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Thanks for the response RWT2 - I will admit my specific knowledge about Cargills is low. I was not specifically saying you should sell them, I fully appreciate Cargills will also have great insight from the industry, but their current and future investments in my opinion will also canabalise its own income if it materialises, so surely its a more nil sum game? More protecting its future than building a company of the future. Ie as an investment - a succesful business continues. Rather than building the next equivalent. My point was that Jim Mellons point has some merit, not wanting to specifically debate Cargills as I do not have enough knowledge on them.
Hi Nano,
Totally with you on the possibilities for ANIC, there is some super exciting things we have not even considered yet. I trust that ANIC will be at the forefront of that.
Re your points on Jim Mellons tips, I am not sure I neccesarily follow your logic, his point on Toyoya and GM is that they have bet heavily on Hydrogen, and hydrogen fuel cells rather than Battery. In my opinion - he is thinking of the next growth area, battery cars can work in certain circumstances, but there are still lots of issues, vs the longer term potential of hydrogen. Id also suggest that the German car manafactures with loyal customers are heavily eating into Tesla's prior market dominance in EV's. I would expect him to say similar in that you should buy some of our investee companies and sell the incumbents like Cargill Meat Solutions - who turnover $165bn dollars selling mainly beef. Yes right now Cargill will probably pay you a dividend and looks great - but with the ESG agenda firmly coming down the line - its the future business' I and I believe Jim want to invest in. Your point on Apple is duly noted, but Apple are hugely profitable and have had huge cash reserves, Tesla is not in the same situation. Just my thoughts obviously - time will tell.
Haha I have tried to sell aswell! My shareholding in ECOB is showing as worth £705k!!!! it was worth maybe £5k yesterday! I was thinking/hoping it was my lucky day!
Could not agree more Keeptofacts - it was walked down on nothing or so it felt, and now is just moving back to more appropriate levels. Yes there is still lots of risk, but GL and team are doing what they said they were going to do. The proof now will be in the next few months, if we get a partner and resolve the tax situation then we look like a £100m+ business with the potential in our assets, not the £25m or so we are now.
For me it was a good box ticking RNS. The idea that a farm in partner would be farming in to licences which were not certain was always a concern. They again refer to making good progress with our farm-out process.
I agree with you Southmead about ONHYM's support. If they thought we had done anything to cause a genuine problem I doubt they would be so supportive now. The board continuing doing what they say they will.
Anywhere near 1p id say is a great value with the potential upside. If we see a farm in partner in H1 and the tax issues resolved, maybe even the debt agreed, we could be 5p before we know it.
The only thing for me is how we finance our share of phase 2. If we can use Vendor financing - then great - may cost us more in financing costs, but minimizes dilution. Unless people are hoping for a farm in partner to stump up cash - be interested in peoples thoughts on this?
So we are hoping to have agreed binding terms for the financing next week, last time Graham spoke he seemed pretty confident for that to happen. It will be interesting to see if it comes to fruition, as this could really be the start of the market starting to take the potential of Phase 2 a bit more seriously. Plus any news on a farmout (If they can get the $60m from the partner) should materially impact the share price. Id also like to think (maybe wishful thinking) but based upon the last update on the tax authorities and the subsequent media that the Tax issue can be put to bed relatively quickly without the need to continue the journey through the courts. If it is truly as Graham said - a lapsed licence being then re-licensed by a new company then I cant see how that cannot be resolved. Particularly if ONHYM also were counter signatories on the new license. Could we see a materially higher share price by Christmas?
Yes was definitely a bolt out of the blue. I dont recall it ever being mentioned previously. Lets hope we get news on the wider litigation case in the not too distant too. The sort of amounts of cash even in this current scenario, is material vs the Market Cap of the company prior to the RTO. Has any one had any dialogue with the company? Or has anyone any further insight into when we could see FOX listed and trading again. All seems to have gone very quiet. I have emailed them a while back, but did not get a response.
In my view it was a strong update. I think its good to hear his views put strongly on the tax issues. I believe its now just time until Morocco collectively understand what's at stake here. With all the majors floating around I just can't see how they would ruin there reputation on something which is common practice in the rest of the world.
I also think it was a great update to understand the financing push back, to me he seemed pretty confident on the 15th Dec date. But time will tell.
I also thought his point and explanation around partners/farm in was reassuring to here. Whilst a farm in partner maybe the fastest route, vendor financing and going it alone is better value long term for us. So it's prudent to ensure we keep options open.
Patience is required yes, but if we can get tax gone, first gas on phase 1 next year and a FID on phase 2 in speculatively H2 next year then the share price would be many multiples of what it is now. Interesting times ahead.
My view is that if it stays going through the courts, it will be a long resolution. 6-12months minimum. The only situation I could see a quick resolution is where a higher court just overrules prior rulings or more evidence, documentation comes to light.
But I do not see that as being a big issue either way, if the company can proceed with phase 2, then the cashflow generated would be more than able to deal with it, so for me it hinges on the financing and the partner coming on board and injecting sounds contribution, plus maybe any back costs in cash for a slice of the pie. Maybe I am dreaming.... but thats what would be the best result
Yeh he said similar to me when I asked, its clear there will not be any formal response, and I can understand given the sensitivities around legal negotiations etc
I am really interested to hear peoples thoughts on the move higher? I bravely or stupidly bought some more at approximately 1p, but was never expecting a rise like we have experienced, very un Sound like its probably one of the only green shares in my portfolio for the last few sessions.
Clearly we have an expectation of some financing news due by the end of October, which will be a potential trigger for further movement, but that still seems a long way off. I personally dont see the news on the tax as a change, its just re-affirming, and I think the reason Sound and GL did the RNS in that way, which as many have commented was not very GL like was due to the media coverage Sound gets in Morocco. So its purposefully meant to highlight the issue further up the chain, without it looking like Sound are going above due process. I would expect ONHYM were also probably involved in this.