Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
"At current oil prices, no material changes in the way the facility is run and based on achieving a rate of sales of 3,000 barrels per month, the directors believe that the investment could net between US$30,000 and US$40,000 per month in cash distributions to the Company;"
I hate to be saying something in defense of Spikey, as I am more a "glass half full" guy with respect to what I see as some intriguing developments, but given the history his points are not unfair. I do not think Claudio would be supporting the company the way he is if he did not know positive developments were underway. But time will tell.
PetroNor paid $6 million in cash and $20 million in future payments related to gas for a 24.1% profit interest. If you do the maths that means ADM would get $2.3 million cash and future payments of $7.6 million. This is achievable, New Age appears to have been a distressed seller so, this seems to be the going price.
While I am open minded that SO may just be working for the pi (unlike Spikey who is bitterly focused on years old history), I do find myself agreeing with him that we need to see more to drive the share price. I in particular want to see results on the new deal and something real on Aje before topping up.
They unwound that deal and reduced debt. See previous RNS. Spikey's point is well taken, Stefan is going to need to show some progress with this to regain investor confident. Particularly given it is a new area of focus for the Company.
https://www.lse.co.uk/rns/ADME/financing-update-and-debt-and-asset-restructuring-r8j1twa9mtktj59.html
In an oilprice.com article from 30 April 2023, "How New Technology Will Disrupt the Oil and Gas Industry", author Alex Kimani states: "Barclays estimates that the upstream market digital services industry will grow from less than $5 billion in 2020 to a more than $30 billion annual tab by 2025, thus enabling $150 billion in annual savings for oil producers. Opportunities for cost savings include cutting capital expenditures (CAPEX) as well as selling, general and administrative (SG&A) costs and transportation operating costs."
Stefan Olivier said, "The oil and gas digital services market is in a period of rapid growth, the investment in Efficient Oilfield Solutions gives ADM shareholders exposure to this sector through a company with momentum in the industry led by an impressive and focused management team. ADM intends to maximize the value of its traditional upstream oil and gas interests and consistent with its Investing Policy will continue to look at a range of opportunities within the natural resources space, however the Board of ADM have resolved to focus on energy technology as we believe the opportunities available to the Company are very attractive in terms of driving growth in both value and cash flow per share."
The historical share price of ADM has not done well, but there are many reasons for that. Stefan has done an objectively good job cleaning up the balance sheet. Really no arguing that one. The problems encountered at Aje are greater than one person can control in particular if they only own 12.2% of the project. Stefan led the Superdialectric investment which was a homerun for ADM
"In 2017 and 2018, ADM invested a total of £199,875 to acquire 195,000 shares in Superdielectrics at an average cost per share of £1.025. Superdielectrics' most recent funding round in October 2020 at a price of £4.50 per share, valued ADM's holding at £877,500, representing a total book profit of £677,625 and an increase in value of approximately 340%. The Board approved the sale of 188,778 shares at a price of £4.50 per share to shareholders of Superdielectrics, leaving ADM with a holding of 6,222 shares following the sale. ADM has received the proceeds from the sale of the investment."
He must have slept with your wfe, he he he! They have invested 1 million recently and Stefan has done a great job with the balance sheet. All you have are old gripes, no opinion based on intelligent analysis of substance or current developments.....just dismissive views based on nothing insightful!
To be clear and accurate, it looks like OFX is run by Claudio Coltellini who is also a director of ADM and, as mentioned previously, putting a lot of his own money in the Company. I suspect Claudio knows something that makes him confident to be betting so large on ADM.
The flip side of your comment is this: OFX has put over 1 million of their own money into the shares over the last year at much higher prices than current market. My entry point was 0.5p, I see that OFX has consistently put in capital at 1p.
Also, the only capital that has come in other than OFX has all been insiders. They are not asking the market for capital, far from it. For some reason the Board and large shareholders seem confident about the company and are putting major money where their mouth is!
Things may be about to get interesting with ADM:
"the Company is in discussions with OFXH regarding the possible investment in a company operating in the oil and gas technology sector which the Company considers has greater short term cash generation prospects than the returned leases."
Signficant gain of 432k on debt settlement, Stefan must be looking to redeem himself for shareholders. Good start indeed.
https://www.lse.co.uk/rns/ADME/financing-update-and-debt-and-asset-restructuring-r8j1twa9mtktj59.html