Member Info for LOTM-13

So if I look at this from the AGM

"Since year end, Capricorn's cash position improved from $190m to $209m at 30 April 2024. Over the same period, receivables in Egypt have reduced from $169m to $151m, and debt drawn has reduced from $114m to $108m. Subsequent to 30 April, the Company has settled the $25m contingent consideration due to Shell related to the acquisition of the Egypt assets."

Its effectively saying as of 7th June 2024.

That the company has net cash of $26M ($209M - $50M dividend - $25M to Shell - $108M of debt) plus $151M of receivables its yet to receive.

Its also committed to spending $57M during the rest of 2024.

So in actual fact cash is going to be pretty tight for a quite a while - even when it gets a decent boost in early July for Q2 sales.

I guess the share price is being buoyed at the moment by the possible $50M Woodside payment even although they wouldn't receive it until early 2025 & then distribute it after that. With 72m shares in issue we're talking roughly £0.56 per share, which is a lot of cash relative to the market cap.

If there are any hiccups to the Egypt payments again, then they will have to cut-back on that cap-ex pretty darn quickly to ensure they have the cash to keep going (although they will get a little from the North Sea this time round to help sustain them & there admin costs are now much lower than before) so the burn rate will be much lower per month.

There's also only $12M left to pay to Shell in early 2025 & a bit more from Waldorf to come in to help off-set it.

In summary there cutting it pretty tight, I would have liked to see a little more wiggle room maybe $15 - 20M just to be on the safe side.

Not sure how they are going to be able to buy any more North Sea assets, unless the EGPC makes another hefty overdue receivables payments in the coming months. Issuing equity when its only effectively at current cash value ( & doesn't take into account Senegal payment or the value of Egypt embedded in the shares) would be daft & dilutive to everyone.

LOTM

Hi Laura2022,

I'm sure Dr Cooley does have a master plan.

Personally I was surprised he let the placing go ahead, I thought that was the right moment to strike, take a big position yourself & get your other backers to follow you in at the same time.

However that didn't happen, so we just have to wait & see what he has in mind now!

LOTM

Hi revolver,

Yes they are being paid as special dividends & treated as income rather than a return of capital ( but effectively they are in these cases a return of capital because lots of special dividends are paid out without a share reduction taking place at the same time).

Hi Tenapenny,

In the old days Cairn Energy was in the FTSE100 & therefore the vast majority of its shares were owned by institutions.

Its really hard for an institution to sell its stake on the open market especially when there are very few private investors around interested in investing in the company.

If you have 2 or 3 Institutions trying to exit at the same time then it becomes impossible for them to get a decent price at all for there shares. So that is why its being done in this way, as it allows the Institutional Investors to get chunks of there cash out of the company at a much fairer price.

The difficult Capricorn have had in completing the share buy-back program from 2023 shows how few shares are actually being traded on a daily / weekly basis most of the time. Only on news is there normally decent volume. So that just confirms the large Institutions problems where some of them had like 10M shares they might have wanted to sell & Capricorn only bought back like 3M shares in 7 months!

I hope that helps explain the rational to both of you.

LOTM

Back to the meeting.

I was allowed to ask some questions, (but as was always going to be the case) there were clashes virtually from the 1st question onwards & proper answers were not forth coming, given that fait accomplice had already been achieved as far as they were concerned .

Even after 10 mins the CEO was still questioning my validity to even be there (no-one else was) !

Not long after that he was trying to put a time limit on how long this would go on for.

Then when I started to talk about his LinkedIn posts about Upfronts24 & the non-appearance of the Mirriad name in any articles relating to the event week, (whether that be from ad writers, media journalists etc) well that was just my interpretation of what had been posted & not what had occurred at the actual "events".

That should give you a general idea of how the "non-meeting" went.

Needless to say, I'm not letting the matter rest.

LOTM

Share price has fallen back to the sort of level that Dr Cooley is currently prepared to pay for them.

So lets see if he want's to increase his stake in the company further, or is happy to sit at 355M shares.

LOTM

Hi Lamoroma24,

I can't comment on your purchase price & the profit or loss it shows on your account that is something you would need to speak to them directly about & how there system worked it out.

The company did a share consolidation so for every 79 shares you used to own you now own 62 shares instead.

You will on the 7th of June (or soon after) receive a dividend payment of £0.43 for every share you used to hold. Its effectively a return of capital as happened twice in 2023. The value of the dividend & the shares you still own will roughly equal the value you had on 23rd May (from the higher number of shares)

Hope that helps

LOTM

Dvs1,

Smart Investor, gives you a good dealing price usually & it tends to go to no trade allowed far lees often than some of the other brokers. It's commission is low.

That's the good points.

The bad ones, its useless at corporate actions (other than organising voting for meetings which for me its been good at) & it virtually never pays out the dividends on time. When a share action occurs like with CNE it can be 1 or 2 days before you can actually trade the stock again which is a total joke, because you could have lost thousands of £'s in the meantime.

I won't go into the fiasco that's currently occurring with them and what used to be IPEL before it got taken over & still hasn't been fixed.

LOTM

Hi 2phevs,

Yes the CEO was there, but the Chairman of the Board wasn't there, so that's why I guessed the CEO chaired the meeting in his absence (given where he was sitting), but as I said I can't be 100% certain as I wasn't in the room when the "actual" meeting took place, so someone else could have chaired it.

LOTM

Hi Tren,

Sorry I missed your post been away a couple of days & had to miss the CNE meeting which I really wanted to be at :( where I probably could have got a bit more info :(

Watching the situation with interest, obviously there is 36 days left for the milestone to be achieved. Just keep your eyes on the FPSO Leopold.

LOTM

Sorry my mistake there were actually 8 other people in the room

LOTM

I guess I need to give everyone an update on the general meeting.

Well technically, I wasn't actually at the general meeting, as it had been opened & closed by the time I was actually in the meeting room !

It wasn't that I wasn't in the building in time. No, I was there in plenty of time for it (over an hour early), unfortunately reception had shown me to the wrong meeting room!

There were 7 other people in the room, no other external shareholders present, I'm not even sure who actually chaired the meeting (as I wasn't there in time to know that) but I'm guessing the CEO did it.

So whether the meeting is technically legal or not, I guess will be for the FCA or such like to decide. The outcome of the vote, was obviously never in doubt.

I will say more in due course, but I want to reflect on it longer first of all.

LOTM

Hi Bentley43,

Yes 2phevs is extremely well researched on how everything is put together. That's for sure

LOTM

Hi 2phevs,

Yes the new show reel even has the 2nd Martell advert removed from it.

LOTM

They've just posted on LinkedIn again about this !

What is going on ? & the show reel has been altered yet again!

LOTM

There will be lots of resistance until it gets to at least 0.12p on the bid. It will need to churn 1 Billion shares I'd say to break free from it.

Those that took shares in the placing wanting to make a fairly quick buck & refused to sell at a loss will take there 10 to 20% profit & move on to another placing, given they've been stuck underwater on paper for a month or more.

LOTM

Well this will just have to get added to the list of questions that have still to be answered.

https://www.linkedin.com/posts/mirriad_as-leading-networks-include-mirriads-virtual-activity-7193594600161226754-xqFN

Not a single mention of Mirriad by name in any major upfronts24 presentation

LOTM

Hi 2phevs,

Sounds more like both are doing it this way, rather than one being a guninea-pig for the other channel wise. It's more like they are testing it in Colombia 1st of all, then rolling it out from there.

LOTM

Dr Cooley in his notification has bought 25M this time round (330M to 355M), whereas I thought the notification would come at 350M.

So I guess he is going to be buying more in the coming days, is his next target 375M or 400M ?

Also worth noting this is the 1st time in a while that he has been buying in the high 0.08p's his other purchases were when the price was below 0.08p

LOTM

Hi 2phevs,

hmm been at hospital doesn't sound good :( hopefully everyone is ok, take care.

LOTM

Hi 2phevs,

I know your very enthusiastic & want to discover more, but this is not that type of meeting.

I doubt they will answer any such questions at the GM & if I do go by the time the meeting is finished, there is no way they are going to want to speak to me at all. I will be persona non grata - end of story.

Its not the same as attending an AGM where you could easily ask your questions & get lots of answers.

This meeting relates to all the financial stuff around the placing, that is the area they will find hard not to proved answers to.

LOTM