Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
They still believe there is no tax liability Goodile. Hence the dispute.
It is their belief that the tax authorities are interpreting the transfer incorrectly. Obviously government bodies rarely make mistakes………
If this is the case the technically the tax charge (the larger one) is not enforceable, then what a ridiculous phase of news and SP reaction. Each time there has been an update regarding this, we have had 3 or 4, the SP has plummeted each time.
In reality, as long as the company is able to execute its plan and delay any payments then it is not particularly relevant anyway. But it must be very time consuming.
I wasn’t going to post this - but given the action today I thought it may be useful for people:
The announcement yesterday essentially confirmed what we expected that we will have to go to court on the principle of licence ownership movements. There is no change from a year ago with Tax demands. This is for our dormant Moroccan company Sound Energy Morocco SARL AU. Our other tax case, the one against Sound Energy Morocco East ltd, a UK company is subject to an appeal process. So two cases one advancing to the court the other to go to court of appeal.
Clearly we believe the basis of taxation is incorrect. Worldwide licence transfers and ownerships change with time. The tax office assumes all are sales and purchases. This is not the case. Unfortunately Morocco is an immature province in Hydrocarbon licencing and so we are doing our best to educate without being too condescending.
Regarding protection of the company (PLC) we are taking all steps as you would expect. Should we continue to lose tax cases, and we feel that once a judge with more experience in these matters reviews the case it will get resolved. The idea of tax payment phasing is possible in Morocco just as with HMRC in the UK We have other solutions in our planning too. I remind you SARL AU is a dormant Moroccan company.
Hard to believe where the share price still is, it seems as though it is basically priced to fail.
Which hopefully, for the brave, creates an opportunity.
I read someone recently (it may have been a link here) that ENI are buying up large chunks of producing assets in Algeria to help secure europes energy needs. Surely this must spill over into them considering the longer term requirements and developing new resources? Assuming it does, then we would hope that there is a reasonable amount of industry interest in farming into the exploration and production parts of SOU.
Not many updates recently, so must be due a few….
The MCap is the key metric. Still only £46m.
Wonder what they’ll get for the Victory sale? Total pre production capex expected to be required for West Newton is $139m (approx £120m) and they did comment that the sale will transform the company financially…….
Certainly fortunate timing.
Easy to get carried away…..
……..UK starting to actively encourage domestic production when you are invested in a UK O&G company.
At a time with historically high prices.
With an asset already in negotiations (with an NPV much higher than the current MCAP).
The companies largest, potential, asset having difficultly in getting it to flow and now the fracking ban is lifted.
I almost can’t fracking believe it.