Member Info for ShouldveSold

LOL

Hmmmm I wonder if APT snatching the deal means Gneiss don't get their slice or whether all deals have to go through Gneiss regardless because Scir doesn't have the professional capacity to handle any negotiations by themselves.

Probably get a suspended for trading for 3months RNS next.

APT all this time, just sitting there observing, waiting for the last moment to snatch the final 25% for half of the cost of the deal they bought into Aminex for.
From the way that RNS is written, it contractually means APT get the deal.

What is questionable now is if a bidding war ensues. Although I would think that was tarnish relationships going forward between WEN & APT. Arguably APT are in a position to match any increased offer WEN potential propose. There might be recycled aluminium lining to this cloud.....

Year end figures are due.
With the current rhetoric, T.R may put in a similar performance:
https://youtu.be/80N62t_EIuc

Marketttmer, such is the way of things when investing in microcap stocks.
We all invest in them for that fantasy 10 bagger which hardly ever comes lol
Most of us get the timing wrong & lose it all.

£15M down the drain & recouping £3M is raw deal. By the time WEN pay the other £8M, I think Scir will still be posting yearly net losses. As for the final payment, that might not be payable till 2026 or later. Personally I don't think Ruvuma will be producing gas to sell by then.

Anyway Tanzania is no longer of concern. I am actually glad to see the back of it.
Arguably Scirocco now has the means to buy another AD plant which will break even by 2027. So 2027 should be a it's first net profit lol.

So Scirocco is now is an position to pursue its diversification model, or now its core business model.
So we should see growth & value creation for shareholders right? Lol start the clock.

I think they had enough institutional votes all along and the only shareholders who voted NO were retail investors. Deal got the go ahead even before voting took place.

Welp that's that. Market reaction speaks for itself.

I think T.R has learned well from J.F and is now positioned to use EAG the same way Gneiss is using Scirocco.

Now that is a deal I would support. An all share offer to acquire Scirocco. We get a competent board with a cash producing profit making company.
They could sell the AD business to EAG for £2M
We'd never have to hear the name T.R or Gneiss ever again.

I guess why would you pay for something when you can get it for free if you just wait?
Both ARA & Wentworth know Scirocco is on it's knee's. If Scirocco didn't diversity, they would of had the funding for Ruvuma. Until we get year end figures we won't know for certain but it certainly feels as though that decision has halved the value of Scirocco whilst allowing them to pay a monthly retainer for 15months to Gneiss and provide a business loan to EAG.
So there is enough money to pay the people who matter, but not enough to grow a business. Its shocking really. I am embarrassed that I am invested here.

No in that vid he pauses to think, or maybe he was having a mini stroke; but he said each plant costs £3M.

I am now wondering whether T.R got his numbers mixed up. From memory these AD plants were £1M each which made the return very attractive & profitable in approx 18months. Either he made a mistake saying they now cost £3M or he is correct and they now do cost £3M, which now makes the diversification loss making after maintenence and opex but yet Scirocco still has funds to pay Gneiss a monthly fee guaranteed for 15months & a loan to EAG for working capital.

The more time I spend monitoring this in my portfolio, the more sick I feel.

Actually Bernie Madoff would be a better fit.

That interview was basically T.R telling the market how crap the Ruvuma asset & Tanzania is & how nobody wants it.
I'm assuming the strategic investors over this year was to ensure a higher percentage of YES votes.

£3M for each AD plant which generates £600,000 at these gas price levels means breakeven is 5 years. In my opinion, that is not a good business investment.
How much is the byproduct fertiliser worth? Sounds to me like that is the only way these AD plants then start to make economic sense.

I think I have given T.R a fair crack of the whip & judged his ability on good leadership based on the diversification and not the legacy assets.
I am now 100% convinced that he is not a good CEO and his priority is to ensure any monies generated at Scirocco through deals or actual income goes to Gneiss & EAG and nothing trickles down to shareholders as everything gets reinvested to do more deals.

Following non shareholder approval result, I think his position is untenable. I think a No Confidence vote is the next step.
At this point, I would rather Boris Johnson be the new CEO.

grsshaw, in my opinion you are valuing the asset at a retail price but ignoring Sciroccos financial position. Ruvma isn't distressed, but Scirocco is.
So yes I suppose it is completely possible that another company may swoop in and offer £16.7M to try and steal the deal. But WEN are the perfect candidates in my opinion; size wise, current operational base, in country dealings. Its a no brainer for them.

I think its scandalous that Scir is evidently generating cash from the AD business and ring fencing that for Gneiss & EAG whilst the Tanzanian asset is left to sink the company. Then WEN swoop in for a cut price deal... I think this was a well planned Chess move from the people who will financially benefit from the sale.

I hope someone asks for a special dividend of £0.000001 a share on the final payment in 2025.

Hey grsshaw, I'm sure all of the possible outcomes have been examined in the due diligence of All interested parties over the past 5 years.
At peak gas prices which are only set to go higher & a lengthy sales process, it looks like it's £10M from WEN, take it or go bust deal to me.
T.R summed it up succinctly by saying WEN have the resources to develop Ruvma and can afford to wait years for infrastructure to be build. Evidently NO other company world wide is interested in investing the time, money or confidence into the Tanzania economy.

The reality is, this was a pipe dream for share holders and the Pipes that will transport the gas haven't even been approved to be built or laid yet. It was a fairytale investment and its sadly over. I'm sure many are realising loses way higher than mine. It's a very bitter pill.
Maybe in 2025 after WEN have invested another £15M they will start seeing an income and Scirocco will then be paid a nice instalment to cover the Xmas party.

Now more importantly Scirocco is close to 2 years being diversified and the company value has halved because of it. I don't know of any Wind Farm company that is profitable lol.
We shall learn in a few days if this AD plant business is actually profitable and or scalable.
I think it is, but as long as Gniess are running the financials, no value will ever be generated or realised for share holders in my opinion.

That interview today has confirmed for me that Scirocco will NEVER provide a return to shareholders. Any income will fund salaries and deals to benefit the directors of any company involved.
I decided in 2016 to not invest another penny in this company and to just leave it to decay. Which it has done nicely.

I'll leave anyone who wants to wallow in self pity & losses to it. There are other stocks to invest in to slowly recoup losses on.

In my opinon T.R a actually has no idea on what to spend this potential sales money on lol he actually said Wind energy LOL