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Well as I said do the number on the deal. Lets suppose the profits are only 10% of the gross price of the metal in place and that RRR farms it down to a 30% holding? What numbers do you get? I have done my numbers and I am very happy with them for a company with a market capitalisation of £4mil or so.

That would be the JV partners who brought the deal to RRR and are still taking a chance on whether RRR proceeds or not.

Do the numbers: based on the October 2017 numbers and the current prices for Cobalt and Copper it is a cheap deal. It is down to the DD and the legals. Either it stacks up or it doesn't.

Currently 16.4% up: seems to have gotten hold of some Viagra for shares. So Mayan's holding is worth 16.4% more.

Funnily enough, I was just thinking about this very point this morning.

If you wanted acreage, you would want to lock it up before the wider market got to understand exactly what it is that you had in the technology. If the PQE tech works as well as they think it does (I am 99% certain it does) they you would want to get the acreage locked up before your own tech drives the price up.

DYOR

To clarify on Deloro.

When the deal was done, Deloro was going to have an economic interest in the plant AR and the oil field. It would in due course receive revenues and it would deal with revenues in the usual manner.

The above is no longer the case. Now all that Deloro has is shares and warrants in Petroteq and shares in Mayan. There will be no revenues coming in in the short term. Deloro has lost its purpose which was to hold the economic interests as above.

Continuing to hold Petroteq and Mayan securities via Deloro makes no sense for anyone and potentially it leads to a double tax charge in the US.

Some investors in Deloro will want to hold PQE and MYN for the long term and some will want to sell earlier.

It is entitely logical that it would seek to wind up sooner rather than later.

DYOR

I will quite happily tell you two big mistakes that were made:

Raising money to invest into Block and then negotiating poor terms for the investment. The intention was that the two copanies would be closer but it didn't work out. That fund raise knackered the SP.

The other big mistake was spending a lot of money on the gas gathering network for LM14 and then not using it.

DYOR

I have no intention of going through past figures, it is a waste of my time. It is all in the RNSs. Listen to Eddie's last interview for the circa 100/110 bopd figure. Cash burn is what they spend on a day to day basis. Work on projects and wells is extra.

The lock in on the Petroteq expires on 22/09/2018. Deloro intends to wind up and distribute in specie before then. Block will be on with its workover programme shortly. So both assets will be liquid and be capable of being sold. There is no new lock in relating to the NASDAQ listing, I have checked and I am a Deloro holder.

Cash will not be an issue; the only thing is getting the regulatory paperwork sorted.
Tedious but the way it is.

You should also bear in mind that Eddie likes deals and the company has repeatedly said it is looking at multiple deals.

DYOR

The company's cash burn is about $100k pm. The cost of the actual work is minimal $30k/$50k per well. The company is cashflow positive at about 100/110 bopd. There are no issues with the wells. The issue has been with the operator (not contractors) at FH. They are waiting on the new operator for Forrest Hill being agreed and that Mayan is agreed as the operator for ZR.

Once the new operator for FH has been agreed then the wells at FH can be switched on pretty fast. Similar with ZR but more work involved: once they are on site at ZR it should take about a month to do the work.

Frustrating but the US does have paperwork and bureaucracy.

On the new wells, they are doing DD and are making sure that that they have good title.
DYOR

I don't see how you come to that conclusion particularly as he has discussed it in interviews.

Basically what happens is the company confirms it will start a buy back programme and then buys in the market. What it should affect AB's position is beyond me. The company buys the shares and cancels them. It is a standard procedure and its used when a management team think a company's assets are well undervalued.

If the management team are right, then the buybacks increase the NAV on the remaining shares.

DYOR

PS

don't forget that we should also get a revaluation on the JMS holding and possibly on the Migori holding.

Why? The technical reason why RRR cannot do share buyback is because it has no distributable profits. Part of that is because of the write downs on assets required by IFRS. If those are written back or new assets revalued up, then that position gets reversed.

AB has twice given interviews where he has said he would like to make distributions later in the year.

Now I know what I think Steelmin is worth but what I don't know is what value RRR are allowed to put on it.

The debt transaction earlier this year involved third parties and Steelmin would have been valued for that purpose: at the very least RRR could use that valuation and subsequent events would mean that the assets are valued at more.

DYOR

It will be interesting to see if Steelmin start to look at refinancing the debt that they took on earlier in the year.

Another point is what value does RRR put on Steelmin for the purposes of the balance sheet?

AB and RRR obviously knew that Steelmin was in commercial production at the RRR year end and so it can be revalued in the books. This might open the door to share buybacks.

DYOR

A Migori update next please and then the dividend declaration from JMS.

But, but, but,......

EBITDA positive!
Production, sales, customers..... etc

EBITDA positive for the month of July.

Superb!!

Eddie likes deals.

What are the chances of a black swan, completely left field that changes everything?

Eddie's connections get better by the day.

So PG has increased his position!!!

For someone who is a seller he is very keen on buying. Mayabe he knows something the PIs don't?

DYOR

They need a permit to sell the oil. Once that they have that they are off t'races. I fully expect them to knock that 1,000 bopd target out of the park.

I used to work on chemical plants for Shell a long time ago. We used to have engineers crawling all over the plants all the time: they were looking for small gains or improvements that could increase output or reduce costs or recover more from the waste streams. It was a non-stop process. Given the length of time that they taken to get to this stage and the announcement re the cavitation process a week or so ago I reckon that the same process has been going on here. Anything that they can do to increase output and reduce costs will have been looked at in detail.

Nearly there.

DYOR