Member Info for johnpwh

Hi DJ
I might be wrong, I have an actuarial and taxation background not accountancy, but....
I don't think there is lack of cash, else the Salinbas drilling could surely not be justified or funded. What I think has happened is a technical accounting issue resulting from the pure exploration years and the losses incurred during them. Items exist on the balance sheet making it incorrect to pay dividends/ buy back shares while maintaining correct company governance. To do so requires some form of accounting jiggery-pokery, smoke and mirrors. As I said I am not an accountant so this is way above my head/ pay grade/ IQ.
I do find it very surprising that the finance side of the operation wasn't aware of this, after all the BOD have all come from presumably similar quoted mining operations elsewhere. That is disappointing to me. I also am alarmed at the BOD considering this buy back unless it was for a defined purpose (which I mentioned earlier). I was one who doubted that dividends should be paid, as there isn't much cash in the coffers from production after Kiziltepe plant loan repayments, general admin and exploration costs are taken into account. But now I am confused, which is why I am wondering 'WTF' as expressed earlier. In fairness £60,000 paid as a dividend to 1055m shares is roughly 3/5 of the square root of SFA if you know what I mean, so a dividend wasn't an alternative.
The 1 minute to closure RNS does strike me as deliberate timing,. Tomorrow may not be pleasant.
Shows how fragile confidence is - hard won over the last year and so easily undermined. Possibly an event calculated to boost the confidence of investors in AAU has had the exact opposite effect.
Not happy

While I'm on a roll, an RNS 1 minute before close of play?

In fact this is the first proper WTF moment, the first proper doubt, I've had since I started to think I basically now understood this company.
So I'm siding with the doubters here. Its not the size of the transaction its the why, and indeed that they didn't know it was not allowed given their current financial accounts.
Its maybe a PR stunt to raise awareness and the SP that's gone horribly wrong? It may well affect confidence.
I need a beer

I still am not sure why the 4.5m shares were purchased in the first place. We aren't so on top of drilling costs for Salinbas that we didn't know what to do with it. As a one off share purchase (at company level) it was puny. I saw no hint that the shares to be cancelled or used to back an employee share option scheme. I just think its a bit odd.

Levi
Arguably the FD!
We're only playing, its something and nothing really. I certainly won't lose sleep about it.
Been a good day

Paul
In fairness I'm sure they'd have done the same if the SP was now 1.25p....….

I have several filtered messages that I cant see, so excuse if I am repeating anything.
Poor directors, having to acquire 4.5m shares at 1.483p when the current offer price is 1.8p. Must be gutted!

That is a good point Bob. I was wandering round central London a couple of months ago, and in certain places PV looked properly at home while Costa looked little better than McDs. But I have also seen tatty looking PVs in Debenhams and, as you say, less affluent areas. Even so, if they survive I doubt we will ever see one on West Brom highstreet!

Hmm, I think also the costs in the Permian Basin will dictate a cap on PoO. Much above $75 and the yanks will drill 19 to the dozen and bring it back down. Similarly their activity will contract if Brent < $60 (ie WTI Midland about $45)

In case you've no noticed Brent Crude is still gently recovering. About $63 at the moment.
This will be important soon!

Hi dj
How do explain the success of Costa, or do you think that they managed economies of scale before competitors manages to catch up?
Having been to both PV and Costa (and Starbucks for that matter) I know which I prefer. Go to a Costa now and its scruffy and dirty with the Baritas banging out mediocre drinks in barely more time than it takes to make a Nescafe.
I do think that there is a viable, profitable, slightly up market chain possible from this debris. I don't however expect to see this relisted now.

In fairness most of the people reading and posting on these boards are financially aware and would indeed form a good jury (unless of course they had PV shares!). I think a random cross section from the population would struggle, especially when accounting practices and terminology are used

Ta wellwell
You are far better able to assess this than me. OK, I'm a RYA Day Skipper but I'd struggle with the AM!
Can this remedial work be done without putting into Port? Any idea on timescales?

Crook and BHS? Are we talking of Philip Green (I wont use his title) or Dominic Chappell? I am no fan of the latter (in fact I know little of him), but I believe the latter ended up in the Courts while the former still commutes between his tax haven in Monaco from London and back in his private jet. Don't you just love justice?

Claret
I have National Grid and United Utilities. I have halved my holding in recent months due to Corbyn.
NG also is being strangled bit by the regulator.
The threat of re nationalisation will hang over Utility companies and may well move up and down with the opinion polls. In the meantime their dividend yield is attractive. So a decision to invest may depend on your view on the UK political situation.

Getting back on subject, I would have thought that this will cause an even more conservative view of weather conditions before hook up is attempted
SOTB your scaremongering would be far more effective if you could restrain yourself so that comments werent obviously bonkers. Learn subtlety!

Hi DJ
Seem to remember a March 2019 deadline for a once and for all decision by you on continuing to hold good 'ol AAU.
Can I assume that you will now be sticking around this board a little longer?
Good CAKE joke by the way!

Hi Paul
The RNS has been apparently received well. In fact its had as much impact as anything for ages, shot up over 10% at the opening. Surprising, while welcome. Maybe it the hint of the start of actual trucking to the Kiziltepe processing plant and all that implies?
I'm confused by this, with the same apprehensions as you. How will this pan out with Proccea, they wont be happy for AAU to use the JV plant for their own private use, especially as obviously while processing Kizilcuckur ore is being processed then JV is sitting outside in the snow. Does this mean that the sale of Kizilcuckur into the JV is all but done at 3 x explaration cost? (dont start me on the economics of that one again, would it be a late 2018 Christmas present to Proccea or an early 2019?).
Im sure AAU dont own their own road going tipper trucks so I guess that will be contracted out.
Dunno what to think!

Hi Claret
Very valid post. I don't want comment much on SXX, I have not got that much knowledge on the company. I have looked at it, but never taken the plunge. It polarises investors, some think its the best thing since sliced bread, others that there is insufficient demand for potash (or its the wrong type of potash!) and are tired of the constant dilution, delays and growing debt mountain. AAU and SXX look like chalk and cheese to me - I don't mean in terms of money making potential, but MC/ debt levels/ production status etc etc.
I have realised that, after 30 years investing, I haven't a clue. I too decided in the past on the dividend route. Bought a high yielding FTSE stock. What was its name...….oh yes, Carillion.....

Hi Benjie
I am aware of this, and have written about it before (I have a background at least partially in tax)
Unless I have misunderstood (quite possible!) I dont think buying AiM shares as par of IHT planning is necessarily wise.Once held for, I think, 2 years they do indeed falll out of the IHT calc. But that exemption is lost if the company switches from the junior AIM to a more grown up market, which is what will probably happen in many cases when/if an AIM company becomes successful. So if AAU joins the FTSE 350 its shares would fall back into IHT the day it ceases to be solely AIM. There is a way out I think - cant remember the details - but you can 'transfer' the time period you held your ex-AIM share to another AIM share to enhance its IHT planning value.
if anyone sees error in the above please shout up as i do not want to mislead on such an important point.