Member Info for noix

"Foreign Exchange loss
The foreign exchange loss of US$12.7 million (2018: US$0.9 million) arises mainly from the fact that US dollar denominated gas sales receipts were collected in local currency converted at the Central Bank of Nigeria ("CBN") official rate. In order to purchase US dollars to service US dollar obligations, Savannah is obliged to use the Nigerian Autonomous Foreign Exchange rate ("NAFEX"), which is the benchmark rate for foreign exchange spot operations in the Investors' and Exporters' foreign exchange window. During 2019 the CBN exchange rate was approximately 306 Naira/US$ and the NAFEX rate was approximately 360 Naira/US$, a 15% differential. This exchange rate differential was and continues to be included in our future planning assumptions. The foreign exchange losses are thus not a result of sudden unexpected changes in rates, rather the fact that two parallel rates exist which are accounted for in our forecasting. We are encouraged by the fact that post year end, in March 2020, the CBN adjusted the official rate which has resulted in the differential between the CBN and NAFEX rates falling to 7%. The Nigerian Government has indicated to the World Bank that it will unify these two rates in the next 12 months.

These losses are in part recoverable through a foreign exchange "true-up" clause in the Calabar NIPP GSA whereby realised foreign exchange losses on this contract may subsequently be invoiced back to Calabar and recovered and recognised as a reduction in foreign exchange losses. However, there is a timing difference between when the initial foreign exchange loss is recorded and any amount is recovered and this resulted in an exchange loss of US$7 million in the period to 31 December 2019.

In addition, a one-off foreign exchange loss of US$5 million was recognised as part of the settlement agreement when Savannah took over operatorship of the Uquo gas project and the Accugas gas processing facility. These losses were largely accumulated foreign exchange differences from past transactions that were closed out on completion of transfer of operatorship of the Uquo gas project and final settlement of gas invoices between the joint venture partners. For the avoidance of doubt, these losses were anticipated and "priced into" our thinking at the time of negotiating the transaction."

buffy - this may help from the half year results:
"Foreign Exchange loss
The foreign exchange loss of US$12.7 million (2018: US$0.9 million) arises mainly from the fact that US dollar denominated gas sales receipts were collected in local currency converted at the Central Bank of Nigeria ("CBN") official rate. In order to purchase US dollars to service US dollar obligations, Savannah is obliged to use the Nigerian Autonomous Foreign Exchange rate ("NAFEX"), which is the benchmark rate for foreign exchange spot operations in the Investors' and Exporters' foreign exchange window. During 2019 the CBN exchange rate was approximately 306 Naira/US$ and the NAFEX rate was approximately 360 Naira/US$, a 15% differential. This exchange rate differential was and continues to be included in our future planning assumptions. The foreign exchange losses are thus not a result of sudden unexpected changes in rates, rather the fact that two parallel rates exist which are accounted for in our forecasting. We are encouraged by the fact that post year end, in March 2020, the CBN adjusted the official rate which has resulted in the differential between the CBN and NAFEX rates falling to 7%. The Nigerian Government has indicated to the World Bank that it will unify these two rates in the next 12 months.

These losses are in part recoverable through a foreign exchange "true-up" clause in the Calabar NIPP GSA whereby realised foreign exchange losses on this contract may subsequently be invoiced back to Calabar and recovered and recognised as a reduction in foreign exchange losses. However, there is a timing difference between when the initial foreign exchange loss is recorded and any amount is recovered and this resulted in an exchange loss of US$7 million in the period to 31 December 2019.

In addition, a one-off foreign exchange loss of US$5 million was recognised as part of the settlement agreement when Savannah took over operatorship of the Uquo gas project and the Accugas gas processing facility. These losses were largely accumulated foreign exchange differences from past transactions that were closed out on completion of transfer of operatorship of the Uquo gas project and final settlement of gas invoices between the joint venture partners. For the avoidance of doubt, these losses were anticipated and "priced into" our thinking at the time of negotiating the transaction."

I'll put the corresponding item form the full year results due to its length in another post

Gibbo
This isn't advice for you to do so but the age for withdrawals from SIPP's without penalties is 55.

Ezhik
The rough calculation I'd do, particularly given the current hopefully short term gyrations in the gold price, are AISC's of $787 x 2 for the gold price ($1574) gives a per gram price of $49 and still a good buffer up to the current gold price of $1720.
So your $40 million increases to around $50 million.
Your example is based on a gold price of just under $1300 per oz, which I believe and hope is somewhat on the low side but clearly works.

golddust
In a way the interims were largely irrelevant because the headline figures were obvioysly in the past.
This was one of the key passages to focus upon, which is all about the future, recognising that the new production lines have only been operating for a very short period of time :
" Order book double the level as at the same time last year driven by IoT markets. Customer demand building. Potential demand already exceeds annual capacity"
On that basis one could/should/would expect annual turnover of around A$8 million financial this year and with a fait wing hopefully more.

The rns actually stated this:
"The Board is also pleased to announce that CAP-XX is now an approved supplier to a global smart phone manufacturer and separately has commenced the formal process to become an accredited supplier to a global Automotive Tier 1 Component Supplier."
For clarity, if folk have concerns then they can contact AK directly to ask the question. Is it potential new business or an extension of the Murata customer base, with CPX as the new OEM needing approval. A reply should be forthcoming on such a black and white issue virtually by return ie tomorrow sometime.

Whilst I respect your comment, I'm happy to hear any views, for or against, from any poster, invested or not.

Ah, I also see why I hadn'r spotted his postings before. They are on the secondary thread over there, which I don't usually read.

In that vein and in his defence, he has just posted this:
"Guys I notice the comments from James on lse. I have no axe to grind with CPX or kongats, however he does seem to quote future potential orders constantly.

Ever since I was in here many moons ago from 1p they have talked about automotive and mobile phones.

Ask yourself why would Murata sell the equipment to CPX for cost if they themselves were making a profit from selling supercapacitors. I honestly believed that supercapacitor would solve the problem for quick charging battery operated devices and cars, however the likes of Tesla and other battery manufacturers seemed to have developed better batteries that not only charge quicker but last longer and hold more capacity.

My last post was brief but the fact still remains that yes they had to get approval to supply existing Murata customers but margins are tight and there won’t be much profit from them if any. Losses continue to grow and year end won’t be any different.

Obviously these are just my opinions hence why I suggest you do your own research.

Best of luck"

Could any one kindly direct me to the "other board". I was only aware of this one and adv*n.
TIA

I suspect we might find out why after hours.

First product from the new production lines shpped on 22nd December, which allowing for the festive break transkates to some 4 weeks ago. Order levels already OVER 100% of the level at 31st January last year. I believe you are being a tad pessimistic and premature in your assessment. The interims in 16 days time will put the meat on the bones. Very early doors.

This is of course very, very speculative but I've been trying to track the large sells, most of which tend to be reported after hours, today being an exception, probably as a result of the share price strength.
I believe the Newands took a breather at 8p ish and re started with yesterdays late trades (800k) and todays million.
By my - I repeat - very specualtive reckoning they are down to around 500k - 1 million. If so not long to go, probably the end of the week at the most.

It's the German Merck folks, nothing to do with the US company. Just another string to the bow with the added addition of Pfizer.

What interests me is the $450 million of commitments to the project against the ask of $260 million.
One hopes this augers well for a refinancing of SAVE's debt, particularly in light of recent announcements. It's also a positive for any other projects that might need financing.

It does appear that the market has yet to digest the 22nd December Finance and Operations update containing the revised Lafarge GSA and the presentation flowing from that, highlighting the $4.3 billion revenue stream, with more to come both from other gas contracts and the oil business and of course the more than healthy margins on the gas business.
This options RNS is bound to alert many folk and I hope their research isn't completed before Monday morning.

Interesting discussion folks and not wishing to gatecrash the party but as it's quiet,any people harbouring doubts on SAVE (and we should all look for the downs on every share) I list below the past 3 rns's, which show how the business is in the process of being transformed. Well worth a little research and then only you can decide. GL
https://www.investegate.co.uk/savannah-energy-plc--save-/rns/financial-and-operational-update/202012220700024463J/
https://www.investegate.co.uk/savannah-energy-plc--save-/rns/fy-2020-trading-update/202101250700077283M/
https://www.investegate.co.uk/savannah-energy-plc--save-/rns/gas-sales-agreement-with-mulak-energy/202102050700020822O/
Apologies for the semi off topic.

The last part of the last paragraph of this rns before AK's commentary:
https://www.investegate.co.uk/savannah-petroleum--save-/rns/signature-of-niger-benin-export-pipeline/201909160700143637M/

With folk talking about where we currently are in terms of drilling progress I believe it's worth re visiting the Zak Mir interview with Colin Bird. From about 6 min 15 secs in he talks about timesacles and once into the harder stuff should be progressing around 60 metres per 24 hour period.
https://www.youtube.com/watch?v=4TBX1jPY9sE

The 28th January rns said this:
"Colin Bird, Executive Chairman said: "The rig was moved from the first down-plunge hole and commenced drilling on the current hole on 23 January. The new hole was sited offset from strike to intersect the deposit at a target depth of about 450-500m."
Today's rns had them at a depth of 492.5m - coincidence or just reached the target zone.