Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
TYB - That's why i said he NEEDS TO get the share price UP by releasing some company changing news beforehand !
At 1p it would be 32m shares
In addition there is an ongoing deal with Stateside which envisages Zenith investing $2m for acquisitions introduced by Stateside
'If' these are done on the same 60/40 cash/equity basis it could mean $800k/£630k converted to equity which at todays price is potentially 148m shares on it's own.
This unfortunately is what happens when you allow a company to go unquestioned and give them free range to issue an unlimited amount of shares.
There should have been questions from PIs to prevent this and ask why he can't borrow against these or pay for them all in cash - the company explanation is to create critical mass quickly.
By doing this the shares in issue can quickly grow way beyond the current 2.31 billion in issue. It hasn't been revealed by the company if cash is needed to start work. Again that's why i drew attention to the accountants report that further capital raises were planned with or without any arbitration wins. If you don't think that's entirely possible - it's why i showed the year on year major increases in shares in issue and he has tied equity into some of these deals already - so it continues.
There has been enough waste on travel and consultants that would have paid for these assets many times over. Any sensible person would say Jeepers come on - you're doing this like you did from 15 years ago making money for nobody only the employees.
It's ok saying if it goes to 1p or 2p - but the more shares he puts in issue relative to the underlying value of the assets they have will actually at some point put a value constraint cap on the company.
You dismissed it previously about more shares or consolidation making no difference - well
At 2.31b shares and a 1-2p share price it's £23m - £46m m/cap.
If this is allowed to creep up through fundraisings for cash and equity given to buy the assets to some 3b shares in issue - the same price target of 1-2p soon becomes
£30m - £60m m/cap. That needs a lot of production and reserves from US workover wells and a small electricity business to justify that value - so you can see how 1p or much less can be the new value constraint if the issue of shares continues unabated and which shareholders should wake up to and make their feelings known.
Shareholders are meant to make money never mind the CEO coming out with the same bluster about delivering value which has been the same message this past 15 years and still in post for such performance.
It's a shame that they can't pay for the full 60 bopd (2nd aquisition) in cash ie $1.0275m in total
Instead it's a 60/40 cash/equity deal. ($616.5k cash/$411k equity).
At the current exc rate $1 = 78.59p means the equity element is £323k.
This will be based on the average share price for the preceeding 5 trading days prior to closure.
If they don't get good news out and get the share price up prior to closure, then at the current price of £0.00425 it could mean that 76m shares will be issued for the 40% equity element.
Who'd have thought it - potentially 76m shares being issued for 24 bls of oil/day.
Like i say, they need to get the share price up significantly prior to closure. If it drops back to £0.003.75 where it was a few weeks ago could mean 86m shares.
The recipient is only locked in for 3 months.
To me it just goes to show how cash strapped i believe they are when they have to issue equity instead of paying it all in cash when it is such a small amount.
Over on the 1st deal they are considering issuing equity as bonus payment to Stateside for reaching 75 bopd (then at 50 bopd intervals). It's not clear how much it will cost to get to those intervals and as yet it's hard to work out how much additional equity could be issued. They should make it clear that no equity would be issued and give a share of the production instead as compensation to stop the dilution continuing as it has done year on year.
Also if they acquire a further block of wells with Statesides help will it involve a further equity dimension as the 60/40 deal above ?
Thanks RR
You would think that with AK saying they expected to get at least one other acquisition over the line before year end, that by now it must be fairly advanced in the background with just a quarter and half remaining.
TYB
Instead of saying the same thing over and over again demonstrating your level of intellect - tell me where my figures are wrong.
My figures are from the accounts. - Where are they wrong ?.
The company has signed them off - Is the company wrong about it's own figures ?
2 posts in 4 mins from you Canary going over the same thing. If you don't read what i'm telling you fine. That's my answer and i have given it to you. There is no agenda against Zenith. If you don't like things that are negative from an investment point of view then don't answer or ask MGS or HH100 what they think or are you the only one with your head in the wrong place still here.
Indeed - the old positives and negatives question when it comes to weighing up a company. A bit like walking in sub freezing temeratures and driving snow and claiming what a beautiful hot sunny day it is at Zenith is how i would describe you.
No 1 Zenith don't generate near enough cash, high debt and repayments relative to its size and by the accountants notes to the accounts re funding they have little cash - so why would they risk similar to Benin by going into a worse region with shareholders cash (if they have or get any) on that basis. Any govt payout won't cover their current debt timeline as shown in the accounts - its there to be read. They say they will need to do raises with or without any arbitration wins - indeed they have said they intend to pay in equity for some of the small US assets. Is that to just be ignored or brushed under the carpet re ongoing dilution - the ability to issue unlimited shares and the permission to consolidate. Fine if u think it's all sunny and rosy i have no bother with that. I however have an alternative view as to the state the company is now in with the practice of it showing no sign of change under the current leadership.
No 2. I don't say it's all good for Save - there is risk too and that is my concern that they complete on S.Sudan after so long with an effective deal date reducing the cost. It's been discussed and put forward by myself on how long Save could deal with a 3-6 month or longer pipeline outage if that happens in the future. Save have access to cash and $350m revenues and other deals in the offing and predominantly non recourse debt. It's also been put forward by me that Saves Niger assets (not producing) and when they would come on next year would be somewhere between 3% - 7% of total revenues on the basis of current deals/assets which should be about $1.8 billion/yr at current oil prices. Niger isn't a worry for me but S.Sudan is and that it continues without incident. Contrary to others posts - there are no other pipelines out of S.Sudan for oil. They have not been built yet nor a shovel in the ground. It is risky and that's why i said it could put a small companies lights out particularly the likes of Zenith given its current profile.
That's the difference.
'Ag Boula’s statement will worry the coup leaders given his influence among Tuaregs who control commerce and politics in much of the vast north'
9/8/23
'Ex-rebel leader Boula moves against Niger coupists, forms resistance group
A former rebel leader and politician in Niger has launched a movement opposing the junta that took power in a July 26 coup.
This is the first sign of internal resistance to army rule in the strategically important Sahel country.
Rhissa Ag Boula said in a statement on Wednesday that his new Council of Resistance for the Republic (CRR) aimed to reinstate ousted President Mohamed Bazoum, who had been in detention at his residence since the takeover.
The CRR supports ECOWAS and any other international actors seeking to restore constitutional order in Niger, according to Mr Boula’s statement,
A CRR member said several Nigerien political figures had joined the group but could not make their allegiance public for safety reasons.
Mr Boula played a leading role in uprisings by Tuaregs, a nomadic ethnic group present in Niger’s desert north, in the 1990s and 2000s.
Like many former rebels, he was integrated into the government under Mr Bazoum and his predecessor, Mahamadou Issoufou.
While the extent of support for the CRR is unclear, Mr Boula’s statement would worry the coup leaders given his influence among Tuaregs, who control commerce and politics in much of the vast north.
Support from Tuaregs would be key to securing the junta’s control beyond Niamey’s city limits.
https://gazettengr.com/ex-rebel-leader-boula-moves-against-niger-coupists-forms-resistance-group/
Reported also by Reuters and ALJazeera.
and
'Why Niger Military Junta should be afraid of Rhissa Ag Boula.'
https://www.youtube.com/watch?v=nzhaBVYw3lM
Yes happily for more than the 3rd time as i see 48 hours later this is still the topic.
Read slowly then let it sink in.
1) There is such a thing as a watchlist - you put the stock in your watch list if it perks your interest and it has been in that list for quite awhile.
2) I already said before on 8/3/23 17:26 - "For a further time I said in the past - I would be interested in investing on the back of Tilapia - didn't happen. I was interested when they said they were in for Seme"
3) The accounts came out on 31/7/23 and perfectly normal to comment on them at this time - but when i posted the actual numbers, debt, debt service repaynent timeline as reported in the document -someone took it upon themselves to have it removed - not my figures - the companies own figures ! Nobody discussed it.
4) I also answered 8/3/23 14:12 -"What's it got to do with being invested or not. Discussion on a company is open to anyone who has an interest in it or the assets it is interested in (See wtachlist comment). I CANNOT HELP IF THE ANSWER IS NOT TO YOUR LIKING full stop but quite frankly its none of your business !
LSE themselves " you are not to restrict or inhibit any other user from using the boards".
5) I have given an answer as before in the past and no doubt you'll ask the same a few weeks or months down the line again if i choose to comment !
6) Fact I have posted 11 times (now 12) on ZEN in the last 30 days mainly re-answering the same brain dead questions to some of you and shows Canary again for his false assertions -"you post more than i do" (well boo hoo !)
7) Canary = 19
4) TYB = 33 last 30 days and. running into hundreds
5) AJ 8/8/23 20:31 - Zengas why dont you answer canaries question.. why do you post here when you are not an investor?..
Canary 8/8/23 - "I asked you a question, which was: why, since you are not invested here you come in day after day spinning false and negative narratives. Discussion on a company is open to anyone who has an interest in it or the assets it is interested in. That is not an answer. Stop avoiding it and just answer the question asked,"
Canary 8/8/23 - "You post here more than I do and yet I am invested and you are not. "
Canary 8/8/23 "I have simply politely asked you why since you are not invested here you come in day after day spinning false and negative narratives about Zenith
Canary 8/8/23 13:27 "you still haven't answered the question of why, since you are not invested here you come in day after day spinning false and negative narratives"
I asked Canary a number of times to put up what i had posted was false - he didn't and replied by saying "I'll leave out the false info bit"
If you don't like the answer don't ask the question !.
AJ I have quoted all figures from last weeks accounts.
Are you therefore saying that the accounts passed by the board are wrong ??????
I firmly believe you may get your 3-4p here but not in the manner you expect.
Best of luck.
Be my guest AJ.
You know the argument is won when all anyone can do is threaten you, attack the poster but not debate the facts - even you too TYB with your labelling of posters as Norwegians.
Not one fact in the accounts disputed, the accountants remarks nor the cEOs letter and turn tale 4 days later.
You're like a dog with the bone - u see only the bone and nothing else no matter what your told.
For a further time I said in the past - I would be interested in investing on the back of Tilapia - didn't happen. I was interested when they said they were in for Seme and others said it was in the bag - but i cautioned against it too and eventually proved correct..
Now about the false info i've spread - you still cant answer.
Well let me tell you i was the first to question the discrepancy in the unsold oil and liftings and i asked how long they were prepared to wait in disclosing price sensitive news re the cash situation. I'm not going to waste cash in any company without doing my own research so if there is some ridiculous god given rule that someone like you thinks you need to be invested first before discussion shows you to be more the fool.
I went through the accounts in detail to see the very latest financial picture when they were released ***just one week ago which was the earliest opportunity giving a clearer picture of their current state.***
I'm sure lenders etc would have now been able to go through them in full detail when released to the market. Regardless - by the CEOs letter he said they were pursuing on with Benin (hey ho still on track according to the CEO keeping my interest alive that they maybe will get it) - then within 4 days and after hours they say after DD they are no longer going ahead with Benin. You can believe that but i do not. They can say whatever they like but number one fact is they don't have the money. That leads me to believe that they won't have the money for any other major asset such as S.Sudan or Yemen without a significant dilutive raise given their existing debt profile and meagre income - instead they are diversifying into small time consuming assets that are too far geographically spread using up whatever available cash resources they have. It continues their asset hopping which seems more reactionary than carefully planned imo.
When you get a chance Canary do please state the false info i've posted and stop lapping up just what you want to hear.
There you go again Canary. I give you a clear answer and you still want more. How do I know you’re an investor or not somebody at the company for that matter ignoring all the questions raised ?
Further you say you’re not attacking the poster but go onto say I’m spreading false info. I’ve asked you a number of times where is it false and you avoid answering it.
What's it got to do with being invested or not. Discussion on a company is open to anyone who has an interest in it or the assets it is interested in.
That's your answer.
Now can you answer the questions i put to you rather than attack the poster ?
What false info have i posted ? Are the figures in the accounts wrong ? Have the accountants not made those remarks on the pages i quoted ?
I think you will find the share price, valuation and diluted state of the company is not down to any poster on a bb but the performance by the company itself.
To drive the share price up, the company needs to improve it's performance. Therefore you need buyers who believe in the opportunity not random individuals on a bb who bury their heads in the sand because they don't like where they now find themselves. When you offer reasons why you think it's a buy convince people and not ignore the holes that people who do their research can find and question it. Therefore what is false and what is negative about anything ?
Was i wrong about Tilapia or Benin (that some who said was in the bag must still not have seen given their absence - as they slipped it out after hours on a friday evening).
If one of the reasons to pull out of Seme is the geo-political situation near Benin, then from that i believe Yemen and South Sudan could equally be off the table as the political situation is much worse by comparrison and therefore i view any reasons to go in there would be highly contradictory in light of what he said about Benin.
"Yuu do realise that South Sudan and North Sudan are an enormous distance apart don't you? It is nearly 2,000km between Khartoum and Juba."
Yes i do and you should realise South Sudan is entirely dependent on getting it's oil out of its landlocked country via Sudan - the only 2 pipelines that travel all the way to Khartoumn and the refinery there and onto Port Sudan in the North East for world export.
The war has been waging there since mid April in Sudan. Many of the oil workers have left Sudan and millions of people displaced with threats to shut the pipeline by the RSF without the worry of actual damage to any of it at any point by either of the 2 sides, pumping stations along the way or port infrastructure - so this makes Benin look like a different world away in terms of risk. This is what i completely find at odds re risk in what the CEO says re shareholder funds yet decides to pursue something in S.Sudan which could put a small companies light out.
How is it another example of me trying to spin all info to be negative. I've never heard you query one thing about debt and service, the sheer excess as i see it of travel and consultants and the spin re risk.
Can i ask you what is the false information i have spread ? Please print it !
You beggar belief for your own petty unresearched ignorant reasons and lap up only what you want to see as positives. The performance of the company speaks for itself.
Canary
You can't get it or refuse to take it in.
The pipeline now built running from Agadem to Cotonu is an infrastructure project for the Chinese to get Nigers' oil out. It is not an oil industry for Benin.
Benin has no oil production.
If anyone can deliver on the Seme field on the exisiting and past infrastructure well and good where 22m bls were produced BUT it has never needed or depended on a pipeline running through the country which in itself doesn't mean an oil industry.
An oil industry is built on exploration, production and export of it's own resources not a pipeline that runs through its territory taking someone elses oil for which it earns a transit fee which is the major reason for it and an easy revenue earner for earner for Benin. The pipeline was originally planned to go via Chad to link into the Chad-Cameroon pipeline but the Chinese negotiated to go through Benin as safer even though vastly more expensive for this route.
3/8/23
Benin says Niger oil pipeline not impacted by regional sanctions over coup
The PetroChina-backed export pipeline project is expected to link Niger’s Agadem oilfield to the Benin port of Cotonou. Total investment in the nearly 2,000km (1,243-mile) pipeline, including a second phase development of the Adadem field, is expected to reach $4bn
“The current political situation has nothing to do with the execution of the project,” Alassane Kora, deputy chief of staff of Benin’s minister of mines and energy told the Reuters news agency. “This means that at the moment, the work is progressing in Niger and Benin. There may be just a delay in the schedule. Otherwise, under normal circumstances, by October or early November, the first drops, the initial tests, should have been done,” Kora said.
https://www.aljazeera.com/news/2023/8/3/benin-says-niger-oil-pipeline-not-impacted-by-regional-sanctions-over-coup
I have been through the accounts in detail and i find that as of 31/7/23 the accountants note Zenith is seeking to acquire funding but so far 'have not been secured'.
P37 -"The Group believes that this financial commitments will be covered by a combination of funding generated by operations, funds raised post year end, funds to be received from the national oil company of the Republic of the Congo (SNPC), ****as well as further planned fund raises within the going concern period. ****The Directors believe that the planned fund raises via the various sources of capital available to the Group will be successful.**** The Group’s ability to raise funds has been demonstrated in the year ended March 31, 2023. ***However, as at the date of approval of the financial statements, these funds have not been secured.***
P49 Going concern Management have prepared the financial statements on a going concern basis of accounting which, as stated in note 2, is dependent on the group being able to raise additional funding as required. This is considered to be a critical accounting judgement.
The Consultancy fees and travel expenses in the last 6 years are absolutely horrendous totalling over $16m alone. Both these items are excessive for such a small company and which is now working on securing a few hundred bopd in the US. This doesn't take into account salaries, admin etc.
Consultancy fees yr end 21st March
2023 $6.658m
2022 $3.028m
2021 $611k
2020 $629k
2019 $1.021m
2018 $1.135m
Total last 6 years $13m.
Travel for the same periods
2023 $762k = $14,600 per week.
2022 $617k = $11,865 per week
2021 $206k = $3,600 per week.
2020 $425k = $8,170 per week.
2019 $567k = $10,900 per week.
2018 $548k = $10,538 per week.
Total last 6 years = $3.125m
Shares in issue
2023 2.3 billion
2022 1.872 billion
2021 1.163 billion
2020 577m
2019 260.4m
2018 239.9m
It's clearly stated in the accounts that fundraisings are planned even in the event of winning their arbitration cases. If they don't win/or win within the period - funding needs will be much heavier.
Canary - you said "their interest in this project was all to do with the development of the Niger-Benin crude pipeline"
It has absolutely nothing to do with that.
When Zenith made their bid for the SEME field they were to use the existing facilities which by the way has already produced 22 mmbo from SEME.
https://www.lse.co.uk/rns/ZEN/offer-for-s232m232-field-in-benin-9ipqkv85a2cynli.html
How on earth can anyone link an unconnected pipeline for other producers in a different country as if this is going to influence Zenith or Benin is beyond me.
22/9/22 "Benin is a stable and attractive jurisdiction for foreign investment, and we look forward with great enthusiasm"
10/1/23 "We view Benin as an attractive jurisdiction for foreign investment and we look forward with great enthusiasm"
17/4/23 "Pleased to confirm necessary legal and tech work for finalisation of the PSC"
On the 28/2/23 they raised £2.3m from investors for planned finalisation of Seme in Benin as well as planned operations in Yemen and business development opportunities in Africa and the middle east. That was around $4m in canadian dollars - yet 4 weeks later they were down to CDN$ 1.442m (4.5 months ago).
In the CEOs letter of which he released in the accounts on 31/7/23 - "The company has energetically continued to implement it ambitious growth agenda with business development opportunities underway in Benin"
Yet 4 days later (after all that been done and said) on 4/8/23 - "The Board has taken the decision following a comprehensive evaluation of recent geopolitical developments in the vicinity of Benin, the significant long-term investment required to successfully develop the Sèmè oilfield, and the material progress made in other jurisdictions where Zenith now intends to maximise its technical and financial resources with comparatively reduced risk for the Company's shareholders."
It's nothing to do with geoplitical developments elsewhere - this would not stop them operating an oilfieild in Benin. They do not have the cash and without it unlikely to gain the field that 4 days earlier where happy to say they were pursuing.
Unfortunately It's nothing to do with the situation in Niger.
The Niger-Benin pipeline is owned and built by the Chinese for the Niger Agadem oilfields with companies there having an agreement with CNPC/Niger for export access. It's not to link the 2 countries.
Benin will earn a transit fee for it traversing their territory from landlocked Niger - much like the Chad- Cameroon pipeline which takes out crude from landlocked Chad - No Cameroon fields are connected to it. Completion is due Q4.
Oil from Seme was not going to get or need access to the pipeline - why would it ? Seme is already offshore with a supposed $100m of infrastructure facilities. It's already at the coast. The oil could go anywhere as before. It wouldn't connect into the pipeline which itself ends at Cotonou which is a major port for all kinds of shipping.
West Africa focussed Afentra announced SPAs with the following for 'non operatorship' in a number of blocks where Sonagol, Ina, Azule and other partners are present.
SPA with Sonagol for 20% of a number of producing blocks.
Announced 28/4/22. (Effective date 20/4/22)
19/7/23 Changed to 14% as a result of Azule acquisition and unchanged effective date).
Suspended for 2nd time (19/7/23) with completion expected in Q4 2023.
SPA with INA for a 4% non operating stake in same producing blocks in Angola
Announced 18/7/22 - Completed 10/5/23 = 10 months. (Effective date 30/9/21).
SPA with Azule Energy for 12% of same producing blocks in Angola.
Announced 19/7/23. Completion expected Q4 2023. (Effective date 31/10/22)
The small INA deal took 10 months to complete.
Sonagol ongoing 16 months and expected to take to Q4 2023 - maybe 21 months in total.
Azule expected to take close to 5 months.
Delays to completing the Sonagol acquisition which was expected to complete in March ie almost 12 months after announcement was the wait for licence extensions and improved fiscal term agreements and then after that with Azule withdrawing the terms were changed to allow Sonagol to remain operator thus AET reducing the stake in the original agreement while increasing overall with taking on Azule.
The above was for an overall 30% and the smallest deal taking 10 months to complete, all non operatorship and an overall near 6k bopd from being a non producing company.
Saves SPA for S.Sudan was 12/12/22 - and by end Sept will be 9.5 months. There's some 64 fields which i expect to be more complex re any issues on dd like pollution, legacy issues, possible licence extension terms etc (i think block 5A 2027 ??? which is only 4 years and something Afentra had to wait to get changed in theirs as mentioned above). There's also likely to be discussions/agreements with the other partners - have any of them changed their plans ?
It's never all down to government but the overall picture needs consideration which none of us are party to - but to complete by end of September for such a sizeable asset, nine and a half months isn't unusual as if it's somehow seen as the government holding things up whenever they are crying out for investment just as Angola are.
Agadem pipeline announcement today.
https://www.aljazeera.com/news/2023/8/3/benin-says-niger-oil-pipeline-not-impacted-by-regional-sanctions-over-coup