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I would have thought that IMG would by now have a fair idea of the results of the RC Drilling at Dalafin. So imo it is no coincidence that the decision to defer Cote has come at the same time. We know that IMG are very interested in licences nearby Boto so I would have thought that some sort of buy-out of Dalafin must have been discussed and agreed as an input to the Cote deferral decision making process. Furthermore, would they have made that decision without the Boto mining concession having been approved at least in principle? I think not. Therefore I think it is now just a matter time to get everything signed and sealed - the lawyers after all need their piece of the action :-)
Let's indulge and speculate a bit! If we assume 1 million oz of Au at Dalafin then using a low "in the ground value" of £35 per oz of Au we could be talking of a deal in excess of 10x current mcap of ORR. I think it could be much more! If the whole company get's bought out then we could be looking at >£100 quite easily. My gut tells me that Tim's ideal scenario is to sell Dalafin to fund exploration elsewhere especially "bonanzashire" in Cameroon. Time will tell!
ATB
Trying to keep focus on the potential:
Adapting Madpunter's calculation for just the 202TCF of gas (CPR adjusted to 140TCF), allowing for $400 million of recoverable costs, FRR share is 49%, a low end valuation of 1% and 15.77 billion issued shares then we have:
140TCF x 170MM = 23800MMboe
23800MM x ($60 less $12 prod costs) = $1142400MM
Value at 1% = $11424MM
Recover $400MM costs = $11024MM
FRR share is $11024MM x 49% = $5401MM
Total for FRR is £400MM + $5401MM = $5801MM
Divide by 15,770,000,000 shares = $0.368
Therefore every 1 million shares could easily have an "in the ground value" of approx £280,000 using an ex-rate of 1.31
Indeed Rainbow. We may be locked in but at the same time everyone else is locked out :-)
Well said regdik!
I got a real feel for the potential of our "box" when the BBC got all excited this afternoon by CNOOC's discovery of the equivalent of 250 million barrels of oil in the North Sea.
https://www.bbc.co.uk/news/uk-scotland-scotland-business-47041270
Would it be valid to apply Madp's conversion factor of 1TCF = 170 million barrels of oil to this? If so then this "huge discovery" is about 1.5TCF which while large in itself is only a tiny fraction of what we have in Georgia. No wonder the majors are heading down to the Black Sea!
/Moose
SILAS: "No, I mean HSBC Global Custody Nominee (UK) Limited who are the beneficial holders of 23 million shares (i.e. approximately 5.7 per cent. of the Company's issued Shares)"
HSBC Global Custody is an Asset Servicing department and their nominee company won't be the beneficial owner. These are thought to be Tidswell's shares - see RNS of 10th Jan.
A very positive intro from the new MD on the company website. Clearly the issue of shareholder and operational activities communication has been recognised and that immediate measures are being taken to improve this. He didn't have to put out this message - the fact that he has is a good sign imo.
http://www.angusenergy.co.uk/wp-content/uploads/2019/01/Introduction-from-George-Lucan.pdf
Shareholder Communication
One area of governance where I believe we can make immediate and significant improvements to our relationship with shareholders is in the way we communicate the Company’s operational activities. As an immediate priority, I wish to improve this aspect of how the Company operates and ensure that they are comprehensively informed about the Company’s operations.
We are, of course, limited in what we can say by partnership agreements in our licenses as well as strict AIM guidelines and regulations, but nonetheless I hope to provide Shareholders
with considerably more technical detail on works as they progress and at a more frequent interval than they have been used to in the past. This is a change that shareholders can expect to see the results of in the near future as operational updates are released.
I also intend to establish, within the boundaries of what is permissible under the AIM Rules and MAR, regular forums in which company executives can answer questions from shareholders and create a climate of increased openness about both our operational activities and our expansion plans for the future.
Spot on Dave73. I would need to check Cayman Islands equivalent of the Companies Act to see if the public have the right to inspect the share register. I would expect not to find any right.
Timster - I think I've seen it on official documentation somewhere (can't remember exactly where) that the share register is managed by Computershare Investor Services in Bristol - will try and find it later. Brokers won't have access to the share register directly - as a market participant they will communicate trades via Crest which will match with the custodian who will be delivering/receiving stock. Only Frontera can look at the share register but, because the company is incorporated in the Caymans, I don't think they have powers like in the UK where under the Companies Act a nominee company (e.g. Hargreaves Lansdown) can be forced to reveal beneficial ownership.
/Moose
The amount of nitrogen being used is in line with or less than what can be seen getting used elsewhere in the industry. A quick google search on the topic reveals photos of tanker trucks delivering nitrogen and even wells having on-site nitrogen making facilities. Patience is needed however hard it is when waiting for news.
Totally agree Arsenal.
Consolidations (aka Reverse Stock Splits) are usually cosmetic but with a purpose. One situation for example where it could be necessary is trying to re-list on an exchange that has a minimum share price. But that's a long way off!
From a cosmetic point of view consolidations (and for that matter stock splits) can be done to make the shares look more attractive and to conform to the price band that a particular sector's stocks are priced at. A consolidation can also reduce the trading spread.
Consolidations often scare investors because when they get in the financial news it is when they're being used to re-structure the equity capital - usually to the detriment of equity holders. A cosmetic consolidation is of little interest to journalists.
Bigger fish to fry at the moment as most of us agree.
AJW: "So what happens to their Short when Hopeless is thrown overboard to the SEC during February, and Zazza consolidates X100 shortly after, with the private share price increasing by the same value to 1p or more."
The consolidated shares will be allocated a new ISIN and normally any activity that was trade dated prior to the event will be re-badged in terms of the new ISIN. I have no experience of shorts so cannot say for definite that it will apply to them but I would have thought so. If for no other reason than if there was a 100:1 stock split then we wouldn't expect the shorters to get off with only coughing up a hundredth of what they should.
@Dave73 - an update would be great but we just need to tread carefully. Anything that Zaza might say to us will be picked apart, dissected, interpreted in a dozen different ways. It might just also have an adverse impact on the court case(s) - we really just don't know. I think for the time being we are better off all sitting tight and seeing how things look on the other side of the court stuff.
@Cristal - we've moved on here, we are where we are and the only way is forward. Let's focus on what awaits us over the coming months. Whoever called it right or wrong in the past really makes no difference now. Going forward are you with us or against us?
"When you factor into the model the life time expectancy of the battery asset and then the life time expectancy of the vanadium rebar asset at the end I believe it is ..."
Plus the quite remarkable situation that we find ourselves in with the Vanadium price where it is beneficial to growth and profitability whether it is high or low. There can be very few commodities which give such opportunities. Patience is our friend here. IMO GLA
MrP - "The APTA deposit is 200m wide with a strike of at least 2.5 km with soil geochem showing Gold content across the entire 7km Aragon fault line."
If I may summarise that in two words: World Class
If by this time next year I end up having to pay over £200,000 tax because FRR has made me £1 million+ then I will have put the cheshire cat out of business :-)
PJOHN - not relisting certainly doesn't mean that you will lose everything. Losing the court case(s) could, not getting into bed with a Major will make it a longer journey but still not necessarily the end. Maintaining a stock exchange listing is not a requirement of being incorporated and doesn't stop a company from giving value to its shareholders. Time is now on our side - the pendulum has swung in the other direction. I suggest you have a look through some of the posts where dividends, special dividends and buybacks have been discussed. For example, if a Major were to buy-out our interest in one of our assets in cash for say £500 million then, and only to keep the mental arithmetic easy, the BoD might announce that £342.3 million of that will be retained for future project funding leaving £157.7 million to be distributed as a special dividend of 1p per share (assuming no reverse stock split aka consolidation).
/Moose
AJW - "Would the BP JV need to list to get funding?"
I may be missing something but I can't see why a JV would go for a public listing - not sure if that would be in our interests really. I would have thought the JV company would simply be jointly and wholly owned by both Frontera and the Major. I'm no expert so I'd be interested to hear what others think.
Thanks Reg and Madpunter for clarifying the Sharing agreement. The Cove Energy example just shows what is possible and that what we are sitting on here isn't pure fantasy.
I wonder who is holding the bulk of the shares as we know that ZM and SN hold 17%, I'm estimating up to 10% held between the posters on this board. Even if that was doubled the total would still account for less than 40% of all the shares. Assuming the lack of TR-1s is accurate then there could be a lot of holders out there.
Thanks from me also - I've emailed the validation email address with a screenshot of my holding. As others have said the key thing is to allow Zaza and Steve focus on the key matters at hand. Frrexit has been a shock to everyone but all is not lost.
/Moose