Member Info for komakino

Thanks Zengas. So with TT and Aberdeen no longer showing (though not necessarily at zero) but with all the others either increasing or remaining relatively similar, we could be near the end of the selling and hopefully an uptick in the sp performance in the near future.

Thanks again Zengas, appreciate your knowledge as always :-)

Thanks Zengas. Interesting to see they've settled at a much lower figure than originally agreed. Not sure why they would do that.Possible reasons I guess are:

they need the cash

they doubt Fenikso's ability to pay them the full amount

they want to maintain a good relationship with Fenikso or its stakeholders

I presume Save chose not to RNS it as it's relatively small amounts in the larger scheme of things.

Also worth noting that for FY 2024 there were record cash collections of US$248.5 million (FY2023: US$206 million), backing up Scotpak's assertion that the trade receivables increase is pretty much solely down to the currency devaluations.

Trade receivables is likely to be above the 2024 year end figure because there was a further currency devaluation on Jan 31 2025. However, since then there have been no further devaluations. As per the last update:

'As contemplated in the Transitional Facility agreement, we have requested an increase in the facility to enable the remaining outstanding US$ balance to be converted into Naira, allowing the remainder of the Accugas US$ Facility to be fully repaid within H1 2025. This process, when complete, will align Accugas' debt facility with the currency in which gas revenues are received.'

So if they do complete this by end of H1 and agree a repayment plan with the Nigerian govt. for the outstanding trade receivables then we should be able to put this particular thorny issue to bed.

Seatank, I didn't say that the non-payment of receivables wasn't material, I said that the true-up amounts under normal circumstances are not material. A totally different thing.

Tier, they are not paying 20% of monies due, just 20% of the true-up, which due to the devaluation of the currency became an unexpected significant amount. There have been no subsequent devaluations of the currency so you would not expect anything material regarding receivables. Plus they would never divulge financials in a coffee morning, that would have to be RNS'd. The true-up is only related to exchange fluctuations so in the normal course of events it's not that material.

From the 2023 Annual Report:

'In 2023, we saw significant volatility in the Nigeria currency markets with an unprecedented level of Naira devaluation, the value of the Naira at year end being approximately 50% lower than at the start of the year. This trend has continued into 2024. This devaluation resulted in a foreign exchange loss for the year of US$104.7 million (2022: US$28.9 million). Our customers pay for gas predominantly in Naira however under the terms of the GSA with our principal customer, the exchange losses realised can be invoiced via a true-up mechanism'

Thanks scotpak, really appreciate you taking the time out to answer our questions.

Also, did Andrew indicate they would RNS the payment plan details so we had visibility?

Thanks Scotpak, did Andrew say explain anything more regarding the 7p rights issue or just reiterate what he said at the presentation?

Thanks Scotpak, really appreciate you taking the time to make the notes and share them. What was your overall feeling of his mood regarding the state of the business? Did he make any reference to where the sp currently is and his thoughts on that? Thanks.

Https://www.proactiveinvestors.co.uk/companies/news/128576/frontera-says-its-not-liable-for-its-subsidiarys-debts-128576.html#:~:text=Frontera%20Resources%20Holdings%20LLC%20filed%20for%20Chapter,subsidiary%20%E2%80%9Con%20an%20unsecured%20basis%20and%20without

Ha ha, yes of course PF. Totally forgotten. Too much red wine last night!

Yes, saw that post but never come across the poster before so probably has an agenda. The share price action was quite strong in the afternoon after we dropped below 7 in the morning, so hopefully 7 is the bottom, as they say!

LST, I'd be astounded if AK doesn't have some sort of information to share regarding these matters so hopefully we'll get something tangible. Then again, I have been astounded before! One other question to ask is whether Cavendish are also divesting their shareholding given the TR1 yesterday.

Yes, should see a surge of buys now as all those moaning they couldn't buy at 7p can now do so ;-)

Excluding the IPO shares the remaining 143m have an average of 11.6p so at least he's nursing some losses. Mind you, wouldn't mind an 11.6p average myself. But still, agree with you Zengas, you can't argue he hasn't put his money where his mouth is.

Knotty buying a few more to show confidence for the coffee morning.

Interesting comment from them as posted by Simon Gordon on the other site:

JO Hambro - 1/4/25:

Savannah Energy – which had been suspended as it looked to make a large acquisition – returned to the market when the acquisition opportunity fell away. The length of suspension, coupled with (in our view) poor communication flow during this period, had created frustration in the shareholder base. This meant there was material selling and a ‘clear up’ trade at a depressed price. Upon relisting, management gave a very detailed overview of the value drivers and the gross value of each component of the business (which unrisked is >4x the current share price). This would have been taken positively and underpinned a higher price than prevailed had it not been for one other development: the board decided to conduct a primary share issue at the same depressed price at which the ‘clear up trade’ was executed. The participants in that were management and a PE house that has provided the company with a credit line for future acquisitions. The latter (ie the credit line) is a good development but permitting a primary placing to happen at a distressed price, created by the circumstances as described, was sub-optimal. We will be making our views regarding this and the board governance – which are linked – known in the weeks ahead.

Https://www.johcm.com/insights/ukei-bulletin---april-25/