Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Well, I’m glad that’s over.
To the authors of the last few posts - thank you. Can we get back to when this was a board for constructive exchanges of views and information rather than a trollfest?
Yeah good point Charlie.
I think that a lot of people have overlooked the fact that COPL are transitioning from a micro-cap minnow to a serious producer. That's a fundamental transformation - many companies have gone to wall as a result of trying to swallow larger competitors with completely different management structures and accounting systems. Delays are not surprising - I'd say they're damn-near inevitable, given the volume of work required to integrate the companies.
Apart from issues relating to the outsourced auditing work (EY bill by the hour LOL...), how many administrative staff did COPL have on the payroll before the takeover? It's inevitably going to be a nail-biting wait because until we re-list, we can't be 100% certain that some regulatory spanner isn't going to be thrown into the works to de-rail the whole endeavor, but I'm still confident.
Good luck all
Yeah, that's how I read it.
The FCA has to make sure that the prospectus is an accurate reflection of the company's value on readmission. If (as we all hope) the company's value is rapidly increasing, they are within their rights to require that the figures in the prospectus are bag up to date.
One delay leads to another… I’m sure you’re right that the FCA are now requiring that Q2 results go into the prospectus, MatthewEvans.
But that doesn’t imply that we’ve been lied to about the prospectus being submitted. I’m sure that it WAS submitted when we were told that it was, but rejected by the FCA because it didn’t contain the audited atomic accounts.
Those took so long to prepare that the prospectus is now out of date without the Q2 figures… so it’s been bounced back again.
To me that suggests incompetence rather than dishonesty LOL….
The prospectus that is currently with the FCA will contain an estimate of the company market Cap on the basis of current oil revenues, projected revenues, proven assets and potential assets, all of which will have to be documented and justified. If the FCA accept that valuation, then the opening share price WILL BE that MCAP divided by the number of shares outstanding.
Market sentiment might take the SP up or down, depending on what investors expect the future to hold. I wouldn't be at all surprised to see this open in the 2-4p range, fall in an initial sell-off, then recover and make steady gains on the back of positive news flow over the next 12 months.
We don’t know what the consolidation rate will be - the board proposed UP TO 100 to 1 at the AGM, and it was accepted.
We won’t know until re-list how much they will consolidate because it will depend on what number the SP settles down at. If we are all pleasantly surprised and the SP settles at 10p, then they may be happy with 10:1 or 20:1.
Either way, it doesn’t matter - if you have 10x fewer shares that are each worth 10x more, you’ve got the same value holding.
I'm optimistic about BOIL as well. Not sure if I will topslice here to put extra into BOIL though - COPL exponential growth over the next few years is a far more realistic prospect than BOIL suddenly exploding. An oil producer in the USA is a much safer bet than a potential gas producer in east Timor...
We don't know for sure, Mr Baggins. But there are good reasons for optimism that it could be turned around quickly - as long as the FCA don't find something else to object to in the audited accounts. Against that possibility, however, is the fact that Art and Ryan Gaffney have certified and published the accounts in the SEDAR filings, so they are obviously confident that they have met the FCA's standards.
Like HfB says, it could easily be this week or next. The wait is nearly over...
Hello Ben:
I attended the Annual and Special meeting yesterday and there was mention about the time it is taking to relist on London. He said the prospectus is in their hands and that he is hopeful the process will conclude by mid-July. He spent a bit of time explaining that the audit done for Atomic was a challenge because there was little attention paid to bookkeeping and that because it was just one person doing everything (the owner) it took considerable time doing 3 years of audits. But he did mention there are no liabilities carrying over to COPL. Art is not able to do an interview or put out any news whatsoever until the prospectus is cleared by the FCA. That is the law in the UK and also in Canada. I hope this helps and many thanks for your patience and loyalty. I agree with you!
Kind Regards,
Cathy
Catherine D. Hume
Chief Executive Officer
E: cathy@chfir.com
T: 416-868-1079 x 251
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This is an email I got from the PR people 3rd June.
The prospectus can’t be FINALISED until the accounts are included in it, but the work is done. All we were waiting for was the accounts. It could be a 5 day turnaround from the FCA.
It’s certainly possible. I don’t think Art would take the money and run, but if the offer was good enough, he might.
Whether or not it would be good for us PIs is difficult to say, depending on the terms of the buyout. If we ended up getting a conversion of our COPL shares to shares of an established oiler (10:1 or 100:1, for example) it might look very good.
I’m expecting the COPL SP to be in the 5-10p range in the medium term, and I’d be disappointed if the BOD sold out for equivalent value less than that.
Good post Shaa - as always.
Of course we are going to see more placings in due course. It makes little sense, however, to propose a possible 100 to 1 consolidation at the AGM if you are planning another dilution in the short term.
Of course, if another ATOMIC-type opportunity has cropped up, then it WOULD make good sense. I would be quite happy to see more capital-raising for the purpose of funding the acquisition of another producing asset. Less so if it’s to cover day to day expenditure, since for the first time we now have an income stream.