Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Yes, you do need to have a bit of faith with Tomco just now but sentiment can and does often change quickly with AIM stocks both positive and negative!! If you can ignore the the fund raising fiasco, everything else is still moving forward with just a deposit bond to be agreed and paid over for the large mining permit and a bit more on site work required for the discharge water permit approval. Once these permits have been approved then the only possible work to complete would be to upgrade the JORC to Reserve status but this isn't a wholly necessary task as the existing JORC would give TOTAL enough confidence about the minimum OIL reserves contained within their Holliday Block.
Red Leaf are expected to produce oil from their Ecoshale Capsule towards the last quarter of 2015
Surfs, The Permit will be issued once Tomco submits a Reclamation Surety Bond. I would expect Tom to issue a RNS when they have agreed the amount and have physically transferred funds to UTAH GOV.
It's not surprising after a diabolically poorly managed share placing that the sp fell so much recently! Lots of frustrated Pi's are wondering where we go next? BUT, After 3 long year we are just one permit away from achieving all of the approvals necessary to begin mining Oil Shale. The Water Permit requires some more site work to complete all requirements but this should be dealt with before the end if this year. 2015 should be the defining year for TOM when we can expect lots of News flow from Red Leaf as their development begins processing the Oil Shale. You have to put aside the current Stock Market turmoil and lack of news from Tom's BOD. A bit more patience is necessary I'm afraid. It's amazing how quickly sentiment can change!!
The Large Mining Permit was approved October 7th subject to Tomco lodging with UTAH GOV a Reclamation Surety Bond. This Bond Money Totalling $6,114,800 is payable in installments over A 5 YEAR MINING PERIOD AND IS DEPENDENT on the amount of land that has been mined. The initial Bond amount will be negotiated and no doubt the recent Fund Raising process partly related to the this requirement. In reality, Tomco will never pay the majority of this Bond as they will be looking for a Buyer (TOTAL) to take over the leases once the Red Leaf Commercial sized Ecoshale capsule has been successfully demonstrated in 2015.
Sage, Utah Gov will approve and then issue a tentative large mining permit once they have received a financial bond from Tomco. This permit will subject to a 30 day Public Consultation period and will not be fully ratified until all objections have been dealt with.
Hi John, Thanks for you kind comments! I've copied you a link to the Tomco Energy Jorc cost breakdown that comes out at just over $37 a barrel http://www.tomcoenergy.uk.com/our-business/jorc-resource-and-project-economics
IMO We are currently entering another uncertain economic period. The deficits haven't gone away, wages are flat but costs keep rising, particularly in the UK where only the lively Housing Market appears to be propping up the economy. The Oil price seems to be drifting around OPEC's preferred level of $90 and it may well go lower if demand slips further. My understanding about the viability of Oil Shale is that the fixed cost of producing oil through the Ecoshale Capsule is around $37 a barrel. So, realistically, even at say $60 it is still economically a very worthwhile. proposition! Total is only financially committed up to the completion of the commercial sized capsule project at which point they will assess where they go from there. TOM is certainly well positioned as long as the permits are all in place and Red Leaf's project proves successful. I don't think Total is too concerned about that eventuality ..............
Sage, Riddler, I can see that you guys are Traders and good luck to you both but TOM is a very difficult share to call just now after a diabolically poorly presented cash call just 5 months after Paul Rankine told me in person that they had enough cash to last up to the final stages of Red Leaf's Ecoshale Capsule Development in late 2015. To discount from an SP of 0.5p when the current price was 1.2p stinks of desperation. Yes, they need to fund the business without any tangible revenue income but words fail me when I think about the incompetence of this CEO. Other than completing the permit applications there is nothing else other that directors salaries to spend this money on? God only knows what charges were involved with this poorly managed cash raise?
WE should hear news very soon about the tentative issue of a Large Mining Permit for Tomco but this will be subject to a 30 day Public Consultation period before it can lead to becoming fully ratified! The water permit application presented to DWQ requires more work on site and could take several months to complete as the area is very remote with no local services available. Again, this will be subject to a 30 day Public Consultation period. Living Rivers the local environmentalist group against Oil Shale developments supported by the Western resources Advocates will object to both applications and have already indicated that they are going to take legal steps to stop the development of Red Leaf's Ecoshale capsule development.
Tomco's consultants Lowham Walsh have submitted a note on Sept 29th to Utah Gov in connection with their application for their Large Mining Permit application Approval. They had already submitted a large document on Sept 10th that covered all outstanding queries raised by the department responsible for approving the permit. Indications are that a tentative permit approval letter will be issued as soon as this week? The full permit will be approved and issued once Tomco delivers a financial bond? You can access these Gov Files at: http://linux1.ogm.utah.gov/WebStuff/wwwroot/minerals/mineralsfilesbypermit.php?M0470120 Userid and password access is: OGMGUEST
I agree Paul, If you feel confident about the success of the Ecoshale Capsule then you can only see the SP rising throughout next year as the construction reaches completion and the mountains of shall are loaded up! We need to see the final permits being approved soon and then it's a sit and wait job to se how the capsule performs. Then we could see Total coming in with a bid for the valuable shale leases or whole of Tomco. I've been pondering buying even more at these levels but I'm not quite ready yet to take the plunge?
Hi JK, Well hopefully, after clearing a few more hurdles we can look forward to a successful conclusion to the Tom story! I feel more secure in VOG has I invested at 1.16 and I believe there is lots to look forward to in the next 12 months or so. I bought Into Tom at an average price of 1.40. I have millions of them so I'm well exposed if things go wrong? We'll have to wait and see what 2015 brings but I'm still very optimistic!! So what is your name on Advfn?
JJ, FYI MikeT888 on advfn is Marbella Mike on LSE
When I met Paul in May, he talked about a 500 day countdown before Red leaf produced oil from the Ecoshale Capsule. Around September 2015 or even a bit later would fit in with that timescale. When I invested in Tom 20 months ago. it was seen to be a highly speculative punt at the time but. Looking at where we are today, much of the risk has been dealt with and now it's just a waiting game.
I have received a second reply from Jeff Hartley at Red Leaf. Great News and confirmation about expected Timescales to produce Oil is very reassuring! ------------------------------------------------------------------------------------- Mike, We expect to turn on the heat no later than July 1, 2015. Once under heat, it will take 90-100 days to see a steady flow of oil. I hope that helps. Regards, Jeff
I recently wrote to Red Leaf requesting details about when the Ecoshale Capsule construction will begin. The reply below clearly states that the construction work has begun. The publicity that this project will attract in the coming months should attract many new investors. Mike, Sorry for the delayed response, I was on travel and am only now unburying voicemail and email. You asked if Red Leaf is constructing our commercial demonstration capsule. Indeed, we have started. We are currently in the process of excavating the capsule site. This will be a large pit about the dimensions of a soccer (football) field and about 200 feet deep. Once the pit excavation is complete, the capsule will be constructed and the oil shale that was excavated to create the pit will be placed inside the capsule as source rock. Once all that is done, we will turn on the heat. I hope that helps answer your question. Feel free to inquire further if necessary. Thanks, Jeff Jeffrey Hartley VP Govt Affairs & Communications Red Leaf Resources 801-878-8100 o 801-557-3772 c
Excuse my typo. I meant to type 280,000,000 Pounds not Dollars or 15p a share!!
Halifax, You raised a very good question that all TOM investors would like the answer too! I met up with Paul Rankine at the Pro Active Investor conference in Manchester this year. He clearly stated that they would not require further shareholder financing before Red Leaf produces oil from the Capsule. He also quite openly stated that he expected Total to approach TOM once the Red Leaf technology has been proven. He said that he expects to receive an offer in the region of $280,000,000 or around 15p a share. This of course is pure speculation but his comments appear unrehearsed and believable! Once the final Water discharge permit is issued and also the Large Mining Permit, there is nothing else that TOM technically needs to achieve other than to Market the Company and to talk with any other interested parties who may wish to make an offer for the leases or the whole company. PR also said that they have no intention of raising finance to fund their own mining development and no other projects that they are looking at. This means TOM will very shortly be in a position to announce that we are Up for Sale to the highest bidder! If you believe PR all necessary mining permits shall be issued soon and then they can just wait until a bid arrives from a Major!! A Buyout is the only end deal on the table now and it appears that TOTAL is the only logical Company currently under consideration but we should not forget that TAQA who were only narrowly beaten to the Red Leaf partnership by Total. Outbid more than beaten! PR also said that a likely deal to sell would take place once Red Leaf reaches its peak flow from the Ecoshale Capsule in late 2015 if all goes well with the construction. Let’s not forget that TomCo is the only listed company who own oil shale leases on none Federal land in the United States and they are stated to be 5 years ahead of ANY other Company planning to acquire new leases and then mine oil shale! Once Red Leaf successfully completes the Commercial Test then Tom’s leases will be in a position to begin their own Full production process immediately! This would be a very attractive proposition for any major Company looking to get into the new USA Oil Shale Industry.
Halifax007 Here is a copy of a previous post I made on this topic There should be no need for a rights issue before the planned end of Red Leaf's Commercial Ecoshale Capsule. They have an existing fund raising option in place whereby they can drip sell shares into the market when the sp is acceptable and stable. They could raise around 1.5 million dollars through this facility without diluting shares issued any further. Tomco is also prepared to sell tranches of their holding in Red Leaf that was valued at $5,000,000 nearly 2 years ago. So you would expect that their holding in Red Leaf will be worth at least what they invested? Where Tomco stand now they have very little cash drain other their Directors overheads and Administration costs that are kept under tight control. If you believe PR all necessary mining permits shall be issued soon and then they can just wait until a bid arrives from a Major!! Lets not forget that Tomco are the only listed company who own oil shale leases on non Federal land in the United States and they are 5 years ahead of ANY other Company planning to mine oil shale in the USA.