Coro Energy Share Discussion Threads

[currypasty] 15/4/2024 16:16

oh dear, market mot impressed

[odillon] 13/4/2024 18:55

I think Pavey mentioned before the video on the company website of 22 January 2024 with Michael Carrington the managing director of Coro renewables. It is mainly about the Vietnam solar projects but towards the end he also speaks about the Philippines.

That is definitely worth a watch and prompts even more exciting food for thought if Coro can bolster their work in Vietnam and the Philippines with funds from Mako that are over and above the debt settlement.

[pavey ark] 13/4/2024 16:17

Hi The Sage,I spotted you post on the other board but as Coro's involvement in the Philippines is entirely based on renewables I thought it okay to reply here. I don't know what your specific complaint is but things have moved along here at a good pace and certainly at warp speed compared to Duyung.Coro is moving on with 4 ×100 Mw projects and the total RTB value could be as much as $80m ...the met mast data alone is very valuable.The Philippines is a major coal burning country with little in the way of "clean power" ......there are plenty of "green dollars " available for the development of these projects so Coro's data and permissions are very valuable........international pressure to reduce the amount of coal burned.The company has spent a great deal of time , effort and money getting to this very good place in the Philippines.....contacts made......reputation made.....I for one think that there is serious cash to be made here."More and better investment opportunities elsewhere".....???????????

[jason90] 13/4/2024 13:46

Hi The Sage,

Yes it will be very interesting to see the outcome of the the upcoming AGM.

[the sage] 13/4/2024 12:22

I have to admit that I don't like the idea of remaining in any situation that involves the Indonesian government. We'll be waiting months on end for this decision or months on end for that decision when there will likely be more and better investment opportunities elsewhere. Shareholders in this company have proven in the past that they can influence decisions made at the AGM and vote against the board when they deem it to be necessary. I will be attending the AGM a week on Wednesday and will not be voting for any continuation in Indonesia. It's time to move on.

[jason90] 13/4/2024 10:50

Yes Pavey, 2024 is the pivotal and transformational year for this company.

It is good to see they have not been sitting on their laurels waiting for Duyung, and have been very proactive in developing the renewables in a geography with high renewables demand.

You are right in that Coro is a transition business. Let's hope their business plans come to fruition and shareholders are suitably rewarded for their loyalty.

It would be wonderful to look back at the end of 2024 and see Coro as having obtained the success it truly deserves.

[pavey ark] 13/4/2024 10:24

Yes the new solar project in Vietnam is a big deal .....capable of generating a sizeable and much needed cash flow.There can be no doubt that Coro simply must sell Duyung ( all or part)There may even be a cash call before Duyung can be sold and the bond holders seem to be holding the purse strings so alternative source of cash may be required.

[begorrah88] 13/4/2024 05:04

The RNS also states that they have engaged E&J financial to investigate debt options for the required development costs of Duyung FFS!Nothing about selling the asset - the exact opposite.Toolsmoker - you arrive each time the share price takes a big hit, either deliberately mislead or are naive about what you are reading & then disappear each time you've been proved wrong.You'll be gone again in a few days with your tail between your legs only to reappear at the next dilution.

[odillon] 12/4/2024 22:46

I like the Vietnam solar project. There is steady progress and there's plenty of sunshine there.

[odillon] 12/4/2024 22:08

Back on 12 September 2023 Coro's CFO pointed out to Proactive Investor that the market would have a clearer idea of the value of the 15% stake in Mako when the GSA is finally signed. At that time he anticipated that the final signatures would be in Q4 2023. I think we are now hoping for this by the end of May or June.

As I understood it, he was indicating that they want to tell investors the value but we will have to wait for the GSA finalisation.

[pavey ark] 12/4/2024 21:52

Jason, my interest is in renewables and Coro certainly has almost first mover advantage in SE Asia. I was painting with a very broad brush to show how strange things are here........I did not go for any top estimates to emphasise the strange situation of a tiny cap company dealing in these very large figures.RE: Duyung ....I understand the NPV 10 was in the region of $80m but it comes down to what someone will pay.The deal they have is thar any deal Conrad can get then Coro gets the same offer. Things are complicated by this loan........the original loan was not tied to the renewables business ....(it hardly existed then ).....don't know if it has been used now ??!!

[jason90] 12/4/2024 20:54

Thanks Pavey.

Just out of interest.. you mention that the Duyung asset is worth $40-50m to Coro.

Forgive me if I am wrong, but I thought Duyung NPV was at least $80m? Plus when you look at the current Brent Crude Oil price, then surely the Duyung NPV should be inflated even further?

Ok, so the new gas reserve estimate for Coro has been reduced recently (by about 15%)

That still gives an NPV over $70 million. (Am I right?)

And at least the renewables (as you quite rightly say Pavey) are being very well developed, so Coro clearly see a positive path forward here..

I have done a little research around companies doing gas sales in Indonesia over the years. Many (BIG) players have pulled out previously because of the political bureaucracy and red tape. But it appears Conrad are getting over the final hurdles (fingers tightly crossed), albeit it has taken far,far longer than hoped or anticipated. But we are where we are, and we are inching ever closer to this deal being finalised to supply much needed gas to Singapore and Indonesia. (Don't forget the Keppel Jurong plant being built by Sembcorp, to be ready by 2026).

Now, Coro may be offered to sell enough of their Duyung stake up front to pay off the $30m loan, which would be a result, and then keep the remaining stake so they can receive regular gas sales payments over so many years.. (I am no expert at these things, as I am sure there are many complexities involved in such a transaction.)

There has also been mention of 'Drag and Tag Clauses', which I will be honest, would like someone to kindly explain what that could look like.

Thanks.

[pavey ark] 12/4/2024 20:03

A lot of info and a lot going on but something has to give ..........the current situation is just bizarre and frankly unsustainable.1 The market cap is c.$6m...........tiny!!!2. This tiny company has a debt of $30m3. The debt is against an asset of $40m-$50m (over which they have little control)4. This tiny company has solar assets in Vietnam worth c. $3m AND has signed agreements with a major retailer to install 50MW of solar and possibly over 300MW.......a major Vietnamese bank ( after long due diligence) is willing to provide the finance......this is a big deal!!!!!5. This tiny company has installed a 130m met mast and is close to RTB status on two 100MW renewable projects in the Philippines which could easily be monitised for $10m to $20m with a further two being developed.Ridiculous debt .....massive assets...limited current cash....and a tiny market cap.Throw in a shareholder base that is only interested in Duyung and you have a very unstable situation.I don't know what restructuring is intended but obviously things have to be sorted out.....rationalised.

[odillon] 12/4/2024 19:33

Just to draw out the term about inflexions points referred to by Steelwatch.

The standstill is in place to continue negotiations and;

"whilst certain inflexion points in the business materialise, including the outcome of the Duyung Operator's farm out process."

There is a Sword of Damocles, as Coro point out that the standstill agreement can be withdrawn by the creditors at any time. But putting Coro to the sword would not be constructive when they can for-see a near future improvement in Coro's fortunes via Duyung e.g.

I think the all parties need to appoint a Concluder to put shareholders out of the misery of the various Waiting for Godot negotiations dragging on and on. It's Duyung my head in.

[toolsmoker] 12/4/2024 19:15

Coro added that the standstill will stay in place while discussions about the eurobonds continue and while certain inflexion points in the business materialise, including the outcome of the Duyung operator's farm-out processFor begorrah incase he couldnt read it .standstill will stay in place until outcome of duyung .

[toolsmoker] 12/4/2024 18:20

Ignore begorrah he's been selling all week

[blakieboy7] 12/4/2024 17:31

hTtps://www.proactiveinvestors.co.uk/companies/news/1045208/coro-energy-welcomes-eurobond-standstill-letter-1045208.html

[steelwatch] 12/4/2024 17:24

It's where they talk about "inflexion points", so a fair interpretation by Toolsmoker I'd say.

[begorrah88] 12/4/2024 16:49

Where does it state anywhere that the standstill is until the asset is sold? What utter made up nonsense toolsmoker, even by your standards.

[toolsmoker] 12/4/2024 16:45

What on earth are you talking about .it's been put on hold till asset sold .Coro has no control over the sale of duyung .it's no puff piece it's news what was needed

[begorrah88] 12/4/2024 16:36

Could/should have just put out a holding RNS saying debt renegotiations still progressing and standstill agreed.The fact that they have put out a puff piece about the renewables & yet again repeated the vague position of Duyung (no one has even stated what the delays are) late on a Friday afternoon was no more than an effort to distract from the main bit of the debt talk - further haircuts coming. Sp reacted as I expected

[begorrah88] 12/4/2024 16:18

What the RNS does tell us is that there's more than just renegotiating the debt in the pipeline. I was surprised that the share price pushed up on that news and considered parking some of my holding in prep for, in my opinion, a forthcoming dilutory fund raise but couldn't even get a quote for 500k so knew we due a bit of a fallback.

[rafboy] 12/4/2024 15:41

RNS out. Great news.

[odillon] 12/4/2024 15:07

As time passes this afternoon Digger, it seems unlikely there will be news before the bell, and so in terms of your experience, I'm very much hoping that this is the exception that proves the rule.