Member Info for Simms45

With numbers as good as this its disappointing we did not crack on with building the mine as we would be opening middle of next year or sooner if we had. One thing for sure the value of the asset would significantly increase towards NPV the closer to production and also would make it considerably easier for someone to acquire when they have sight of the production date and when gold revenues would come in sooner to pay back the purchase. As long as the board is comfortable with letting Condor go for around £100m i am sure they have plenty of cash buyers but i sense they are holding out for a lot more and sooner or later they will need to accept a lower value of around £100m and move forward.

Given what was said in last RNS

“the Board is confident that a binding agreement will be reached. Investors will be updated in due course”

For me this meant we had an acceptable non binding offer and aim was moving to binding as MC said investment banks involved. Just a hunch a binding offer might follow this interim up quite quickly. I am sure they hoped to announce deal prior to this but in the end needed to hastily put this together so as not to let the interims slip outside expected delivery. we will see.

Update does seem very tight lipped.There is no dressing up and perhaps thats how it is meant to be. Perhaps Condor was expecting to announce something prior to this hastily thrown together interim as it is probably 4 weeks overdue. I am sti confident a binding offer will come this month and as someone else said i suspect the ministry of mines needs to give the nod in the end. Lets hope within 3 weeks we know for sure as gold price and interest in that asset class is only increasing as the world becomes increasing dislocated. Gla

We have multiple meetings this week in Addis with banks and Harry and chums in Australia. Seems pretty close to me but while money might not come until Q4 the share re-rate will take off if the bank signs off the debt. There is every chance this could happen this month subject to equity of investors being injected as we know debt comes last. However importance of bank debt through credit will be a major milestone as we also bank our $90m of sweat equity. We can then move towards 2.4p to trigger those warrants and free up cash to invest in Saudi etc.

Hopefully now MC is back in Nic he is going to finalise one of these 5 non binding agreements. to be binding and get one OTL as September really needs to be the month. With so many tweets saying its in the bag then surely we must be close. i am expecting a chinese offer really as i sensed that from the very early period they had been making overtures and helped kick this sales process off and with free trade deal in place with China it might be a perfect photo opportunity for Ortega and his Chinese counterparty or will Calibre swoop finally. However at the current miserable share price i really cant see any takeover happening as i doubt Jim will take anything less than 50p a share but this is over 100% premium to todays price. we will see but September feels to be an important month.

Well the timeline is still on track and now we are down to weekly updates so still time to close financing this month with plenty of key meetings. You know what Harry might just pull this off.

“Almost all the pre-requisites to begin construction are now in place. We remain focused on final credit and board approvals for the project financing, ahead of project launch in Q4 2023, with first production expected by the end of 2025.“

All helps understand where we are and how close Harry and team think we must be to be building the team. That finance really needs to be signed this week or next to have any chance of telling the project manager if they will be project managing anything or just moving deckchairs around. we have had no update to say we are not getting the finance binding this month so we need to assume it is happening. Webinar is this friday first to shareholders and then to industry professionals so really next few days he needs to add something new into the pot or he will have nothing to say as it will not be in the public domain. Fingers crossed before friday he does RNS something or Harry will be in the hotseat.

The refinance is agreed. The performance criteria will be that the revenue of the plant can repay the loan and as the plant has only recently gone live there is probably still optimisation to complete but that is normal as this is not like a rental property where rents are fixed. This will settle down as the processes are optimised. Ulimately the loan is based on the revenue of the plant. Eqtec do not actually need to draw down the full facility today rather to access the facility so this makes a lot of sense so we are not paying for interest for money not deployed. it is fair to say that optimisation will continue forever to continue to improve performance but ultimately Eqtec will be paid for that from the SPV so no bad thing. At some point in the next year i suspect we will sell the SPV to a 3rd party and pay off refinance and repatriate profits to be deployed elsewhere and continue to focus on the IP sales and service contracts that are very high margin and add long-term revenues. It is the longtail of service contracts that will be very profitable as well as the IP sales. The delivery of the parts are likely lower margin but these are one off benefits of each deployment. Once we get to 10-20 projects with 10 year lifespans those service contracts will come into their own as well as IP license renewals from technology sales.

Also this project is expected to deliver 1m euros EBITDA overall. if that is the case then if you then take this project to an infrastructure investor with these types of numbers I suspect a 10m+ euro valuation is not unlikely for 1m EBITDA. i appreciate we only have a stake in the project but we have the option to buy out our partners. The overall asset could be worth more as we have added in biochar and optimising. With infrastracture investors transitioning away from carbon investment into Green investment it bodes well for the future. We will see but for a company with a market cap for the whole company of only around 20m euros today there is so much upside. i did not think we would fall below £100m valuation but here we are. Remember that while the pipeline of pipelines that DP referred to was a bit of a gimmick at the it showed the massive demand and market size we were moving into and we he stopped reporting that number when we hit around £1bn when it dawned on him that his small team could never deliver on so many. These projects will still be floating around and executing on that will depend on the partner model we are now working towards. Idex alone could bring in a large order book over the coming 12 months alone and we have every continent covered. Phoenix in the US has around 13 projects in the pipeline once North fork gets operational.

This is a form of payback as we are getting out more than we invested in Italy, albeit in the form of a loan today, but with further optimisation we can only increase the value of the asset which presumably will be sold at a higher profit in the future. This also gives us a baseline valuation on this single asset and certainly remove need for any need for a placing for the foreseeable future. Certainly the refinance of North Fork will give us more ammunition when that happens. From my perspective this is a decent payback as 6 months ago it was far from clear whether the project was even operating correctly and the value of the project at that point. Cashflow is key to Eqtec and looking forward to North Fork for the next major value creating event.

The more you think about the more it makes sense. It was hard to understand why MC was so confident and also was allowed to make that sort of comment given the impact on the share price. Its possible the deal was done and signed but not able to be released until conclusion of successful China and Nic freetrade agreement. For example China could hold this deal back to help in leverage of free trade talks maybe. Anyway all falling into place. If we push towards 40p then we might get a takeover offer that will get the big Jim nod.

The other potential good news in Italy is that out original deal allowed eqtec to buy out its partners at a specific price. I assume the price is favourable so if i was eqtec i would be looking for a buyer for the whole project and then buy out all partners and pocket the diffference. We have created value today so we are at the bottom with largely only good news ahead. We should move into cashflow positive by early next year and with some further contracts dropping over next 3 months, that seems pretty fair, we could hit that profit that DP was hoping for last year. Everything seems to be delayed 18 months but we are back to end of 2022 on the correct trajectory. Plenty to come and investors will pile in over coming weeks and as we move towards Northfork going live.

Maybe the delay in getting the first binding asset agreement was the waiting for the signing of the free trade agreement between Nicaragua and China? The confidence of MC expressed by his tweeting that the deal is agreed etc might have been that he had the deal in place but perhaps it was held back until this Free trade agreement was signed and now that it has maybe we can push on. Something over the next few weeks would make sense, if not sooner.

Fantastic news for Eqtec investors as this provides ample payback on our investment in the plant and a very sizeable cashflow at only 2.5% over the interbank rate. This is exceptional in these times. This will now mean Eqtec have no concerns about cash for next 12 months given we now have a growing number of sources of income expected that we are tap into. The profit we make on the MDC monthly will cover the repayments on these loan and north Fork is about to go live which once refinanced could be another $5m we can access. The painful investments made over many years are are finally coming home to roost and this should start the re-rate that is long overdue. This was always worth a penny as today we are worth almost nothing for a world leading technology.

Yes i understand but that is then resolved through the tax return so ultimately just a delay in accessing most of the cash. Plenty of foreign countries do that knowing otherwise some will disappear and Nicaragua will not see the tax money.

Lets hope Harry makes an update prior to his webinar on the 8th August as he is planning to speak to industry specialist analysts so would he want to rehash old news that analysts will already know? This was detailed in the last communication on the 9th August :

"The quarterly open-forum webinar for all investors will be complemented with a separate presentation and

webinar directed at industry specialist analysts. The Webinar for all Investors will be at midday London on

Friday 8 September 2023"

What we are all now waiting on is

"• final lender credit approvals and investor board approvals;"

that should happen this month as Harry explained he expects to start community preparations in September so the green light should happen this month for that to happen. The bank final credit approvals are the key ones and that is what i am expected.

"to start community preparations this quarter (Q3 2023)"

We will see but we have no update to say the contrary and can only go on what is in black and white and passed through the Nomad for some level of accuracy. Given this should be the month and potentially next 7 days to find something new.

anyone selling today are doing so at a loss, potentially substantial, so most likely forced sellers. i am not aware of any big investors exiting as RAB capital has already sold down their holding.

Let hope next week we get some substantial update.

Remember that all our costs will come out of the asset sale or company sale before any tax applied so the withholding tax is likely to be far less as over the last 13 years of spend it will have added up. We currently trade below are net asset value so we are right at the absolute bottom and that is at cost. we must be close

I would say its very useful firstly to demonstrate deals of a good size are happening in Nicaragua and to sell 50% of a very early stage mine with an MRE of onbly 92k ounzes gold for $25m show market is strongly investing. They are probably 5-6 years from production. Personally would like to see Condor sell 50% and then use some of that cash to fund us to production to enable the high returns to maximise our market cap. However by these numbers $100m+ seems absolute minimum as we are so much bigger and further down the road.

I would keep the champagne on ice for now but something is clearly going down so could be any day or week now for a binding offer to land. Once we get that then it is game on.

Https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0829/2023082901535.pdf

generally speaking the results do not really tell us much about future prospects only that the 6 months up to 31st June were lacklustre but they signed 16 contracts. They are still owed quite a lot of money so they need to be working hard to collect that but we have net assets of £18m or so and that is double market cap today. obviously without sharing news on value of any future contracts signed and any indication of future revenue it is hard to know whether they have turned the corner. When they release the final results PDF to investors this sometimes has more information but is a shame they are not divulging anything for investors to have more confidence in the business going forward, although i sense things are improving but key really is that company has reasonable cash and assets and working capital and really they need to secure some decent contracts and promote heavily their test projects to build their investor footprint. Sadly we know the score and they appear unable to do that but at least there is no delay to the accounts and hope that we get some uplift as locals find out new contracts that we do not. i am still unsure why we doubled earlier in the year so if we get another day like that sometime over the next few months that would help put me back to breakeven.