George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
“Successful restructuring of Tapi Aike interest in July 2020 line with the company’s focus within its portfolio on cash generative production and on reducing costs”.
In case you missed it earlier in the year we are now a production company looking at projects that are in line with a gas production company’s growth model! No longer a exploration company with any real potential for share holders. Oh how I feel let down by MH and his poor decisions. Really thought we had potential :(
Earlier in the year we were in a position struggling to pay back our loans. Now we duck out of any cost associated with TA but have an option to pay all of the saved cash back if, after looking at the seismic and pre-drill data, we decide to jump back in for the 19%!
The only reason to do this is we need the money to keep afloat (Sur, loans and pay employee's)! On this basis how on earth are we going to have the money to buy back in! This is MH walking away from TA but trusting that share holders will not see it so he doesn't get too much ****. In a few months they will say they do not see enough upside in the drill so will leave it (and knowing our luck at that point it will be a big find).
CGC has done exactly what all large O&G companies do and that is take advantage of ill experienced smaller operators. Free seismic across one of their high potential permits! This is the way!
While no one could have seen COVID-19 coming I think we are going to look back on MH not as a bad person but as someone that made key poor decisions throughout his reign. This pains me to say as I had strong faith in him to deliver and put my hard earnt cash behind my belief.
I hope I have this wrong and the share price goes up but it just seems like behind the words is a company struggling to exist after 2021!
Jez,
Disappointed you feel happy about people losing money! I’m guessing from your comment you are not invested here? If that’s the case I’m not sure of your motivation to post such comments?
The sizeable sells (and there were a few) I mentioned where 350k to 550k. While these are no great sums of money this comparison to trading sizes over the past weeks is considerably larger and the number of trades (daily totals) had also been high. Trading change from the norm would suggest direction movement (downwards in this case). Maybe it’s II off loading or just increased pi’s trading?
I am generally optimistic in echo or I would sell and walk away. I am also very cautious as I have a fair bit invested and have done so with the expectation of making money.
TA west is going to stretch us financially even with the reduced 19% costs. We pi’s generally accept this risk, run with it and then complain when it goes south or go mad and chuck more cash in. II and sensible people (not Me) get out before things get “stretched” (my overall point here).
I can see this well test would take a while and with COS being 70% it should hit. If they are waiting for a PBU and not just flow rates we could be some time yet (permeability dependant but we have no detail on that so hey ho!)
We are now in territory (time line) that would normally indicate they are struggling to get the flow results they need. The more time passes the less chance of a good result. With the size of sell’s I’m not the only one thinking that!
JP is probably penning the RNS as I type. :-D
We are definitely in a difficult place regarding finances. Clix-1001 Must come in to sure up the increased income. Maybe we gather enough cash from that to pay for the TA drill in the west over the next few months but that will only cover that and overheads. This is why the SharePrice is low. IF Clix-1001 comes in and then the TA drill we are in a very good place but this is the crux! Black or red and Martin is not that guy so he will be trying to work an angle that is not red/black! Can’t wait to see what that is.
Have a good weekend all
I have been playing with dummy sells over the week and the auto trade level has always been below 100,000 which is mental. The MM don’t want your shares atm. I would agree that why sell at this price. A duster is going to push the price down further but to sell anything of a serious amount would be such a hit you may as well sit tight until H2
That is the big question. H2 is what I am here for “big or bust” but while the slide continues it will become harder and harder to see a stomping jump to the levels most are looking for.
I am now expecting non-commercial news on this one (not de-ramping or have anything to back it up apart from my own expectation).
If this is the case we only have small snippets of news to be had before now and H2. Some of which will be cost saving possibly others which will be funding (not necessarily placing) but you need more than our current production income to make a serious go at high return opportunities IF (big if) TA west misses!
I have pinned a lot on TA (like most) so when I see 3,500,000 sells at 0.85p I can’t help getting a little spooked. Very little translations and the MM have pushed the spread to the max so also killing any activity :-(
Ok my ramblings for the week complete......
My take on Friday afternoon and today’s Sells is one of nerves for a bad result on out first TA well (not my thoughts).
I agree that JP’s presence on our board does not help with new investors but that will change if we get solid news.
IMO an RNS this week regarding TA would have been bad news.
While CGC are running this show MH will not want an early positive RNS with potential to be updated to a negative one (Fiona being the eager one there). He will want to make sure the news is solid before getting the information out there. On that basis I think news next week will be good!
Have a good weekend all
The production alone will cover more than Half our current market cap in one year!!!
This is a very positive RNS in our new "cautious" way of reporting. This had to be a good result as anything else would have reflected very bad. I have been sitting, like most, with my fingers crossed and each RNS has not disappointing......so far :) Just need CLMx results to be positive and we are on the way. This should be some time next week and like other I think the long this takes the better the news (within reason).
Let’s be honest this well was an expected result so anything but a move to test would have been a disaster!
I am relieved the news is continuing in a positive way. I do think we need the well testing of both to be commercial before echo is of interest to pi’s again. I don’t see much movement in the SP until then so the coming weeks will seem long ones.
“Two bites of the cherry!” You been watching too many James Parsons you tube videos! ??
With the first perforations completed they have not mentioned any flow rates just that they are progressing to mechanical stimulation. That means MH is going to collect all the data and hit us with it in one go at the end of the program. I do not see this as hiding bad new (as no doubt some will) but more to do with his management style. If its all good then the successful news will be a great springboard for the next drill (TA) that should Already have been spud (not to mention Palermo Aike!
Disappointed! Any shares issue should have been made after success. Not taking away that MH has done some great deals that has put the company in a good place but any bonus should be after or on a material increase in company value! We are still currently dropping so until then I think this has been very badly timed! We need PI’s to be investing and not pull moves that show the CEO is looking after no1 (thinking of the links to sou that should be a consideration of our CEO)!
Not often I am vexed about such decisions but on this occasion MH has called it wrong!
With spring hill cos at 70% and testing due on CLM x-1 January has massive potential upside to the company and hopefully the SP.
I liked the way MH mentioned the “encouraging initial data” from CLM x-1. Small suggestion to PI’s after the SP drop maybe?????
JP has unfortunately left so many people underwater and the company in a very bad financial position I can understand the negative comments.
I believe MH has a Bussiness mind that has already seen his decisions put Echo in a more financially stable place since being in charge. Put a couple of positive drill results and........??
Well I figured at some point we would have a higher SP than sound energy but didn’t see it coming like this ??
On a brighter note we have massive potential and while people are concerned about this drill being a success the two point I’m focusing on are the overpressure noted during the drill and the saturation of the chromatograph. These are good signs and yes I wish I could foresee the market and sell at 3.5p and buy back at 2.1p but that’s not the way it goes. I’m hanging in until Mid next year when we should be sitting on a considerably improved SP position ??
WT,
Agreed.....I think with the company history it carries a few nerves that makes pushing the share down an easy task. It’s a case of sit tight for the next couple of months and see how it plays out. There is risk as there is with this whole sector but risk / potential balance in this share is One of the best out there IMO. With MH playing things carefully I think we are going to do ok!