Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Smiths own just over half of this and there are 50 million shares all in. I think on the last update they said the company has £14 million net cash.
They could offer shareholders say a 50% premium at £1.20 per share and if accepted the 25 million non-family shares at £1.20 would cost them £30 million. There is already £14 million in cash in the company and it can't be too hard to raise a £16 million loan secured from the £5 million plus yearly revenue.
After three years the loan could be repaid and the family would once again own Shoezone with growing big box revenue and possibly £10m plus yearly earnings.
I think that is what I would do if I were in their position.
Good spot HappyInvestor100.
Part of me wants them to lose the licence now (FIG must be fed up) and rely on an OM award only.
But what will the BOD do next? Wind-up in shareholder's interests? I sadly doubt they will do that.
You closely inspect company news Cyan - I admire it. But that isn't all there is to be thought about.
Why did we end up where we did? Would PMO have done a time deal for say $xx million less? It was possibly a good choice for all. Did our management think or try this? I doubt it.
They don't appear creative enough to me.
But they can see their salaries and share options.
I personally get the feeling Sam is not canny, shrewd or sharp enough for this business.
Our original farmout partner PMO said they won't be able to put a time limit to the deal.
Our reply: "Really? Okay."
Premier say unexpected fees are due for FEED.
Our reply: "Really? Okay."
FIG say CGT taxes are still due for an irrecoverable Carry.
Our reply: "Really? Okay."
Soon Navitas will want 51+% for nothing, with no time limits and I am sure we will be required to pay for something or other soon afterwards.
Our reply will be: "Really? Okay."
An OM award could be squandered really quickly here with our current management.
Our company needs a complete reset of management in my opinion.
Sam is clearly trying to get this going but is he shrewd or creative enough??
Deferring salaries? - They'll get it all back when they give 51% to Navitas for nothing won't they.
No restrictions on those share options offered.
I think Cyan may be sadly right - they may fundraise soon.
Rockhopper should wait for OM arbitration news as it isn't very much priced into the shares now anyway.
Glenrothes's resolutions should continue.
Okay. It was a big claim and a few things would have to come right!
Cameroon - on the Njonji alone there could be 20 million barrels resources net to Tower. That's several hundred million dollars if the oil price stays high. There is also another 100 million barrels prospective on the block and even larger deeper plays.
South Africa - we might expect a 5% oil production Royalty if a producer farmed-in. 5% of over a billion barrels would be 50+ million barrels.
Namibia could be similar?
Perhaps I was wrong - a hundred bagger! - lol.
Nice 3/4 page article about Fulham Shore in the Sunday Times today.
https://www.thetimes.co.uk/article/franco-mancas-secret-recipe-the-price-8nwl8jjt5
They are apparently close to signing a Greek franchise.
I'm really hopeful for this partnership with Beluga Energy. They specialise in selling and developing West African oil and gas, so if all goes well I think our block could really be exploited here to both partner's benefit. The deeper stuff on the block could be huge too and if there is the revenue from production then it must be explored.
Tower deserves some luck for once and if we also get some luck with SA and/or Namibia then even better.
We really just need some production cash to get going - hopefully Njonji will be the start!
JA said in the recent presentation that the 3D seismic in SA may not cost very much and rather than farm-down for it we could pay for it together with New Age instead and keep our percentages intact.
The recent fund raising makes me wonder if JA plans to use part of the money for this 3D seismic. I do hope he does as a Dataroom with good 3D seismic will be very attractive if the 1.4 billion barrel prospect is apparent.
Anyone else agree? How much would this seismic survey cost I wonder?