ADV29 Jan 2022 08:37
As a large shareholder nice to see a positive day, but as we know the price has been massacred. We have now attracted a few short term traders who will play the upside to close the gap and exit at 0.5-0.6, so don't take everything you read as gospel.
For me the key parts of the last RNS were:
a) the Board believes it has sufficient liquidity to progress new business development through the current calendar year
b)concentrating on non-operated cash-generative assets and capitalising on the current deal pipeline, the Company aims to lever the time and cost expended in assessing potential new ventures over the last year built on the Board's extensive industry relationships
c) Ranging from Europe, Africa and the Far East, the opportunities the Company is assessing are suitable for debt or vendor financing, and the Company is currently -funded to mature these options
d) The Board is confident that it will enter into an agreement on at least one opportunity in its pipeline this calendar year
So basically they have now changed focus towards cash-generative opportunities suitable for debt or vendor financing, which is great. They will in my opinion try to close the one with the biggest debt potential and lowest financing costs first and it that does not work focus on the other ones they have identified. The big unknown is will they succeed and when this year. Therefore I see my holding here as a punt on a shell with smart directors with large upside if they succeed, but without any certainty they will and no idea if also equity will be raised nor the debt/equity ratio. I'm also well aware that even more patience than before is required, as a possible deal might take days, weeks or months to negotiate (plus a few months of RTO share suspension). These are the facts, the rest is noise DYOR