Member Info for ocelot

Wind farms, long-term energy storage, there is the need here for some joined-up strategic thinking on the part of the governmental machine.

Unfortunate coincidence but they are his initials so do identify him.

He may be "interim" Chairman but he is also 1 of 2 current executive board members: the need for due diligence on the RTO's "group of producing assets" may have taken him to the States.

From Citywire's morning round-up of the press:

The Sunday Telegraph: Ed Miliband will plough hundreds of millions of pounds into battery storage technology as the cost of ordering wind farms to shut down spirals out of control.

Https://ukerc.ac.uk/news/critical-minerals-2-0-what-should-we-anticipate-from-the-uks-new-critical-minerals-strategy/

It is a very delicate time not to have a CEO.

Until the new appointments are confirmed, the board is down to 3: KZ, interim Chairman, Carlos Fernandes (his title on the website is "Executive Director", I was expecting to see Finance Director) and Antoine Vayner, NED representing Kemexon.

Given UKOG's negative performance over the last many years, who is left to sell?

Sorry, read your post too quickly, I see you spoke of the warrant shares being released, not of the warrants.

Doesn't change the gist of my post that there is nothing to see, the number of issued shares has increased by the exercise of the warrants.

Nothing to see. The warrants haven't been "released", they announced that they were being exercised, ie the warrants holders were paying to acquire the corresponding shares at the warrant exercise price.

"Until the annual report is published, it is impossible to know what will happen when trading resumes".

Having said that, the stock was bouncing upwards until the announcement of its imminent suspension on the Friday and there was no sign of any panic on the Monday when trading continued.

Reminder of some of the figures from the updated npv for the processing plant, for 22 years of operations (RNS of 11/07/24):

Total gross revenue: $6.5Bn

Total gross profit: $3.1Bn

Capital payback period: 4 years from start of production

Initial Capex (inc. 25% contingency): $340m

The npv discount rate is 8% so, if the timetable is adhered to, the npv in 1 year becomes 100/92 of that figure 1 year later.

Re net present values of projects:

1/ processing plant: the npv was updated in the RNS of 11/07/24, a year ago, to $621m

2/ Amitsoq: the npv was communicated in the RNS of 31/10/23, 21 months ago: $179m.

1/ + 2/ = $800m

Trish,

Always need tightened seat belts with UKOG, it's a very volatile stock where, for many years, its depressing decline has been punctuated, from time to time, by violent reversals.

Until the annual report is published, it is impossible to know what will happen when trading resumes.

The 03/07 sale was of a subsidiary, UKOG (GB), which held the stake in Horndean, UKOG's sole revenue source since the Supreme court decision re Horse Hill.

Horndean had become a success, if of relatively modest proportions as far as UKOG's own interest in it was concerned.

But more important for UKOG's future will be:

1/ the 24 Annual Report and, in particular, its outlook statement and its overall tone (there can be no doubt the figures themselves will be decidedly in the red);

2/ whether the report is accompanied by any other news re, for example, funding.

UKOG expects this report to be released by the end of this month.

Provided the projects adhere to their planned timetable, then the net present value automatically increases as time goes by and the discounted cash flows get nearer to the present.

Think it's the downstream processing plant that is the most urgent.

"The bulk sample will serve two main purposes: first, ... and second, to provide ore which can be processed into graphite concentrate for use in the Company's planned graphite anode materials pilot plant". (RNS of 04/07)

Yes, he convincingly countered the accusation of "a lifestyle company".

Tonto-ai posted this e-mail exchange with SB on 16/07:

Since Greenroc was designated a strategic project, have you seen an upturn in interest in financing for both of the projects?

“without revealing any details, I can say that there is definitely interest and support now from several public and private levels in Greenland, Denmark, Norway and the EU

Becoming a EU Strategic Project is a stamp of public approval and common interest. In some ways this removes some of the uncertainty and risk perception as the lengthy application process to become a Strategic Project in some ways can be viewed as a completed Due Diligence process.”

"AS THE LENGTHY APPLICATION PROCESS TO BECOME A STRATEGIC PROJECT IN SOME WAYS CAN BE VIEWED AS A COMPLETED DUE DILIGENCE PROCESS.

That is very positive news.

It will certainly DE-risk (NOT "re-risk"!) them in a big way?

"The discount rate is a crucial element in calculating the Net Present Value (NPV) of a project or investment. It represents the rate of return used to discount future cash flows back to their present value, reflecting the time value of money and the risk associated with the investment". (google's AI overview)

Won't low-cost or no-cost funding reduce the discount rate in calculating the net present value of GROC's projects, it will certainly re-risk them in a big way?