Member Info for Only1Gibbo

That's an interesting and excellent find Etin. I have no doubt that the advert was for the Iran contract. I would be surprised if we were proceeding with the actual work before the exchange of letters though. I think the advert was part of getting everything ready for when we do proceed. Is the admin office the training centre? it could well be, and if it is, it shows that it isn't just WSG that thinks this is going to happen.

Hi Wulbert, genuinely sorry to hear that you have decided to bale, I can only echo Ian B, I think this is the wrong time to sell.

I could understand you taking that decision in the immediate aftermath of Trump's withdrawal from the JCPOA, as in my view the bet or risk then moved as to whether Trump would be successful; not on whether WSG as a business could deliver. But since then, whilst there is still clearly risk from Trump's actions, I think the bet / risk has largely moved back to being on whether WSG as a business can deliver.

Why? Because it is clear that the international community has left Trump totally isolated and there is a clear resolve to get around his sanctions. In addition, the recent update makes it clear we are not solely relying on measures being undertaken by the politicians.

The project update also made it clear we had made significant progress with banking, financing and the supply chain. The recent spate of job adverts also indicates that we are getting on with the job and preparing to be able to commence the contract. I think the recent fund raise is also positive and I suspect this will be to provide finance for these additional costs before project revenues are received.

You must of course make your own decisions, but given the improving underlying business in SL, how much risk is there left in the SP now? and how much upside is there if PF pulls off the Iran deal, not to mention any of the other MOUs that we have?

Whilst research and due diligence are very important before buying into a stock, they are very important before taking the decision to sell as well. I wish you the best of luck wherever your futures trades take you.

They said they would RNS material developments on MOUs. Either this isn't the MOU to be signed this year, or the media article is not accurate IMO

https://twitter.com/pandagulu/status/1037851216687099904?s=21

H&N it surely had to be forward selling given the volumes recently. The more interesting question is who was buying?

It was certainly an opportunity for the directors to make their promised purchases in significant amounts without spiking the SP. of course, that would mean we're not yet back in a closed period. If it wasn't them, then would it suggest we are back in a closed period and therefore about to exchange letters?

Either way, should be interesting.

Problem:The exchange of letters starts an 8 week countdown to the contract going live. Not a lot of time to advertise, interview and recruit for the necessary staff, particularly if they have to give notice to their current employers.

Solution: Start the recruitment process shortly before the exchange of letters. Duck in line.

Problem: Increased headcount requires financing. In addition to the time between letter exchange and the contract actually starting, we also have the period after contract commencement before cash starts to roll in.

Solution: Raise cash via a small placing shortly before letter exchange to finance immediate post contract expenditure.
Another duck in the line.

Sounds like all is well to me and well on track. Quack Quack Quack.

That is a very interesting point about the purpose of the Nov 16 raise being for post contract expenditure. Obviously it wasn't used for that purpose as the contract wasn't finalised and it got mopped up by general expenditure in the meantime. But if they needed cash for post contract expenditure in Nov 16, then you can bet they will also need some for post contract expenditure as soon as the letters are exchanged. Maybe Friday's raise was far from being a case of the can being kicked down the road for a few months, but rather a sign that we are about to get the green light?

Slipperz, it was signed the day before Trump pulled out of the JCPOA, not the day afterwards.

First ministerial visit since Trump pulled out of JCPOA http://www.iran-daily.com/News/230650.html

Well I'm glad you're not running this company if you would pass up on a transformational contract just because you think we might want to set up a future contract in USD, notwithstanding the fact that our target is emerging markets, so we are unlikely to trade in the USA and, for everywhere else there are numerous other stable currencies that can be used.

You are right that we did seek a comfort letter from the US as belt and braces, but that still doesn't mean that our activity is sanctioned. It isn't. Our supply chain was set up to be compliant with the pre 2015 sanctions (<10% US input) despite the activity not being sanctioned - again belt and braces. Of course that doesn't mean that individual suppliers that have a significant US business might not have decided it just isn't worth the risk and hassle and have pulled out. That has clearly happened, but they are being/have been replaced with alternative suppliers.

You are alos right we won't be using a UK bank. None of them have gone anywhere near Iran since the sanctions were lifted in 2015. Regional German banks are however a different matter. I think you'll find that they did business in Iran even throughout the last lot of sanctions. That's one of the reasons for having a German subsidiary.

Bigears, do I presume correctly that you'll be selling up first thing Tuesday morning whilst you still can?

Absolutely Mike.

There is also the other complication that SWIFT is a cooperative formed under the laws of, and headquartered in, Belgium. Therefore it is very much exposed to the EU blocking statute.

Because that's exactly what prevaricating means. Acting or speaking in an evasive manner. You can't get much more evasive than refusing to comment at all. What difference does any related business have in the meantime? It's not as though there are any other service providers they can switch to, is there? In any case, any transaction being processed through SWIFT right now as payment for an activity caught by the sanctions that were reimposed earlier this month would also be breaching US sanctions. The financial sanction coming into force in November is transactions by foreign financial institutions with the Central Bank of Iran.

Interesting that major US financial institutions appear to be prevaricating on cutting Iran adrift from SWIFT.

https://freebeacon.com/national-security/top-u-s-banks-wont-commit-ending-iranian-financial-access/

Trump has asked Pompeo not to travel to N Korea as there hasn't been enough progress on denuclearisation.
https://twitter.com/realdonaldtrump/status/1033045273361178624?s=21
Perhaps Trump should bear in mind the old adage "it is easier to criticise than to do better"?

Don't forget the ICJ hearing starts on Monday morning through until Thursday. Iran is first up.

Let's not forget that the original contract value of £35m was based on what was then the current PAX in early 2016, so more than likely, that is going to be nearer the 2015 annual number. So with growth rates of 8% for 2016 and 13% for 2017 since, it will need quite a fall in numbers before it results in revenues falling below the figures that we are all expecting.

Yes saw that too earlier Ozzie and my thoughts were exactly the same. Fingers crossed out news isn't too far away.

I don't think there will be any rowing back on the extra work AIMing. It will come. Not expecting imminent news on that though as I suspect recent efforts have concentrated on getting phase 1 operational after the US pull out from the JCPOA.

I'd say it was one and the same