Member Info for Rickylfc5

Master - what a joke your summary is
Just one particular line made me laugh - a normal business should use cash to pay debt not interest - have a look at most Public companies - they have debt as well as equity and they pay interest on it!! Do you have a mortgage? if so why aren't you using your cash to pay off the mortgage rather than paying interest on it?? Your post is very amateurish

Master - I think you are comparing incorrectly £9m (pounds) with debt of A$20m

New business wins / lower overheads and cash generation will win through in the end. I don't see credit card interest rates (although savings can be made) as the average debt last year was A$20ml and the interest cost was A$2.3 (approx) - alot of panicking here - could do with more announcements from the Co.

Fascinating situation here - (would be more enjoyable if I hadn't bought so many at 6.6p!!)
- Lots of sells but the big shareholders don't appear to be off loading as many as we see being sold
- Company booming and great turnaround and a ridiculous PE ratio
- Investors panicking over debt and lack of Nomad but management and employees investing
- Plus the Zorbas effect
How will it all end ??

The only positive news over the next few months is the possible drilling results and the extension of mine life. There is potential for quite a bit of negativity i.e
- very low Q4 production
- bad second half and final results
On this basis its worth holding off any purchases until this is cleared. Second half of next year could well be a good recovery play for HUM (if there are no further rainy season calamities) as the Macro environment points to a reduction in US interest rates and the Dollar and hence a rise in the POG - I wonder if the BOD are thinking of investing in our 'Compelling Investment'??

I have recently bought in to RRE on the back of the crazy low PE ratio and its cash generation.
Does anybody have any idea on the Company's Dividend policy going forward - £1 per share would be fantastic and would still leave plenty of cash spare??

Chris - they have added capacity since the year end (and are looking for 50 more employees to further develop capacity) - the business generated A$12 in operating cash flow last year and spent this on extending capacity. They are a key supplier to the Glencore Coal mining business (which is booming - coal prices high and Glencore forecast to make $5billion next year - highest ever) - If you listen to Paul Brenton's recent interview he states that there are many growth opportunities. We do need better communication / guidamce etc but managment and Directors are loaded up on share and Options so they are fully in with shareholders objectives

Thats what I wrote - bought shares at 6.5p and their options need to be at least 15p

Also note that the Board and management bought in at 6.5p and their option cannot be cashed belwo 15p

Just listened to the interview (end of October) with Paul Brenton - lots of good news and quote 'exception opportunities for growth'. They are investing for growth and cash flows will follow - debts are being paid down quite aggressively.

Not too bad - a little misleading to quote a AISC that includes the remedial work - more importantly how will they prevent this happening again and what about the work to extend the mine life

Its worrying that we still haven't had an RNS with a summary of the current situation (including cost / cash impact and resolution) despite Bert telling me that this would be out two weeks ago!! Is it worse than they anticipated / are they waiting to report good news at the same time?? I think they will 'kitchen sink' the financial impact to make sure that the costs are well covered and they don't impact on 2019

I know I wasn't Sarge but I was shocked by the recent accounts

£4 million working capital deficiency is serious (the B260 rig only cost half of this) on a Company with a tiny MC - i just don't see how they can juggle the funds when the extra oil won't be out for several months and raising loans and equity will not be easy.

Full marks for AC in keeping the lights on - at 30th Sept they had C$10.5million of trade Creditors and C$4million of short term borrowing with just C$4million in the bank - how AC keeps the Creditors from getting very aggressive (to be paid) is beyond me - that's why i'm out for now

Could it be that they have delayed the announcement so long so that they can spin some good news such as the remedial work is virtually complete or that the drilling looks to have extended the mine life by X years??
That’s what I would do

Thanks Chris - why is he asking Smudgen??

gige - that was a very cryptic message - can you clarify what you are requesting??

I think AC means well and is very enthusiastic etc but he is slightly deluded as he is seems to be striding around the world (probably on first class travel) saying he is in charge of an International Oil and Gas Co. Realistically the Company is capitalised at £5m and is way short of cash to operate as it should. I hated taking the hit but half my investment is better than what it may be and may grow in other stocks.

Taken my holding right down (may have lowered the price today - sorry about that) and took a hit (50%) - We all know about the delays etc but the thing that really has put me off is the funds / funding. If you look at the recent 6 month account they have C$ 10million of trade creditors and C$5 million of loans due within 12 months - these creditors will be banging on the door and where's the cash going to come from?? AC mentions loans but when any bank or institution looks at the balance sheet they won't be impressed and issuing shares would be difficult (unless the price is ridiculously low) The long shot is that they will drill and hit good quantities of oil but they haven't even got the effing drills on site therefore this could take months (which they don't have)