Tomco Energy Share Discussion Threads

[vauch] 22/6/2021 10:29

Greenfield would require funding in excess of US$110 million for the construction of the first plant
Is this sum Tomco's half as the original price was $180 mill

[thesageofsaint] 22/6/2021 10:27

Good old Vauch. Finally red pulled and can see the picture!

[thesageofsaint] 22/6/2021 10:26

The other non sequitur in Damac's thesis is they will have enough cash for the next 12 months. To do what? What does this 12 months look like to you? Their cash statement is essentially '... we have enough cash to pay wages and corporate overheads for 12 months...'. In brackets and unstated is what you omit '...without more cash we will be doing nothing other than paying wages and no operational activity can or will take place...'. That is a cracking RNS to wake up to: '... we are pleased to announce today that we will not be placing any shares for 12 months. During this time we will continue to pay wages and corporate overheads. All activity will be ceased during this period to ensure cash reserves support the longest possible period of corporate funding. No operations will take place during this period...'. Wonder how the share price would respond?

[vauch] 22/6/2021 10:18

And to top it all they have not reached 250 a day either

[vauch] 22/6/2021 10:17

Well we await the next round of dilution and warrants attached.
They will have so many shares again that it will then require consolidation.
It amazes me that the director and his fleas put this company down and never big the process up.
As for the RF blaming Covid is the most lame excuse they could come up with.
Just say we need the funds for other things like our wages.

[thesageofsaint] 22/6/2021 10:15

Organise you thoughts please. There is no 'if' in the consideration if you buy into the story as you do. They 'have' to commit the 10% purchase otherwise they have no access to ore and the story slams into a brick wall. Therefore where will the $1.8m come from? As I have stated and there is nothing to refute it, Valkor has not funded any of these operations, indeed they are the core cost base. Just allow that to settle a little. Tom's cash is going almost fully to its JV partner in op costs. Your money is paying your 50:50 partner's wage bill! Valkor will not be spending its cash on any land. If TOM wants to continue with this escapade, Valkor will be on its shoulder, slurping up the cash not bringing it to support land asset purchases. You cannot learn business from a frayed armchair!

[wilson2] 22/6/2021 10:13

There will be no purchases of land , no 10.000 a day plant, this all a smoke screen so the directors can still receive there fat pay cheques

[thesageofsaint] 22/6/2021 10:06

In a position of objectivity!!!He just states his opinion and you all fawn. Ask him why there will be no placing supported by some proper assessment. You follow this guy you are doomed!!

[damac] 22/6/2021 10:04

Rmart as it stands today, without buying the land, Tomco have enough cash to last them 12 months. They have to state the ‘here & now’ in the Interims.

If they go ahead and conclude the land deal, their share of the initial 10% purchase £600k (ish) will be paid out of their current available funds thus meaning they will only have cash to last around 6 months. So if the decision is to go ahead and purchase the land a small cash raise will be required to provide additional working capital to see Tomco through to Greenfield plant completion.

However, that requirement may still be negated by warrants options being taken up and funds coming into Tomco. In such circumstances whereby a small raise for working capital would be required, I would expect that around Nov/Dec this year.

[thesageofsaint] 22/6/2021 10:03

Again I think you are wishful thinking. Your assumption is that as Greenfield is a 50:50 JV with Valkor then funding will be pari passu. However, this has not been the case. Greenfield stumped up all the initial cash at the JV commencement and Valkor brought just its 'know how'. Given the spend of cash to date we can assume that such a relationship continues, and there has been no detail to confirm otherwise so sensible to assume the worst/realistic. This is just a paid for operation for Valkor. They can bore holes and shift dirt for any business and need not take risk with shareholder's funds. For poor one employee Tom, this is the only play in town and they need the story to continue. Highly likely that TOM will have to find all the cash. There may be some loan annotated on the balance sheet from TOM to Valkor, but that is just accounting detail. The cash will have to come from TOM shareholders.

[goulding1215] 22/6/2021 10:01

Where would we be without Damac? Good luck to Scotland tonight, having given England a lesson in tactics.

[ducky fuzz] 22/6/2021 10:00

Hi damac .. that is what I sort of thought. So why the Chairman's statement that has knocked over my half empty glass. DF

[rmart] 22/6/2021 09:58

damac, then why put this in the rns?

However, we anticipate needing to raise additional funds in the event a decision is made to exercise our option to acquire the abovementioned site and commence work on our first full-scale oil sands plant and related matters.

[damac] 22/6/2021 09:55

The will be NO placing to fund the complete purchase of the land or for plant construction.

[goulding1215] 22/6/2021 09:49

Good thinking rmart, plus Damac, the rest of the loan, would pay TOM’S $1,000000, and would virtually eliminates all talk of a placing

[damac] 22/6/2021 09:48

The $110m includes the $16m required for the conclusion of the land deal.

Also, Tomco’s share of the $1.8m required for the initial 10% purchase is already sitting there waiting to be used, and already accounted for in the projected Tomco cash burn for the next 12 months.

[fenners66] 22/6/2021 09:47

Just read about the intangibles

Licenses which are supposedly going to be exploited using Turboshale RF tech - but instead they are pressing ahead on different ground with someone else's tech ?!

So does it cost to renew the licenses - I guess it does as they have been capitalised in the first place , but the cash they have they are going to need for Greenfield.

So the licenses will not get used - are they really worth holding in intangibles so high?

So what do they really have here ?

[rmart] 22/6/2021 09:46

you are right Kemche, maybe its time to buy back in? shall I ?

[rmart] 22/6/2021 09:40

apologies, you are correct. they now need $1.8m, ($200k paid).

So TOMS half is $900k (£620k).

Nothing more then required to end of the year but they could delay that until end of 2022. By which time they could be in production.

So maybe they could do a small raise of around £1m to £1.5m. This would give the cash for the option and working cap to get to production if you include the cash they still have.

[joeblogg2] 22/6/2021 09:40

Plenty of wealthy billionaires in the States!!!

[bungeetrader] 22/6/2021 09:39

Back where we were at the beginning of May...... unbelievable!

[goulding1215] 22/6/2021 09:38

Interesting options. I prefer a bank loan, or a wealthy partner buying a proportion of the company for cash. At $73.34 pbo, TOM’S value has doubled from when it was $40 pbo. In fact more than doubled as the increase in price for a barrel of oil is $34, which is all profit. TOM could be a take-over target.

[kemche] 22/6/2021 09:36

Another rmart special served. How does he do it? 100% record of successes. What a feat!

[lopodop] 22/6/2021 09:34

RMART
Will SB fund his half of the $16million?

[thesageofsaint] 22/6/2021 09:33

You unfortunately have failed to understand fully the stated land purchase agreement. It requires that the first 10% is acquired on or before 01Sep 21 for $2m. It is only after this occurs that the pricing and schedule states becomes engaged. This means the near term cash requirement is for $2m by the end of August. There is only one place this is coming from. The question of how serious they are about kicking the can down this path for 18 months or another, is whether they ask shareholders to stump up $2m (of course the cash call will be for a much larger chunk). My take is that they have no option. To not commit means they have no story as it is predicated on ore availability. So they will have to buy a minority stake and the money will come from a placing. Hence why I stated it needs to happen this summer. All there for you all to see, just need to be willing to see it!