Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
Daikihaku, I have to take issue with your disgraceful deramping post ;-)
saying
'EURIBOR + 4% annually for 6 years, is roughly EUR 43'
which combined with the award of €190m is €133m
May I remind you 'Compensation of €190 million Plus interest at EURIBOR + 4%, compounded annually from 29 January 2016 until time of payment'.
This is €240m up to Feb 2022, and despite the 4 month interest pause we can still add another 2% perhaps, so €245m.
Rock hope 'to retain approximately 80% of the award (assuming full recovery of the award)' so currently Rock are owed €196m, and the lawyers €49m
OWED €196Million !!
£10m in the bank,
35% of Sea Lion and yet a Market cap of £75m.
Indeed 'just plain nuts…'
Of interest, more shares and cash.
On 5 July 2022, the Company announced it had received valid acceptances of 39,652,160 Open Offer Units, representing a take-up of over 69 per cent. of the 57,310,264 available Open Offer Units. Accordingly, the Open Offer has raised approximately US$3.4 million (GBP2.8 million).
and Rock have written requesting immediate payment and reminding Italy not only of its obligation to settle the full amount, but of our rights to pursue all available remedies against Italy and its representatives in any forum without any further notice should they fail to fulfil their obligations to us.
and
Rockhopper expects to retain approximately 80% of the award (assuming full recovery of the award).
and also an indication of when first oil is planned with this comment
Management believe the most likely timing of payment is in line with the first royalty payment. As such the tax liability has been classified as a non current liability and has been discounted. At the period end payment is anticipated to be in 5.0 years
For those who didn't press the link kindly provided by Paul Drayton, it is a LinkedIn msg from Navitas. The second para says it all about how they view Sea Lion.
We are very excited to become the official owner of 65% of the Sea Lion discovery in the Falklands, and the nominated operator, adding ~463 million barrels of oil equivalent (2C) in reserves to our portfolio. This transaction demonstrates yet again the winning combination of innovation and hard work we strongly push for in Navitas.
To our partner, Rockhopper Exploration PLC and its CEO, sam moody, we wish a productive and successful journey, up until production and the full realization of Sea Lion's enourmous potential value. To Harbour Energy, we thank for the collaboration in completing this deal and wish the best of luck.
Hi LT, it amuses me to read the foolish comments regarding Navitas, their abilities or their commitments.
Navitas signed binding terms to take 65% when PoO was $72/bbl
They showed their commitment to Sea Lion before that back in January 2020, when PoO was just $60/bbl !
Their abilities are there to be seen . . . . however. . . . . the website . . . LOL
Some companies desire a flash website, to compensate their under performing activities.
Others just get on with the business of making money, and neglect their website.
I know which one I prefer.
Navitas Are the right company, at the right time, and everything they have done so far shows they just get on with it.
Apologies, I forgot the link
https://www.proactiveinvestors.co.uk/companies/news/992942/no-dusters-anymore-no-wonder-new-north-sea-licences-are-in-demand-992942.html
An interesting article 'New (UK) tax reliefs effectively gives producers a free hit when it comes to exploration.'
With that, and the positive news regarding fracking, one would think it is odds on that the Falkland Islands exploration will also benefit from Liz Truss's drive to for energy production and security.
North Sea investors need not fear the dreaded duster much longer, not while the UK government is effectively underwriting exploration drilling.
It should not have needed an RNS from London-listed Serica Energy for the full significance of the new tax reliefs, brought in as a sweetener to Rishi Sunak’s windfall tax, to really sink in.
Nevertheless, a single line in an otherwise disappointing announcement really helps spell out just how much the UK is backing domestic oil and gas developments.
Serica announced that its North Eigg exploration well had been struck with a six-week delay that’ll add an extra £3mln to the programme’s cost.
But the company, which produces close to 30,000 barrels a day, sought to calm investors.
“It is expected that all well costs will benefit from the Investment Allowances available under the recently introduced Energy Profits Levy,” the company noted.
In case you missed it, at the same time as the government rolled out its Energy Profits Levy – aka the ‘windfall tax’ – it also massively increased the amount of tax relief available to company’s that invest in new UK project.
It now means that some 91p of every pound of new investment can be lopped off the tax bill for UK-based production.
More importantly, for exploration, in the old regime so-called tax losses were totted up and claimed as relief only once fields were brought into production.
Significantly, an explorer never actually advanced an asset so far as to make money off it, then those accrued tax losses may never claimed.
Instead, the new scheme allows for immediate relief allowing the benefit to be taken in the same year as the investment.
So, your well overruns and your budget goes up £3mln – so, what. Who cares? The government will cover the first 91%.
Now, lets say, the well fails to find any gas or oil at all. Well, the government will cover the first 91% of what you spent on that well too.
It should therefore be no surprise to anyone when the Liz Truss government release the hotly anticipated results of the new North Sea licensing round it is very likely to reveal a fresh enthusiasm for the mature oil basin.
The North Sea has been somewhat overlooked over the past decade or so, and, at times portrayed as the ugly cousin, compared to the more alluring deep-water territories in the Gulf of Mexico, South America and West Africa.
It’s anticipated that more than 100 new licences will be handed to oil companies.
Indeed PW, there are differing scenarios of how things will pan out from here and my being wrong will mean many other will be happy, and that's no bad thing.
Regrettably I have decided to sell my investment in Pure as the company are still, using their own figures, loss making, and the drop in PoG isn't helping.
Costs are averaging $9.5m per month, production 5000 oz
5,000 x $1.650 is $8.25m
For that reason I've decided to cut my substantial losses here. I may buy back if, or once they get to steady cash positive, which is possible if POG goes back up a few $100's, and production to perhaps 6k a month
Until then I wish you all the best of luck and I hope Pure pull out some great figures for September and Q4.
Hi Citizen TS, my understanding, which may be wrong, is that even just the procedure for annulment, will mean the award is not enforceable, and hence stringing ot out until a decision. It would seem unlikely a court would grant legal authority to seize ROI assets, if the award is still being disputed. Have you a link, or can you post something that says otherwise?
I think ROI will string out the annulment application until day 120, and then hope to string out the procedure if the annulment procedure has even a Jupiter shot.
My other point was that with high inflation, and low % interest punishment, there is no incentive to settle early at the moment.
As the interest is compounded annually at 4% plus EUROBOR, and Italian inflation is what, 9%??
Perhaps it is actually in ROI "interest" to string it out as long as possible.
However they can not ask for an annulment without genuine reasons, which I highly doubt they have.
and the most important part, for me, was this line
'Capital and Liquidity
The Company currently has $6 million in cash. The Company's cash balance is unchanged from the previous disclosure on August 15 and has been stable since late July.'
Production Update and Outlook
Both the August ore throughput of 25,188 tonnes or 813 tonnes per day ("tpd") and gold production of 4,595 ounces represent monthly records for the Mine to date. Ore throughput of 24,052 tonnes in July was also a monthly record until being broken in August.
The increase in average ore throughput in the third quarter to date of 794 tpd compared to the second quarter average of 500 tpd has been driven primarily by improved short-range planning processes, improved mining execution, and increased mill availability. These fundamental improvements are expected to continue to support strong and increasing production going forward. The Company's near-term target is to increase ore throughput towards 1,000 tpd.
The head grade in August of 5.9 g/t Au increased 90% compared to July at 3.1 g/t Au.
Indeed Fecm, I could if I wished, buy my 9 pence warrants,
and then cash them in immediately, for a £2.000 profit. All without changing my core holding.
In doing so I would both increase Rock shares in issue, and be a 'seller', depressing the SP.
Some of this will be happening, and it's a reasonable option for 'free' cash.
Me though, I will keep the options in my back pocket,
and see how the very active Falklands oil province game plays out the nest 15 months.
SBP, I generally give the majority of politicians, of all colour, some benefit of the doubt,
and that they are well intentioned, however I agree some are clueless, and some are thick and criminals.
I personally do not think LT is any of those things and I welcome her reportedly positive moves towards becoming more energy independent with licences in the north sea, open to fracking, and just heard opening up the old Rough gas storage facility. Hopefully this action extends all the way down to the FI's.
Truss doesn't plan to cut CT, just wont increase it as planned, this doesn't harm business in anyway and encourages investment to UK. Cutting VAT isn't aimed at helping business, that's to help people I assume, eg VAT of gas/elect bills, petrol will help most households.
In general what I dislike about politics, and this is not directed at you as you seem a reasonable poster, is that is no matter what policy is announced, someone will always say, well what about this person, in these precise circumstances, earning this precise amount etc, 'your policy does nothing for them (you heartless b&st*rd' GOTCHA !!
I don't like all of Trusses policies, but I think she will be more sensible than Boris, more practical and less green/woke. Time will tell I guess.
'She is hairbrained'.
SecretBlueprint, that could be said of many politicians,
and I have seen that said before about Truss, but I am curious why do you and others say that?
What actions or words has she done or said, that suggests she is foolish, rash, stupid ??
' Rockhopper has gone from an anxious hold to qiote a comfortable one'
Pauldrayton, I think many of us, LTH perhaps especially, feel exactly the same way. I was always very confident Navitas would JV, and OM would be won, but seeing Navitas sign on the dotted and Rock being awarded £150m takes away a lot of the uncertainty. Italy need to weigh up the extra costs of not coughing up the Euro's v delaying for the sake of it.
Navitas are so going to develop Sea Lion, of that I am extremely confident, so the SP shenanigans between the 7p shares and 9p warrant holders on the one hand, and stake builders on the others, with traders thrown into the mix, will be interesting, but Navitas progress news, Italy payment, Rock selling it's OM award to a debt collector etc, can drop at any point. I am comfortable too holding Rock for the now odds on I feel, massive pay day if I keep my decent sized Rock investment.
It's been a good week !!
I wonder if Italy now wished they settled OOC :-)
I also wonder why having decided not to sell any of my 500k, I thought I would trade 25k, knowing I had 50k back up in warrants, I sold just over 16p, but totally bottled it and bought them all back at 15.9pence. A 70quid profit......but the stress!
I wonder how long it will be that many of those who sold, or are selling at these cheap prices, will also regret their decisions.
I wonder how long before Navitas trickle out news of FID progress? How long before back in the 20's? It's all a waiting game, but the Falkland oil game is alive and kicking and Rock are definitively back from the moribund dead of the last few years.
Most here know why we should hold or buy Rock, but sometimes it is good to see it in type.
1. Market cap is £85m, yet they were awarded £150m yesterday
2. Sea Lion fully appraised and pretty much ready to go. Just waiting FID from Navitas
3. FIG and UK Govt have approved Navitas
4. Navitas are Israeli, very capable, very keen, 65% JV partners and operator
and finally the biggie
If phase 1 production is scaled down to 55,000b/d (from PMO’s 80k/d)
and costs go up to $50/b (from stated break even of $40),
perhaps with PoO at $80/b (from current $96/b)
The maths are
55,000bbls x $30 = $1.65m revenue per day, $602m a year
royalty 9%, Corp Tax 26% = $391m profit
Rock 35% = $137m profit net to Rock PER YEAR
Hold or Buy for a great risk reward !
Harbour background funders, with K&S lawyers will have a very good idea how to get, how much and how long it will take to get the money. Rock are not in any way desperate for the money for now, so It is possible both parties may cut a deal whereby Rock take perhaps 90% of the approximate £150million award, to draw a line under this debacle, and Harbour get an extra $15m for doing what they do best.
It will be interesting to see what the Italian appointed arbitrator has to say,
'Pierre-Marie DUPUY (French) - Appointed by the Respondent'
but even the guy appointed by Italy agreed that Italy breached the ECT, which they obviously did, so interesting but irrelevant.