"What Serenity also does for us is puts us into a development. . . Tain and Serenity will now have to be unitised as one field, and we will be part of that discussion with owners of the Tain field."
So clear message, Serenity/Tain are connected.
(24mins 10s)
"We do think we've got a very good thing here (Serenity) (big smirk). Its a good trading chip to have."
(18mins 25s)
"the interpretation of the owners of this field (Tain) is that it is isolated, sits alone, is not connected to anything on either side"
I'd think there's a great deal of work going on behind that #RRE/ Repsol cool exterior right now.
#I3E landed Block 13/23c right under their noses and proved something they didn't think was there, and investors say its #I3E that doesn't know what its doing.
Sure about that?
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1/16
I've been doing some detailed research on #STX and found something important.
With scrips growth now back on track and net pricing expanding the 2 biggest risks I could find were working capital to breakeven and a covenant breach on the SWK financing.
2/ The $5.7m AOP Milestone Monetisation + the $10m Sallyport invoice factoring facility are stated by the broker as delivering them to +cash flows by H2 2025.
The same message is coming from the company although I could imagine a small amount of additional equity in 2025.
3/ The numbers say this would be small (c. $5m) and could well be in the form of a further expansion to the Sallport facility as expanding revenues allow it.
That then leaves the SWK finance covenants.
They are based on quarterly rolling group revenues up until Q2 2025.
1/16
It's difficult to call this market but my view is that assuming no more operational glitches #TGR now steadily re-rates as the operations sign off the various stages to 30ktpa.
2/ Front-end valuations should depend on where graphite prices go but as Syrah demonstrated yesterday (graphite fines not large flake) orders are buoyant.
Forward orders there running at 90,000 tons which are 50% of their current yearly output. So substantial.
3/ Note also Syrah cannot produce for less than FOB C1 $543/t even at 15,000 tons per month output and that's fines.
It is clear after last night's presentation that TGR C1 costs have also risen but this is to be expected in this current market.
1/12
Here are Verde Agritech's expected sales targets for 2022 which were revised in May and offer a significant read across to #HMI and what it can achieve this year and also.
1/9 In a previous #HMI thread, I highlighted that the $600k write-down in the FY2021 accounts meant that trade debtors (so effectively trade receivables) almost doubled between YE 2020 and YE 2021.
1/18
I've been running an extensive exercise on Verde Agritech also a relatively new but expanding fertiliser producer based just c. 70km from #HMI in Minas Gervais in Brazil. The results to date are rather fascinating and certainly worthy of review.
2/ Verde is a TSX-listed producer with a current plant capacity nearly double the size of HMI (0.6Mtpy) but with a phase 2 expansion due to come online in 2023 which would take output to 2.4Mtpy.
So a much bigger operation to come and soon.
3/ Those that remember my 5th July numbers on #HMI sales prices will perhaps remember that they demonstrated a $53.20/t average sale price for 2021.
At the average achieved AUD/BRL for 2021 of 4.054, this equated to an average price of BRL216.