Positive or Negative - I guess it's down to you to decide!25 Jul 2020 12:28
Surely this next step is all about managing the costs and keeping future share dilution to a minimum
Go back and look at all the RNS’s since 27th April and have another read through – constant message re cost management – reduction here, reduction there, so is this just the last part of the master plan which now appears to have been fully taken over by Zubairs
So, Mr Ambrose has taken the new ‘interim’ role on a massively reduced salary from previous, allocated share options and then scrapped them just as quickly and then reintroduced options again with a large reduction which is to be voted on at the AGM next week - be even less required now that 2 directors have left!
‘Since becoming CEO on 27 April 2020, Robert Ambrose has accepted an annual salary of £60,000; a 67% reduction from the previous CEO (£180,000 per annum salary) and a 80% reduction from the CEO before that (£300,000 per annum salary)’
Mr Harald van Dongen and Mr Jan Gunnar Opsal - £35k and Linda Beal was on £35k
So AEX now have a board of 3 directors with a total cost @ £130k – last CEO was on £180k alone!
To me this highlights Mr Ambrose, since his appointment 27th April, has a firm grip on making immediate changes and has quickly taken out costs, reduced staff and agreed to pay the CGT to get this farm out completed (still not sure on the time line for the CGT negotiations – was this one of the reasons for the delay, I just wonder when this tax payable was first raised by the Tanz gov!)
IMHO I see this as positive and getting the house in order
MC is £32m
Free carry $35m – just waiting on one signature!
Very large assets already in the ground
New Drill to take place – hopefully very soon which may provide more share price interest plus prove up even more assets
KN1 on hold with monies due – if all sorted and agreed, can possibly be back up and running within 3 to 6 months
Nyuni Development Area
No Debt – other than $5 million on loan against farm out, which on completion this will cancel out
Receives $2m in back costs to keep the lights on – confirmed will cover costs May 2021
Chances of a possible merger with another O & G company or a full take over
This situation is not ideal due to all the delays, but it is certainly not the end of the world either – I can see plenty of positives here already with current assets in place with many future opportunities available to add to this. Just waiting for the last piece of the jigsaw. After that then I guess AEX then start a newer larger jigsaw which is mostly paid for!
Feel the market will see this as positive TBH, might dip first thing subject to investors personal take on this, but they are so so close, why would you give in now after waiting all this time!
Might even get that farmout RNS on Monday and they used Friday to get out the AGM and directors changes so the market can concentrate on the Farm out news, or maybe just more wishful thinking
Plenty of sideline investors watch
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