project has from the country leaves me with little concern
- Cash backed until at least H2 2020, which gives investors coming on board at this price, IMO and only in my opinion (not advice) a full six months before any placing concerns need to be addressed
- Other projects

Again short term price movements really should be ignored when 1-3 pieces of game changing news is due in the next 6 months, it could be this month, it could be in 3 months, six months - but having three options and no concern of an immediate placing, is why I have taken a position here and see it as very good risk v reward

All IMHO and as always do your own research, not investment advice

There really doesn't seem to be an investment case here, they actually appear to have somewhat peaked and I am not sure that the revenue will increase that much for this FY, what I am pretty confident about is the operating loss will significantly increase and the cash position is concerning

A real shame, had this down as a potential great company back in 2018, they really need some recurring revenue from Solarwinds, or another strategic partner

What's everyone's expectations of the gas flow rates?
Within the commercial zone of 80-100K, or exceeding?
Presume 80-100K would put them in a good position to then start finalising the PPA and Project Financing - surely that is the missing key detail to conclude negotiations - Also I am correct in saying this should steadily increase over time to a peak commercial rate

The Bosch TDL 110 is on Ebay
Probably a small, local supplier that doesn't have an e-commerce website so using an Ebay shop to sell the product
There are actually three people watching it - so probably a good avenue for the small supplier to use
Absolutely nothing news

Looking to take a position here, what's the current cash position?
Can see they had over 5m end of June 2019, however 2m per annum goes on general admin expense (salaries etc) and they also used almost 9m AUD in investments

Payments for exploration and evaluation assets (6,942,758) Payment for property, plant and equipment (1,987,503) NET CASH USED IN INVESTING ACTIVITIES (8,930,261)

MKA might not be aware

Once they are aware of the news I would presume they will enquire with Talaxis, the interesting part will the response from Talaxis... then likely, that will be very sensitive and need to be immediately RNS'd

Nice post NickE but must point out that the total sales was not 500, but the total units in the trial to a particular client was 500

'So far, 500 units have been delivered to a Russian client which have been successfully tested. The Company remains in discussions with this client in respect of potential further orders of Lokies units'

3500 would be nice but I doubt each one of the 'several' clients have taken 500 - regardless, 500 for a trial is a pretty significantly high number and one would estimate that the total deal would be many multiples of this

They've certainly gained a lot of interest in 2019

Chill re-rate will come, its election day and looks like a few couldn't wait to leave (most likely to go and chase a rainbow elsewhere)
Good progress on all fronts
New 1.3m order over 3 years
WIMC and ICL going very well, likewise with ZERO
We haven't even got going with CropX or Bosch yet... Cargo Signal and Arviem
200K up front as well, so no need to use our own working capital etc. (last year we had to place to bring in a 1.2m order, how far we have come...)

Said it before MB coming on board ex Pilat Media BoD - know's what hes doing and why he is happy to take shares instead of salary, likewise with the rest of them

Will rise towards results IMO - Lokies seems very positive also, there is legislation passing on Jan 1st in Russia "all goods in transit must be sealed with an electronic GPS/GLONASS device" or along those lines, so could see some movement there in the next few weeks fingers crossed

GLA I am one very happy LTH here today

I honestly think it just takes time, I think its just the industry / logistics - much more than what the average investor is prepared to wait

For example, Bosch are working with K+N (arguably the largest in the world) they did trails back in April, and it was only in September/October that there was an update on what happened in those trials, add in the time to review and make the decision, Bosch could be looking at Q1 2020 or further before K+N commit to anything

We signed with Zero in 2017 (name wasn't disclosed) and it was 2 years before the product was released (Feb 2019 Zero SRF)

We was in trials with Arviem early 2018, only in the summer of 2019 did we get an RNS saying that we are now on board (Evidence also on the actual Arviem website now) - Same with Cargo Signal etc.

We've got these clients on board now, it's time for the SP to rerate IMO DYOR

FK1 likely be LTH or people averaging down, or maybe the BOD?
Happens a lot, remember the last results, went over 2p - only to come crashing back down
Fully expect this to go sub 1.25p in the near term, placing now likely in Q1 2020 which will send it tumbling further
Total avoid in my humble opinion, at least until they raise again and possibly make some changes or additions to the team
The suite of products appears to have some value, but to spend 3.3m for those results results makes it a total avoid IMO DYOR not investment advice

Of course like any share on AIM they could get lucky with a large deal and/or something along the lines of that solarwinds partnership

Nobody cares about the UN deal, they only mentioned it because it was an endorsement, which MR specifically points out in the 2017 interview

No big orders from Bosch is a little frustrating, but doesn't have to be a big order to make a significant contribution, what is wrong with 100K USD a month?

Repeat orders is what we need, not a one off never order again RNS, and no idea why it would probably be this because we've signed lots of new clients in 2019, Zero, ICL, CubeMonk, Cargo Signal etc.

What's the bear case here folks because just ran the numbers, looked at the costs, and potential for when they have 15K (15,500?) machines online, along with 'analysts' view on the BTC price short term and long term, and it looks an absolute steal

Only bear case might be that the current BTC outlook, short term, is bearish, but not for long

What's the rate of mining (if that makes sense) e.g in 2-3 years will they still be able to mine as many bitcoins at their current rate, or will this decrease significantly? In other words, what's the mine life?