Member Info for in4cedros

LayLadyLay - not looking good for you mate - the August figs are out showing yet another increase, albeit modest, which augurs well for Goudron, although clearly one can’t be absolutely emphatic as the field breakdown isn’t provided!

Have a great day - keep worrying if that makes you happy!

Page 65 of y/e 2017 accounts states total carried forward losses amounted to £9,087,000 - yes over £9 million!

I know many regard me as a prolific party pooper but I do believe talk of such early dividend payment is more than somewhat fanciful - without retained earnings it's my understanding that dividend payment would be illegal ! My view is just that - I understand we have some contributors that are knowledgeable on accountancy who may care to comment - I'm happy to be disabused!

It may be possible to do things other than dividend payment to revive SP - perhaps a proper share buy back ( not this individual director idea ) might be viable - no doubt AAU BOD are keenly investigating all avenues to keep shareholders happy!

VanVan - I'm happy to appreciate and respect what has been achieved and I have to say that it wouldn't have been possible without shareholders putting up risk capital many times in the past based on Kerim's indication of ultimate mine profitability, at SP's majorly exceeding current SP.

Whilst we can marvel at the creation most investors are keen to achieve a return on their investment, some were able to realise a return by increasing salary and taking bonus but many weren't able to join that particular bonanza and have been asking the BOD to address the languishing SP for some while - fundamentals looking good here.

Are you expecting disgruntled investors to keep quiet on these boards?

Re the mine visit I view it as a positive step as hopefully some good PR will ultimately materialise - I certainly believed that the mine existed and was producing before the visit so it wasn't revelationary for me - if it stops Biggles dumping his stock as well it was probably worth inviting him especially as he thinks the BOD are underpaid LOL!

Benjie/VanVan - many thanks for the contributions I claim no accountancy expertise and have not investigated the tax treatment of the Islamic loan. Accounts are supposed to give a snapshot of the business to an outside observer - if the finance charge indicated is not the actual payment that was made but is an amortised notional sum I do believe that should have been explained in a footnote in the accounts purely to be helpful to readers be they existing or potential investors.

This business of loan repayment has always been the subject of discussion on the boards - I did argue at one time they should publish a full schedule of the loans - this was countered by the comment it was not straightforward as each tranche was taken at a different times but AAU know the details and publication would be helpful to all - those who are not interested are not obliged to study and comment on it.

With regard to Tavsan finance I would have thought Kerim would be well placed to secure a deal where there are no significant payments in year one as the Kizzy deal appeared to be structured that way and would have worked well had the mine completion not been delayed - seemingly the bank wanted their repayments on the original schedule hence need for the Placing to cover a range of items, including director bonuses which gets an occasional mention!

Obviously the JV will be in a strong position to obtain finance with their track record and the continuing strong cash flow from Kizzy.

Benjie - if you look at the JV accounts you will see that finance charge is a deduction and this appears to include both capital and ' interest ' and is huge so that it brings down the amount available for distribution to AAU significantly. When the loan is repaid these deductions will cease ( until another loan is arranged ) - at that time the available cash for distribution to AAU will rise massively- these are the figures that investors are relying on to give comfort when weighed against the risks of this share.

LGO-fan - masterful post!

BTW anyone know where Ross is going where mobile access is problematic?

VanVan - everyone knows they take a risk when buying shares - some are more risky than others and sometimes the market does not value shares in the way shareholders would like.

Yes it is easier to blame someone else - I have focussed my attention on the BOD because the SP did not justify the bonus or the huge hike in salaries - the actions were clearly unpopular with the majority of posters here and on advfn - are these the ‘ decent people ‘ you were referring to? If so you are entitled to your view and I will stick to mine.

It’s possible that without the bonus and huge salary hikes the SP may still have performed badly - people would still look to BOD for ways to address the SP situation but at least there would have been a feeling of all being in it together whereas it’s not like that now for most observers - although I accept there are a few exceptions, including yourself!

Most people are prepared to take the current SP on the chin as that is the risk of share ownership but to argue it’s the shareholders fault for probably buying in too early seems to be ignoring the actions of the BOD - if this company’s prospects are so great why did they need to take their rewards before the shareholders?

I don’t remember reading in the prospectus for additional money pre mine completion that the BOD were going to vote this huge bonus and hike salaries- I believe one of the endearing aspects of the company was the BOD being reasonable with pay as cash was continually coming from shareholders.

Good luck with the ‘ our fault ‘ argument over on advfn - I’ll be watching with interest how you present that argument!

BTW good post on fundamentals in reply to daim1 - many learnt much from the exchanges - the company is no basket case but the most important fundamental is that it’s owned by shareholders and although you expect decent behaviour from the BOD sometimes you don’t get it - the tone of that rns following your meeting about the bonus sounded alarm bells for me and they subsequently hiked salaries - really empathetic!

LLL - BTW I recently came across a football trivia website about global slang and being keen on Leeds I thought you might be interested that, apparently, in Korea the phrase ‘ Leeds Days ‘ describes a person’s heyday referencing a time when Leeds United were a reasonably successful team in Europe - do you think you’ve had your ‘ Leeds Days ‘ on this board ?

LLL - of course HOH might be saying that he appreciates the fact that LInd are an accommodating borrower for CERP and is happy for them to participate in equity gains in the future even if they are dilutive at a SP of 8.1p because they are assisting at a time when the SP is circa 4p.

If you are capable of broking a better loan deal than LInd feel free to throw your hat into the ring - bit late for this round but I’m sure Leo will give any submission from you the treatment it deserves in future!

Dross - it certainly was an interesting presentation- those that bothered to watch the media know that these wells at Goudron have had issues with sand and they require regular attention as per the graphs in the media - giving the spectrum of figures enables outside observers to understand potential particularly with regard to the new pumping systems deployed.

Not sure what you mean about low netbacks as CERP are not in control of the IPSC and the terms are already agreed - as I’ve said before the deal for the first circa 150 bopd is not anywhere near as good as the surplus which is why the overall figure is low - I thought you knew that dross!

John - I do try to be pragmatic in my posting - I hear what you say about Utility companies etc and I do believe many of those salaries are obscene but nevertheless are used as a benchmark for other ridiculous claims - unfortunately there is little I can do about the big picture but AAU is a company I’ve had a long association with and I was very supportive in the pre mine completion stage - I genuinely believed we were all in it together- hence my shock when at the first opportunity- some might argue before the first opportunity, the BOD raided shareholder funds for that bonus and subsequently massively raised salaries without concerning themselves about the SP.

You raised the issue of staff in Turkey - I’m not aware they have enjoyed pay rises of the same magnitude as our UK BOD but if you feel this is an issue I will be keen to consider your detailed submission on the matter.

Desertjoe - note your comments about the scenario which I have often referred to on the other board. It is pretty negative but unfortunately I had to be brutal because unless shareholders become more assertive even more liberties will be taken,

Kerim seems like a nice guy and he was polite to me at the last AGM even though I was the only verbal critic of the NED before his re-election vote. In the course of discussion at the AGM someone floated the idea of increasing production - Kerim responded that this would reduce mine life and affect employees in Turkey. As an employer you have to consider interests of employees as well as shareholders and I applaud attempts to strike a reasonable balance - but I couldn’t help thinking yeah that’s great provided you’ve grabbed yourself a great remuneration package in the meantime which enables you not to have to worry about the SP!

Obviously if they manage to sell Salinbas that would be a great boost for the shares and that could happen anytime - MDV claims there is lots of interest -in that scenario my negatively would be risible - it’s the carrot that seems to give comfort to shareholders despite the poor SP performance.

John - the information about the road would have been disclosed ultimately and people would have moaned more the longer Kerim withheld it - hopefully Kerim will learn from it that shareholders, without which he wouldn’t be where he is today, are keen to follow the progress of the business and like to be kept informed.

Kerim has hosted many roadshows over the years to encourage people to support his venture with shareholder money - some disgruntled investors have left others possibly believe the project will be ultimately very profitable and have hung on - they have the right to be critical of bod actions, particularly the nest feathering aspects, which seem offensive to many even if you are personally very relaxed about it.

IMO the BOD have taken advantage of the good nature of most investors and believe they can run the company for their benefit firstly with shareholders being a sometimes inconvenient afterthought.

I do believe Salinbas is a good opportunity- if I become a shareholder again I might change moniker to in4salinbas!

John - re illuminating interviews - at least the ‘ road ‘ bombshell generated traffic on advfn and lse as well as Turkey!

Chesh - are you friends with all the cast of Allo Allo!

Thanks for info jcg - I’m sensing another blockbuster media that Ross won’t want to watch!

LayLadyLazy - i can’t be responsible for your characterisation of me as a spin doctor - just a shareholder commenting on developments but if I had a binary choice between that and ‘ Nurse Nightmare ‘ I think, in fairness, I would have to leave the latter for you, particularly as you were gleefully hovering over the life support switch when LGO were close to bankruptcy!

LayLadyLazy - I'm a bit disappointed you have proffered no evidence to support your allegation they would not save money by their office relocation activity - as I said before it's not a major point but you were the one who thought it was newsworthy in the first place so it really was for you to follow through otherwise readers might draw the conclusion you were just tosh talking AGAIN!

BTW pleased you are satisfying your needs by publishing the material on Petrotrin at the moment I'm sure we all wish them well in their quest for a long term solution to a difficult issue - have you written separately to Petrotrin with your advice - I'm sure it would be given the attention it deserved!

LayLadyLazy - I notice you are very dismissive of savings made by the change of address and looking at the big picture I wouldn't have said it was a game changer which rather begs the question why were you so desperate not to give any credit for LK action on head office costs - even alleging that savings were illusory because of the terms of the lease - you seemed very confident then - where is your evidence LayLadyLazy?

Neon - there is a tradition here that someone debates with the trolls - some find it entertaining others don’t but it’s been ongoing for (n)eons here (LOL!) - anyone investing in CERP should be aware such debates are likely for better or worse!

LayLadyLay - (1) - Yes - probably part of the CV for CEO job on most plc - nothing wrong with being positive where justified - I do think you let yourself down in that department LLL!

(2) - Trust but verify !

(3) - difficult to say without a detailed inquisition of Tony - no reason to believe rns are lies though!

(4) - l don’t as I don’t attend board meetings but I suspect that’s the way it’s done as they regularly report progress. Bopd and accounts ultimately assist in verification

It all sounds plausible to me at the moment and I don’t believe the BOD are a pack of liars but if you know different I’m happy to hear what you have to say but don’t be LayLadyLazy put some effort in - eg what happened to your story that CERP were not saving money by switching offices - why haven’t you proved they were lying by now - where is your evidence?