focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Have I missed something? Only need around another 850% raise to break even...
The free carry route was exciting as team could be kept small with no risk. But now it looks like we're going down this other route, with us building and operating the plants, so we need good support from good partners.
Qn: With new 'go it ourselves' funding route, will Valkor still be entitled to 29% of Tomco?
JP: That was based on where Tomco were 2 years ago.
With this latest reserves based funding, it WILL be 100% that Tomco retains.
Qn: How long can our cash last? Will we need another placing?
JP: It's tight if the funding process goes beyond end of November. Already had discussions with a couple of entities re if funding needed to get us over the line.
John confirmed income from first plant won't start for 2 years from now.
Board members are very close and communicate with each other all the time. Not just John making the decisions.
All other leases (RF type ones) were renewed within last 3 years for a further 10 years on each.
Not been using Petroteq process for a couple of years. Nothing wrong with it but we're now using a better solvent and have made technical changes to the materials used in the process.
There is no IP impact with Petroteq.
Oil we test produced was low to zero sulphur. 85% of sand is frac grade.
Plant on A tract will process 6,000 tonnes oil sands per day.
One on D tract will process approx 8,500 tonnes per day (pending some further analysis on potentual mine life, thought to be around 15 years).
6,000 tonnes pd should produce 2,500bopd (worst case) to 3,500bopd.
John was very happy with upgrade report to 1.5bn.
Qn: Where are funds being raised? Europe? America?
JP: Can't say [neither of these continents]
Then find out we need to do an RTO excercise which would take us off the market for 2 to 3 months.
John talked about salary justification (CEO doing multiple director jobs which saved $200k ; and gained huge no. of contacts).
The 10% of TSHII has no expiration - that is solidly ours. The option for 90% is in place till end of year.
Although exclusivity ended end July, there's only been 2 ridiculous offers - one wanted to lease it, the other thought they could buy it for $5m! Lawyers have not taken interest from anyone else.
The land is split in two with a hill between. The two tracts are virtually same size (in blocks) - 'A' tract is where the original Korean mine was (the active mine), the D tract is where our 10 year lease is (so nobody could buy that tract anyway). The current TSHII mining permit is transferable to the D tract so won't need to do a new permit.
The lease that AC OIL has is on the whole of the D tract. The first plant will be built on the A tract and the second plant on the D tract.
Any potential buyer would have to buy out our 10% as well as buy out our 10 year lease.
D tract is where AC Oil wells would go. Basically a large rectangle. First 1/5 th has no mineable oil and is too deep for in-situ wells so that would be best place for the 2nd plant (and it's next to the road).
The mineable area is the rest of the top half (of rectangle) with reserves running down to about 220 feet. The rest of the bottom third is where in-situ wells go, with reserves around 500 feet at edge of tract.
Trying to raise funds to do in-situ wells just now does not make sense. There's conflicting discussions on the recovery rates.
John took decision to not waste money proceeding with our one AC OIL pilot well, BUT we will take part in the future unitisation programme with HSO (they will proceed with their 3 x pilot wells on their own).
The unitisation permit to drill has not been given yet.
If not got by Oct then it's fairly remote they'll be able to drill before end March next year (due to weather). Cost for one well is over $800k.
So main focus is on the plant(s). Have already had discussions with a couple of companies to 'beef up' the project team, one of them being a significant project team. After further discussions they'll be brought in and their roles defined. We have another engineering partner, who are 'world renowned' to sit alongside Valkor in Utah to deliver some of the work.
AGM Notes
Very first/original funder ticked all boxes but changed mind when it came down to it.
The more recent funder, for the Greenfield JV 'free carry' option, decided to take a sideways step in March but to potentially come back to table in October.
Hence latest focus on RB bond funding which is difficult to do, especially to fund the amounts TOM are asking for. Lots of companies say they can set it up (but then its a marketing excercise to try & raise the funds). It's taken 6 months to get comfortable with the entity they've decided to work with and their ability to actually get it funded.
The entity is a private listed bond and the funds are provided internally. Proven record on much larger bonds. They only do 4 or 5 per year and takes 3 months to put one together. Need to fit in with their timetable.
The entity have already approved the RB funding as the basis for the financial instrument/bond. Financial model (Zac) and other things still to be worked This is the main/only funding route being worked on (unless other funder returns for discussions in Oct).
The process will kick of properly mid Sept. We'll know by end of Oct [if successful]. Won't have the funds until end of the year.
Either way, we will definitely know whether we are funded (or not) by year end.
Zac: Traditional funding for oil and gas/natural resources has all but dried up in last 2 years. The NSAI reserves report was key to contextualizing the value of our reserves and how we could leverage our asset to raise funds. (It appears that Zac was all over each offer and their risks vs rewards).
They have 4 or 5 'jackets' open at any one time and board agree "First in, best dressed" (i.e. who gives best structure to maximise returns & minimise risks to shareholders.
Mechanism for gaining traditional funding: When dealing with bank/financial institution, normally get an offer, get a heads of terms, a binding heads of terms, then generally goes to an independent credit committee; like an underwriter (to bind or not to these terms). Once terms are bound, that's when you stop looking (for other funders).
This bond rb route is a 'smaller package' with less layers of checks. The main security (the NSAI reserves report) they look at has been approved. The rest is their internal checks and sign-off.
A requirement of this facility will be to release funds in tranches. First tranche is to buy the TSHII land and then subsequent tranches to complete at least 2 plants.
If we went with the 'free carry' route then buying the land would be seen as a reverse takeover and we'd defnitely have to go back to AIM, but with us physically raising the money to do the completion, that might be avoidable but discussions would still be needed with AIM & Nomad to determine what the process will be. Even if we had to do the work associated with an RTO/relisting then we'd have the 3 months from now to complete that, rather than wait till the funding completes, then find out we n
Sorry Phil_2018, My spider senses were correct... (Bull is one thing, but please don't insult people that have also lost a lot of money in this share, more than you.)
3rd May 2020: 14:47 - I've put a few grand in this share, I could do a lot of positive stuff with the money if it came good. If it doesn't I can still go on, I will be the poorer for it but I will get by.
24th Aug 2018: 19:08 - Evening all, I am new here but have been invested in this stock since April of this year. It has indeed been frustrating waiting for this stock to come to fruition. That said I belive it will do. The fact that this Zaza guy hasn't sold out his stock and seems to me from his podcast to be a straight up serious guy suggests to me it has some go in it. Some people I have seen on here say he is charismatic, I don't see that, he can probably do a press conference or shareholder meet well enough. For me though a straight up serious guy is more important than a flashy guy that would try and pull the wool over investors. I don't think he would try to do that, after all he is a big investor himself in this company and one that is presently losing out until undeniably good results come out. I'm not sure what the hold up is here, I think this week he should either publish the expected results from the wells we are expecting T45
"Just before delisting my shareholding doubled in value over what it was when I bought it. " I question this sentence... Please do share when you originally bought and at what price. I do not recall this ever-doubling in price. I recall many share issues and consolidations...
Price has fluctuated today based on no trades... I wonder if there has bee na news leak somewhere?
Was it not a Consolidation that pushed the share price up?
I'm curious... The day I should’ve got out was the day I doubled my money but greed got better of me so no one to blame but me. When did you double your money? I honestly dont think any long term holder made any money on this? The odd day trader might have... All I have ever seen is Dilution after dilution and the issuing of shares... Reality, this has always devalued on the promise of jam tomorrow. Please correct me If I am wrong and something did happen to the share price at some point?
Did not like that guy... I thought he was very poor entertainment on the Xfactor.... boom.. I'll get my coat...
More than likely sells them...
Just a repeat of Turbo shale really.... Can't believe I fell for it again...
I definitely don't expect to be rich from here. I would be happy if I was just able to sell my holding for whatever I can. "A £ in my pocket is better than my £ in their pocket"
Has anyone else seen issues logging in and no portfolio details this morning?
RP2020, just investigated you a little... Found this belter... Min 0.1 on card28 Apr 2023 10:55 buys flood in and should get back to min 0.1 with bit finance agreement or even before that news. Only a few days ago, the share price on this today - Echo Energy Indicators Charts (ECHO) 0.04. Similar to Amigo Indicators Charts (AMGO)
YA, was this not possibly the reason our Nomad walked? Was there not a lot of underhand trades going on prior to our departure from the market? Shares being issued and sold without official notification?
less than 2% of the total company shares traded... Not much really. lots of 1m trades... 2 actually... RP2020, are you here to try and ramp?
Hmm, please explain your 1.2p estimate... You do know, Greenfield is 100% owned by Tomco?
I won't be excited until we break the .7 - .8 range. Its just small trades fluctuating the price at the moment.
think its been a waiting game for over 3 or 5 years now...