Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi Brom. Thanks for replying in such a reasonable manner. (Not always the case on this bb unfortunately).
I can understand that. However...if the drill I'd a success, and we have approx 460m barrels, at let's say $1.5/barrel why would we need cash? We have assets. As you say we're not a production company so we could sell the asset and move on to the other zones/prospects. Therefore no need for CR, and no need for more dilution.
Unless, as I say, PMO wanted a part of the entire company. So a CR was agreed where by they purchase all the shares involved in the CR and therefore hold some of the company rather than being restricted to just the drills mentioned in the FO.
Maybe they saw something they liked outside of the FO remit?
Could be possible that PMO didn't want to hand any cash over at the time of the FO but preferred to purchase shares so it was agreed that this CR would come along and they would buy all/most? Meaning 88E get the cash they needed and PMO then hold a stake in the whole of 88e rather than just a small increase in the area they are drilling?
I'm naturally a pessimist, but....given the various rules on the AIM and especially the ASX regarding disclosure of price sensitive information in a very timely manner I'm leaning more towards no news means both parties are still round the table and still putting the final touches to the FO.
What we dont know is whether that FO meets the expectations of the market, the industry or th shareholders. I'm hoping the mere fact that someone wants what we have is a very good thing. Who knows....they may be insisting on a first refusal of future FO's. Now THAT could mean something exceptional.
Of course the above is AIMHO, and does not constitute a ramp, a deramp or advice to buy, sell or hold.
Just thinking out loud I guess.
Jiddy, I really hope you're right, and that it isnt a case of 'the best of a bad bunch'! (Meaning none of the bids were what we really had hoped for but if we didn't take one it could have spelt more CR's).
Again, not trying to be a negative Nelly, but after so many possible positives you start airing on the side of caution.
Nice to see a bit of positivity returning to the share price this week.
As you say, the completion of the FO is upon us. Only thing I'd say - regarding the comment 'Obviously the potential Farmee sees the real value' - until we know the details of any agreed FO their valuation may not be to our liking. All depends on the terms.
Confident, but trying not to count my chickens (or barrels) just yet.
Ben, not entirely true -
'Both steps are scheduled to occur in June 2019. The Company advises that there is no guarantee that final approvals will be granted'
Just think we need to exercise caution and not mislead. I'm hopefully, but not counting chickens just yet.
As is the case with some FO announcements caution is probably a good idea.
Just because an FO is/maybe announced it doesnt necessarily mean the market will react in a positive manner. It all depends on the terms. And no-one on this board has the heads up on that.
Hoping it's a favourable one, but we just dont know yet. We dont even know for sure if it's a tier 1. Again...hoping it is, but I'm not counting my chickens just yet.
S4K - That's a more leveled statement - Where-as to say it 'is' and it's 'imminent' is irresponsible.
In addition though, it must be said that if an FO is secured there's a possibility it could be less attractive than we'd hoped given that we need cash in order to carry on. At present we have no revenue streams other than CR or F/O.
S4K - 'Exactly what im trying to say... why would they start negotiations if they are not going to have FO... farm out will happen... its imminent... see you all at 3p plus (SAVE THIS POST AND HOLD ME ACCOUNTABLE IN THREE WEEKS)'
Are you saying that whenever a negotiation is initiated it results in a deal??? That's madness and misleading. Many negotiations have started and never gone anywhere. And to say FO 'will happen' and is 'imminent' is misleading to others. UNLESS.....you have insider information??
I cant see anywhere that states a guaranteed FO deal will be announced. I can see that parties have requested an extension to ready bids, but not anywhere does it say anyone will actually do a deal.
Could be like asking for an extension to make up ones mind....for example.....I like a car, I'm offered a deal, I ask for time to think about it. Doesn't mean I will buy. I may walk away. Dont get me wrong I want an FO to come. But one that doesn't undermine our potential. I just think we need to be mindful that there is a possibility that it wont happen, or wont be what we all want.
Brom, I agree to an extent, and did say that the FO discussions were going on prior to Winx. My point is the conduct. The RNS's. Almost from one extreme to the other within days of each other. Not favourable.....Looking very good...We have no commercial oil. Smells off to me. Especially when you factor in the price swings and potential money making opps during those times.