Member Info for MikeGP

"...fully operational,"..... just means all systems are up and running,...... it doesn't mean that they are operating at maximum capacity. I think that is a big difference.

Dodger,

No offence... but--- "One thing I will say about this is every time I have bailed the bloody thing has always rocketed."----- can you please bail again!

..it be 5, 10 or 15 years?

I think we can discount 5.

PS ... this is length of contract,... not how long it will be before it is signed!

Apologies Vänder,... re-read your post,.... you are talking of not putting in a place a provisional/interim contract.

I would say that they have via a letter of appointment,... several times PF has said that we are appointed.

Vander

MPS are taking a very tough negotiating stance with scanport/ wsg
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That is nonsense. Read the RNS.

"...and Westminster is pleased with the outcome. "

To assist....\\

"Payment on account is any partial payment of an amount that is owed, either to you or by you, that is not matched to a specific invoice."

It can't be matched as of yet as MPS is still in the process of negotiating a change to the existing rates with the Port Authority.... IMHO.

Morning Patrick

...... the stated aim of the port expansion is to be able to handle up to 3.5m TEU.... and the existing 'old' port was doing something like 850K-1M already with good year on year growth. So with these 2 new berths and the 2 additional berths under construction ( Berth 3 due to be operational end of Feb 20--- Berth 4 Dec 20).... I think circa 1 M/annum will be the starting point. Two additional scanners are being installed at present. .... and too confirm it is 24/7 operation.

We are currently servicing one container ship a day....from the 2 new berths... circa 4000 TEU capacity. How many containers are being off loaded and loaded we don't know.

Best

And lest we lose sight of what this contract might mean to our revenue and sp:

For a full 20ft container

Say .. 1M containers scanned x $US13/ 20ft full container @ $1.25 /£1= circa £10.40/container to Scanport/WSG

IF ‘lion’s share’ of fee goes to WSG, lets say 66% = £6.86/container, or circa £6.86M/annum. If we put that on a P/E 10 and with 145M shares in issue = 47p/share.

And using the same assumptions , but with increasing volume:

1.5M containers scanned = 71p/share
2.0M containers scanned = 95p/share
2.5M containers scanned = 1.18/share

Illustrates what might be on offer as volume is ramped up as berth 3 and 4 come on stream in Feb 20 and Dec 20.
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Note; 13 $US per container comes from the TEMA Port Tariffs for 2019 where handling fee is quoted as GHC$ 65 and using US1$= GHC$5 conversion.

Feeks,

"payments on account to Scanport and Westminster for work undertaken are being made,
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My understanding of the above is that we are receiving payments NOW. I suspect that they say 'On account' referee to the fact that the final contract has not been signed and I would suggest that the $/operation that they are paying us now may change once the MPS/ Port authorities agree the final fees etc.,

We no that they are resisting the increase in fees that MPS want,.. I would suggest that is the last piece in the jig saw.

Best

"The various contractual arrangements between all the different parties, MPS, Scanport, Westminster and support contractors, are agreed in principle and Westminster is pleased with the outcome. Contracts are due to be signed once certain financial arrangements between MPS and the port authorities have been put in place, which are in the process of being finalised.

Screening and search operations have been in place since Terminal 3 opened on 28 June 2019 and payments on account to Scanport and Westminster for work undertaken are being made, whilst awaiting final contracts execution. "

V,

RE: InvestToday 16:45
Mike- I am suggesting that WSG may have fulfilled a key role prior to contract signing
Are scanport are contractually tied to WSG?
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From the info in the RNS's I would say that they are.:

"..we entered into a Technical Partnership Agreement with a Ghanaian company, Scanport Ltd. with the aim and purpose of entering into substantive negotiations with Meridian Port Services Limited ('MPS') regarding a contract to manage, operate, maintain and upgrade, as necessary, the container screening services at the new Tema Container Port in Ghana, West Africa. Westminster's role as technical partner is to provide the requisite expertise and management of the operation.:

A partnership,... so there will be a legal and binding agreement between them. Just how formal that is,.. ie and exchange of letters or a 30-page document, or a SPV is anybodies guess at the moment.

Vander,

I think you have just answered your own question. The staff that are being trained,.. for up to 6 months ( think that is probably too long,..but your figures)... are Scanport/WSG staff. IF we pull out,... they will have NO staff to operate the scanners etc., and associated stuff,.. so they will need 150-ish,.... immediately to replace our staff.....and they will take 6 circa months to train,... so they would potentially have to shut the new berths etc.,? whilst they tender/negotiate the contract and then train the staff. IMHO that isn't going to happen,/// not least we neither party wants that to happen,... nor does the Ghana goverment. What a PR fiasco that would be. The new West African hub in total chaos.

... who's the little tinker who has invested 9p to buy one share and start the rumour mill? Foxxy is that you being mischievous?

Invest,
As the guys on the ground were meant to be employed locally by Scanport I wonder if the salaries are coming out of Scanport's pocket and not ours? I imagine we will be paying for our key staff, the trainers etc.,--- but not the 130 or so staff being trained. But you raise a good point,... and just another piece in the puzzle,.... that we hope will be revealed soon,.... oops.... I used the 'soon' word! 10 trading days to the end of Q3.

Interesting difference of opinion here about the left of time it is taking for the contract to be signed and the likelihood of it ever being signed.

Investing has just posted that he believes the longer it goes on the less likely less likely he thinks it is that it will happen,..... I fall in to the other camp,... the longer it goes on,... the more likely I think that it will happen. WSG.... always interesting,......... and frustrating!!!!

Foxy,

What you will most like get is a responses that says something like... ".. we can't comment on on-going contract negotiations etc..."----- can't remember the exact wording,..but that was the tone of the response that I received from the CFO when I e-mailed him a couple of weeks back. He didn't commit or give any clues one way or the other,.. as ( frustratingly) you would expect.

Why don't you or Big Ears have a go and see if you get any further?

Best

Agreed!

Aiming,... I don't remember seeing anything saying that payment will 'accrue' from signing of contracts,.... if that has been stated in an RNS then I would agree with you...--- I have seen 'commence'.... as in the RNS 28th June that I posted---- two things are different IMHO.

Aiming

"Anything we receive from MPS for scanning is revenue. "
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Agreed,... but what WSG said was that revenue wouldn't be rvceived until a contract was signed. It doesn't mean that we won't be paid for containers that we have scanned prior to the signing of the contract.... just that we won't receive the money until after. Very different.

RNS Number : 8354D
Westminster Group PLC
28 June 2019

"....These negotiations are proceeding, and draft contracts have now been exchanged. Westminster's revenues will commence once the final terms have been agreed and the formal contract finalised. Further details will be announced in due course. Westminster's revenues will commence once the final terms have been agreed and the formal contract finalised. ...."
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Draft contracts were exchanged many weeks ago. It has moved beyond the Letter of Intent. Plus,.... whilst it says that we won't actually be in receipt of revenues until after the formal contracts are signed,... it doesn't actually say that we won't be paid for the work that is done before the contract is signed?

Clutching at straws?..or are we just clocking up containers being scanned,... and once the figures are agreed,.. we will be paid accordingly?