Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Thanks cp. Hopefully the webcast is available for replay as I can't join at that time.
First question from me really, is why hold this Q&A before getting confirmation of the Ruvuma extension?
Second one is, will there be any money left after all the transaction charges we're paying to Gneiss? Loads of micro deals will only benefit them.
Agree, there's lots of directions they could go in, e.g. merger, further asset sales, payment collection. But, w/o those, we have no revenue coming in, with no path to revenue until Ruvuma in 2024, and insufficient cash to hold us over.
An equity raise is the easy/ logical answer, which is why I'm sure O-Jim is suggesting it. If we have something more clever in mind, I'd sure love to see it!
With link to one of many stories lately that refers to fertilizer plant:
https://www.africanexponent.com/post/8410-what-magufulis-legacy-means-for-hassans-future
We've been hearing for weeks the govt's intention to prioritize LNG plant development. What should really get domestic gas producers excited though is the re-focus on building its $1.9bn fertilizer plant, which consumes epic amounts of gas.
Domestic gas demand for household consumption is slow and unexciting. Fertilizers, EA regional gas distribution, and further industrial use is the driver, and should align pretty well when we start producing in 2024.
They need to cut a cheque for $5MM in next 12 months just for 3D + drill. Then find another $35MM to get to production in 3-4 years from now. Existing shareholders would be diluted to the point of extinction to get there.
Hi CP, I disagree. I've not seen anything that shows they have the funding. He1 is a block holding that isn't easily sold. They would likely need to sell to another institution to get a fair price. We've not seen their Balance Sheet lately, and 'maybe' have $2m cash. The loan option is an abomination at the coversion price we'd pay and is more of a backstop to insolvency rather than a legit funding source.
If mgmt have stated they have funding in place, they're bluffing. The idea of SCIR paying its way to Ruvuma production is inconceivable
No sale until Ruvuma licence extended, which should come later this month I hope. IMO a sale could get announced soon thereafter.
Unftly SCIR has no means to pay for an expensive seismic + drill campaign. And even if they did (cash + HE1), the only buyer in town may still be Zubair, which may not want to pay much more, regardless of success. In 18 months time, SCIR would then have less than $0 in their accounts despite a more valuable asset. If a deal was then struck, they'd have to wait for TZ to actually approve the sale (which they don't always do) and could take ages. SCIR = dead duck in this scenario.
May be a stretch but the mega-project could help reset foreign investor interest in the country. Magufuli, RIP, was bad for business.
Interesting comment in the WH Ireland report:
"It is envisaged that as part of the larger 3D seismic program, most of the Kiliwani North development licence will covered by 3D seismic."
Great that they are wrapping Kiliwani into seismic activity, as we hoped.
I think SCIR's strategy is clear enough, it's the lack of execution that hampers them. 1. sell all TZ assets at their bottom, 2. reinvest funds into for bubble-priced 'green' technologies that may/may not generate CF in future. Loads of transaction costs coming for them, most of which will line Gneiss' pockets.