Corcel Share Discussion Threads

[hedgehog 100] 10/12/2021 15:54

07/12/2021 07:00 UKREG Corcel PLC Accounts and Notice of Annual General Meeting
" ... Discussion of Results
The Group incurred a loss of GBP1.227 million in the period ended 31 June 2021. Finance costs over the year fell to GBP0.065 million, reflecting interest and finance fees (2020: GBP0.247million). Overall, administrative costs increased slightly for the year to GBP1.014 million (2020: GBP0.838 million).
Prospects
After a successful year with progress on all fronts we look forward to both further execution on our strategy and enhanced recognition of the compelling opportunities our portfolio of key battery metals and transitional energy production and storage assets offers investors.
Corcel remains committed to playing its role in the decarbonisation and electrification of the global economy, seeking to both create value for stakeholders, while enabling development of the clean energy economy. ..."



I really don't know what planet people are living on if they think that a £1.227M. annual loss is a lot for an AIM company.

But perhaps they should get out more!!


Of course CRCL (formerly RGM) has been listed for over sixteen years, so the historic losses have built up.

The tax loss value of these could now be more that CRCL's current market cap., which means that CRCL should have years of tax-free gains from its FGS (flexible grid solutions) business to look forward to.

The expected £3.6M. of near term FGS income would not be that far short of CRCL's current market cap.

And additionally, it would prove CRCL's FGS development business model, with an ongoing pipeline of opportunities to monetise.

With the income from these nicely funding CRCL's exciting battery metal projects.

[hedgehog 100] 10/12/2021 15:27

As at 30.6.21 -

Total current liabilities £1.12M.: £883K.short-terrm borrowings, £237K. trade & other payables
0 non-current liabilities.

This isn't excessive, and is more than factored into the market cap.

In addition, most of the borrowings can become a 'soft' loan from Chairman, as he has an option to purchase it.

Moreover, this is currently being extended -

07/12/2021 07:00 UKREG Corcel PLC Accounts and Notice of Annual General Meeting
" ...C4 Energy Notes - YA PN II - Riverfort
On 5 December 2019, the Company announced that YA PN II and Riverfort Global Opportunities Limited, holders of Promissory Notes and Convertible Loan Notes, first announced on 6 June 2018 and updated on 22 July 2019, agreed to extinguish the entire remaining balance, through a subscription for New Loan Notes and a share conversion. The partial conversion of the Promissory Notes resulted in the issuance of 25,963,636 new ordinary shares of the Company and the investors have agreed to lock up the resulting promissory conversion shares: 100% of the total for three months, 70% of the total shares for a subsequent six months and 40% of the total shares of the promissory conversion shares for a further six-month period. The approximate residual balance of GBP286,756 of the promissory notes was retired, and YA PN II Ltd and Riverfort Global Capital Ltd have subscribed for new two-year loan notes, payable on 23 December 2021, bearing 8% interest per annum with no conversion rights.
Subsequent to year end, the Company is in the process of refinancing the YA PN II Ltd and Riverfort Global Capital Ltd borrowings to extend the payment period through to December 2022. The refinancing is currently on-going and expected to be formally agreed prior to the repayment date.
Also on 5 December 2019, the Company was informed by YA II PN Ltd and Riverfort Global Capital Limited that, following the subscription of New Loan Notes, both parties had granted an option over their interests in the New Loan Notes, totalling GBP729,272, to C4 Energy Ltd, a UK incorporated private entity. James Parsons, Chairman of Corcel Plc, is also a Director and shareholder of C4 Energy Ltd. ..."



Note that they're just going for a one-year extension, which makes sense considering the expected £3.6M. of near term FGS (flexible grid solutions) income: more than three times CRCL's entire liabiities as at 30th. June.

Also note that it doesn't have conversion rights.

[kemche] 09/12/2021 10:23

"CRCL's losses are relatively small in comparison to many"

Total losses to date £24.63m!

Mkt cap £4.4m!

Righty ho.

[kemche] 09/12/2021 10:20

Cash £392k

Current liabilities £1,120k

Cash outflow £1,470k

Loss £1,227k

Gulp!

[kemche] 09/12/2021 10:16

"The Company has further decided to write-off its existing investment in Weirs Drove Development, owner of the Burwell Energy Storage project, as the project is currently working through potential delays relating to grid congestion and potential upgrades in the area. While the Burwell project may successfully progress to financial close, there remains uncertainty around the timeframe in which this is likely to occur.

The Company has also made judgements in respect of the success of licence renewals on the core projects."

Sheesh!

[kemche] 09/12/2021 10:11

Even lower lights:

Having considered the prepared cashflow forecasts and the Group budgets, which includes the possibility of Directors reducing or foregoing their salaries if required, the progress in activities post year-end, including the anticipated fundraising of GBP390,000

[kemche] 09/12/2021 10:07

Continued lowlights:

Going Concern

It is the prime responsibility of the Board to ensure the Company and the Group remains a going concern. At 30 June 2021, the Group had cash and cash equivalents of GBP0.392 million and GBP0.818 million of borrowings and, as at the date of signing these Financial Statements, the cash balance was GBP0.341 million. Current borrowings of GBP729,000 of principal are due 23 December 2021 and at time of publication of this report are in the process of being refinanced to December 2022. The Directors anticipate having to raise additional funding over the course of the financial year.

[kemche] 09/12/2021 10:06

Lowlights from the accounts:

Material Uncertainty Related to Going Concern

We draw attention to Note 1.2 in the Financial Statements, which indicates that the Group is reliant on securing further financing to meet committed expenditure requirements and working capital needs as they fall due. As stated in Note 1.2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Emphasis of Matter

We draw attention to Note 14, which discloses the debt instrument in Resource Mining Corporation Limited, purchased by the Company during the current and previous years and valued at GBP987,000 within the Financial Statements. The license relating to the Wowo Gap project, Resource Mining Corporation Limited's key project, remains under renewal as at the year end. The good standing of this licence is critical for project development and subsequent value extraction, which is key to the recoverability of the debt. Should the license not be renewed, an impairment may be required to the value of the debt as at 30 June 2021.

[kemche] 08/12/2021 11:09

Just get the next fundraising done then we can start again. Loans repayment and wages will not pay themselves. Parsons and Kaintz have to eat.

[hedgehog 100] 08/12/2021 11:02

Look at the long term share price chart for CRCL's forerunner RGM (Regency Mines), to see what happened to it in previous nickel booms, and that tells you what's going to happen here in the next one.



Yes, the share price has fallen a long way since then, and there's been a lot of dilution, but that can be an indicator of tremendous inherent value, with previous sums invested not being reflected in the current market cap.

[kemche] 08/12/2021 10:45

Desperate stuff.

[hedgehog 100] 08/12/2021 10:42

Far from continually falling, the nickel price has more than doubled in the last few years, to its current price of over US$20,000 per tonne, and is forecast to double again in the next few years, driven by burgeoning batteries demand.
(In 2007 the nickel price rose to over US$50,000 per tonne.)

WisdomTree Nickel (NICK) exchange traded commodity price chart:

[helpfull] 08/12/2021 10:20

Hedgie, you are a super troll! Well done!

Let me use your figures because they are the only figures that can be trusted:

"In 2007 the nickel price rose to over US$50,000 per tonne"

So you are saying that the price of nickel has been falling continually since 2007 from $50,000 per tonne to $20,000 per tonne today. And what's worst is that, you say, allowing for inflation the nickel price should be $66,700 per tonne today. That's a $46,700 per tonne loss since 2007.

And you say Corcel has "20,000,000 tonnes in situ" which multiplied by $46,700 per tonne is $1 trillion. I'm ever so sorry. I thought you were trying to say Corcel is a $1 trillion company when,in reality, you have been pointing out it is a $1 trillion LOSS company. Thanks in advance.

Be careful.

[kemche] 08/12/2021 09:55

How much nickel have we sold? Do we have a hole in the ground yet? How much Vanadium have we sold? Do we have a hole in the ground yet? How much coal did we sell and at what profit? How long have we had the nickel? How long has it been worth 1 Trillion Dollars? Stuff in the ground = stuff in the ground. How many listed companies are there in the world with stuff in the ground?

This is EXACTLY like RRR. They too have stuff in the ground. The play is very very simple. Can we have some money please?

If the damned stuff is worth a Trillion then how comes it was relinquished for precisely FA?

[hedgehog 100] 08/12/2021 09:40

Interesting that none of the trolls seem able or willing to critically analyse my "trillion" term.

I'd be happy to debate it, but they're all sneers and no substance.

No surprise from Kemche, because for him to actually construct some investment analysis, after about twenty years on ADVFN, would be like Lazarus rising from the dead ... or should I say Lazareth!

But I am rather disappointed in Helpfull, because he does at least have a brain, albeit a sadly misdirected one.

So let me try to kick off the debate with a point about this aspect:
"In 2007 the nickel price rose to over US$50,000 per tonne."

Inflation-adjusted, that US$50,000 actually equates to US$$66,700 now, i.e. 33.4% cumulative dollar inflation since 2007.


And by the latter part of the decade it will be even higher.

So a nickel price of US$50,000 per tonne in the latter part of this decade would still be very significantly behind previous highs in real terms, e.g. a third or more lower.

[helpfull] 08/12/2021 09:04

I'm all excited for Corcel shareholders today. Exciting times ahead. Fingers tingling. What will replace those embarrassing talking head Tweets by Scottie? Can't wait to see. I was a tad disappointed in the 9/9 video. I was hoping he would appear with a begging bowl and do a little tap dance. Financial busking. That trough doesn't fill itself. The £32,000+ monthly remuneration for Scottie and Parsons comes from shareholders, so why not ask them directly? I'm surprised Parsons didn't make him wear a card around his neck with "please sir,I want some more" written on it. After all, those bitcoin don't come cheap. Be careful.

[hedgehog 100] 07/12/2021 14:53

"POTENTIAL AGGREGATE TOTAL, MAMBARE + WO WO GAP: 20 million tonnes of nickel metal in situ.
x a potential future nickel price of US$50,000 = one thousand billion dollars."


LOL, is Kemche innumerate or illiterate? Probably both in his case!

I've just rechecked the maths, & yes, 20 million x 50,000 does actually still equal one trillion!!

[hedgehog 100] 07/12/2021 14:48

The closing price shortly ahead of the 2.75p options issuance had been just 3.0p, and it may have been lower intra-day.

So there was actually an increase to 3.25p.

[kemche] 07/12/2021 14:46

1 Trillion Dollars!

[kemche] 07/12/2021 14:45

"which I think discredits you and your postings."

And that from none other than Hedgehog! Chutzpah!

[hedgehog 100] 07/12/2021 14:44

Don't be ridiculous Helpfull.

Where does my post say that the premium placing and director share buying were options?

You're the one getting mixed up and talking nonsense, which I think discredits you and your postings.

[kemche] 07/12/2021 14:40

:)

Quick! Let's have a random parabolic chart!

[helpfull] 07/12/2021 14:30

I thought you were talking about options. You appear to be getting your options mixed up with placings. But you still manage to talk nonsense.

"On the day Parsons joined the company he was awarded options:

"James Parsons has been awarded 304,056,730 three-year vest, five-year expiry options with an exercise price of 0.0275p per share"

That was 5 Dec 2019 and the share price was 0.0325p (pre- consolidation). Option shares issued below the prevailing share price from the start"

The share price (pre-consolidation) on 1 Aug 2019, 1 Sep 2019, 1 Oct 2019, 1 Nov 2019 and 1 Dec 2019 was 0.05p, 0.625p, 0.625p, 0.425p and 0.325p respectively. So there was no spike up.

Be careful.
"

[kemche] 07/12/2021 14:10

"Equally, if there was a sudden dip down"

Say that ain't so!