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Looks like there was a funding delay on the mines construction.

https://www.tharisa.com/karo-mining-holdings.php

IMHO

I think there was some form of delay, Surfit .. will have a look shortly

.... and hopefully Anchois in line with Energean's market update at end March...

IMHO

@Ianfer - I assume it was for consumption when published (20th?)

Shax - Agree, G&A costs too high.. and cash always king.. but assets are diverse, and if they can access cash/funding it should rerate faster with the right work programmes (accepting that confidence needs to be restored in management)

The new chair was clear they are operating with shareholder value in mind.

Expecting multiple updates in the next ~6 weeks inc Power, Loukos and Namibia..

DYOR

Thanks for that DU

And yes, I am still sitting tight. I believe that value will out here in the end.

The volume of the sale against the market cap is material so its probable it’s a large holder (as you indirectly pointed out in your disposal post), so hence the curiosity.

@Jim333 no offence or intrusion intended. I value your insight here so please continue.

And agree DU, it’s a waiting game. The macro environemet and recent news flow hopefully suggest things are hopefully starting to edge our (Jogs way) way - but these are definitely stage times!!

IMHO

Https://www.africa-energy.com/live-data/article/zimbabwe-solarcentury-africa-and-chariot-sign-karo-mine-pv

Assume you’re still sitting tight based on your last message?

ATB

Https://www.thenational.scot/news/24938077.rosebank-approval-pave-way-13-new-oil-projects/

Ianfer.

My perspective FWIW is that they don’t have a lot to say in this precise moment and are likely (or rather hopefully) nearing conclusion a number of things : power, Loukos and Anchois remapping. Namibian licence may also be issued shortly. If it’s 2 of those 4 I suspect they will try and update on all the workflows together so that they can give a view on what now (resource and funds) - which will be hard to do without clarity on Anchois. I suspect there is some funding component tied up in this as well against various initiatives which has a bearing on what they need to do re funding / offloading G&A etc

I would think that they believe the interim rns, the power rns and the proactive interview says everything they are able to share right now. If they are mid negotiations I have some empathy. The other party will only take advantage if they update us with a deadline or terms - that they then (again) miss

That’s my view on the silence. In absence of other information we have to rely on what’s out there IMV.

Fully accept others will have a different perspective and that’s fine.

DYOR

Ianfer, I agree with that. It’s one of the reasons I also suspect they are keeping their heads down with a view to letting the eventual news doing the talking. Time will tell

IMHO

BDC - you are right, I am not close to the SA activity and what is happening there. I’m not claiming otherwise.

All I would say is that Guaranco and BII have very recently provided a guarantee - and H1 own the majority (albeit only 51%). I think it’s slightly different to the examples you’ve given - but I am not an expert, it’s just my read on the situation.

I dont agree on the power business being the only pillar of value though; Anchois has value - but its path to development may be long. Loukos may have too? Hydrogen is a much longer burn and whilst I dont want to overly push them away from the core I suspect the acquisition of a Namibian licence and mentions of rapid partnering might see this climb quickly on speculation alone…. The analysts still ascribe the most unrisked value to the gas.

Very happy to agree to disagree on Char (although note you have changed your tune from 6+ months ago, which is shame). One of us will be proven right soon enough I think..

IMHO

All,

Firstly I am not defending them, I’m really not. I feel incredibly frustrated about the current price and the situation - and some of the decisions that have been taken on little better than 50/50 odds. The market has punished them and us appropriately - for now

However, on the announcement I suspect cash is ok for a while longer. 2-4 months maybe. They have told us through the interim statement in terms of how they intend to fund the sub businesses. They have also issued a proactive statement and interview in early December and endorsed an IC article shortly afterwards that collectively gives a a nod to Power, Loukos, Revised Anchois - and Namibia (new venture) and flags that 2 months and 8 days ago they were NOT distressed.

They may simply not be able to comment further without compromising ongoing negotiations right now. Anchois is being replanned, with a potential cash incentive?, Loukos may be being funded or mid negotiation with back costs and Power is likely finalising as discussed. Namibia is in progress.

FWIW and IMHO - that may explain the lack of narrative. Not saying I agree with it - but in absence of other news that’s my assumption..

If you dont believe that you should probably be selling..

BDC - Etana is majority Black owned. Have a look at their website. H1 (Black owned investment company hold 51%).

DYOR

* There was an interesting note in the FT (reader letter) on why the impact assessment is not being applied to imported oil (eg same rigour including it’s journey) 🤨

I wonder if the environmental impact assessment details have leaked. Press are commenting that EM has them. The decision on JOG however is perhaps more tied to the longer term fiscal outlook (beyond the EPL) - and therefore will be slower to react until this picture is clearer

I suspect the JOG reaction will be much more sudden and greater once there is increased clarity on this

There was an interesting note in the FT (reader letter) on why the emissions are not the impact assessment is not being applied to imported oil 🤨

JINMHO

Harry - it’s good to know you think that the business will still be here in 5 years, and that Namibia is going to come off.. I think that’s the right interpretation from what you’ve said?

IMHO

Https://on.ft.com/42MHthx

Expected to force a refocus on fossil fuels ….

More of the same.. the penny is surely dropping....

https://ifs.org.uk/articles/how-can-labour-be-pro-growth-heathrow-not-north-sea-oil

Jimmy

Not that I want to get too distracted from Chariots current core ops - but would be grateful for your thoughts on Marland's comment about Total's Discovery - and the adjacency/relevance of the blocks that Chariot has the 10% back in on 2714? (and is likely pursuing the licence for)

Good note, Surfit

There are a menu of outcomes here, but I would think that Chariot would favour having access to the public markets for funding as they grow and therefore think a short term T/O unlikely - unless they have a path to funding - or are acquired by a major (e.g. Total)

If AA buys them, even if in partnership with AP's vehicle - he still needs to fund the business

Another option here is that he could provide chariot with funds (at risk interest) to support them. Soc Gen could provide some funding against an asset (e.g. Loukos) - a farmout could provide back costs, Energean could provide FID money if A2 advances - or buy more of Risannna.

They could sell a share of their stake in a 'funded' Etana if Power comes off , sell Hydrogen to Total (albeit for not a lot)

There are a number of potential funding mechanisms that dont involve dilution.. which with sensible cost management would enable share price growth as (and if) management start to deliver on initiatives : Loukos, Anchois, Power, Hydro, Namibia. A combination of delivery over the next few months on the above, with liquidity will likely create a big rerrate - BUT things need to go well and confidence needs to be restored.

IMHO