Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
sarge: "They have only just done the deal and knowing how slow things have been in Az it is unlikely to be any quicker in the Congo "
arguably the slowness is for different reasons - more complex geology in Azer, deeper wells requiring monster rigs for deepening . The slowness in Congo is probably more on the bureaucratic side
But you are right, if they cant deliver inside a year then there isn't much point in issuing these bonds. They will flop. Presumably AC knows that. Either he is in denial or he has a cunning plan. Or he is confident about managing the situation in Azer. But bond investors dont know that
sarge: can't one your pals drive by and see if the rig is in place? I didn't think there was much value in that becasue it was assumed to be the case
sarge: it was being facetious, but the silence is becoming inexplicable . Anyway some staff can re-deployed. Consider if Congo was an independent operation - you would have to hire some technical people, geologists, drilling personnel. If operations at Azer have come to a halt, then these people wont be doing much will they
"The subscription period will commence on January 21, 2020. The intended issue date of the Notes is January 27, 2020."
As a (theoretical) investor in high interest bonds I would be interested to see what the operational plan in Congo is. Can ZEN deliver in 12 months time and payback the principal plus 10%? Otherwise this will quickly snowball into bankruptcy. Nothing wrong with borrowing as long as you can deliver inside the time frame
The Azer oil fields are providing a base at the moment, and provide savings . Obviously some of the technical team can be deployed to other areas while the disputes with SOCAR rage on
anyway we shall see on the 27th of January
RH: you forgot the smiley face when thinking of all that increased revenue
AC is good with charming investors , which is when things seem particularly precarious
true but if AC is flying to Azer on Monday I think we will be updated then . Perhaps he is going to have a heart to heart meeting with SOCAR and there isn't much point in issuing an RNS today
There clearly is an issue between ZEN and SOCAR. Nothing like AC turning on the charm to smooth things over
If you are sure then go ahead and short it. Might as well join the party
must be the new investors from AAOG
they aren't as hardened bless them :lol:
So why rework it then? Its waste of time . It sounds like they are being argumentative, which is not a good sign
wow if thats true SOCAR consider ZEN to some kind of contractor. If it can be reworked why didn't ZEN do it anyway ? Dont they trust oil man AC ? Maybe not impressed by all this expansion and acquisitions
hard to beleive that any dispute with SOCAR is terminal. But even if they reorder the priorities, the pending work should be tackled
IMO "intense discussions" are in process
the working loan to AAOG for $250k was for 6 months.
Maybe he is waiting for that loan to be paid back before continuing with this drill
so many balls in the air to juggle :lol:
this operations and the next one should be fully funded
- £500 k placing in October 21 for M247 civil works and working capital
- £ 1.1 million placing on August 2 for funding C37 and C30
you're saying that the delay is due to shortage of working capital ?
But ZEN bought a rig precisely for this purpose, so as not be stuck paying rental during the lean periods. Whats the incremental costs of completing the C30 workover now that everything is in place - the rig , the civil works etc
sea7: that might be the case if the rig was a rental. But what are the marginal costs of a short term drill? Not a lot, I would guess
sea7: The timeline for C37 was delayed by the decision to purchase a top drive , which took 2-3 months depending on who you believe
there are no real issues delaying C30, atleast not that we know of. C30 is close to C37 (less than a 1 km if I'm not mistaken) , so even if they were using one truck it shouldn't take that long
There is a reason for the delay - we just dont know what it is yet ;-)
RH: Please dyor
Have you any pointers ...
wow sarge top ramping there
holding on to yesterdays gains