Member Info for Spikeyj

“Osa and board is very trustworthy …”

ginksy, please outline your evidence for that rather hagiographic assertion?

… given the history to date, sticking with the old management who
are steadily bleeding the company dry and repeatedly failing to deliver
or communicate well seems a very substantial risk in its own right,imo.
( - but that certainly doesn’t mean i think align would be any better, lol!)

londonfish, just curious (and fully appreciate you might prefer not to say
which is fine of course!) but is your professional background more from an
tech-y engineering / drilling position, or financing, or project management?

ginksy, if the panoro / petronor deal & progress with plans for aje development
do quickly lead to an increased value for ADME’s stake, then that would still
be the case whether it’s osa, align or someone else in charge, & that would still
be the case whether the company decided to retain the aje stake or to sell it.

whoever was in charge of ADME would obviously want (and be under a
fiduciary duty!) to maximise the price they get for selling aje *if* the BoD
decision was to dispose of it, particularly if they hold plenty of shares in
ADME (… & align hold more shares in ADME than osa, don’t they? - so
arguably align have more incentive to maximise s/h value than osa does.)

perhaps the more meaningful issue is whether the right corporate strategy
going forward is to retain and develop aje, versus selling the stake & doing
other things with the proceeds — i.e. is aje always going to be a bottomless
hole or money-pit, or could it one day return good value? …but in the short
term, even if aje might have long term value, that will be of zero comfort to
the current ADME holders if the company goes bust, or loses the aje asset by
defaulting on future cash calls from the partnership (which i think was the kind
of mess that jacka got into?). if align are correct that aje could be sold soon for
$15 million, then would seem a bit of a no-brainer simply flog the stake pronto
& return all that cash directly to shareholders. (me, i don’t believe that valuation!!)

in the meantime ginsky, please could you explain why you think that osa
being voted out would mean that ADME could not still potentially benefit
from legal action about barracuda (*if* ADME does have a viable case to
bring anyway), and similarly why do you think that ADME could not still
potentially benefit from progress on aje phase 2 developments if osa goes?

(so far as i can see, those issues could be pursued by any CEO
of ADME, rather than being personally tied with osa specifically.)

PS small question for the accountants amongst you … since when
do depreciation costs get classed as ‘administrative expenses’?

(i‘d genuinely love to hear the logic behind that idea, but i suspect
logic and accountancy may not have much to do with each other.)

plenty of adme’s ‘one off’ costs will keep on happening, & there is no sign in
sight of better cost control over the admin expenses. .. if they somehow do
manage to survive as a company, they will continue to have to pay legal and
professional fees (lol, especially given court battles now re barracuda!), will
continue to have to pay costs for placings etc, & presumably keep spending
money on supposed M&G activities which tend to lead nowhere with ADME
(as with all the cash p***ed away on marginal field bid). if you look at year
on year accounts, there’s no evidence they’re managing to reduce & control
their total admin costs as the years go by, quite the contrary. it’s all money that
has to come from somewhere (mainly, from shareholder pockets to BoD pockets.)

proof of the pudding will come when we get to see how soon
the next placing is. (my bet is, within the first two weeks of feb.)

full year results to end december 2020:
https://www.lse.co.uk/rns/ADME/full-year-results-8qqdxmokezan00h.html

administrative expenses for 12 months = £2, 616,000,
- so they were burning £218, 000 per month on ‘admin’.

interim results to end june 2021 (unaudited):
https://www.lse.co.uk/rns/ADME/interim-results-zvtyzwo3zk4xekp.html

administrative expenses (unaudited) for 6 months = £1, 173,000
- so earlier this year, burning thro’ £195, 500 per month on admin.

… and that’s why the £420K (*net* proceeds, approx) from their last
placing in mid-november will only last them just over two months, imv.

… seldom good for pis to take out loans to buy shares (/avoid
having to sell shares), but on the other hand, it’s also not good
to close down the long-term tax advantages that ISA wrapper
represents — once money taken out, it can’t be put back in. so
part of the calculation also depends on your age, tax status, whether
you are already using / likely to use maximum ISA allowances, etc.

no-one on these chatboards will know your personal circumstances
well enough to be able to give you specific personal financial advice.

added, small.

(NB of course, we can only take into account what has been
publicly announced by ADME and others, when thinking
about what osa and others have made so far from ADME.
it would be interesting to know what a forensic examination
of the company’s financial history might show, taking into
account all related party transactions as align suggests.
that is unlikely to happen if osa & friends remain in charge.)

proper numbers from londonfish! - ta. puts into stark perspective
just how unrealistic this tiddler’s plans are, even if they were being
implemented by people who were both competent and honest.

ginksy asks why ADME would need to raise a chunk of cash so soon
after raising £475,000. he already knows the answer, imo, but perhaps
still hopes to bamboozle some others. ADME raised £475,000 gross in
mid-november; after expenses, that’s probably a net somewhere
around £415-£420K. ADME’s accounts show that it is burning thro’
about £200K *per month*, with zero cash coming in to offset that.

… so with that monthly cashburn, the net amount of c. £420K raised
from a gross placing of £475,000 in mid-november will have run out
completely before end of january. not hard numbers to understand.

ginksy tries to argue that it’s not in osa’s interests to dilute the company
because osa owns some shares. i‘m sure that in an ideal world, osa
would prefer not to dilute his own shares, but ADME’s financial situation
is a very long way indeed from being ideal! reality is, osa has been making
his money from the huge ongoing renumeration he gets at this company,
*not* from the shares he owns here. the amount of money osa has
actually spent on buying adme shares is trivial compared with his pay
package ( - not even taking into account whatever he’s been getting
through ‘expenses’!). but osa’s gravy train stops if the company folds, so
it does make financial sense for him to keep diluting the company into
gradual oblivion, just so long as those repeated placings keep ADME as
a going concern, allowing osa to keep receiving those huge pay & perks.

ajimho.

ginksy, yeah, i have been consistently negative about the prospects for
this company for a long time; take a look at the share price graph over
the last 5 years plus (remember to take consolidation into account), and
alongside that read over the sad history, year on year, of promises made
which don’t materialise, and multiple placings (which do). … as should
be pretty darn clear, being consistently negative about this share has
actually been bang on! certainly better than folks like align with that 19.25p
target price, or osa last year with his utterly facetious ‘15p by Xmas’ boast.

but no, i have no connection whatsoever with TW & his
associates, & no-one pays me to post about ADME (sadly).

sure, possible. i am aware that rangenoresources has quite a long history
of active posting and ramping across a bunch of other AIM stocks too, so
perhaps he is more likely to be associated with one of the brokers/ PR firms,
rather than being so directly part of ADME? ginksy is more narrowly focused
& reeks of desperation to preserve those mega pay-packets for osa & richard.

i note that you haven’t said whether you are related to the BoD in some
way, working for ADME, or working for one of the brokers/PR companies
etc. - are you? frankly i find it hard to believe that someone would
be posting in the way that you are, unless they were a stooge, given
the appalling performance over many years (as MXO then) by ADME.

me, it is interesting, sometimes entertaining, & sometimes
instructive to watch train-wrecks like this unfold over time. it
can help avoid falling for similar ‘investments’ in the future, by
seeing how the game gets played out in companies such as this.

it’s entirely up to align what they want to say, they are nothing to do with
me! personally i wouldn’t bet on richie to be able to fight his way out of a
wet paper bag, let alone steer a dying company back to health. but i am
curious who you are, & why you are acting as such an uncritical apologist
for this ADME BoD. you make utterly unsubstantiated claims that a major
shareholder in ADME would want to abandon what you claim is a valuable
asset; you make risible claims that shareholders can trust the current ADME
board; and you pretend to take it for granted that if ADME drilled a shallow
well at barracuda that would promptly lead to 4000 bopd, when there is *no*
published evidence anywhere at all to back up that claim or even show CoS.

? are you related to one or more of the BoD members,
working for ADME, or working for one of the brokers,
PR firms etc, associated with this dreadful company?

a BoD would be in breach of their fiduciary duty to shareholders if they
did not take legal action *IF* (a) they genuinely thought barracuda was
a valuable asset, and (b) they genuinely thought that they had strong
legal grounds giving them good prospects of winning such court action.

that fiduciary duty would apply for a BoD led by anybody.

similarly, if a BoD had good reason to believe that barracuda was
worth very little, &/or they good reason to believe that ADME only
has a weak legal claim to the asset, then a BoD would have a clear
fiduciary duty not to waste shareholder funds by taking legal action.

ginksy, try a straight answer for once;

if barracuda really is worth something, and if ADME
really does have a viable legal case to claim it, then why
would an align-led BoD not want to secure barracuda?

i think barracuda is a total dud. imo they probably didn’t progress/publish
a CPR simply because a CPR for barracuda would just confirm it is rubbish.

but just suppose, purely for the sake of argument, just for a few minutes, that
barracuda might actually be worth something — then why on earth would any
BoD for ADME (- whether led by osa, richie, or a telly-tubby -) not go to court to
fight for an asset, if they thought they had reasonable legal grounds to win a
favourable court ruling? it makes zero sense at all to suggest that align, as a
large shareholder in ADME, would want to secure control of the company in
order to abandon legal action to fight for an asset ginsky claims is valuable.

barracuda is worthless.

agree, barracuda was just dangled as another set of
shiny-shiny keys, just as the marginal field bid was once
used to attract attention but led to absolutely nothing.