Member Info for Simon_Said

I think some are missing the forest for trees a bit here. The interesting thing is not the immediate cash unlocked here (frankly I find that fiendishly complicated and will leave to others with better knowledge to work out!), but rather the fact that the BoD decided that during the next 12 months, they would like the facility to return capital to shareholders, via buyback or dividend mechanisms. There are a few things we might read into that.

Firstly, it might suggest they see a substantial windfall in the near future. This would most likely be from asset divestiture.

Secondly, it might suggest that the Reabold strategy is soon to move on to the next phase. Sachin and Stephen have always said that as soon as they stop being able to find great deals, they'll stop spending. The company was not designed to be around indefinitely, and has a clear exit strategy in-place. They said that once the gap, which the 'new' Reabold was designed to capitalise on, is closed, they will distribute profits and close up shop.

I also note the AGM seeks approval for just £2m of theoretical new share prints for the next year. This is very small (and of course these are discretionary and aren't necessarily even going to be used), and coupled with the mention of buybacks etc suggests strongly to me that they are now done raising funds. They would have to hold an extraordinary GM to pass any other placing shares in the next year, they wouldn't create that hurdle for themselves unnecessarily.

Thus, this announcement seems to me to signal huge confidence from the BoD. Of course they know plenty we don't, and are perpetually in a closed-period due to the business model (and thus unable to buy shares), so they have limited ways of hinting to shareholders at what they know.

THIS is how to announce a placing. No discount, institutional holders only, AND a followup RNS the same DAY about buying back shares in the near future. This company is just the absolute package.

Loving this - they want approval for capital reduction to facilitate share buybacks and dividends! Absolutely fantastic to hear. Watch the share price go now!!

I have no doubt you're right in regards to Rathlin. I was just thinking that they have enough total cash now on hand (£5-8m as well as some operating income) they might be eyeing up new assets too. That said there is plenty of scope for further investments in all of their existing projects.

It has been a consistent feature of RBD raises that they don't announce the purpose till later. As I learned from discussing this with Stephen Williams last summer, they like to raise cash, and go in to negotiate on assets with the full amount ready to transfer immediately. This gives them the best-possible negotiating position. Announcing their intentions in advance could spark a bidding war, lose first-mover advantage, and would mean effectively beginning negotiations before they could be certain they were able to raise the required funds.

The full LSE webpage has now launched a new version which works properly on mobile as well ask desktop, meaning the old mobile view is no longer required.

That's fine isdeer, but that assumes the placing will be at or lower than today's SP which I find incredibly unlikely. My personal thought is placing at 1.2p, which is still lower than it was a week ago, which is when any supposed placing would have been likely to start.

I've topped up in this dip, surprised not more are taking the opportunity. This supposed placing would be a strategic move specifically to take advantage of opportunities available to the company. Every Reabold placing so far has been like this - price drops back out of fear when it inevitably leaks, and rebounds after the fact after the strong placing price is revealed and again after the purpose of the funds is revealed.

In this instance they're in a real position of strength. It's nothing like a placing in a desperate cash situation, since they already had £3-5m available. So if they are placing, I strongly suspect it's to increase their stake in Rathlin, and to re-furnish the kitty to go after other opportunities afterwards (they like to move quickly).

Ultimately with a find like West Newton, I find it hard not to be more and more excited by the day!

Well said AJ. The uncertainty is the bad bit. RBD shares have reacted well to placings before and a bigger stake in Rathlin would be amazing.

*Pad the nest, that should be.

True but placings aren't always to pad the next. Sometimes, as with Reabold every time so far, they're because something fantastic has popped up that they could acquire. Like West Newton did! They are well-connected and if they have spotted something awesome worth buying, no doubt they'll not hesitate to raise and go get it. Look at how extraordinarily fast they've grown this company!

Did everyone miss the part in the California section where it explains the exact reason for the delay? Nowt has changed.

'Integrity awaits an Encroachment Permit from the California Division of Oil, Gas and Geothermal Resources required to complete the tie-in due to the proximity of the pipeline to a public road.'

Lots of gas, needs piping, needs permit. Bureaucracy is slow. The impression I've had from S&S is this is non-controversial, just standard admin delay crap.

Anyway, WN and Parta alone are sufficient to keep me around now!

Agreed Bob. I bought the dip today with relish. The main thing that would make me slice/trade is if the market cap was toppy. This one is titchy for the assets and record being displayed. Keeping pretty chill about this one!

I topped up at 1.1188, absolute bargain. Historically I've done well off other people's hasty profit taking.

I don't think it's a specific announcement being signalled - that would likely mean Ray wouldn't be allowed to trade due to PDMR rules. However it probably does mean the results about to be announced in the Trading Update will be muscular. Look at it the other way - if poor results were coming, Mr Anderson most certainly would not be throwing down his own ISA allowance on it! Nobody would have batted an eyelid if he hadn't, given he already holds 6,572,816 shares (9.33% of the company) and plenty of incentivised options.

I suspect a nice juicy set of numbers is incoming. Now this is the important part: Much of the sell-off in the last few months here was due to the Cenkos downgrade. Much as people think house brokers are full of carp, in this instance the house broker was very harsh and the BoD publicly disagreed with their assessment. But many investors sold accordingly. With these new incoming numbers, Cenkos will have to update their forecasts, and with it restore the market's confidence in the business.

I've never seen a bust-up with a house broker like this before, but I suspect some rather uncomfortable meetings have been had since.

American companies are largely chasing unconventional - I'm sure you've not failed to notice the massive goldrush going on there, right? That was the whole point of this investment. Interests like these are too small for major companies, and the smaller ones are off chasing unconventional. There was a gap.

It was indeed a great deal. What else are you suggesting - that Reabold and Integrity did no due diligence and got 'duped' into buying dodgy assets? Integrity are no small fish, and in case you haven't noticed, the results so far in California have been uniformly positive.

I'm genuinely flummoxed as to what point you're actually trying (failing) to make. I assume you'll respond by telling me that's my own failure to not understand your masterful wisdom and knowledge, apparently you're too above every person reading this, as well as Reabold and its operational partners. If only they'd come to 'mick2020' instead.

I don't do SP estimates but I feel strongly that Parta remains the most underestimated interest in the Reabold portfolio. It's a low risk redrill right next to infrastructure. It's an open goal with running room for more. This is the share that gives and gives. Too excited to care about being called a ramper!

Well it looks like another cycle of Bango share price movement has begun. Strong rebound began today and with Ray Anderson's share purchase yesterday and the trading update due in the next few weeks promising significant profitability upgrades, I think the momentum is swinging back in Bango's favour.

This share has always been peaky, but I've picked up a fair few down here and look forward to the continued rise back to previous highs. The company is so well-aligned to make very serious money, and they have a significant amount of tax losses to offset maiden profits which will turbocharge the first few profit statements.

Like many of you here I talk to Ray regularly and have every confidence in him and his team, as ever.

I am not hearing any placing rumours from trustworthy sources, so I think he's just citing Twitter. In any case, Reabold is in terrific health so if they were to place, firstly it would be relatively small dilution relative to the new market cap, and secondly it would only be to access a juicy new asset. Remember they raised last time to access multiple projects including West Newton! They are very shrewd purchasers and I trust their decision making on this. However I don't think it's especially likely right now.

Agreed JPS. I am one of those who just hit their first bag, but I'm hanging on for bigger gains here as the market cap is still low for the assets on offer and the tsunami of newsflow ahead on all the company's very-smart bets.