Contango Share Discussion Threads

[1waving] 03/7/2024 10:11

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Esprey is giving away CGOs assets on the cheap.

This so called deal rips away any value that shareholders had.

So after shareholders buying in at Share prices much higher than today, Esprey ushers in a Chinese Communist Party 'businessman' to own 20% of CGO at massively discounted prices.

Giving away a 2 Billion Ton Coal asset for peanuts when shareholders have done all the hard yards.

At best, we have been totally deceived by Esprey. The Shareholders interests have been neglected and shattered.

and where are our fantastic gold assets at Garalo-Ntiela ??? More neglect there !

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[apfindley] 03/7/2024 07:57

If we didn't know better, we could be forgiven for thinking that you are talking it down because you're now buying, and don't want the price to run away from you.

[apfindley] 03/7/2024 07:54

Good news that finally puts a light on at the end of the tunnel, and all you focus on is the price of the issue of shares to the person providing this lifeline deal to develop muchesu, provide capital to cgo and guarantee a price per tonne in royalties.But what do we expect from the stable of samsung minions where tandem accounts are used talk down selected companies..On the whole it's great news where there appeared little hope.

[goforgold1] 03/7/2024 07:44

Pay their wages that's all get as much as possible before the big BUST COMING

[bsg] 03/7/2024 07:21

More dilution at 1.11p

[bsg] 03/7/2024 07:20

More dilution at 1.11p

[goforgold1] 03/7/2024 06:21

Total Scam CGO will go bust soon Monaf will take everything shareholders will lose everything . Total Scam coming

[1waving] 02/7/2024 16:59

swanvesta.
Not clear when the 51% is transferred. Wencai will become operator after 51% transferred.

" The Definitive Agreements are subject to completion of any outstanding due diligence by the Investor, as well as legal, regulatory and shareholder approvals, which the Company expects to co-ordinate in Q3 2024. The Investor has substantial business operations and investments in Zimbabwe, therefore, is well regarded in the country. Further details are provided below with respect to the Term Sheet. Once the Definitive Agreements have been entered into a General Meeting will be called for Company shareholders to approve the proposed transaction."

The next RNS should be more specific.
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[swanvesta] 02/7/2024 16:30

1waving, as soon as this deal is signed Wencai will own 51% and am I right that he'll become operator? In which case we might have a clean slate wrt offtakes and other decision making. Not sure how involved Esprey will be either.

[sharekitchen1974] 02/7/2024 16:16

Taken private more like

[aimmafia] 02/7/2024 15:47

Hasnt the license expired?

[danmart2] 02/7/2024 10:46

CGO want you to forget about the Mali gold site they have

[1waving] 02/7/2024 10:18

swanvesta

Two of my concerns are good governance and pricing of the product which we will only find out in the future.
What we do need to see now is offtake contracts in force and sales being made. We were told by Esprey that we should have offtakes in Q2 but here we are now in Q3 with no sales, no offtakes.

We need an update RNS on offtakes/operations and the progress of the deal.

[swanvesta] 02/7/2024 09:51

Has anyone figured out what this is worth? Assuming the deal completes of course.

The guaranteed $2m pa will keep the lights on. Anything above that has to come either from royalties on sales (eg thermal sales above 1m tpa), or from the retained 23.75% of Monaf.

So what might production numbers look like? Short term, probably nothing too significant. Medium term, I understand Mr Wencai is building or planning to build a couple of 300MW power plants. These will consume about 3m tpa of thermal coal, and sales could start in a couple of years. I suspect this will be his focus for the foreseeable, but longer term there could be other developments with the more lucrative met coal and coke products.

That means that royalty revenue could rise to $6m in 2-3 years.

And there is also the potential for profit related income from CGO's retained 23.75%. Can we assume good governance here? This is Zimbabwe after all and I'm not sure what rules operate. Mr Wencai will be pricing the coal to his own power plants. If he and his associates own > 51% of them there is an incentive to favour them with low prices and stiff the foreign investors at CGO.

Anyway, if/when Monaf does become profitable, CGO should start to get repaid their $20m loan, at the same rate as Mr Wencai on his own $20m planned investment. Thereafter they should get 23.75% of profits. What is the likely profitability of Muchesu at 3m tpa? I have no idea to be honest. I don't want to rely on any numbers Esprey has put out in the past, and I'm cautious of governance issues as mentioned above.

I bought a tiny starter position at 1.3p and await further news.

[1waving] 01/7/2024 13:55

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RNS 8th April

" The Company is currently in discussions with numerous potential offtake partners, from both domestic and international markets, for its suite of coal products. Some of these ongoing discussions require the Company to provide samples and to perform additional test work as offtake groups require specific specifications for their usage. Accordingly, samples are provided on an ad hoc basis from the relevant stockpiles or freshly cut coal. The Company expects that the outcome from these discussions and work undertaken on the coal to crystalise during Q2 2024. "

We are now in Q3 2024 -- no offtakes yet.


But what is this sudden rise in the share price this afternoon ??


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[festario] 01/7/2024 13:45

Someone paid a hefty premium for 2m shares, so that made me raise an eyebrow.

[bsg] 28/6/2024 08:04

If there is a deal, there will probably be a discount placing just before so the mates can load up.

[danmart2] 22/6/2024 10:08

It was always going to be the Chinese to buy the coal, they are the only show in town.

The difference now is CGO have accepted who rules the roost in Zim and will get a far lower price for the product.

[swanvesta] 21/6/2024 08:41

What a guy. He's talking like it's a done deal, completely ignoring all the times in the past his deals have fallen through. At least this time the other party seems somewhat legit. Hopefully it sticks.

[bsg] 21/6/2024 08:07

Looks like it's a long way off yet. Got to build a coal fired power station first.

[burtond1] 21/6/2024 06:20

New #CGO Interview A truly transformational deal for Contango"...there is significant upside in the share price with almost zero cost to us. This is a very positive step..."https://total-market-solutions.com/2024/06/contango-holdings-plc-june-2024/

[purchaseatthetop] 17/6/2024 15:20

Or lose it.

[negan] 17/6/2024 12:08

Still got to be in it to win it

[negan] 17/6/2024 12:07

I reckon a lot of traders have been put off by the greedy market makers big spreads today. Me too