Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The equilibrium referred to is the delinquent debt.
As to repayment instalments, that may be the way it pans out, but nevertheless GKP should preserve its cash and not relinquish it under agreements that are currently completely collapsed in extremis.
Any discussion on Board cashflow behaviour must be perdicated on the facts.
And they are:-
1) GKP haven't been paid for twelve months and previous to that their have ben several serious breaches of payment trust;
2) GKP are owed $151m with no indication as to when that delinquent debt will be repaid, apart from vague statements of intent by the KRG (who are no longer the principal arbiters in this dispute);
3) At no point have GKP been offered any way forward under the PSC, and that contract is now under threat due to forces beyond GKP's control;
4) there is no specific signal for repayments beginning anytime soon...not by any of the acronyms in qustion;
So GKP have found another way. One that preserves their precious cashflow, enables them to manage their supply lines, manage their receipts and therefore manage their future for now.
No help from any of their contractual allies.
I say again, the Board have a duty to their shareholders and it's a primary duty.
' We are receiving advance payments into our UK account for it's net entitlement....'
The key words are 'advance' and 'for' and 'net'., i.e. we've collected the money up front (in advance); 'for' (to facilitate); 'net' (so GKP finally have control over whether/when GKPe get paid.
They should keep the advance payments and offset against year old debt (!) until there is some equilibrium restored. .
What they mustn't do is show more weakness...and I read that RNS statement as their commitment to sustainable cashflow and another example of the soft power that will 'help' the acronyms understand,
If I'm right in my reading/interpretation, then GKP will keep the advance payments and offset them against MASSIVELY delinquent debt.
Otherwise, what's the point? If you can't get paid, and that's been a frequent difficulty since inception and production, then what's the point?
The payment issue has now come to a head. And not before time.
I just hope AKIPUR remain solid, but because of their relative Balance Sheet issues, I don't know that will.
Hey P,
I get your point, but I'm not sure I read it that way.
'The Company is receiving advance payments into its UK Bank account for its net entitlement
of 36% of gross revenue.'
Given the continuing need for 'Board Speak' whenever a public announcement is made, I'm construing that as; we''ll take the money for sales upfront and release your proceeds later when we're all in better shape.
JH's primary responsibility is to protect his shareholder's best interests. Why would you pay someone who was in beach of contract and owed you $151m?
I would withhold future payments against resolution of the payment issue. And if I didn't, I would expect a furious backlash from aggravated shareholders.
Whatever your opinion of the Board, they deserve credit for the way they've handled this most traumatic development over the past six months.
And JH deserves particular praise for his direction and leadership.
We're definitely not out of the woods yet, but his demonstration of soft power to all the acronyms; KRG; MNR, ICG, SOMO etc, is a sign that he is prepared to cover all bases in his efforts to keep the oil flowing.
And particularly if he is offsetting his receipts against outstanding debt...
More importantly imo, if AKIPUR are true to their word, then we could finally have a resolution to the uncertainty of regular payments in the Region.
But that might take a little while.
In the interim, all credit to the bloke and his team.
'...but over time i came to conclusion that straycat is female.' per ccc.
and then being decried as a summertime/wintertime transgen **** by putup..
i love that image!
i can also see myself doing tricks in st bart's then aspen for the right clientele , because i'm very attractive(for now)!!!
you're both right. i just didn't know i was transgen!!
i need to seriously question my sexuality...however, personal e-mail will be provided on request.
if either of you are interested!!!
what a load of b*llocks.
funny though.
Humour from PUTUP! Who knew?
Good on you PUTUP.
Problem is, comments like:-
'Reading this BB provides endless entertainment.';
is an insult to all of those PIs who have put their investment and judgment into a Company that may/may not fulfill its potential.
And it's incumbent on investors like us that we try and introduce a detailed financial perspective on what's possible. And what's not, albeit from a distant perspective without any visible reference to our credentials for validation purposes
As .for my wealth (if I have any!), well I've now made my mind up and GKP seems to me to be a good bet.
It's not a deal breaker for me if I'm wrong, but I reckon it's an investment proposition I want to be a part of..
As for sex...I get my quota. Even though I'm butt ugly !!
But thanks for your interest. xx
You're obviously in a lot of pain here PUTUP.
You need to settle into the new circumstances and simply chin it. Based on GKP's new trading environment.
Or F*ck off and take your lower profit trajectory.
However, what you can also do is to give us your valuable insight into the difficult and delicate financial judgments that need to be made.
Join in again, even though I think you're going to struggle with that right now.
It's a dull Friday. so let's play the betting game.
Suppose I have a spare £250k today.
And I am interested in buying GKP shares.
Should I?
The next two posts will offer us all the option...just tick your preference. Yes or No.
Given what the Board were facing, I believe they've been acting in our best interests.
Btw, show-off!! Name dropper!
I don't know Martin Angle.
I just hope you're right and he's 'on the ball'....
I'll tell you one thing though; his image as depicted on the GKP website doesn't help his cause!!!!
He looks like he's about to croak.
GKP's trading climate will definitely turn, and the bounce back will be significant.
For now, serious intelligent managers need to behave seriously and intelligently, and I reckon we've got a set of serious managers on our hands.
You need to keep your head up, PUTUP.
You've taken pain...we've all taken pain.
But the fundamentals are still as true today as they have been since the Reconstruction in 2016.
And those reasons for investing haven't changed either.
All that's changed are the difficult temporary circumstances surrounding and impinging on GKP's performance right now.
Do you have any faith in the Board's performance right now?
If not, then why not?
Open question.
Hi FH1,
Spain, August 2019.
I was in heaven, burning my ugly fat body under the searing sun when you tried to get the bb to filter me.
Funny in retrospect, but mightily irritating at the time!! Maybe it was the sun.
Anyway, it looks like nowadays we see, broadly, the same outlook on some issues.
Good stuff.
SC
I bought my first tranche of GKP shares in early 2018. And it was a big buy. I bought in because, apart from that ridiculous unsecured $100m loan facility, the Company was debt free and a cash machine.
And that is what it continues to be, even at local prices of $30pb.
I also bought into the idea that this was a Company priming itself for sale given that it had a plan for self-funding growth to 110k bopd over the subsequent five years (that was the plan at the time). And it had an embarrassing amount of cash at the bank ($219m as at 3.9.2018) which was completely ignored by the Board. By the end 2018 that un-used bank balance had grown to just under $300m!!
Point is, no-one should forget what a cash machine this is. Currently the share price is an irrelevance for true investors. What matters is that GKP can navigate its way through these troubled waters. Because this storm will pass.
Five years on and we are not sold…I was wrong about that. However, during that period I have increased my position in GKP significantly on several occasions and have no regrets.
And along the way I have received dividends that I couldn’t replicate elsewhere. Even at £1.00 my investment still looks like a smart one.
Because the fundamentals haven’t changed one iota. GKP has decades of oil to pump, it has c.a. $500m worth infrastructure of plant to pump it and even when it isn’t being paid by its only customer it has the resilience and invention to find an alternative route to market…albeit temporarily.
And the Balance Sheet is now secure…albeit temporarily.
As an aside, I started contributing to this bb much later in 2018 after witnessing the horror stories and vented feelings of aggrieved LTHs who were clearly licking their wounds after the necessary Reconstruction in early 2016. But the bb at that time was a cesspit of anger, bitterness, disillusion and mistrust. Quite intimidating.
That’s all changed now and I welcome that change. As I used to say whenever I walked into a newly acquired business; New Team New Dream.
Vive le difference.
Armas,
Didn't you know?
According to the F*ckwit , GKP would sooner load up a debt free balance sheet ( $80m+ in the bank and growing) with unnecessary borrowing that they don't need on the revised business model, just so they can orchestrate a funding requirement they also don't need and have no requirement for!!!!
He's an idiot who has no understanding of macro finance or current micro GKP arrangements .
Ignore him..
SC
Good post TSSZ.
But the word 'technically' = we'll have what we want before we turn the taps on.
This a grown up game infused with geopolitics about which we have little or no knowledge...nor do GKP.
We just have to ride this storm, or bale.