Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
We need to call an EGM and vote him out..if Chinese were to back the vote he'd be out of the door in a flash. I've tried my best to get hold of the Chinese but no luck so far. Align research may be another route, they haven't given an updated research note following the raise so I wonder if they are still supportive
I wouldn't hold my breath after what has happened today. The market held him ransom for the £1m raise, getting project finance isn't going to be straight forward if Stefan's track record is anything to go by
How the Chinese tolerated this level of dilution is beyond me. So much for all the premium placings and cash they've been coughing up, 1 billion shares issued in a flash. Now that's value destruction
Holdings RNS, looks like EhGOSF have forward sold the borrowed stock expecting to buy back at lower conversion price. If the finance deal is not voted through they'll be buying back much higher, we'll have a proper short squeeze, risky move imo.
Stefan Olivier is the man to blame for the share price. He doesn't work to protect value for shareholders and is merely occupying a position which he is thoroughly unfit for. He is only being propped up by the Chinese for reasons unknown to us. The Chinese have been buying all the way up to 1.5p, today the SP is at a fraction of a penny. Just ten months ago Zhang Hao went up to a 300m share holding with a 0.8p placement. He must be hurting. All is a mystery to me right now and I'm not very pleased about the way things are transpiring
Photo Stefan's salary at year end 2016 was £185k, at year end 2017 it was £235k, it's anyone's guess what he is on right now. Simply ludicrous. Perhaps Align research have something to say about this given their support of the company
Stefan doesn't give a monkeys about the shareholders, that we have ascertained by now. It's a real shame as we have a quality asset and revenue incoming, only caveat is a selfish board who have no shareholder alignment. He needs to be pushed and only the Chinese can do that but why they don't I have no idea!
Looks like BMD is right looking at the SP. If he raises £1m at this price we have 33% of the share float diluted. That is madness
I think I have a pic of him lying around mate if you're interested. Placing is likely to happen imv as BMD rarely calls them wrong and cash end of H1 was £94k. We know the revenue generated is going towards repayment of creditors at AJE. I don't know how much they have left but H1 costs were very high and i have a hunch stefan's salary this tax year will rise again
No more buying from me until we have some concrete guidance regarding production and a rig booked. Have enough of an exposure here for now
New offices seem to be a cost saving exercise: From their website it is £229 per month for hire:
"Invented by Servcorp over thirty years ago, a Virtual Office allows small and medium businesses to benefit from all the advantages of a prestigious address, landline phone numbers and team support without committing to dedicated office space.
Office expenses are minimised while the business retains the impression of a traditional high cost office and infrastructure. Professionals can work from home, or their clients, or suburban offices, and still have the reputation that only a city centre address can bring. Research shows that customers expect to see an address on marketing materials, and a home or post office address just doesn't cut it."
The company is clearing creditors, all AJE costs, and now with the rising oil price this is happening at a much quicker rate. The £900k did not appear on the cash flow statement as this is also part of those costs. I don't know how much is outstanding now but Align will have a better insight having collaborated with the BoD in the research note. MXO will be cash flow positive at some point in 2019 and I heard that directly from the board.
MX have taken a loan as the interims showed I presume for WC and I also assume it is from the Chinese. They did something similar last year which was paid back via equity last december. I guess this is why the current liabilities are much higher than normal.
We need another lifting and I think one could be on its way before year end at a juicy oil price of $80+
Hardly a sell off mate. Share price is artificially depressed as a result of limited liquidity. It'll bounce around now as it does until we hear of the JVs plans moving forward. Still a hold for me and possibly add if it dips to even ridiculous levels.
still doesn't answer the question of current liabilities. One-off costs or not, we need a comprehensive breakdown of where the money is being utilised. Two oil liftings in H2 will certainly help us as H1 lifting actually produced 3 times as much revenue than previous year H1. Another towards the end of december with a booming oil price will considerably offset our expenses but I wouldn't expect to breakeven just yet. Would be good to have shareholder conference call like Panoro do so we get to talk to Stefan directly regarding the financials.
A few question marks for me:
1- Why is the operating expense so high and what does it consist of?
2- Current liabilities are high, again what do these consist of?
3- They have £200k in investments. What did they invest in and when?
4- End of period cash was £94k, there was a lifting in August but with liabilities due why are they investing cash when they need cash?!
Typical MXO RNS, raises more questions than answers
These are subject to no further planned shut ins at AJE. It would be great to get another lifting towards the end of December so the maximum revenue is accounted for in the current financial year. That sets up nicely for 2019 with a drilling programme being worked and a buoyant oil price.
My revenue estimates for 2018 can be viewed here. They should be double 2017 which is not too far off Align's estimated figure:
https://twitter.com/JimPrice83/status/1044520418340720641
even if the interims are poor which i expect will be the case, i.e. lack of profitability, the mcap is disproportionately low. If they were to dilute and double the shares in issue from here, we'd still have only a £10m mcap
make that £4.9m, wow!
this is cheap and ridiculously low now imo