Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The main reason for listing upon aim is to raise capital via placings.... If they could have raised at 7 pence no doubt they would have.... They obviously couldn't or they would have.... If they could have obtained a competitive loan I'm sure they would have too...it's really deluded to think that European companies aren't corrupt and somehow only Chinese and Mongolian companies are underhanded and corrupt.... Its called European exceptionalism... Orientalism....edward said wrote a book about it, you should read it and understand the world we live in.... If the SP shot up to 10 pence next week you wouldn't be bothered.... You won't report them... If you do report them nothing will happen.... You're allegation of illegality are nonsense.... Sour grapes... You need to live in reality.... They needed to raise capital.... They've diluted their own shares.... They've obviously millions more shares than all of us..... Yep 3.5 pence was a shock but it isn't illegal.... Is 3.5 pence good for the short term SP? Nope.... But if the money gets the first few wells into production, 3.5 pence will be long gone.... I say this as someone who bought into the spike...and has a paper loss of five figures.... . I've already got over it..... Its done... Its over.... We have the cash to produce... And the EL in hand..... If you want low beta stocks without volatility don't buy into aim oilers.... The volatility is where the opportunity is.... In conclusion, stop the Chinese and Mongolian prejudice... I've seen a few posts along the lines of "you know what the Chinese and Mongolians are like".... Its crass and inaccurate... Nationality or race have nothing to do with it.... Its business...capitalism..... Plain and simple.....
Tells me there is more news en route.... That can be the only reason for no PR so far....
I'm speculating again.... But maybe the best offer on the table re JV is for a partner to take equity and commit to a proportion of drill costs... In that scenario, matd needed cash to enter such an agreement.... So a partner pays zero for the enquity but pays say 50%production capex.... Matd might need cash to pay for their half of costs for example.... This could be the reality.... How many small cap oil cos get their back costs back today? Ppl better informed than me plz I'd appreciate any info..... With the new shares the MC is like 25 to 30 million.... You have one third of the MC covered by cash... No debt.... £1 million to drill.... A potential massive upgrade in resources.... I've added again.... Gonna aim for 1 million shares...Nice round number.... Lower my average and do nowt as we say in the North of England.... Open goal... De risked.... New shares hit the market next Thursday... Maybe the bluecross sale will last till then.... GL ALL
It's crazy cheap.... 50% of MC covered by cash and growth.... H2 will be great IMO, we are set up nicely
That's drinks sorted for the £1 party! Lol!
He didn't do any PR post EL... no PR post fundy.... Is there still news to come hence the PR vacuum? Is a JV gonna drop? Hopefully it's good news hahahah!!
If my memory serves me correctly, the line of credit from petrovis is at a 10% interest rate... Correct me if I'm wrong.... $10million with $1million interest per year or $20,000 per week.... You'd lose about $800k in interest before you drill.... Maybe that explain why.... I dunno.... My understanding is oil exploration is sub prime due to esg and the various risks etc.... Maybe they couldn't secure funds cheaply enough... I'm only speculating.... If indeed blue chip investors (which is subjective) are long term and on the register, that'll be very positive.... Hopefully we find out who they are
The TR1 is only required if they breach the 3% threshold I think.... With the enlarged share cap of circa 850million, that'd be 25million shares to trigger a legal requirement to disclose them.... So about £900k.... Let's see.... My figures might be a tad off because I'm not sure the exact number of new shares in issue but you get my jist
It didn't crash.... The MMs opened it 20%lower...its their job to make a market.... It then rose because there wasn't enough selling.... Let's see where it is at the end of the day.... I suspect many will top up sub 4pence to either lower averages or due to H2 optimism... GL ALL
20% lower... MMs will hoover up those shares
Looks like they've invested into France and holding more inventory.... Set up nicely for H2.... CBD in September.... Always have a better second half.... Cash balance still a healthy £5 million.... Bout 2pence per share.... No debt.... Growth in sales..... Be interesting to see how much France grows and if it can push us into profit earlier than 2022....I'd like to see the unprompted brand awareness metric.... And stock levels.... But pretty good update and everything I expected.... Re the SP, there isn't any catalyst to drive it higher really.... I feel we need to be realistic about that.... Personally I'm not selling so it's immaterial to..... GL ALL
As shoddy as the fundy was (I'm in the red) I must remind myself that two major risks have been eliminated namely the EL and funding......this is a stable foundation to negotiate with interested parties... If we can't do a deal then we go alone.... On a different note, it feels like there's a disconnect between those focused on fundamentals and those on price action.... Two completed separate things.... If you bought last week and wanted to sell into a post EL spike then I can understand your anger.... But it appears aim is heavily stacked against traders because inexplicable things can happen.... And do happen... And your playing against ppl with prior knowledge.... The days of oil cos bring hyped ala bitcoin are over.... Only fundamentals will deliver a sound result.... Fcf, profits, etc the fundy wasn't nice... The price drop isn't nice.... MBs lack of PR isn't good too.... But the company is now on a sound footing to actually make some money
The metric to watch is the remaining net cash.... If this has risen somehow then I'd consider that a huge success.... If its fallen, like the board have stated it would, the question is by how much.... A huge issue for non profitable companies is dilution because it generally ruins shareprices..... £8 million is about 3.5pence per share(probably a tad less).... 270 million shares in issue.... Every £2.7 million is 1pence per share... This is the key.... You can apply this to free cash flow too.... If or when eve make profit, every £2.7 million of eps is 1 pence per share..... The share is at an inflexion point.... If it can become consistently profitable then you can easily ramp up eps and the SP will follow.... With turnarounds, cutting the fat is kind of the easy bit... But it has limits.... The next phase is much harder.... Can you run a consistently profitable business.... That's the central question.... Can you actually make free cash flow and grow net cash..... I don't expect profitability but let's see..... G L all holders... Best wishes
https://www.google.com/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/955127
MMA, There are 2 schools of thought.... 1. Many pi's were finally in the black last week after years of losses and feel aggrieved that their shares have halved in price in 3 trading days... Also, having such a. Discounted fundy has left a bitter taste for many.... Plus, some were. Obviously in the know.and were able to jettison shares isn't a good look for management.... 2. We now.have funds to extract oil from. Heron 1...use the cash flow to expand the.field....create cash flows to become a self sustaining.company....drill other opportunities etc... On Balance, I think you are entering at a great moment but dyor and good.luck.2 u
How many barrels per day are expected from heron 1 initially? Would be good to hear from the a management regarding future plans and be able to do a "back of a fag packet" calculation re future cash flow and profitability.... Took the bold step of doubling my holding just sub 3.5pence... Won't take the open offer... Average now at 5pence because I stupidly averaged up after the EL was issued... Very silly in hindsight but my plan has been to hold till production and cash flow.... The two concerns were the EL and funding... These fears have been placated now..... With 850 million shares in issue it'd be happy with 30pence... Ultimately it'll be cash flows and profits that move this stock.... GL all
Way to raise capital at such a discount.... However, matd are partially funded now for heron 1 and maybe 2 and 3....price of oil looks very good medium term.... No debt.... Major in country shareholder backing the company.... Low cost production.... Not a nice feeling to drop so much but we are funded now.... 100% ownership of asset too... Only gripe (apart from the strike price) is that ppl in the know were able to offload their shares last few days, it's illegal and grossly unfair.... But cest la vie
The net proceeds of the Fundraising will be used to:
· Fund the completion of the Heron 1 and install well site production equipment
· Drill and complete for production (if successful) H2 and H3 wells
· Start production in mid-2022 with processing and export via adjacent Petro China operated facilities
· Recruit a farm in partner, if acceptable terms can be agreed, in order to accelerate Heron full field development and to join in exploration efforts
· Fund a portion of the Company's Production Sharing Contract (PSC) expenses
· Fund a portion of G&A and other corporate expenses.
In the event of sufficient demand, the Fundraising may be increased to fund the following contingent work programme:
· Acquire 3D Seismic on Block XX
· Drill Velociraptor 1 high impact exploration well on Block V
· Drill Saiga 1, Gobi Bear 1 near field exploration wells on Block XX.
post RNS is inexplicable unless some type of deal is being formalised.... MB hasn't been shy in doing interviews and presentations..... Why wouldn't he talk about the licence and give some info on the short term plans? I can only conclude something is happening, either a fundy (hence the drop) or something else.... No PR after a major company milestone makes no sense at all
IMO, this is all priced into the SP.... The major question for all start ups is when will you be consistently profitable.... EPS drives share price (either way)... In fact, free cash flow per share drives share price.... An ebitda loss of £2 million was a massive improvement last year.... But to attract new investors you need to show actual freecashflow.... Unless CC pulls a rabbit out of the hat I'd assume we'll trade sideways for a while.... Also, if netcash is down to say £5million, that's only 2pence per share as oppose to 3.5pence... That type of move can create selling pressure as some investors use net cash as a barometer of cheapness.... I have a big chunk of shares so I'd be delighted to be surprised.... But terms like "profitable growth" etc aren't the same as hard cold cash and earnings on the p and l... GL all investors.... Let's hope 4 the best but plan for whatever happens