Blencowe Resources: Aspiring to become one of the largest graphite producers in the world. Watch the video here.
#Savannah is pleased to announce the publication of our first disclosure report for the Sustainability Accounting Standards Board (“SASB”).
Read the full report here: bit.ly/3PHAOx6
#Sustainability #SASB
We continue to excel at producing glossy booklets and our networking activities all over. Africa.
Just need to close a few bits of business now and we’ll be the full package!
Forgot to copy the article:-
Kenyan President William Ruto will be travelling to China later this month to seek a $1bn (£820m) loan to pay for stalled road projects, his deputy Rigathi Gachagua has said.
Mr Gachagua told local-language Inooro FM radio that many contractors had abandoned projects around the country as they were not getting paid for their work.
He said while Kenya was already heavily in debt to China, the president would ask for an extra $1bn while seeking a longer repayment period for the money that is already owed.
He said the president would tell the Chinese that “we admit we owe you money, can we talk so that you add more time, we pay more slowly, and can you add some little more money to finish building our roads?”.
Kenya owes China more than $8bn from loans mostly contracted during the former government under President Uhuru Kenyatta for infrastructure projects.
The deputy president addressed the issue of extravagance by government officials, saying it was the reason the president had ordered a curb on foreign trips.
Earlier this week, the presidency banned public officials from taking non-essential trips abroad to cut spending and has ordered all ministries to cut their budget for the next financial year by 10%.
The government has been accused of unnecessary spending amid complaints by many Kenyans over the rising cost of living and tax hikes put in place by the government.
Kenya trying to get $1bn from China for stalled infrastructure projects. This put the SS / Caltech into perpective. $3bn ($1.2bn for all the Petronas assets + $1.8bm interest free for a few years and then 1.5%) from some tinpot company who pair $100 bucks to take Kiir for a bloody good ‘massage’!
ETA to next SS news - 10 weeks today and counting…
TiL - TY for monitoring so many channels for any snippets on SAVE. Re this one - you would like to think that AK is confident of some incremental NOI for somewhere or other if he is still recruiting and growing the team in the UK and abroad.
What were the focus areas for 2023:-
1 Close SS
2 Add another hydrocarbon acquisition
3 Get to 1GW - now put back the next year
4 Re-structure Accugas debt
I’d be ecstatic if we completed on 2 & 4 by the end of 2023.
Surprised we’ve not seen more trade press / Social Media. I hope Z and Komakino are still researching all this lot along with Komakino’s excellent research on progress re the New York and Paris court cases.
VL - I see your point but are we big enough and capable of doing that? And with Europa? Not for me mate. Whilst I know it’s cold to have assets in different countries / geographies, I’m more than happy with what we have in Canada. A good jurisdiction to be working in and we have Vader assets (relative to our size). We have hundreds of cheap, fast, low-risk drilling locations ready to go and these is no reason why we can’t double our production organically in Canada if we really focused on our operations over there.
For me Serenity is a very expensive distraction although some do say that there is a pot of gold at the end of rainbows.
Anybody notice the 8 trades today all for 4,025,000 @ 26.25p = £1,056,562 per trade and 32.2m shares in total?
On ADVFN they all show as positive numbers but on LSE 5 of the trades show positive and 3 trades negative.
Can’t be Joseph’s shares going through as he only bought 6 m at 26.35p.
Strange why these are showing today and does anybody have any thoughts? Hope it’s not a placing going through, although if it is at least it would (hopefully) provide Sime support at 26.25p and you would think we would not be coming back in the teens or worse.
Just small traders moving money elsewhere as they’re not expecting news for 6 to 8 weeks. On top of that MM’s strut their stuff. Traders will have taken 10% to 15% over the last couple of weeks so they’ll be happy with that.
Additionally this could prove an excellent buy on ex-div day if it drops a chunk then too.
Working on having some fluid funds for then.
Oil cartel leader warns of prolonged high prices https://www.bbc.co.uk/news/business-66985654
My wish list in order:-
Debt refinance
Additional 10k - 20k hydrocarbon deal
Niger drill test
South Sudan RTO
New renewable deals announced
Compression project update / new customers
ICC cases with the court in Paris
What would we be worth if all that lot proved to be successful - ker-ching
And conversely…ouch
I wonder if we are exploring compressed natural gas (CNG) options in Nigeria. I assume the have one or two buses knocking around.
Nigeria's President Tinubu increases wages as national strike looms https://www.bbc.co.uk/news/world-africa-66976445
Ian - I’ll have a go in my layman’s terms as I am no expert in this area but my understanding is as follows:-
In simple terms, if a company tries to acquire another company larger that it’s own it is deemed to be a Reverse Take Over (RTO). The rules that determine a RTO seem to be very complicated and there are quite a few of them. However, as a rule of thumb I tend to think of it as being if the market cap of the assets being purchased are larger that the company buying - then this is a RTO.
If a RTO is triggered it comes with a mandatory suspension until a new admission document is issued or the deal fails. Upon either of those two scenarios occurring then trading can resume.
My concern here is that if SS should fail and we immediately sign another SPA with another company larger than ours, we could possible go directly in another back to back RTO and subsequent suspension for another 6 to 12 months.
TiL - I hope so too but having said that PI’s are always hungry for newsflow and never think they get enough. Although I think AK will only release a bare minimum and what he has too. And while he seems to have “an excellent relationship with Nomad” , i think it will be in the main his decisions what news is released.
As I’ve said before at the very TOP of my list is true refinance of debt so that we eliminate the material risk of remaining a going concern.
Amazing really (but I clearly understand the fx issues - well at least I partly understand the complexity of it all) that it’s not more straightforward to restructure $443m of debt when we have $3.7bn of World Bank guaranteed gas contract in place over the next 14/15 years.
LD - maybe a bit early for some of those updates but I would like to see something on RoC. Re dividends, from memory, sometimes we were informed by RNS of the dividend mid-month with payment towards the end of the month. With strong POO and slightly weak AECO compared to revised budget of $2.6 CAD (although I have seen $2.7 CAD quoted elsewhere) i would hope NOI is strong enough for the quarterly dividend to be announced.
With POO strong, I guess we will drill oil wells and not gas, buybacks dead in the water and M&A big question mark for me. Although CEO likes buying production to take out the cost and risk of drilling, I think any current potential assets will have gone up too much in price, unles we buy some cheap gas production with a view to the future.
I think too early for increased divi announcement or special divi.
Personally I would like to see:-
Recent divi announcement executed and maintained
A strong drilling program announced
Bring in a partner to expedite speed of drilling or sell some of our assets
Wipe our hands of North Sea
Move our operations and office all to Canada
PR to increase Canadian liquidity and retain dual listing
SG&A significantly cut due to 2 points above
GLA and I would like and hope to see 18p by YE
Some excellent photos of the vast Accugas infrastructure too:-
“We consider Savannah’s operational performance in the first half to be strong with the company also confirming continued successful expansion of its renewables division,” comments @ShoreCapital in their research note this morning following #SAVE’s half-year 2023 results.
Read more here: bit.ly/3rvJqyW
Strong momentum continued post-period end with #SAVE signing contract extensions with Central Horizon Gas Company Limited, First Independent Power Limited and Notore Chemical Industries PLC in Nigeria for a total of up to 85 MMscfpd.
#SAVE delivered gas to eight customers in H1 2023 and signed a number of new and extended contracts, including an agreement with Amalgamated Oil Company Nigeria Limited to purchase up to 20 MMscfpd of gas for onward sale to our customers, a new agreement with Shell Nigeria Gas Limited for gas supplies, which commenced in August 2023, and a contract extension with Shell Petroleum Development Company of Nigeria Limited for an additional 12-month period.
We are proud to announce the continuation of our strong safety record, with our Nigerian operations recording one million hours without a Lost Time Injury, in line with Pillar 2 of our sustainability strategy “Ensuring safe and secure operations” and UN Sustainable Development Goals 3 (Good health and well-being) and 8 (Decent work and economic growth).
Positive mental thinking!
I know it’s a while from having a decision made but…
Should we win the ICC cases (good initial judgement indicators but a long way to go with a few swings from various court decisions up to decision date) that would be our current net debt of $443m wiped out, so long as we had a credible, reliable way of obtaining the award amounts.
Sp - TY and let’s hope it completes sooner rather than later. The next big thing for me is adding the successful compression project in Nigeria in order that we can continue to to expand our existing customers and add new ones too. I just saw this bit in yesterdays report which is very promising although i do not know when the expected completion date is for the compression project:-
“ Savannah continues to progress its US$45 million compression project at the Uquo Central Processing Facility. Following the front-end engineering and the associated order of long lead items, detailed design work has commenced and is on track to be completed in Q4 2023. The compression project remains within budget and startup is planned for mid-2024.”
Once debt refinance is secured and now I know compression is still on track, I will restart thinking a bit more about M&A. However, I must admit I’d love to see one or two new SPA’s land soon so that we could be working on 2 / 3 M&A targets inc SS simultaneously. This would cushion the blow if a couple of others landed should SS fail.
Am not even thinking about niger or renewables at the moment but I am looking forward to the ICC decisions which I hope will land sometime next year. Not sure how true the rumour is of a June 2025 date being set for the judge led hearing.
Scotpak - getting to a term sheet sounds good to me. From your experience how likely do you think the debt refinance will complete now that we have got this stage? Hopefully we will see some his resolved during the early part of Q4.
PART 2
Finally let’s hope AK has decided to get all the bad stuff (a lot of bad luck), warts and all out in yesterdays update. If so we have a new baseline to work from as we move forward. Let’s secure debt refinance and then build on things from there. If we could complete the debt deal and bring in SS I would be a happy bunny again.
Sorry for the downbeat stuff yesterday but I did find the report very poor on my first assessments of it.
Onwards and upwards and here’s hoping for a strong Q4 and an even better 2024.