We spoke to gas explorer and developer Sound Energy. Here are the latest updates from Executive Chairman Graham Lyon. Watch the full video here.
One can only assume these 1m sells are Ruffer - their last holding statement was in January 2019 , they held under 5% which in share terms was no more than 100m shares.
The share price is disappointing to say the least, I have posted historically the barest minimum compared to peers should be in a range of 2.25p to 2.5p, since that time operational performance has improved significantly.
It is all rather strange.
The latest from Nick Candy - not short of a bob or two is he, he is one of the major shareholders in MTL
It costs EVERY AIM company £250k/£300k for it's annual listing, that is a well know fact, Nomad, Advisors etc
Recent salaries for RRR have been modest - Bell base salary was £82k in 2020, same in 2019 - total director base salaries were £183,000 in 2020 - comparable to many peers.
G&A costs (which include those salaries) were £600k for both 2020 and 2019 - again comparable to peers.
The running costs of Red Rock are no different to most other junior resource stocks.
Interesting post this morning over on A@VFN - a sale of the company would be one way of returning shareholder value
MrMcnee13 Apr '21 - 09:36 - 32711 of 32711
The company appears to be packaging themselves up to be sold, legacy debt provided by Directors and company friends has been converted into shares + infrastructure improvements (e.g. mini refinery and all weather road) have been made recently to make Petroneft more attractive to prospective buyers.
It is worth noting that Oil India paid $85m back in 2014 to acquire just 50% of one licence (no 61)
The main shareholder in Petroneft is a outfit called Natlata they now own 25% of the company and have been aggressive and want a return on their investment having paid much higher prices for their shares.
Natlata have been instrumental in removing the useless historic management and have put their own team onboard - the new (and seemingly impressive) CEO was one of their appointees.
I fully believe Petroneft will be sold and a deal could be announced sooner than many believe, the environment is now ideal for such a sale.
With 919m shares in issue PTR is valued at a mere £21m - any deal would be north of 10p a share for certain.
There have been a few tweets concerning Petroneft from Russian focussed investors, all suggesting the company is materially undervalued and are expecting a material re-rating once news starts to kick in.
All I personally know is that it is exceptionally hard to buy a meaningful slice of shares in the market at the best of times. The stock is exceptionally tightly held.
I have to say not the best update, one wonders what exactly is going on concerning Slovenia, are they going to pursue action or not, are they still trying for a 'amicable settlement' or not.
This could have turned out very well indeed but the Slovenians pulled what appears to be a party trick, asking for an extension to the 'deadline' which encouraged everyone that some settlement would be reached, only to then declare they would not compensate.
Goodness knows where the share price will go now, on the face of it there is little short term excitement to drive it back up but on AIM anything is possible and usually happens when least expected.
It was always going to be tough buying any sizable lines of stock on the way back up, the shares look materially oversold and could easily be trading in the 8p-10p range given the recent sector bounce.
The Proactive article was very positive and demonstrates the clear undervaluation of AYM.
Let's see where this goes, if the right news comes it could offer a very decent return from current levels.
Looks like interest is building
Some interesting commentary over on the A@VFN bulletin board as to why the Congo deal may not have been a good one, probably why Anderson effectively blocked it.
Maybe a blessing in disguise, buyers are hoovering up the cheap shares.
Bell interview just uploaded
Having taken a brief look at the holding RNS statements it is pretty clear Anderson has put in around £3m, he first appeared on the register in September 2016 when it was announced he held 39m shares - he now holds 103m, his last purchase was in September 2020, he may have been made 'inside' on the deal which would have stopped him increasing his stake further.
The trading range over his tenure as a major shareholder has been 6.25p to 0.60p he has been adding throughout, he was also quite aggressive leading up to the proposed transaction.
I see no reason why he would throw money at ORM without purpose, he clearly has a vested interest for the shares to trade far higher, I expect to see more buying from him now the deal is off, this in itself will support the SP if it happens.
As per my previous post I expect to see a requisition motion called for removal of the BOD and new proposals, Anderson will not allow the remaining cash to drain away on G&A and (modest) salaries etc.
In my view ORM is in play and it's a watch this space situation, I will be adding !
Incredibly negative commentary on this BB all of a sudden, no deal they cry, oh well what a pity, how does anyone know the deal was a good one, the same folk who are bashing the BOD clearly believed them when they said it was a great deal (or words to that effect) how strange ?
There was never any clarity on how many shares the BOD wanted to issue (diluting Anderson in the process) they could have issued 500m or even 1b new shares in the future, why should a major shareholder put trust into the current BOD to deliver value in the Congo having failed abysmally in the past ?
I am betting on Anderson calling for EGM to remove the BOD (it would not be costly the highest paid is on £65k a year) he may also have a new plan for value creation.
Folk selling now at current levels is plain daft IMO, albeit some siren voices are coming from historic sellers probably hoping for a new entry point, Anderson has probably paid as much as the current m/cap for his 21% stake - he is hardly likely to want to lose it is he, therein is the clue.
The next news could be just what the Dr ordered.
Nothing available online early doors - IG wanted a premium for just 10,000 shares 1st thing - now upped bid/offer - looks like there are background orders being filled
This is seriously oversold (from 40p) a decent bounce is well overdue.
One can only assume the large 21% holder (Anderson) is no mug and would have inside information on the proposed deal - maybe the deal was a atrocious one, come on the Congo is hardly a great destination, other AIM juniors have picked up top notch exploration land in Australia or Cypress as an example.
I would not rule out a requisition RNS from the major shareholder aiming to have the entire BOD removed, why not, he has the power and surely the motion would be passed.
I bought in this afternoon around the 1.1p mark, I believe there is much more to come from Anderson, in the past he has moved into the market and bought on drops, he could continue to increase his stake.
If there was a requisition with proposals from Anderson I am convinced the market would react favourably, the cash ORM have is very meaningful and useful, ORM is not a basket case, the BOD seem to be the issue but they can be removed.
New exploration licences can be picked up quite cheaply (see the model POW use) that circa £4m can go a long way and is very appealing.
One thing for sure is Anderson will not sit around and allow the current BOD to eat away that cash on salaries, I feel a requisition coming !
Despite the fall it is exceptionally hard to buy AYM in any real size, have placed a limit order this morning at full offer and cannot get it filled - I find this incredible for a Main Market listed stock.
I remain of the opinion the directors strange decision to use a ETX/Monecor, a Spread Bet entity to raise funding baffling, hopefully they will see sense and never use this outfit again.
It is hard to buy for a reason, my bet is there is a large naked short position in the stock and entities do not want buy volume disturbing their fun and games, AYM has historically attracted 'herd' traders, if they see the shares moving up they will pounce back in and the shorts could get crucified.
Good luck trying to buy, test the market and see.