Member Info for ocelot

place, not "play"!

It's still early in the session, but, for the present, volume is negligible, as if there was no placing yesterday.

WH Ireland seems to have known precisely where to play the new shares.

Penguins,

Given your 5, can you explain what it is about UKOG that persuades you to remain invested in it?

SSP is fairly valued, says Jefferies (but note that the price target is 260p)

On-the-go food retailer SSP (SSP) is ahead of expectations on the number of outlets it has opened but Jefferies says the valuation ‘fairly reflects’ the ongoing lockdown uncertainty.

Analyst Becky Lane retained her ‘hold’ recommendation and target price of 260p on the shares, which rose 12.3% to 203p yesterday.

Second half sales are expected to be at the lower end of the range at around 86% of last year’s number, but a ‘stronger cost base action’ means that underlying earnings are expected to be ‘mid-range’.

Lane said the Upper Crust owner had reopened just over a third of units, which is ‘ahead of previous expectations’.

‘We think valuation fairly reflects ongoing uncertainty,’ she said.

... about half of which will now be loan capital... while the share price remains at its present level!

Agreed.

Another way of putting it is that yesterday's RNS doubles Angus's capital, about half of which will now be loan capital.

down this evening, but ...

"Gold could hit a record before the year-end, aided in part by the risks surrounding the U.S. presidential election, according to Citigroup Inc ...":

https://www.bloomberg.com/news/articles/2020-09-23/gold-may-hit-record-before-year-end-on-election-risk-citi-warns?sref=Em01M8Hr

£12m is a considerably larger amount than I, personally, had foreseen.

The placing was oversubscribed and completed stunningly quickly, by 9.44am.

The impression given is that this has all been carefully prepared and there are serious ambitions for Angus.

In order to support the Proposed Debt Funding, Angus announces that it is today carrying out an equity fundraising to raise approximately GBP900,000, before expenses, through the issue (the "Placing") of c.100,000,000 Ordinary Shares ("Placing Shares") at a price of 0.9 pence per share ("Placing Price"). This will form part of a working capital contingency fund that is normally required by debt providers.

The debt facility is specific to the Saltfleetby project.

I wonder if, financially, this doesn't make more room for Angus's other projects, both existing and future.

Couple of comments:

it's a debt facility, of which at least £3.9m does not need to be drawn down immediately;

the £1m placing forms part of a "working capital contingency fund", a good part of which is probably surplus to immediate requirements.

111.1m new shares issued, but the market was calm, with volume of 12.4m (before any further late-reported trades).

Not sure there's much of an overhang, think it may have largely gone into firm hands. But time will tell!

They have changed the financing arrangements re the processing equipment:

"We believe this equity and prospective debt capital raise represents a more comprehensive, cost effective and simpler arrangement than a patchwork of leasing and hire purchase agreements with a multitude of suppliers.

They're, not there!

There not comparable figures, Yanis.

Those of this morning are at a discount rate of 0%, the figure cited by gkb47 from the CPR was at a discount rate of 10%.

A mine with produces "nuggety" gold which commands a very significant premium to the international price and only stopped production because the price of gold was at $300, leaving visible gold untouched in one part of the mine.
A gold belt where 10 anomalies have been discovered, 1 of which is 4 times larger than the anomaly of the Clogau mine.
The employment of modern mining techniques meaning there is a "high possibility" of discovering gold.
Imho, the share price is very far from reflecting all of this.

PS: after the placing, at 0.975p, market cap is £6.97m.

So, re the gearing ratio, 51% of £12m is Angus's liability, ie. £6.12m.

But, agreed, it would be good to see the market cap rise.

gkb47,

Don't forget to compare 100% of the debt with 100% of the net present value:

The Company is seeking to raise up to GBP12m through the issue of a senior secured debt facility which will be secured, inter alia, on 100% of the Company's and SEL's working interest in the Field. It is the intention that the cash interest and repayments under the Proposed Debt Funding are expected to be serviced by net cash flows from 100% of the Field revenues generated immediately from the commencement of commercial gas sales, i.e. including those attributable to our partner Saltfleetby Energy Limited ...

The downward revision to the CPR's mid-cast forecast of 9.1% is a disappointment, if of relatively modest proportions.
Equally, the likely delay to commissioning is a disappointment, again, of relatively modest proportions.

The plans to negotiate the debt facility is a major plus, it puts the company's finances on a much firmer footing for the long term and reduces the need for further calls on the market in the future.