RE: parasise27 Dec 2017 10:09
really? ok your post on 6th oct said 15/16p.
SAVP RE: Reason for delay 6 Oct '17
OK, Buffy, here are the answers to your questions:
1. Equipment. See the RNS of 1 September: "all equipment and a security team for the programme now mobilised to the Company's newly constructed Jaouro base camp" but sitting there doing nothing and degrading awaiting a return to trading.
2. As you accept, the licences are heading for expiry. It appears to me, therefore, to be grossly incompetent/negligent to delay the drilling programme.
3. Heavily discounted placing. Per the RNS of 20 September, cash burn is virtually $1,000,000 per month. Cash at 30 June was $8,409,000. Added to the monthly expenses must be the due diligence expenses (necessarily in the case of a company like Seven, this is being done by international firms of lawyers and accountants charging up to $1,500 per hour and will easily run to several million). So the company is about to run out of cash any day now, all the drilling funds squandered. It is in a very weak position with little credibility left, so my estimate of a placing at 15p/16p is optimistic.
4. Write off of investment to zero upon delisting. This will be done automatically by your broker if SAVP fails to return to trading by 8 December. As pijoe1212 and Olderandwiser point out below it will be delisted on that date.