Member Info for sasa43

Yep, so sorry to learn of the loss of your sister recently, Manuel; such sadness puts our daily investment concerns into perspective, doesn't it? Good health is the true wealth for all of us...
ATB - sasa.

Agreed, BTS - a 'steady Eddie' in these turbulent mkt conditions has its own appeal, given the deep discount on their twin assets and a running yield of some 5.75% - unusual value on offer here, imv - sasa.

The shs go 'XD' on the 30th June, TSSZ - it's paid to shareholders on the 22nd July, so a few weeks yet before we receive the 9p ps - sasa.

Yep, it would be good to get RedL's take on this TEO outcome, as you imply, Shadowless.

Although I think he sold his holding a while back, he used to look in here from time to time and if he still does, I'd certainly welcome his comments on it - sasa.

I would, too, NewK but I see that my MP has just resigned! - sasa.

In last weeks issue of 'Money Week' magazine (page 30) if anyone's interested? - sasa.

Yep, agree with that 'snapshot' of PUR's steep decline recently, Happyh - apart from Management 'screwing up' with ops, they also exclusively looked after their own interests at the expense of shareholders which piled on the agony for us all. Takes quite a while to get over that sort of thing...

Hopefully, we're turning the corner now but it'll take some time to restore confidence in this one, imv - sasa.

The WT 'hit' will equate to about 15% off profits (7 months for this year) presumably assuming the Nth. Eigg drill costs are taken into account but pre any 'financial engineering' / other mitigating plans Serica might come up with during the period.

If that's broadly right, hardly a 'game changer' for Serica and still less warranting the savage sp decline we've seen since the announcement. Ergo, once the shock of it all has subsided, I'd expect a decent rally to get underway shortly, especially with the Co. being so vulnerable to a bid approach at this unwarranted price level - sasa.

With you on that one, of course, NewK - forgot about the 10 year tax holiday upon production underway; what a contrast to our 'hit' from Richi today.

It seems to me that Serica has four options open to it following today's additional tax burden:-
1. Ignore it and carry on, regardless, hoping success with Nth Eigg will offset much of it.
2. Announce a special dividend, asap or share buy back once authorised.
3. Possibly bring forward Sth Eigg much sooner than planned to declare capex commitment.
4. Or acquire an attractive overseas 'add on' (e.g CHAR, post the awaited CPR) to utilise much of the excess cash - any of the above should reduce our susceptibility to this tax grab.

I hope that ACW and MF now see the need to do something - sasa.

'An equity based offer' I referred to, if you hadn't guessed - sasa.

Had the '**************' offer deleted but that was the phrase used - sasa.

'Makes more sense to buy an asset for £400m outside of the NS' - good point, that General L - was thinking that myself as I got back home just now.

CHAR would fit the bill quite nicely / right size for us / huge gas find off Morocco/ needs about £300m to fund development to pipe into Morocco and Europe who are very keen to benefit from this supply coming on stream asap...

If Serica needs a spur to acquire something / utilise their cash hoard to employ more efficiently after this UK disincentive, then they should be seriously looking at such a prospect, imv.

A ************** offer backed by the cash to develop it would be quite a shrewd move, I'd have thought / expedient, too, in view of today's WT douche news. And yes, I confess to being a holder of CHAR, as well, so I might be guilty of some 'self interest' here, admittedly but Serichar has a nice ring to it, too, I think... sasa.

Hi NewK - yes, they made £80m net of 41% tax last time, so if the gross hike of 25% WT is based on that, the extra would be around £20m - relatively 'small beer' if they have to pay by this Y/E bearing in mind our much higher cash intake this year.

If it's on our 2022 Nos, I'm assuming that the Nth. Eigg cost will be deductible against the levy (90% allowance) so that will be a material offset against our rapidly growing cash accrual but a more costly imposition in this case, obviously and certainly agree that Serica should put out an RNS on this liability, asap - sasa.

If this temporary W/T of 25% just announced is based upon last years figures it will cost an extra £20m on top of their existing 41% tax rate, seemingly.

If it's to be based on current Y/E profits, however, who knows how much will be chargeable and when will it be payable? The results are ten months away from being released and the forthcoming Nth. Eigg drill cost (£50m odd in Q3 / Q4) being the most sizeable capex item, will presumably be deductible against it, so a statement from Serica clarifying matters on this 'hit' would be most welcome when they're able to do so - sasa.

Yes, echo your thanks, Blumagnet, to all who attended the meeting and clearly got some respect from the BoD in ensuring the Q & A session was put first rather than after the vote - a good tactical move, that...

The outcome was a relief, imv and gives us all a fighting chance to ultimately achieve something more palatable than the derisory offer tabled so far; it 'ain't going to be easy in this climate but RY and the BoD now have some authority in this regard going forward.

A pyrrhic victory we now have here which is better than a defeat, of course but suggestions to sack RY / the Bod, just as every effort is needed to get a better deal in place are total nonsense at this delicate stage. You don't 'throw the baby out with the bath water' just when you need all 'shoulders to the wheel' to secure a much better outcome than that we were facing.

Let's hope that this event proves a worthwhile turning point for us all - sasa.

Good on yer, BB2 - any feedback on how it went and the outcome, much appreciated - sasa.

Hi NewK - probably not much M/A activity to be seen surrounding Serica (either way) until the North Eigg result is known.

If memory serves, a successful outcome could double our P2s, - if not, then a £50m 'write off' cost will dent our Coh but not significantly so, given the sizeable inflow of cash in these conditions.

Certainly agree that nearing a negative EV or near to, makes an approach for the Co. very much more likely / appealing, perhaps for the likes of Harbour (formerly Chrysaor) and ACW / MF will be very much aware of this... Maybe, the share 'buy back' facility sought had this in mind?

As an aside, I reckon that Serica's eps for 2021 were probably nearer 50p if you add back the hedging / swaps outlay rather than the 30p reported and with all the 2022 revenue boosts now in play, the current eps might be nearer double that - ergo, the prospective multiple could be knocking on, say, 3 x ? Now, that's REALLY cheap - sasa.

Almost invariably discourages exploration / development of existing resources but prompts further industry consolidation / M&A activity.

Serica is particularly well positioned in both respects, given its current programme and burgeoning cash accumulation and if drilling North Eigg proves successful, too, todays sp level will be rapidly left behind - sasa.

Succinctly put, TDT re: yesterdays post, especially the last para - sasa.

Yep, it looks rather 'fishy' to me, too - if ever a special resolution / EGM was necessary, given the latest state of affairs, it is now.

Maybe someone at the meeting on Wednesday might remind the BoD that the Co. belongs to the owners of it - the shareholders - something they seem to have lost sight of in all this... sasa.