Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Lagueule
You guys fighting the ghost of CawCaw is something that will never, ever cease to entertain me and put a smile on my face, do continue! He’s living in your heads rent free! Hahahaha
Seems a strange thing to do to pay money to tell the world exactly how clueless and detached from reality your group is….
Board seats? Not a chance. Change the bond contract? On what legal standing? No gas injection? They haven’t been enriching the gas stream, it’s like you don’t even understand how the company operates.
All very bizarre.
Anavio is a red herring in this whole mess, a vulture picking over the carcass.
Culpability lies with Arthur Millholland. Did he breach his fiduciary duty?
- Why did he not use the accordion feature of the senior loan?
- Did he know what the consequences would be when he injected too much gas in the reservoir?
- did he know the RS report was unfavourable?
- Did he know the bonds would likely be the death of the company?
These questions can only be answer through a court process.
Momajid
Apologies for the delay, I’m playing middle man! His response:
1. AM said he would publish before the report was done and before he had sign of from Ryder Scott. Notice how his narrative quickly changed from ‘going to be released’ to then be ‘it’s too complicated’. The reason for the change was lack of permission from RS. My friend has the receipts to show this to be the case.
2. The only way the JV info will be ‘forced out’ is through court action.
3. The SL, Bonds and hedging account for well over 90%. The rest can assumed to be ‘trade payables’ meaning money owed to subcontractors and suppliers, regular business stuff. So unless you don’t understand how to read a balance sheet the important info is there.
4. The only way you will get more detailed information than what is available on the quarterly balance sheet is if the company goes into bankruptcy or through another court process.
5. If you don’t think there has been enough details about the production issues then you haven’t been paying attention. The company has delivered multiple presentations and financial filings detailing them.
6. This is a huge point of misunderstanding. The company continues to inject gas into the reservoir. What wasn’t done was the purchase of NGL liquids from Tallgrass to enrich the injection stream with wet gas. Dry gas is still being captured and injected.
7. The details of a company business plan will never be made public, unless through a court process.
8. Again there is no confirmation needed, the brokers COPL uses are public record.
9. It is up to the individual whether they wish to come forward to make themselves known as being contacted by the company.It is most certainly not up to the company to disclose the identity of those shareholders.
10. I agree cashflow hasn’t been a single issue, it’s been an ongoing issue since the atomic purchase. COPL defaulted on the liquidity covenant of the senior loan several times before Anavio and the bonds were ever involved. The management took risk after risk that didn’t pay off.
11. I agree that the company should not have put themselves in the position to fail if the JV did not work, but that’s what the company chose by buying CUDA and shareholders supported it.
12. An EGM can be called, but by Canadian rules they can only be to conduct specific pieces of business. So what will you hope to accomplish with your EGM? (noting that demanding a bunch of information from the company in this EGM will be none-productive as the forbearance agreement will run out before anything can be done with that information).
Misuse
Arthur tried his best to misuse it. Go look at the ‘investor meets’ presentation he gave. In that presentation he reveals a few numbers from the RS report (the low case) and then proceeds to follow it up by saying ‘but we believe it’s much more and here is why’ and this is exactly what RS want to avoid. They don’t want to be connected with a person like Art waiving their report around claiming he has billions of barrels of oil.
Ownership
In Canada reserve and resource reports must be completed to a strict standard, as such there are very few organizations that provide this service. Because of these two facts Ryder Scott can write into their contracts just about anything they wish, and in this case they have written a clause to protect against people like Art mis-using their work. And good on them they did in this case.
Doug
RS did tell him that the company may (if they choose) release the report to interested party or shareholders after they sign a waiver, but to my knowledge COPL never gave any shareholders that option.
Doug
My friend has spoken to Ryder Scott directly (I have seen the emails). He asked specifically about ownership of the report, their response was that COPL of course owns the report, but as part of the contract to right it RS retains the right to veto it’s public release. They do this to protect their own reputation if they fear a report may be misused.
From a friend on telegram when asked about the ‘RBM posts’
“I don’t mean to seem harsh, but to me it makes him seem very uninformed. Most of what he asks for is public information.
1. RS has to approve the release of the report and won’t.
2. the company is under no obligation to release info about the JV process.
3. the balance sheet is filed to SEDAR every quarter. The numbers for the bulk of the $135m is in those filings from last quarter.
4. COPL does not need to release the details of contracts with suppliers like lawyers.
5. The production issues have been documented in painful detail on the WOGCC website and COPL releases.
6. The company stoped injecting NGLs because the lender has to approve all COPL spending and likely had pulled the plug already.
7. The company has created many business plans, the SL required them for each waiver. Obviously none have worked.
8. COPL’s two broker partners are listed on every RNS, there is no need to demand to know who they are ( Hannam, Tennyson)
9. It would violate those shareholders privacy rights to publicly say who they were.
10. Cash flow has been an issue since before the CUDA purchase, it was well documented in all the public filings on SEDAR, and was evidenced by all of the equity raises and lack of capital, including the terrible bonds.
11. I’m not sure what he means here. The company backed themselves into a corner and was doomed to fail if the JV talks failed.
12. Shareholders had their chance for accountability at the AGM 6 (and 18 months ago) months ago and chose to support the board, against their own interest.”
Doug
There is a reason no one understands the bonds.
Every time someone came here and tried to talk about the details and clarify what was happening with the bonds they were dog piled into oblivion and shouted down as trolls.
Stats
Wake up, COPL is also selling the assets out of bankruptcy by a different name.
The assets are not worth more than when COPL bought them. The added nearly no value.
They drilled no producing well
The only reserves they added were from CUDA purchase
Interest rates have gone down
WTI is flat since CUDA purchase
These assets are worth what they were sold for recently, if COPL can prove they didn’t destroy Shannon. And that’s a big IF