Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I didn’t say first past the post .. I said past the first post!! Ie getting connect to the grid ….
Unfortunately you can’t debt finance the business properly until you have proven the concept. The cost due to the risk would make this expensive therefore the majority of the funds have to come from dilution. The share price has floundering due to the constant delays and problems both on macro and a micro scales. This has made the dilution large than it should have been as rather than the share price rising as gets closer to first revenues it has fallen to almost an all time low.
The only real way to say whether the dilution is excessive would be to compare it with another company having done or trying to achieve the same project or very similar. As Tlou are the first in the region to attempt it so it’s impossible to cross compare. But the likes of sound energy in Morocco developing a gas field has almost 2 billion share in issue and are further way from completing their project than Tlou. So what does that tell you … small companies have to rely on dilution until they can achieve a favourable rate on debt finance. Nothing unusual or unique in a billion or 2 shares in issue .. The unique bit is actually successfully achieving it and getting past the first post…..
that's my understanding to ....bot's is like the guy at the grand national who puts his money on a horse with a broken leg and then tells everyone who will listen that his horse is never going to win. well no **** sherlock why bother to waste your stake on the horse in the first place.......
That's a pretty jaundice view of the potential profits tlou could generate.. Do you really think TG would have dedicated 15 years of his working life plus all the cash he has invested. The Doc and the Pension fund would have invested relatively big sums in a business that would produce such negligible returns.. . You aren't looking at the bigger picture and the potential ...but that doesn't suit your rhetoric ..does it ............it's not how you start its how you finish that matters
On the funding front .. I really do feel it’s time that Botswana should come up with funds for the last push .. why should everyone else put cash into it and let the contry of Botswana gain from the new power source without making a major investment in the project .. yes I know the pension fund have stumped up some of the funds .. but still there must be some high networths in country that could put in the next stage funding? Thoughts ?
Stating the obvious again ..Bots
In my positive and twisted mind it makes me think Orapa isn’t total off the table … can’t see what else is up there in that location requiring gas
Though this statement was interesting..especailly the last bit..
.Tlou's competitive advantages include the ability to drill cost effectively for gas, operational experience and Lesedi's strategic location in relation to energy customers
It's very positive... although the substation has only moved on 1% in 2 months which doesn't seem like much at all
The last RNS was abit like you go to the fridge that was nearly empty of food and drink and hope that somebody else has filled it back up.. How can you run a business with burn rate of £400k and have no real income
A Company with a burn rate of around £400k a month is out with a begging bowl for what it can get ! There is little or no traction on sales and the new CEO hasn’t brought any shares off his own back to highlight the so called potential this company offers. The share price has fallen off a Cliff and the noise from the company is deafening .. what does all this tell you ?
If a ship is in dry dock do you need a Captain or two? Do you need a chief engineer ? Do you need a purser ? do you need any officers ? may be one!....So is this company is a nonsense in every way......?
Bot’s thanks for the history lesson.. But what they done with this CBM. Tlou have a plan to extract and use to benefit of all .. I guess you were points scoring over Mr Smith ..
Bots That's a hypothetical question.. Kalahari Energy is a private Ltd company and Sekaname is subsidiary of it so it's impossible to say how much they have spent so far. or if they have sold shares on the back of it.
So I can't see the relevance of your question. And you can be sure they have been paying their executives through out! That's for sure !
*Not sure how anyone thought this could be achieved without at least a billion shares of so issued
If it was just about getting the gas out of the ground, there may well have been a lot less dilution. But the reality of developing the infrastructure to produce electricity and supply the grid via poles and wires made it a totally different proposition. Not sure how anyone thought this could be achieved with at least a billion shares of so issued.
As for timescales yes it's been a long haul which i guess nobody really wanted but that's where we are.. Building a new industry is expensive...
On that note I was over at the New Battersea power station development yesterday and at cost in excess of £9 Billion and it's not finished yet! so thinking big costs
Not sure you can put any value on the business without really knowing what gas is available and at what pressure it can be brought to the surface.
The market for electricity is large if you take in the Southern African Power Alliance and the wider need for more and more power. I guess the truth is Tlou need to get connected first and then see how quick they can ramp it up!
Brad what I mean is help with getting funding ... Whatever that requires ...but this where the old brown paper bags may be holding things back.....Corruption is rife in government in this country let alone an african one.. so this could be a barrier in country to getting funding .....
This is why TG is taking things so slow as he need to keep a handle on finances . As they are difficult to get and the project is capital intensive especially now!!.. And at this stage they shouldn't be really ..given the need and the market available once up and running..Surely ?
In the meantime what is this company up to. Why does it have a couple of well paid executives and a rather large board for what really is dormant company
It does feel like the Botswana Government want their cake and eat it too. You would think considering they are paying a premium for imported power. And given it will create a new industry with new jobs and the opportunity in time to become a net exporter of power. They would be moving heaven and earth to get this over the line and up and running ASAP.. The question is why does their attitude lack a positive push . Considering all the benefit it would gain ?