Member Info for legache

What do you mean by resolved?

It does matter if the deal fails, Maestro. Hence only gambling with a few quid...

Fully aware of that fact you keep repeating Maestro, just don't mislead new or potential investors. If it fails and we can't get the cash out, then the business is dead and we all lose everything. Including me.

Egyptian pound has gone from 0.6 to 0.3 to USD, cash reserves in USD have full exposure to this.

You guys really are ramping this up.

Don't forget:

The Directors have reviewed the cash flow projections prepared by management for the period

ending 31 December 2024 and believe that a material uncertainty exists that may cast significant

doubt over the ability of the Group to continue as a going concern. As a result of various geopolitical

factors, US dollar transfers by the Central Bank of Egypt have been restricted and the Company is

currently unable to expatriate any funds currently in Egypt and there can be no guarantee of timing

on when funds will become available. These factors have also impacted the Egyptian pound which

has been devalued several times since March 2022 and is currently trading at less than half of its

value compared with the USD since that date. Whilst the company’s receivables are not impacted

by this devaluation, the company’s cash balance in country is fully exposed to any additional

currency fluctuations. In addition, the Board believes it has options to raise external capital, the

Board however cannot guarantee on the final quantum and timings of any proposed financing. The

Board would also note that there are no guarantees that current discussions with the EBRD will be

favourably concluded and that arrangement with creditors will remain negotiable. Notwithstanding

the material uncertainty identified, the Directors have concluded that the Group will have sufficient

resources to continue as a going concern for the period of assessment, that is for a period of not

less than 12 months from the date of approval of the consolidated financial statements

I've bought a few more today.

My major concern is not really the price, for the reasons you've stated. Its if the government approves and what caveats may be added. I think this is the reason for the market not reacting to the possibility of a value-accretive deal. I wonder if they would do a small special divi?

Volume suggests news will be immaterial.

Maestro, how low can this go? who knows in all honesty... however, the time to sell was when i did at 8p, not now.

Traders, or those in the know exiting before horrendous results?

You're talking as if it's a done deal. It's not. Buyer could walk away if numbers don't add up. Ive been there. It's not over til the fat lady sings and all that.

If this falls through we have the same old issues on lower production. Noncash for capex. Let's just hope the morrocco drill is okay (it's infill to hopefully okay!). I have learnt over the years to always assume the worst. I've invested in some way whoppers in my time, remember the DES oil to water disaster? It's just made me much more guarded and much less likely to believe the stuff they put out in these RNS releases

Just hope Egypt numbers are not off the scale bad. They'll be bad, but it's a question of degree.

Unlikely the well is a duster it's a infill well.

Only because the capex will be [theoretically] lower otherwise, they will have the same problem as always!

Thanks, Maestro, i have read that.

Market [and me] a bit in the dark about what the numbers will say as no production guidance issued.

So we're knocking 7 million off to pay down the debt before we think about an acquisition...

You?

That's a good point! :-(

I hope the don't just release all the news in one hit, they need to stagger it to give analysts time to update their guidance. Although if its bad news, is suppose one hit is better!

Thanks, Maestro.

Correct me if i am wrong, but the prices is hedged at contractually predetermined rates in Egypt, is it not?

The results are not irrelevant as until the deal is done the cash is very material to SDX...