Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Hey GP,
I much prefer the sound of heralding trumpets rather than indian drums and am looking forward to my own silence :-)
The next RNS must surley be a positive one?
April seems to demonstrate that us 75% ers bought a few more shares this year and many look to bed in ASAP.
GLA
Rgds Sft
RNS issued is a clear indication/reminder of why breaking 18p is so difficult.
IMO again until the BoDs give the market conformation on how they intend financing other arms of the business and thus confirm they will not conduct further "acquisitions" by share placement and resultant dilution AND we have not inanced, sanctioned and there for fully dirisked the gas project...its 18p (and /or less: dilution effects).
Come on AP give the market some assurances and derisk investors investment!
Rgds all Sft
I raised several questions on the last webinar, one being: " Due to the amount of shares being placed and the resulted dilution can the BoDs confirm they will not attempt a share consolidation" it was not put out (other of my posed questions were) for answer.
I raised that as Harbour energy completed a rerate AND then share buy backs....disaster.
I have been continually "interested" in how and when funds are raised and the influences of such on share pricing, who actual ends up owning and controls company debt, the security of privileged information and who controls the majorities of voting rights all in a company (either personally or and via other investment vehicles), what and how and which personnel benefit from such.
All gained from my previous investments with Premier oil, now morfered into Harbour Energy and Rockhopper exploration....there's a movie to be made from watching the plays, miss management and what happened. I think I managed to lose more than I learnt though...doh.
I watch with SIGNIFICANT interest to how and who with CHAR will raise the very different aspects of the required financing.
Would they dare do another share placing?
I am hoping this investment actually lives up to its real potential, how that pans out though is (IMO) in the hands of the majority share holder (personal and via private company(s), highly paid and highly corporate and experienced Mr Adonis Pouroulis.
Keep an eye on and always follow the money.
Do remember the majority of share holders are private investors so there is some ability to influence at voting time...also if ii's do not come in after Gas contracts and Gas financing that would be a red flag for me.
Gone negative again but once you've been burnt you get nervous when you see or smell some smoke.
All the best, looking forward to great news, a great finance deal, conformation of renewable and Hydrogen financing plans and the boss making a lot of money from his investments and dragging us along with him.
Rgds Sft
A LOT of cash has been spent in the Dutch sector on drilling with NO significant / confirmed results. Seems to be lots of post evaluation though. Very disappointing....again.
A lot is now pinning on the West of Shetland Benriach development.
It seems we are in a bit of a bottle neck, it's difficult to see where AA goes next.
They have previously confirmed and reconfirmed investment has to be UK/ Dutch/ Norwegian only.
Note: They should have tried with Morroco and Chariot imo. Rather than the underfunded attempt at Sercia Energy. Well at least some traders done well out of it over that period, not so good for LTH's
Purchasing existing gas opportunity would remain too expensive (AA got the last good deal around with TotalEnergies fortunately) leaving only the expensive and risky exploration opportunities...and their drilling consultants do not appear to be very "lucky" to date.
Should we be heading more towards more renewable development projects to offset WFT's. It will not get the quicker returns that gas would give BUT when you consider the UK possible intent to start penalising the domestic gas users...electricity may be the way forward....Hydrogen seems to still be too high a RnD risk still (imo), just do not know very much about it or what companies are making good returns from it to date.
AA not even talking to Malky any more!
GLA
Rgds Sft
Hello Jim, yes I am not concerned about the funding of the gas project(s) that appears faily standard.
And your excellent and greatly appreciated calculations help support such assurances.
But
I reiterate my concerns lay with the other arms and the lack of financing and clarity- You say
" With regard to the renwables, this will be "valuable" and "they" have stated they will "expect" to take third party funding into the subsidiary"
I think institutional investors may want to see business/ finance planning with a bit more substance and assurances. I know I am asking for such, as before with out such we are exposed to significant financial uncertainty and the possibility the controlling authority on the BoDs can pull any rabbit out of the hat eg buy more suprise companies with more suprise share sales.
That remains my concern.
Of course I may be expressing unwarranted concern. I did express concern after the drilling campaign about being sufficiently funded to get to farm in or financing but was told we were "fully funded" that was before the suprise share sales to actually get us this far AND support the other arms of the business....but we needed another suprise to buy the water container company!
I am not sure what the current cash drain is and what runway we have left either.
Again the BoDs MUST be able to demonstrate to ii's they have fiscal prudence above and beyond the normal AIM style directors (OR mining director types) Remember when has Chariot ever earned a penny?
So ii's will expect to see some significant assurances in ALL parts of the company wher cash is going out and nothing comming in.
All IMO
Kind rgds Sft
Appolagies that link was not correct: this one may be a bit better on farm out options?
https://www.investopedia.com/terms/f/farmout.asp
Kind rgds Sft
Hi Jimmy, thank you for your thoughts, information and considerations.
I do not know of such reimbursements* detailed or put out by CHAR and if it does happen; we should ask would that potential recovery be sufficient to fully fund the undisclosed /financed renenewable /hydrogen ambitions until we reach production income
Note* link below to a possibley example and explanation of what you belive will happen Jim?
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7798991/
Addtional comments: on last webinar AP confirmed that they would not ring fence the gas returns to just gas projects. I will listen again to see if there were any other "hints" on funding the other arms of the business
The simple reply is we do not know for certain nor are we being informed.
Still all very interesting and time will tell.
Rgds Sft
Just my ususal opinions but as we are really only getting a very minimum amount of daily share trades (still belive its a few traders using their allocated % of "trading" shares) the drop from 18p down is possible not related to such but market adjust to UK confidence, WFT on UK energy companies (although we're spending rather than earning!), recent share issue/dilution for funding the open-ended (there could be more!) renewables arms.
Then couple this with no declared (confirmed) finance plan for the gas project and how much is left of the remaining funds in the bank?
All of the above factors will result in significant uncertainty and a lower market valuation (especially as we have NO real institutional investors onboard yet (2% presently).
OF COURSE as we all know there is a LOT happening and we all hope a clarity on the gas project financing will result in a re-rate and immediately raise the SP and our spirits.
BUT I still firmly belive Chariot BoDs MUST also give CLEAR structure and planning (at the very least Mr AP) on how they intend to finance outgoings vs time scale vs returns on thier renewable ambitions, its WAY WAY to vague....markets do not like that at all, especially in the AIM market related company's
The BoDs MUST MUST provide some clarity as
although the gas project financing/farm in is, we can all assume, very very close BUT as we will not be generating cash we MUST HAVE addtional financing outside of the gas project.
We can not use farm in or raised gas financing for the renewables side: what are the related current renewables outgoing i.e. staff and CEO related wages, % of office etc etc, what else do they need for development etc etc again no produced planning financing nor how we can pay for it...
So maybe be these were the questions asked by whom every they visited on the recent road show...which has to date appears to have had no affect?????
Proof of liquidity, Proof of financing and risk of further share dilution are the driving factors for Chariot..imo.
Any one feel free to counter, please.
GLA
Kind Rgds Sft
Hi Fraserd, you make a point worthy of consideration:
I do not think Repsol retain any OnG assets in Morocco presently?
I can only find mention of Repsol selling their assets to Chariot, stating (AT THE TIME) it was too marginal for Repsol to exploit).
Then later on only in FEB 2021 Repsol were stating:
" Spanish oil and gas group Repsol is set to withdraw its hydrocarbon exploration operation from Morocco, Europa Press reported on Sunday.
According to the news outlet, the company seeks to reduce its presence in hydrocarbon exploration and production activities in four countries, including Iraq, Australia, Ireland, and Morocco.
A number of sources told Europa Press that Repsolās decision is part of its Strategic Plan for 2021-2025"
https://www.moroccoworldnews.com/2021/02/335021/hydrocarbon-exploration-repsol-to-exit-morocco
On Repsols website it only details their Moroccan intests as lubricants and the new polypropylene compounding plant.
https://www.repsol.com/en/about-us/repsol-worldwide/africa/morocco/index.cshtml
Getting back in would be a complete U turn from Repsol BUT Putin of course has significantly changed the gas landscape for the mid to long term future. They could now be regretting that exit and want back in following Chariots addtional drilling and CPR findings, that have derisked it in the new world gas situation.
Chariot would already have a historic connection with Repsol following the sale discussions?
I still prefer TotalEnergies due to existing relationship with renewables development but tieing your self into one major operator may not be the best?
But hopefully it all comes down to who is going to give us the best deal BUT in negotiations if you already have personal relationships with Repsol OnG personnel that COULD be a final winning factor???
Rgds Sft
Looking at the link that Ianfer kindly posted: last year 24 sponsors, this year it appears to be just Chariot???
Maybe missing something.
Speakers: 1x Harbour 1x from Repsol, a LOT from ONHYM though, a Energy TRANSITION & Sustainable Development minister AND Malcy (that and the quality of the website sums up the "Sumit" ????).
Does not appear to be quite the number of sponsors or potential quality farm in partners present?
I am hoping that this is a kind of team building, discussion opportunities, wine, dine and promote the "valuable efforts" of departmental personnel required to get the job done type of "Sumit".....Still would be nice to see some "other" operator(s) present, maybe they will be listening rather than presenting???
Bit of a worry when Malcy makes the cut.....WHY?????
Standing by, but feel the need to bite my nails..not started yet though.
Rgds Sft
Hope Harbour Energy are other getting g involved with us, they have no concern for shareholders....Still imo controlled by EIG.
Just look at HBR share price gain (Not) chart since March 23/27 2020 (BOTTOM of covid crash). EVERY other OnG company has made significant gains, they must be the only OnG company that has "Snatched defeat from the jaws of victory"
I am still hoping (praying) for TotalEnergies.
It's all getting close(er).
GLA
Rgds Sft
Further info from chariot website:
I am "assuming" the majority detailed here are Nominee/ share platforms for private investors, apart from Westward Investments
Hargreaves Lansdown Asset Management 14.7%
Interactive Investor 11.9%
Halifax Share Dealing 4.8%
Barclays Wealth 3.9%
AJ Bell Securities 3.0%
And
Westward Investments 9.1%
Note: Adonis Pouroulis ā Acting CEO
And
Total Board and Senior Management 9.6%
All posted for info and for general awareness
Rgds Sft
Just for information and awareness of the following company's with CHAR shares
Remembering:
Ownership Breakdown
Institutions 2.0% 18,764,874 shares
Private Companies 8.8% 85,143,102 shares
Individual Insiders 9.6% 92,145,383 shares
General Public 79.6% 766,055,426 shares
Majority being:
Adonis Pouroulis 9.09%
Westward Investments Limited 7.62%
Meridian Capital International Fund 1.49%
Note as per RNS on 23rd June YF Finance Limited Sold 1.49% and still retain the same number
Leto Trust 1.22%
Legal & General Investment Management Limited 0.27%
George Canjar 0.26%
Sunline Pte Ltd 0.17%
Duncan Wallace 0.058%
Julian Robert Maurice-Williams 0.048%
Robert Archibald Sinclair 0.043%
Christopher Zeal 0.042%
Andrew Hockey 0.033%
Finexis S.A. 0.016%
Additional Information: I can not trace where the new 113,333,334 shares, following the May US$25.5 million fund raise, have been picked up?
It not showing up in the above or in a mandatory RNS- TR-1: Standard form for notification of major holdings. Unless the have been split into multiples that remain below the disclosure threshold?
END
Note source: Simpley Wall Street and CHAR RNS's
Rgds Sft
Ps
I will add the 18th of May was possible a VERY good move (IMO) IF it is used as a negotiation (cost affective) tactic to get a good farm in deal for the EXCELLENT potential of our gas project.
Again I do not wish to appear TOO negative, but it is again my opinion on why we are SP wise currently.
Not too long to see if AP and the BoDs are going to take us down a stable finance path and future.
GLA
Rgds Sft
Worth just looking back to the goals of "suprise" announcement 18th and confirmed 19th of May fund (see RNS) closed raise:
The net proceeds of the Fundraise will be used to:
1. Advance the engineering and design of the Anchois Gas Development, including FEED project, project financing, gas sales and updated reserves report, to reach FID; and
2. Progress renewable power pipeline, strategic partnering and new venture opportunities.
Raised US$25.5 million.
Note: mid April the SP was up around 24-26p and slowly dropped down to 18.37p the day BEFORE the "suprise" announcement (looked like a major leak to those that "knew")
I can not find out from the RNS's who were the beneficiary's/ suppliers of that fund raise. Was it one of AP finance companies?
3. Then it was our turn and we were offered the ability to buy US$4.0 million, confirmed over subscribed.
4. We have then had the more recent share placing for the ENEO Water company: African "based" but incoprorated as a company in Singapore in 17 Mar 2020, they must have come up with some new and worth Tech quite quickley? Just after start of Covid to, so who ever started that done well, can't find name of directors.
So I am VERY interested in what happens next in funding: bond placing for whole project, farm in via a reputable operator or a venture capital group.
(Not including the unknown renewable/ hydrogen costs)
So as before, until the financing is confirmed (project cost vs repayment method(s)/type vs gas contracts, the Company history and the renewable/ hydrogen unknowns we are not worth anything other than the licence we hold to recover the gas AND the remaining cash balance the company currently holds.
Still standing by (like "Tiny Tim" Cratchit: brrrrr look nice inside Mr)
GLA
Rgds Sft
Sold 2x loss leading shares and added todays at 14.05p.
May have been early but lets hope the support continues: "Global shares rise as $30bn lifeline for US bank eases fears of imminent collapse and Treasury secretary, Janet Yellen, says US banking system āis soundā.
Still "standing by" for Chariot to confirm to ii's and us) that they have secured the finances for the gas project(s) AND provide some clarity on the continued funding of their renewable / hydrogen ambitions, its not as if they can use the gas project funding to move those other ambitions forward nor will they have income for 2yrs (at least).
So HOW are they funding such above ambitions: How far are they away from generating any income from the mining renewable projects?
Lets hope the Bod's are NOT waiting for a share rise, and then another share placing to bring us up to 1 billion shares!
This would NOT be perceived well by the market or many of us....all down to managements financing strategy, which they are NOT disclosing.
AP is not unfamiliar with over extending on debt: that would indicate some significant experience (lessons learnt) on keeping control of future debt management.
https://www.miningmx.com/news/diamonds/41033-petras-founding-chairman-adonis-pouroulis-steps-down-from-board-after-23-years/
Chariot MUST start to supply more information on the development path and financing intentions for the other arms of the company (as well as what were waiting for on the gas projects of course).
Does any one else agree that it is too vague??
GLA
Rgds Sft
Thank you BDC
1. So we are confirming the company continues to value the company at 18p.
2. FEED confirmed completed and they have moved on to Engineering, Procurement and Construction ("EPC") confirmed via RNS.
The above indicates there has been nothing disclosed that has reduced the value worth of the company
Therefore we could then determine
Either there is some bad news hiding in the shadows that will totally undermine the project? Not a good idea to move onto EPC and the directors would face being accused of deceiving the market. This is a UK company.
Or
4. The market slump is affecting the current share price as you have raised)
I am leaning toward No.4 and actually look at this as a real buying opportunity unless the market has more fragility in it.
Gas as you have said remains extremely required in Morocco irrespective of the high current demand only being covered currently by increase LNG vessel supply?
Rgds Sft
Something I did not do nor do I think it was discussed on the bb
Was the actual share value that Chariot allocated to purchase of the "Water company"
From RNS and Chariot website:
"Initial consideration payable on completion of the sales agreement is US$0.5 million in Chariot Ordinary
Shares based on the 30-day VWAP prior to financial closing of the Djibouti project (representing
2,267,694 shares). Deferred consideration also payable in Chariot Ordinary Shares up to US$0.5 million (representing a maximum of 2,267,694 shares), is payable within a 24-month period dependent on
achieving financial close on further projects. It is intended that the Ordinary Shares issued under the
initial and deferred consideration will be subject to a lock-in period of 12 months.
So what price was allocated per share?
I ask because I must be inaccurate in what my figure comes out as???!!!
I would expect it to be (as per the last fund raise) as 18p but that not what I come out with.
Rgds Sft
Hi BB,
You make an intresting point regarding knowing when to enter or exit a investment.
If you are a trader and had entered at 10p then selling after doubling(+) your investment at 26p then you would have done well.
The trouble is that an private investor may feel that addtional investors may be "piling in" having recognised the future potential of the company. This could be seen as applicable to CHAR.
By not being able to clearly see if institutional investors were part (at the time) of that the recent rise up to 26p (late April 22) it could nowvretrospectively have been more private traders (79.6% of company held currently by "private investors") comming in and happy to trade for example 50% of their investment......but the suprise subsequent share fund raising of May 22 looks to have fully undermined the continuation of that growth.
Note: in 1 year sp has raised by 57% but share dilution has been above 52%
Note: it can be recognised that this funding was to secure cash flow to completion of FEED (and I sincerely hope to the completion of project financing and or farm out? But none the less the resultant share dilution has undermined that SP and any SP growth purley due to that % dilution and possibley stalked stalled any increase from the (current) reported 2% (up from 1.7% a few months agao) of ii investments in CHAR.
If you came in at and around 20+ then it would be frustrating but brokers are rating this higher than 26p.
I again belive (as many) are that due to as previously aired: as the company has never made a return since formation, failed on the Nambia drilling but bought the Anchois/Linux blocks, raised funds again for the drilling campaign, raised more to buy the rest of the Rissana block, raised to make it to the current position and RAISED again to buy the Singapore water container company......ii are in no way comming in until the company has proved it can finance the gas project.....is there any concern that we do not have a clearly disclosed finance /business plan for the renewables, that we are run buy a ex miner ( many AIM listed mine companies have historical been big money pits, being from OZ Greatland Gold is a current good example).
I came in purley on the gas project...and still hope it will achieve the returns some hope for.
Note: Simpley Wall St latest report has us as "fair value" at 259p!!!!!????? not sure how they calculate that!!!
There remains imo lack of significant clarity on the renewable side and how that is to be safely funded.
We REMAIN a long way from gas production SO how do the BoDs inte Ted to fund the renewable arms of the CHAR business with the current funds???
All my own musings and using Simple Wall Street reports as reference to numbers quote.
Rgds Sft (Standing by for RNSs on Gas contracts and signed farmout/ financing and some clear financing for the rest).