Member Info for ShouldveSold

I do recall the company mentioning farming out as a possibility after Starchild proposed it. But if farming out a another Well which can only return under 100bpd, what would be the point?
If it costs circa $4.8M to drill, what would another company charge to drill it.
If they would require a 75% cut of the income until the cost of operations were recovered, then a 25-50% slice from that point on. I don't think it would be economical. Break even for CEG would take a long time. CEG needs income now.

I do find it fascinating that investors can read an RNS or listen to a presentation and come away with a conclusion that is contrary to the information presented.

Patience doesn't pay the bills.

I think the interims will provide a clearer picture on company financials. I do know that with a forecasted drilling campaign of $2M per well with a 300bpd+ return rate wasn't achieved. And if every further SWP well will now cost circa $4.8M with a circa 80bpd return. The proposed drilling campaign is no longer financially viable.
The fact that S3 & 4 hasn't been progressed supports this. I am not buying into Suriname delay being solely down to Covid restrictions.

2 Saffron Wells have so far proven that a 2000bpd scalable operation is now unlikely. If the geology remains constant over the SWP, it would take 20 Wells to get production that high.
Of course if plans to drill S3 are still viable & a favourable result of 300bpd+ is achieved. Then the new company path would be back on track and forecasts would be more likely achievable.

I think the projected Suriname 50bpd well is now the company saviour. If that well is drilled and also deliveries significantly less bpd, I don't know if CEG will have the means to fund any more SWP drilling.

A different asset but one can also apply what GF said about mining operations can take 10 years. GROC has a long path in front of it.

Well until I get a response from my question, I'm of the opinion that I haven't read any comments on this bb that I think is crxp. I think investors, especially LTH have voiced valid concerns & those concerns were confirmed in the Q&A.
Alba does not yet know if the assets contain commercial volumes of extractable Gold. But efforts are ongoing to prove up any resources. Whether commerciality will be proven in 12months or not, I don't think GF knows, which means investors can't know.
If 1 or more of the currents assets are commercially viable; I didn't hear anything to suggest commercial production would happened within 12 months. In fact GF mentioned operations on this scale would normally take 10 years. But because the mine already exists, it wouldn't take as long.
So my interpretation is that it has currently taken 3 years to get to this point & that it won't take 10 years. So it's somewhere in the middle. How long is a piece of string?

It is possible that after the exploration operations are completed, that Gold production on a commercial scale isn't viable at the mine site & others. It could arguably be the main reason that the mine closed in the first place. Because the commercial volumes have already been extracted.
Of course Gold prices today are higher so what is deemed to be commerical is relative.
Exploration operations could of course find the mother load. 10x more volume that is extractable. I'm sure that's the scenario all investors want.
But until an RNS is released that states that, its currently unknown. This is why the SP is where it is in my opinion and will remain until news confirms commerciality.

Scotalba, is the *talking crxp* you mentioned based on the Stellar/HH points GF addressed on other bb's. Or are you referring to comments people have made here?

Informative Q&A video. It has confirmed  every sentiment I had & continue to believe.

Now with those kind of numbers being published 9 years ago, even with the collapse of gold prices & financial markets. Its hard to fathom why licences which evidently hold so much gold isn't being swallowed up, fast tracked with all the relevant approvals for not only tax & local economic revenue but for capital gains for everyone else hasn't happened &/or is progressing at such a slow pace.

I don't think any investor has questioned whether the Gold is there or not. I think what is being questioned is "how much has currently been discovered/projected, is it commercially viable to extract & if so/if not; when is that likely to be announced.

I get the gist that investors believe because millions of pounds worth of Gold has been extracted in the past, tens of millions of pounds worth of gold remains to be extracted and so investing in Alba is a no brainer.

I'm sure we have all invested in AIM stocks with the belief it will enable the investor to retire, only to be met with the realisation that the company's bad results crushes the company and that massive position one has built up, isn't worth more than the cost of a sale commission.

I think GF saves these RNS drafts for when investor angst & apathy gets high, to enable him to press the reset button for the emotionally invested.
I have no doubt exploration work is being progressed on the various sites and even though with each RNS update, the resources appear to continue to grow, I have the opinion that it's still not enough to support a commercial business just yet.
Until a independent CPR is undertaken, investors won't know how big the "Carat" is that is continued to be dangled in front of their noses.

Luckybob if you don't own your own company that hits targets on time & you don't draw a salary over £100,000 year, I'm certain you are not really allowed to say what you just said....... :S

I take it this interview has cleared up recent concerns & the income questions I raised are unfounded?

New BB rule: One isn't allowed to post ones opinion on this share unless one owns & runs ones own company profitably.
All those in favour say "Aye".

44RJ, personally I would like to see the actual financial charges broken down before I can gain confidence in Sciroccos expenditure so any fears I have can be addressed & quashed.

fjones please take another shot at writing that message. I think my eyebrows fell out trying to make sense of it lol
:P

Only a few hours in to the trading day and the SP is so far unaffected. I am surprised, I was expecting the gains of last week to be wiped out. Any retractment could of course still happen but so far it seems as though we were all panicking and projecting out fears onto the market.

I still standby my comments yesterday in being uncertain about where any income will go. I hope the Board have read some of the comments and will address shareholder concerns.

I don't think the market will like that news very much, that being said the % that do care, I think will be small. Scirocco is hardly on anyone's radar; its a 2 man operation with zero employees. Its no wonder they need to outsource every thing to get any work done.
I now have a better understanding of why things take so long with Scirocco.

I haven't yet worked out if all the income from the Biogas deal will actually go to Gniess for the next 15months or not as their retainer. But that is what it looks like to me. 
The lower end of the interim RNS states Gniess's fees came in circa £425,000. I don't know if that is the retainer for 12 months of in that is both a retainer & % transaction fee.

With the recent acquisition completed and shift in company financials (which I am hoping will be clarified with a first payment RNS) one would assume that Scir is now in a better position to raise capital through whatever means. So whatever happens with financial commitments in Tanz, Scir will be able to meet them. Unless there is an extra extreme additional cost with operations that occurs which Scir haven't factored in, which could of course happen.
I haven't heard or read anything which suggests the Zubairs have an issue with Scirocco being a part of the JV. The only issue they appear to have is with the stoic Tanz Gov.

Forecasting the worst case scenario for every pie Scirocco has a finger in seems to me like a lot of unnecessary stress, which I am not going to subject myself to. I take no issue if anybody else wants or needs to do it though.