Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
PG has stated that testing will take place on several occasions by the end of…… Given PG changes strategy and plans frequently, you can only evaluate his actions. It looks like something happened at MOU3 that made him think he will get more bang for his buck by going straight onto MOU4 than testing MOU1 and 3 with those funds or timeframes.
They might need funding for the testing which might be tidier to raise after MOU4. I know they said it was previously funded but funds have been moved to speed up the drilling by the looks of it.
PG also mentioned on the Roast that testing wasn’t as important as people thought. He might have a deal lined up that gets what he wants after initial results from Nutech.
They can’t go hostile for just one aspect of the company unless they are in ONHYMs ear and pressure is applied. If it goes in a hostile takeover T and T and Ireland will go with it, which currently the market attributes little or nothing.
Talk of hostility and special dividends, see what the logs come back with and the updated CPR. Then there’s the flow testing, and CNG modelling, if we get that far.
As you say it’s being absorbed pretty well. I expected a TR1 this week. I can’t see it all being PI taking the load.
What is the penalty for not declaring, loss of voting rights?
I know foreign investors have longer to declare and it doesn’t really matter as results will drive this. Just a discussion point while it’s quiet.
Sefton, I was initially worried that PG could retain most for T and T and Ireland and a decision would need to be made whether or when to sell. The indications are any Morocco deal will be too big to keep on the book so the likelihood is enough will come back to shareholders in some form. Happy days if it comes off.
Paul’s comment on the Roast about testing not being as important as people think. Is it possible if the logging is sufficient to get a deal in the timeframe he wants, he may forgo the testing and we could see a deal quicker than we think?
He also said he would like to get the financial modelling done for CNG in which case he would do the testing. The further he takes it the more he’ll get. How far will he take it? Best value would be to get CNG at production with free cash flow to carry on drilling. I don’t think he has the appetite for that with time and cost. Exciting times whatever happens.
Zebra, I may be proved to be wrong but I think the MOU4 drill is time critical. From stuff Paul said on that Roast nightmare a deal is coming soon. He does the deal with or without that drill, he’s decided to go with it.
If we are still sitting here Christmas with no deal then fair enough.
I wouldn’t knock this latest raise. PG is in a rush to get as much drilled and tested. That says to me that a deal is highly likely relatively quickly after testing.
But there have been some shockingly timed placings along the way which have increased the dilution unnecessarily.
I do like the change in attitude and urgency in the last couple of months though.
As always time will tell.
GLA, as an aside, sorry to hear about your accident Caterham. I don’t fully understand the sand system and having someone top of that field remain invested can only be a positive thing.
“Once the MOU-4 drilling is complete, results from all the wells drilled in 2023 will be quickly assessed and compared and a comprehensive and expanded rigless testing programme will then commence during July."
We could get a spud RNS any day. Those shares will be churned through within days.
Would like to see a TR1. As far as I can remember there hasn’t been one other than management.
Fully agree. A new prospectus and CPR isn’t to be overlooked either. Absolutely motoring along now. Funding sorted, MOU4 drilled followed by testing. I would like to have seen a bigger raise to get MOU2 finished but I think PG is looking to exit Morocco this year and maybe the juice isn’t worth the squeeze for the deal.
I suggest you read it again. A new prospectus will be issued in the coming weeks to allow the headroom for the additional 17.5 million shares. It’s a placing structured in a way to get around the current lack of headroom. The enlarged share capital is coming. This is not negative, you just don’t know what you’re taking about!
A raise was always coming and it was always going to be less than the current price. Almost double from a few weeks ago though but reduced risk. You pay your money you make your choice.