The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Good summary BDC, and thank you for including the RNS information as reinforcement.
It's moving forward and as you and AP comments make clear it's very important to Moroccan energy to get the project details completed but so all parties feel the right deal is struck. CHAR are already getting a notable tax break as incentive.
Best Rgds Sft
Courtesy of Freshair from KISTOS bb
https://moram.eu/the-great-shift/
No mention of CHAR but they do consider North African supply as important for Europe as LNG supply increase will take time I.e. vessels building facilties.
Any one else agree that the delay on signing off on supply price must be down to "delicate" negotiations:
CHAR what it for as high and long, Moroccan Gov (Country supply, Budgeting, elections, growth) will want it as low as possible...they MUST have influence in ALL negotiations.
But as a partnership (ONHYM 25%) it could be tricky as will ONEE (Office National de l'Electricité et de l'Eau Potable) have some or even significant influence or control on the final price or is it another i.e. power station company...either way that probably a minimum of 4x interested parties (people) in a country that has been known to be susceptible to grease being needed to smooth the way?...?.?
Let hope AP's experience helps on the way very potentially tricky way forward????
Pure speculations and musing only.
Still a bit too much for ii's just yet i.e. with out the finances for the project assured they need AT LEAST a contract FULLY signed so all numbers are known and assured.
SO the SP is not going anywhere until real proving RNS give real clarity.
Just standing by for now. But somthing MUST give soon as delay in signing means a further exponential risk in equipment supply, build and of course production delay...and that not good for Morroco.
Rgds Sft
Does the actual traded price indicate if its a buy or a sell?
16.90 was recorded as a buy
16.75 was recorded as a sell
So 16.95 could indicate a buy??? Still none of it is accurate
The sp price will give us a clue tomorrow. Need a lot of those numbers every day.
Rgds Sft
When I saw the end of today number of Trades, I thought well things are up a bit...but looking at the trade prices most look to be SELL's! Doh.
Road show worked then????
Fundamentals remain as ever very good but no consistant buyers yet.
So it looks like the private traders still think/know/bet there is plenty of time to keep taking their %'s until we get firm news on the financing and more assurance on time scales?????
GLA
Rgds Sft
Well my post was just a day to soon.
Interesting and decent RNS update for understanding where we are at: the company is very healthy with so.e small but decent growth opportunity.
The comment "Kistos has generated substantial value for shareholders through 2022 and will strive to continue to do so" though is not quite correct as the share price is well down from this time last year Mr Austin, BUT the company is doing well, thanks to you and the Kistos team.
Meaningful growth in asset resources is going to be a challenge, told you you should have approached CHAR.
GLA, finding more gas with out the exploration gamble is the only road left for now
Rgds Sft
Since Kistos included that they would use exploration as a opportunity its all been rather quiet
1. How's the drilling campaign (Valaris 123) going in the Dutch sector?
Note: Started in November 90 day contract
2. How's the development plans going Glendronach?
3. What do they intend to do to raise more reserves?
See below for possible options that may have been already implemented.
AA has gone very quite and steered away from any interviews since the Q11-B drilling campaign and his suprise (announced by several RNS's not interview) incentive scheme..after that no more interviews????
From the times today:
"..The North Sea Transition Authority, the government-owned body that regulates the North Sea oil and gas industries, said that it had received 115 bids from 76 companies seeking the rights to 258 geographical blocks or parts thereof. It had offered access to 931 areas under the latest licensing round, which launched in October....
.....The authority said the licensing round âincluded four priority areas, which have known hydrocarbons [oil and gas], in which there was very keen interest and could see production in as little as 18 monthsâ. These are clusters of explored but undeveloped fields in the southern North Sea, an area with significant existing gas production....."
Rgds Sft
Hi Cleve, just my opinion, but I think the removal of the last broker has removed the leaky ship (or management clamped down on who they were chatting too?).
Completing the road show, would be the hopped reason, consistent and regular buys will prove if its been successful of course.
All imo.
GLA, Rgds Sft
Mmmm you have a point Wizzard. Certainly more risk than a blue chip/ FTSE 100 but having just seen Directline insurance drop thier dividend and the stock loose 25%?
Management, asset / operations and their fiscal prudence is key, anyone remember Marconi and what Lord Simpson and Mayo done to that blue chip company.
As before the gas fundamentals are there. Its not like Nambia and striking out on the drilling?
Rgds Sft
All the fundamentals on Linux /Anchois are getting worked on.
Intresting opportunities with the other two arms of Chariots business.
Patience really is the thing now, which as others have said very often:
"The most important quality for an investor is temperament, not intellect.â A disciplined investor is a wealthy investor because they have learned that market fluctuations are normal and that patience pays off.
GLA
Rgds Sft
One thing I would say is I am surprised they have the time, with everything that is required getting worked up for Anchois and then the renewable and Hydrogen arms?
I would have thought a road show would be more appropriate AFTER FEED and contracts signed at the very least. Why promote (or invest in its shares) a company when the official costs and income (gas contract) have not been signed off?
It could be that by promoting it now potential investors are aware when the required RNS's are issued and they (investor's) have been given time to do their due diligence (spoken to the firms Snr Broker) and can pull the trigger when their own risk assessment controls have been passed???
Not sure how city brokers, fund and pension managers etc etc work so any one that does please feel free to detail or explain the ii investor process.
Rgds Sft
Thank you JackSP, good find and nice to hear something, even if not from our management.
Interesting to know who/ what the "deal in exclusivity" was/ is, will know in time I guess.
Their change from looking at just buying existing assets to include exploration now could be associated?
But it's a shift change and not possibley in the greenish direction their mission statement was focused on...so I am probably wrong and its Hydrogen, Wind or Co2 capture..but they seem (apart from wind) long in investment and similarly on return, not AA's style at all?
Should be an interesting 2023.
Rgds Sft
Interesting question
Reported outgoings salaries of snr management:
Board Members
Adonis Pouroulis
Co-Founder
US$518.00k
Julian Robert Maurice-Williams
CFO & Executive Director
US$410.00k
Duncan Wallace
Technical Director & Executive Director
US$410.00k
George Canjar
Independent Non Executive Chairman
US$138.00k
Andrew Hockey
Independent Non-Executive Director
US$50.00k
Christopher Zeal
Independent Non-Executive Director
US$50.00
Would have to go back to the financial data to see office and staff operational costs.
Not seen any data on projected FEED costs tied in with Schlumberger and Subsea7 we should hope with such an experienced management team they will have built in "fat" at the fund raise (completed just before FEED award) both of which were completed (see RNS's) in June 22.
Rgds Sft
Hi Jimmy, It's a question I asked as part of a larger Co2 offset planning communication to the company and it is a something that they replied on but its +17 years away.
I firmly belive that they need to include something more immediate in the project, and solar or wind electrical generation should be incorporated for the CPF, even if its not initially 100% it should be built in for scaleability as the finance becomes available as production increases?
But they have not commented on this obvious and important factor in any FEED / plant / field development, the may say "they have considered it" but to not address it is niave in this climate (forgive the pun). What do they think they are going to get asked by financial institutions? When all new projects need to have clear data on carbon footprint and offset planning to pass financial scrutiny?
BUT and it's a BIG BUT
Due to current world supply issues and Morroco energy needs........Chariot BoDs may know better ???
I.e. COP 26 sign up for reducing fossil fuel investments
https://www.iisd.org/articles/press-release/glasgow-statement-could-shift-annual-28-billion-to-clean#:~:text=The%20COP%2026%20Statement%20on,clean%20and%20just%20energy%20transition.
I just feel they need to address it in their project planning and literature. Just my opinion.
Kindest Sft
Another decent read
https://www.bbc.com/future/article/20211115-how-morocco-led-the-world-on-clean-solar-energy
If Chariot play this well, it's other renewable arms, could gain ground in the country too.
But I firmly belive they need the gas project to be faultless AND they should be building eventual carbon neutrality into ANCHOIS/ Lixus and the CPF, whis as I commented on before they have not broached in the current but limited disclosure for Anchois FEED/ or project planning.
Hence previous comments in investor take up (not withstanding final conformation of development costs and supply rates, that investors need to see actual profitability.
GLA
Rgds Sft
I see the gas as a national requirement for Morrocos energy supply, the Anchois reservoirs have been independently assessed and wells sufficiently tested to industry approved standards.
It appears Morroco has introduced a development strategy for renewables and intends to reduce its oil (and coal) reliance.
Below is a decent read
https://www.bearingpoint.com/fr-fr/publications-evenements/blogs/energie/morocco-the-eldorado-of-renewable-energies/
The as project detailed by CHAR is a very industy standard development and has the full support of the goverment, further supported with the selling of further licences to CHAR.
I do not see the current timescale on progress as any reason for concern.
I do have concerns that Chariot will go it alone with out a farm in partner and if they did it would (imo) reflect niavity (to the point of arrogance ) from AP (who will be leading the charge, note1*) if they do not: they really need the existing infrastructure: environmental, field experience and clout of a major who will act as the operator).
They are starting from total scratch in OnG and do not have the personnel onboard, nor does it appear they are recruiting any, so I think (actually more hope) it's a negotiation gambit that they are engaged with on farm in and future field/ block developments.
With out a large operating project the contract negotiations could also be weakened. I still firmly belive that the goverment will have a big influence on the final say on the supply of national energy.
Note1: A point to consider on current sp and ownership is whilst the majority of shares remain in (as indicated by Simpley Wall St) in private investors the board and AP in particular have full sway over the company where as a if / when institutional investors start to gain further percentages so does their influence. At the moment it's scattered amongst us lot?
All as usual speculations and musings.
Rgds Sft
Interested to know what you (SF) think needs to be done to move the share price forward and what is your ideal target price?
Or do you think this is a failed venture and we should sell up?
Any advise or even your own opinion, from yourself would be appreciated?
Rgds Sft
What people should take as maybe some small "consolation" is if the idiot brokers are so ill advising when and when not to commence buying back HBR shares and they ALSO get the timings so very drastically wrong, then we must ALL be in the same boat i.e. no navigation or charts?*!?!!
Rgds Sft