Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"The energy company had alleged in its defamation suit that it was accused by two media houses of offering bribes for the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation.
But the media outfit and 6 defendants in the case had maintained that the publication was done in the public interest and intended for the public good following controversies that trailed the acquisition.
When the court resumed on Thursday, there was no legal representative for Seplat Energy Plc.
Counsels for the 2nd to the 7th defendant, Mr. Oladimeji Adebayo and Nnenna Eke, informed the court that they filed a notice of preliminary objection against the suit on October 11, 2022.
They added that the plaintiff has not replied to their processes on points of law."
https://thewhistler.ng/absence-of-seplats-lawyer-stalls-hearing-of-alleged-defamation-suit-against-media-house/
I do agree with your sentiments but my feeling is that the baseline dividend is more likely to change after ANOH is finally up and running. Up until that point I suspect the additional 5c will be a special dividend. So I feel it is likely to be one more year before that happens.
I wonder if there is something else going on in the background like a future possible investment the company wants to make. The major bulk of this is dependent upon a vote at the AGM which last year was end of June. And by that time all being well Karoussa should be up and running and cash flow should start improving significantly. I know there are costs etc falling after the mine is built but cash flow should pay for that I would have thought. Maybe it’s in line with going underground later in H2 at KEIG and whether they need to purchase more kit there?
I'm not sure I understand. I'm reasonably new to all this. If there is one person buying a lot of shares, where are the market makers getting the shares from if there isn't a seller to match? Surely they would increase the price to tempt sellers back into the market? But I really don't know.
https://businesspost.ng/economy/nigerias-oil-production-now-1-59-million-barrels-per-day-nnpc/
Good news!
I would like an explanation of the -$70m foreign currency translation too. I have looked through the document but can't seem to find an explanation. I can only assume that it is the difference between the price at which they have agreed to sell Chromium in Rand and then the drop a month later or so when they finally get the cash but the exchange rate has declined when converting to USD. But I am clutching at straws.
I think I heard on the call that the divi calc was excluding the Karo gain as this was cash neutral but I think the divi calc includes the -$70m above, which explains the drop in divi.
I would assume it is a % of ore through the mill
Why do you say ANOH remains on schedule. I couldn't see anything about that in the update. Or am I missing something? Absence of an update means no change I suppose?
I think that is a good idea. I might do the same and also ask where we are at with regards a new chair of the board. Given what's happened it makes me real nervous that Dan is effectively taking on that role too. I did write to the chair last year after the issues and he did send me a reply which I was surprised about. But the shareholders don't really have anyone to turn to at the moment.
Don't forget also they are reclaiming VAT now. They were hugely in credit to the government when discussed at the AGM. Can't remember the exact figure but I think $20M. Now that sanctions are over they are recovering this and they mentioned in one of their recent RNS that VAT will be cashflow positive in going forward. Whether they manage to reclaim all the amount owing to them who knows!
The RNS was obviously very positive with some amazing grades reported, but I am more interested in why it has been posted today. These results were from last years drilling programme and they have been the best set of results reported to date. Hum has obviously had them for a long time so why post them today? In my head there are three possible reasons:
1 - They have cut back on having the results analysed to save money and they have only just had the free cash to get them analysed. If this was the case then that would be positive for future cash flows. But I don't really believe this to be the case as it would be pure luck that they have turned out the best and reported last, so unlikely.
2 - They have kept them back deliberately to build some momentum behind positive news flows for the company. If this is the case and Q3 figures were going to be bad then I don't believe that they would not have posted this today. I believe they would have left this RNS to after the Q3 results. So I wonder whether this is early indication that Q3 is going to be ok.
3 - Like two above they are building positive momentum to support the share price ahead of an equity placing round to try and build support for the company. This is entirely possible but in order to gain maximum benefit from this RNS there would have to a placing round announced very soon. Maybe even a few weeks.
My gut feeling is the reason for the RNS today is number 2 above and my take away from this is that this is an early indication that Q3 and cashflow is going to be ok. As time passes and we get closer to Q3 results and point 3 doesn't happen then the more confident I will be that Q3 will be good and there are no major cash flow issues that would require equity financing.
It is worth noting that these are the finally assay results from last years drilling programme. So there is no new good news from the drilling programme to come. Another reason why todays RNS was carefully chosen to be today and significant in my book.
Just my thoughts, obviously DYOR etc...