Serinus Energy Share Discussion Threads

[jaknife] 29/12/2024 13:56

Let's take a look at Serinus Energy (SENX), which is being ramped across the boards by some delusional idiot.

The last Q3 results reveal a perpetual loss-making company:



P&L
* Losses for the nine months to the end of September were $2.6m on a pitifully low revenue of just $12.2m

Cash Flow
* Cash flow is better, as there's a large depreciation charge but, nevertheless, the company started the year with $1.34m of unrestricted cash and, after 9 months, had $1.27m of cash so it's a cash burner as well
* Because of the poor cash flow the company was forced to place at 2.5p to raise funds just before Christmas
* The company wanted to raise £1m but, because there was so little interest in the placing, they only managed to raise £0.67m
* Since the placing the share price has fallen further and is now at just 1.95p

Balance Sheet
* The balance sheet is a hopeless mess with $14.4m of current liabilities compared to just $9.2m of current assets - hence it's technically insolvent on the current ratio
* There are $65.7m of PPE and Exploration assets on the balance sheet, which are obviously over-valued and need to be impaired - the assets generate pitifully low revenue and ultimately losses!
* Accumulated losses are $402m!

Conclusion
Serinus Energy is yet another AIM dog that needs to raise cash every year to support its ongoing losses. Avoid like the plague!

JakNife

[tabhair] 20/12/2024 15:38

Everyone seems to have given up on this share, sentiment is abysmal.

The situation clearly isn't great, but is the negativity overdone? Assuming the VAT refund comes the company will be in a solidly net cash position. Xtellus put their money in at 2.5p, you can currently buy shares on the market at just under 2p. I don't imagine they took part in the capital raise without any conditions. Perhaps this are giving this one last shot to turn around. If it doesn't they will own enough shares to push for a sale of the company.

[researchcentre123] 20/12/2024 09:47

It takes a certain skill set to take a share price and collapse it 10x in 3 years. Auld should run a course on how to be a reverse Warren Buffet. Greatest skill is clearly sounding plausible but not knowing how to execute

[sd88] 19/12/2024 17:43

Get Auld out

[researchcentre123] 19/12/2024 13:38

Here's a good business plan. Get to run a company. Promise the earth and raise money. Spend it all on wages and delay all projects as they might need cash which puts your salary at risk. When you're out of cash, raise some more diluting shares further for salaries and give yourself lots of shares in the company. Buy a few shares now it's truly undervalued and investors are bailing on you. Perhaps then sell something to a mate, and use that money also for salaries. Don't waste money on shareholders even if there's a chance of dividends What's not to like.

[tabhair] 18/12/2024 22:31

hxxps://youtu.be/PEzd3WAEITU?t=1032

Just four months ago Auld said he had no plans to raise capital. You can hear it straight from the horses mouth in the link above.

[researchcentre123] 16/12/2024 10:03

I think Auld has met with his priorities...big salary and I hate to think what goes on expenses. Beyond that he just needs to hold his position. A small company needs someone with an entrepreurial background who has skin in the game that he has paid for IE not rewarded with increasing chunks of the share capital because he has so devalued the company.

[trader4ever] 16/12/2024 09:37

Auld has destroyed this company due to his incompetency, He is definitely NOT Mentally fit to be in this position. He must be fired as soon possible.

[researchcentre123] 16/12/2024 09:06

I think you're a bit optimistic valuing Serinus on what went on in Poland. If I'm not mistaken (and I may be) the symbol there is SNUYF. Between June and November, the price there collapsed 10 times. There were 200 shares traded in November. There is no market there for these shares. I can see Auld would like to keep the listing as it makes it more difficult for anyone to take over the company (if I had a Polish broker I could bid the price through the roof for a tenner then the arguement should be any takeover must happen at that price) but it's not a realistic value. The value of this company is whatever the assets are worth minus however damaging you think Auld is. Given he's burned through £12m, I'd say he's quite a nightmare. If Serinus have a serious person lined up to replace him and a plan, then there is some hope for the company. Hopefully they do, otherwise given Aulds inability to project management (oh dear, can't progress the well for 2 years, never mind, I'll ask shareholders for cash to pay my salary) I don't think there's a great future.

[tabhair] 13/12/2024 08:42

I did call it two weeks ago, the company was clearly out of cash and needed to do something.

At least the placing has been done in a reasonable way. No real dilution and shareholders have the ability to take part.

The interesting one is Xtellus oversubscribing, with 30% they are now effectively in control.

[patio58] 13/12/2024 08:02

Auld was wasting money for years doing share buy backs and ran out of money and now raising funds at record lows. The guy is a charlatan.

[tabhair] 12/12/2024 10:08

Anyone seen the announcement from Parkmead group? They've sold some of their assets for an initial consideration of their market cap, with the possibility of additional multiples of that should the acreage get developed.

Barring a sale of the company, Serious has no other choice but to do this.

[griffin63] 11/12/2024 13:24

Romania is in a terrible mess right now.Election result cancelled and new elections next year.Im sure it's really frightening for the people.

[trader4ever] 09/12/2024 09:30

J. Auld is a liar, he has been lying for the last 5 years, he wasted over 12 million raised few years ago at a price of 20p+. he should have been fired long long time ago, he does not have any mental ability to perform any job let alone CEO.

[researchcentre123] 29/11/2024 10:01

I actually question what is the real value. Auld came up with some figure comparing reserves in this company with those of others. That was the best arguement for a higher share price. However I haven't looked at how much if those reserves are in Romania with their windfall taxes. Not much good having reserves if the government takes the profit if you pump it up.

[researchcentre123] 29/11/2024 09:56

I agree but the issue is Auld is incentivised just to look after himself - I can't see many companies in a hurry to employ someone who has run through that much capital and makes a loss at the end, so once sold he is unemployed. So I can only see partial sales of assets, with the funds used to pay salaries. I actually wonder whether the WIP has any hope, or they want it delayed to look like there is some potential. Best of aacourse would be if Xtellus and some other shareholders got together, made a sales package and went around hawking it, but I'm not sure if they're that sort of company. Needs an activist investors really.

[tabhair] 28/11/2024 23:11

Replacing management won't be enough though.

This company could have the greatest assets in the world, but what good are they when you only have $1.3m cash on hand to develop them?

As of this moment the cash flow is only enough to cover corporate costs and maintain existing production.

Two options exist to change this.

1. The company issues shares to raise capital that would enable them to develop their assets with the hope the investment pays off in the future.
2. The assets are put up for sale, some other company with deeper pockets will be able to extract value and remove the corporate overhead.

I don't think anyone will fancy sinking fresh capital into this company, so that really only leaves option two.