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Maestro.
The days you seem to refer to have long gone. As an investor you should be looking to your board to act ethically, be balanced and transparent.
You appear to not adhere to the principles of good business.
So be it but don’t embarrass yourself by adopting a low level of ethics as that says something about you as a person.
You should be behind an investigation and look to the board to come clean on the recent events.
As you rightly state GK it’s simple to see if you wish to view the situation with your eyes open.
Those who do not wish to see the issue and continue to ramp the company, that’s also fine.
If as GK states and really does concern me, our Mongolian colleagues have been insider trading, this becomes problematic for Buck. Let’s get some transparency around our new blue chip investors and other major trades to eliminate the potential GK rightly has identified.
As Ojay also stated and I did yesterday, if no wrong doing has occurred then there is nothing to worry about. At the moment the situation suggests otherwise.
Maestro
You appear to have an agenda to dissipate the attention currently on Buck and his board.
I along with several others want answers.
Until those answers are forth coming Buck is under the spotlight, has shareholders that no longer trust him so needs to begin to act with a level of governance and compliance expected of an industry person who should know better.
As one of my lawyers recently said to a client, “ignoring the matter will not make it go away”.
Maestro.
All the business I know presently are having no issues raising cash. I guess it depends on who you are and your credibility.
Buck can quickly evaporate the theory that no one would lend to Matad by stating this publicly. As I said Xac, TDB and Golomt I expect would all of lent to Matad. I don’t expect you to know these banks, but as I stated why would a bank in the country of the project, probably under pressure from GoM who need feed stock from Matad not lend and at reasonable rates.
You do the maths.
Maestro.
The days of the Wild West are long gone.
All companies shall now be judged by their ESG standards. Shareholders should expect good governance and a board that seeks and integrates compliance in to how it operates.
GKahn captures the situation perfectly here. As I said it’s not the crime of the century. However if Buck and his board think their continued abuse of PIs to the benefit of his new blue chip buddies is acceptable, the man needs to think long and hard.
If just one of those blue chip companies is Mongolian it will be in his interest to resign now before the Mongolian anti fraud agency knock on his door.
Let’s seek some much need transparency from Matad and let’s get that early next week. If not I will make Paul Singer look like a boil on your ass, as this needs reviewing and transparency needs to prevail.
No nonsense here Maestro.
Perhaps you should revisit your own understanding of corporate compliance and governance. I would invest in a monthly subscription to GIR. It will “enlighten” you.
Mongolia and what happens in Mongolia may still be considered acceptable by those operating there. It does not however insulate you from UK law and the regulators.
Wrong maestro
Very wrong. Trust me both the FCA and SFO will look at this.
Having worked with regulators over the years I know what they look for, look at, and from a chronological perspective piece cases together.
This has all the classic hallmarks. It’s not the crime of the century by any stretch. However the question is has wrong doing occurred.
GKahn
I agree.
What concerns me is the blue chip investors. I want to know who they are. Buck needs to come clean.
I also agree with the EL timing and raise being premeditated a few days later. This strategy was formulated weeks ago. The fact Buck let that happen instantly raises a compliance red flag.
I have a call with one of the UK regulators to discuss the behavior of Buck and Matad next week. If Buck is being controlled by his Mongolian paymasters now may be a good time to ask some serious soul searching questions.
Unfortunately what happens in Mongolia can be anchored back to the UK. The behavior of Buck and the board now needs further investigation and exposing if wrong doing has occurred. Securities fraud is a nasty phase but I have seen it before. This looks similar.
In terms of banks in Mongolia lending - YES.
Why would you cut off at the knees your primary feed supplier for the governments new refinery ?? Think about it.
All banks would of been under pressure to lend by GoM.
Therefore why was questionable finance obtained from a group embedded in the process and with potential conflicts. This needs answering.
Scousemouse84.
I am not familiar with the interest rates Petrovis have lent at. What I am very familiar with are business rates banks in Mongolia lend at. TDB, Golomt, and Xac Bank have all entered into agreements with mining groups on several projects at rates around 6-8%. These banks are well structured and run to international standards.
If as you state Matad are paying 10% on loans to Petrovis, this sounds like a very coshy and potentially unethical route to obtaining finance. Again I would like to see how this finance was risk rated and the potential investment committee paper that agreed with this and signed it off.
Again a company displaying good governance would have no issues providing this information to its shareholders.
Transparency, transparency, transparency!!!!!
I have two serious concerns I would like the board to explain through either an RNS or market update.
1. Who are the blue chip investors ?
2. Advise why debt was not considered, and the process taken ?
Reasonable requests a company able to display good governance and compliance would respond to immediately.
Simonpartridge I agree.
A trusted company should be able to ensure its partners and shareholders can rely on the board to balance how it develops the business and makes balanced decisions for the benefit of all.
I am seeing no balance here. I would like to understand via an RNS why debt was not considered and how that decision was developed, what lenders were approach and how this decision was risk rated.
This is becoming a very toxic company that only serves itself, not investors and shareholders who stand by it. Without the foundation LTH have given Matad over the years it would of disappeared years ago.
There have been several failings in how the business has been run in Mongolia including visa and immigration issues, breakdowns in Soum discussions, issues with herders, disgruntled staff causing issues with MRPAM, and lastly a government not receiving documents related to the EL in a timely manner. The delay is not as many state, “stupid Mongolians fault” it’s actually your own board that stays silent to protect their own short comings.
To be honest I know I have had enough. I want Matad to make public the blue chip companies they refer to as the new investors. If any of them are Mongolian then this all begins to smell.
I hope I am wrong.
Buck is an unethical, low life piece of Sh—-t.
He has no respect for PIs and is only there to enrich himself, his bum chums in Petrovis at the expense of people that believed his reputation was clean.
Scum of the highest order.
I would suggest the narrative for what’s now happening to LTI is not being driven by MB but by a certain female.
I believe MB is being placed in a position of compromise and has to go along with the “gig”. It’s probably MBs last major gig so he is stuck with the situation.
I believe I am traveling to UB early August on a quick trip so will turn the pumps on as requested !!! ??
Question.
What is the level of ownership Petrovis can own or exceed before potentially acquiring or trying to acquire private investors shares/investment ?? Was it in the region of 26/27%.
Secondly I am floundering as to why as MB had previously stated a small raise may be necessary but has gone completely against that principle. Thirdly as an asset rich company why was debt never considered ??
I think the board has pre-meditated the situation to suit certain others benefit.
Investor33.
I agree completely.
We are going through a long process. Each milestone has to be met.
I agree next year I also see 20-30p per share. We just have to get there and there’s a lot of work to do. The good news is now MB can to the greater extent control the process. MB is a smart guy, has tier one industry experience, knows what timelines look like and will deliver. He simply needs to keep us informed.
This is not a dead share. Just prepare to wait it out another year. If small spikes occur that’s great and I hope people make some money. However the real end game is where I want to be and I am fine if that’s a further 12-18 months.
Investor 33.
You are by the name you portray I am guessing solely an investor.
You will have never worked in the oil and gas industry and certainly will not be familiar with foreign direct investment, a boards due diligence process, IC papers and approvals and the time this takes.
Matad I know have groups looking for JV partners but until the EL was issued how could any partner take Matad to its board as a credible option with no EL in place. If an IC paper lands on a boards desk next week you may get news in six months which means activity next year around April.
You then have to consider if any partner with be Eastern or Western. Western partners take significantly longer with DD than Eastern equivalents. My guess is an Eastern farm in partner as I think the West will struggle with Mongolia especially as Rio Tinto goes through significant challenges with its own investment agreement. These things sort of put off Western partners.
Matad is a long term investment and as a LTI I expect no action until 2022.
That’s my logic. I would be happy to hear yours instead of just stating people scaremonger. That’s a pretty shallow view of the world.