Member Info for Isengard07

Going concern statement says they got enough for 12 months from the end of reporting period. They can extend further by reducing cost base. Also placings aren’t the only way to raise funds.

I don’t think they will raise again this calendar year or in H1 2025. They will just stretch the cash out to last longer. Nobody will take part in another placing unless they got a new carrot to dangle. There is more levers that can be pulled in the admin costs and R&D to lengthen cash runway.

Another piece of pertinent info you missed.

Look up the RNS on the 23rd August 2023. You will find this.

· “Restructuring programme completed with cost of change of £186k recognised in the Period and Company on track to reduce net cash burn by approximately 35% from £1.1m in the 12 months to June 2023 to around £700k per month for the 12 months to June 2024“

If they reduced to £700k per month in the 12 months to 30th June 2024 It wouldn’t surprise me if they reduced cashburn even further in the 12 months to 30th June 2025. Especially given their track recording In reducing their cost base In the last 2 years.

As far as speculating on another placing.

They closed the Chinese operation down last year. There are more levers they can pull to extend cash runway.

Most of their current revenue sit in US operations. They could close UK operations down and cut back millions of admin costs associated with it which only pulls £357k revenue in.

Last few years they cost their cost base down significantly. You can look back to the 2022 accounts to see admin expenses was almost £17m. Reduced to £8.4m as they said £700k per month cash burn last year. It’s probably even less than that now.

Clear trend in the cost base reducing significantly each year.

£3.26m spend on R&D; That can be slowed down.

AIM companies always need cash. You could say that for most of the AIM market. They’ve made savings and if they need to tighten their belt further they can pull more levers to make cash last another year.

Poor financials are priced in and loveable lumax admits that. this is a good risk/reward opportunity at current price levels but depends on individual risk risk appetite

Standard blurb when doing placings on AIM. Risk reward proposition here is interesting at these levels. Placing overhang should clear before the end of the year.

I largely agree with LOTM. £700k per month cashburn is overlooked as many still refer back to the £10m cashburn. Also forget the annualised saving of 750k.

From the AGM statement

They have the catalyst on a plate here. I don’t think this is priced in.

“we anticipate significant contributions from partners' sales in H2 and, in particular, contributions from our inclusion for the first time in the US Network Upfronts*, which are heavily weighted to Q3 and Q4 as per industry norms. There are multiple Upfront discussions between partners and agencies that involve Mirriad-created inventory as part of yearly packages, and we are optimistic that these discussions will lead to substantial budget allocations. We remain confident in our overall revenue expectations for the year though this does now depend increasingly on these partner-led initiatives, over which we have only limited visibility.”

Cash holding at the end of April was approximately £3.9m, prior to the receipt of c. £6.3m net proceeds from the placing and retail offer.

Around £10m end of April. From RNS on 4th June

Also a £0.75m annualised saving as well.

RNS from last year said cash burn is £700k per month. not including the further annualised savings of £750k.

Did a small 100k top up. Showing as a sell

Why do people on LSE always claim someone is a shorter just because they talk negatively about a company . Who in right mind would short a company with a £390m order book that doesn’t need any more funding?

"Non-cash impairment charges recorded of £46 million relating primarily to relinquishment of the Core Perth and Athena Licences on the UKCS"

I predicted this years ago. i was laughed at. well you guys aren't laughing now - to all those that ridiculed me for warning about this.

Interims now saying only £27.1m. Tom really did trash this company a lot while i stopped following it.

I cottoned on to them quietly and discreetly relinquishing licences in 2017/18. so i decided to sell. Sounds like others have cottoned on to it.

Roadster66 i remember you were one of the few decent posters on here. sorry to see your still having to hold shares in this.

I said all along its got nothing to do with market makers. Tom Cross got lucky with Dana. a lot of the licences they racked up were quietly written off to the P&L in 2017 and 2018. relinquished exploration licences quietly but the notes to the accounts gave away in the small print.

I haven't followed the company since 2018 , I had sold it all by that point in the 40s. Now revisiting out of curiosity. look at the share price - been hammered.

buzzlightyear4 - you were ramping this desperately in the 40s back in 2017; and now look at it. I told you so. I haven't been check in at this BB for years. No surprise your still ramping it.

Sonofthebull - you got excited every time they were awarded licences. now look at it. Tom Cross trashed this company over the years.

Streetfighter1 - you were another one that ridiculed me. hope you enjoyed your investment in PMG all the way down to 13p.

draft - you said i was pretty much always wrong. well proved you wrong.

i told you guys i wasn't convinced with GPA/ PDL. Tom Cross squandered the potential.

and no I am not deramping it to get a cheaper entry. the share price is already decimated. this is more of a "i told you so"

Fair point about the risk. No point trading/investing on AIM otherwise.

Comes down to risk appetite. If SCE is too risky; there’s other stocks they are less risky on FTSE but less reward as well. Everyone makes their own choices.

*something right to get re-elected

Most AIM listed companies carry risk; especially for cash. Even FTSE stocks are risky in that they can have production issues as well and profit warnings etc

Same board and also same shareholders re-elected them. Must be doing spending right to get re-elected.

What I quoted was from Hardman & Co research report.

Quote below is from RNS.

Pre-Close trading and operational update

We will continue to grow, and our planned rate of growth is not without risk, but the Board believes that we also remain on track to deliver market estimates for 2025 including £28.0m sales, positive EBITDA and operational cash generation.

USER84

The reduction of scrappage is expected to continue to improve to

below 14% by the end of this year, supporting a first EBITDA profit in 2025E.