Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Or the RNS is as has been written with no hidden messages.
When there’s gas like MoU3 the company wasn’t afraid to bang the drum. Now there’s no mention the inference is it’s because they can’t say anything. Maybe they have just said what they have.
Get testing and see what we have is the next move.
They were upbeat at MOU3, no reason to play MOU4 down, if it’s just given them information about the next drill so be it. Yesterdays drop nothing to do with CHAR. Get the testing done and look at the next drill after that.
Seems a strange move if competition. PRD will release what they have in the next month or so. Hopefully that’s more than the domestic market can take. With PRD being ahead how do they expect to quickly monetise if the market is already fully supplied by PRD by the time they are up and running. Seems they could have made that decision after our results.
The price action prior to news means little. Someone can be dumping with a related party picking them up as smaller buys the other side with all the other sells the dumping generates. Or it could be bad news. You’re either in for the results or not. A month or two we’ll know either way.
CNG can only be worth so much due to the market and how much gas they can absorb. PG had stated several times he has no appetite for gas to power. Any potential acquirer will know that and have to fork out for the infrastructure. That’s if PRD hit the numbers. Can they hit the type of numbers from three wells that would warrant a £2.5billion sale. Highly likely they’d need more wells. Given the pace PG is going at a sale looks likely before they’ll have the chance to drill that many wells. When you say talk the price down, do you mean from todays price or £5?
I’d be more than happy if it went for that, can’t see it in the time they are seemingly looking to offload.
Should know more in a few weeks.
that’s my take at the moment. however, if the offer isn’t what he wants, he’ll do the testing.
i don’t think pg will be greedy, but he won’t be had over being the largest shareholder.
this is with all other things being equal, onhym may be playing a part here. something or someone gave paul a kick up the **** after mou2.
You can only prove up so much before you need to start producing. I have no doubt they could finance the CNG facility. Single digit $millions would not be difficult to finance if the numbers come in. It’s a lot of work to that point. If PG gets the option of a royalty in exchange for advice and contacts via the subsidiary without ever putting his hands in his pockets again in Morocco, he’ll probably take it, he said as much on the Roast.
If he sells before flow testing he’ll get less as there’s more risk but the deal will be quicker. We don’t know what he has lined up.
Best long term deal would be a cash generative CNG business with cash flow to drill as many as they wanted.
The worst would have been selling to one of the chance enquiries he mentioned. He will likely settle (assuming the results are successful) somewhere in between. The sweetener will be the royalty, or stub equity that has been mentioned, initially a while ago, by GRH if I recall.