Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Woe!
https://twitter.com/Gugo907/status/1679674928134778881?s=20
Too bad we're 50% gas, and Clearwater ain't delineated yet.
Court approval for the capital redux?
Hi Stas. Yes, I believe you're correct. The 'ratio checks' occur quarterly, so I believe that would constrain the ability to pay a dividend monthly.
"- Why did they do away with the monthly dividend?"
The company took amortizing debt to roll over the 25M GBP maturing on May 31. I suppose that means monthly payments to the lender, so can't pay us monthly anymore.
Stas, in Canada they have to apply for permission to the Ontario Securities Commission and they have to first approve it. AGM is all good and well...now they have to go to the OSC.
If that's not how it's done in the UK, then I suppose they can proceed at any time over there.
Stas, what's the law in UK? In Canada they have to ask for permission from the regulator, and they can't do more than 10%.
The presentation deck continues to be frustrating! They disclose a net debt figure as of Jan '23.
How much is it exactly! What's the rationale for yet another sleight of hand?
Indeed. Went from a trade to an investment fast.
I think the current shareholder base is rebelling against the board, and 'disallowing' growth through acquisition.
The UK entity is the one that pays dividends, the one that runs at a loss, the one that has ZERO production, and the one that extracts cash out of Canada (the good asset). It costs about 6M GBP to pay 'salaries' in the UK, while they generate no revenue.
If cash is so hard to come by they have to cut the dividend 50%, shouldn't an effort be made to find savings first, rather than directly link the dividend to the NOI?
My point is the asset is good, the management is bad, and the only saving grace out of this debacle is that Trafigura will force them to do financial planning based on the ratios, which should have been done LAST YEAR, but it was not because I suspect they needed 'exit liquidity' via the likes of yours truly.
Now we are back to an 'exploration' play by a management team that has only produced 'dusters' so far, and very little operational leverage (torque) to rising prices.
Tell me how they are doing on their 'total return' business model?
Can you please explain to me how 'the total return model' works when you don't have a 'base' dividend (i.e. covered by free cash flow)? Total means = income + share appreciation.
Well, they are going to have to 'competent' now that Trafigura is involved.
@tonynorstrom
The financial incompetence is paying a dividend not covered by free cash flow, and not stress testing the 'consensus' estimates for WTI/AECO when projecting cash flows.
Don't know what's so encouraging to WHI about an 81 bbl/day hole in Clearwater.
Wake me up when it gets an 800 bbl/day one.
After looking into the financials in more detail, the replenishment of the retained earnings from the share premium account contains exactly ZERO information for the investor. These transactions belong entirely to the UK entity. This is an entity that runs at a loss (raiding its own retained earnings account), and all it does is extract cash out of Canada to pay dividends and UK salaries.
The Canadian entity continues to accrue the annual retained earnings it generates.
Ah yes, I see. They are paying out of the UK company retained earnings. Surprised the UK subsidiary even has retained earnings.
The question is: how in the world did they go from a 'retained earnings' balance of 99M GBP on Dec 31 '22 to 6M GBP over 5 months? Capex + dividends paid from Jan-May do not account for that drop in 'retained earnings' balance.