Member Info for Unnd

WOS - with respect an RBL is a non starter at this point. At 200bopd MATD are not producing enough to even cover the overheads let alone pay interest on a loan. The CEO stated ' we have to demonstrate that we have a reliable production stream and revenue generation' which we do not have at this point until H1 and possibly H2 are resolved and producing more. An RBL may be an option in 6 months time but not the here and now.

Proquo - with regard to sign of we must factor in that any oil sold in March will probably not be paid for until April, which makes the cashflow very tight at the beginning of Q2/25.

The two questions from me would be:-

1. How is the remedial works to H1 and H2 funded

2. What is the 2025 drill campaign and how is it funded

Hello ISA-Investor welcome to the board.

I am not an oil man and so I would welcome your valued in sight.

Hopefully the name callers on here will keep it civil and we can all have a genuine adult conversation.

Jimithebrush - "Remember a placing is short term pain for long term gain"

I do take your point about previous raises especially when it was for wildcat drilling.

However MATD is at an inflexion point at the end of Q1/25 and I would hope that any placing would be used for increasing production and for the Heron field 2025 drilling campaign, not for keeping the lights on or wildcat drills.

In that case it would be possible short term pain for longer term gain.

Investor33 - 'Petrovis taking shares at pretty much the current market price would be good for everybody'

Agreed. I think most people missed the statement from MB in the last presentation that both him and Petrovis were prepared to participate in the last raise ($9m) at no discount to the prevailing SP. However it was the market that forced the discount and therefore out of the CEO's hands.

TBT - I did state in my post at 9.47 that it could be standard Business practice.

However given the fact that MATD need funds and the timing of the Notice it leads a reasonable person to consider that a placing is imminent.

Remember a placing is short term pain for long term gain.

Investor 33 - I agree it would be preferable for Petrovic to take a greater share of MATD as they would at least keep hold of the shares. If they reach 30% they may have to make an offer for the remaining shares.

Doc83 -'Come on people, are you all genuinely satisfied with what that $9m has achieved???'

I do not think anyone is happy with the current outcome, not even the CEO.

The expectation was that H1 and H2 would both be producing over 300 bopd over the winter shut down period.

Unfortunately for whatever reason that has not happened. hence the need for further funds.

Doc83 - the Notice and resolutions are on the MATD website under Presentations - Company Meetings.

There is no comparison between MATD and COPL.

COPL ran up huge debts and issued CLN's loke confetti.

The MATD CEO quite rightly prefers straight equity raises to minimise debt.

Both the bulls and bears have merit at this stage as the long term prospects are good but the here and now is that MATD needs to raise funds to enable those future long term prospects.

At best MATD will have $1.6m at the end of Q1/25 if they do not manage to sell and get paid for the oil in store prior to that date. If they do manage to get paid then they will have at best $2.8m at the end of Q1/25.

That is not enough for the CEO to move the company forward in 2025.

Therefore a raise is almost certain, whether that is by the issue of shares to Petrovic for a greater share of the company or by a placing on the open market.

If it is a placing on the open market then it would be essential (MB's words in the last presentation) for the CEO and Petrovic to take part. That raise may or may not be at a discount to the prevailing SP at the time - dependant how the CEO sells the future prospects of MATD.

Placings are reality at this stage and a reality of AIM.

A placing may be bad for the short term SP but can be good foe the long term market cap. Short term pain for long term gain.

The Mongolian Government will not imo provide funds - that is what the PSC is for, foreign investment in the oil fields with the MG taking their share of the profits. The MG are not concerned in the number of share is issue, only that MATD can raise funds to invest in Mongolia.

I note that Resolution 4 of the forthcoming AGM is for the BoD to allot a further $6.4m of new shares.

Again imho those shares will be issued in 2025.

Short term pain for long term pain.

Can we stop all the childish name calling please otherwise this board will be worse than the COPL board ever was.

The drop in the SP may be something to do with Resolution 4 in the upcoming AGM.

Resolution 4 gives the BoD power to allot $6.4m of new shares.

It may be just standard business, but I noted that there was a raise of $4m on 02/02/23 just prior to the 2023 AGM on 15/02/23.

As I have stated previously in my humble opinion a raise is imminent and a logical thing for the CEO to do at this stage.

Once we go through the pain of the raise then hopefully the SP will recover and move up as work progresses.

The drop in the SP this morning is extreme and probably more to do with the constant seller that has appeared over the last few months.

With regards to production it has increased over the previous years as follows:-

FY 2022 average 1,345 bopd

FY 2023 average 2,167 bopd

FY 2024 average 3,600 bopd (estimated)

Whilst drilling and production has steadily increased the cash balance has also increased to $22.7m.

With the aggressive 2 rig drill campaign this year it is easy to see FY 2025 average at 5k+ bopd with an exit rate of 7K+ bopd at year end.

The market cap surely has to substantially increase otherwise we are at risk of being taken over with a low ball offer.

The fact is no one on here knows what the remedial costs are for H1 and H2.

However what we do know from Abzza is that it will cost $2.5m to test and complete H2 once the remedial works are completed

Abzzba - I do not usually agree with your posts but in this particular instance you are spot on.

I just hope that the CEO is of the same mindset so that any fund raise is minimised.

Hi Adw198 - I agree with your figures for drilling and on face value MATD would need $16m for all 4 drills.

It would be disastrous for LTH if that sum was raised, however I do not think that it would be possible for MATD to raise that amount in the current market place.

If MATD have $2,5m in the bank by end Q1 plus say a $5m raise then I would expect that that would give confidence to DQE to commence the remedial works to H1 and H2 and to commence drilling H3.

If production is then increased in May and the following months then MATD may then be self financing or may be in a position to enter into an RBL with a financial institution.

All things may then turn positive for MATD but we need to go through the further pain of a raise first.

Proquo - what don't you get about cash falling from $4m to $2.5m - a change of $1,5m is a change is it not.

From my post you will see that the $2.5m at Q1/25 is still on the basis that the CA and EL is in place to enable production to the end of Feb to be transported and sold and the cash in the MATd bank by end of Q1/25 - quite simple maths really.

MATD have alot to do with that $2.5m and therefore IMHO the CEO will raise in February and not risk the company running out of money.

Its all about cashflow which is the lifeblood of any company.

Proquo - I will answer your question directly. In my November post I did raise the possibility of a placing and I had calculated the cash at Q1/25 at $4m.

My position has changed slightly now because production has been confirmed in an RNS to be 200bpd whereas in November I assumed 250bpd. In addition in November I had assumed that the Cooperation Agreement would be in place and the export licence obtained to allow full production to be sold and the cash to reach the MATD bank by Q1/25. We have still not got the CA and EL in place and therefore I recalculated the cash at Q1/25 as around $2.5m. Based on that I consider a placing will be necessary. I stated in my post that the $5m was my assessment only and for discussion, I never stated that that part was from an RNS. I am an accountant and deal with these things daily.

Takes it easy - thanks good advice not to engage with the playground types. I did note however that they stated that most of the points I raised were negative - the irony is that most of of the points were taken directly from the company RNS’s. You could not make it up could you !!

IMHO there are some genuine posters on here which include ADW198, Doc83 and Stockmaiden. They may err to the negative side but I am sure that that is due to LTH fatigue and/or as a counterbalance to the shameless and disingenuous ramping by others.