Tomco Energy Share Discussion Threads

[lopodop] 29/8/2021 11:39

DF
The Directors do not wish investors to know. It is a guessing game - best not to have too much invested. They do not. All about gut feel.

[ducky fuzz] 29/8/2021 11:13

May I ask what other posters feel about the latest RNS please. It has me totally confused and I can't work out whether it is good for TOMco or bad for TOMco.

It has made me more glass half empty if I am honest.
I do not understand why it happened.

Isn't it a shame that when you get an RNS they do not explain the logic behind doing
what they have done. DF

[lopodop] 29/8/2021 10:45

Well that's a first class tactical approach for a prospective buyer. Let's see how compelling the directors can make the sale proposition for TOM with or without additives!

[thesageofsaint] 29/8/2021 09:28

Nonsense. It is valueless. It has no assets, no IP, no skills nor capacity, no money, no staff and no credibility. It is worth absolutely zero. What logic gets you to a conclusion it has any value?

[lopodop] 29/8/2021 08:20

TD
Greenfield is now a package for sale by TOM. Two directors are deal doers ( they don't hang around )so could go down disposal route with possibly but not necessarily an equity retention for TOM.
Then on to RF to see what can be done with process and also the leases! After that ??

[the diddymen] 28/8/2021 20:59

Lopo: 'expect surprises' - I would agree it is the only option. Merge?

[lopodop] 28/8/2021 19:35

TD
Since the Board have announced the recent update, there may be a case for investors having some confidence in Groach and Castro.
However TOM does not and will not have the capability let alone the funding ability to undertake a major project as seems to be the belief of many here.
Therefore we have to await the Board's further proposals to see what the next stage will entail. Expect surprises!

[wilson2] 28/8/2021 18:55

No I'm not a paid Investor , you keep shoving everything you have into Tom if you have that much confidence

[wilson2] 28/8/2021 18:50

I invested years ago , invest more if think things are ok

[the diddymen] 28/8/2021 18:42

No.No. Why not f...off to the other thread if you do not want to read an alternative view.

[shaunx] 28/8/2021 18:26

I'm investing, I can only figure you are some sort of paid deramper or XR type?

[the diddymen] 28/8/2021 15:11

Lopo, frying pan and fire come to mind! $130m is a very big project. If I were financing this the check list will go something as follows - is there a market for the product - easy question - yes subject to technical confirmation of the product. Secondly can the equipment do it - yes subject to the quality of the conclusions of the FEED study. Possibly okay so far. My next question will be, does the team have the ability to deliver the project? The answer is none whatsoever - and if the financier does a bit of scratching they might not feel comfortable with JP's history. Valkor have the clout to execute the project but the financiers will be lending the money to Greenfield/TOM. As above any Valkor involvement potentially comes with risk. It is just a thought but has John Potter completed his purpose for the company. That the company is still functioning means he has delivered, but should TOM be employing an engineer with sufficient grasp of a project of this nature to be credible. On balance this is a mountain - K2 possibly!

[thesageofsaint] 28/8/2021 14:02

A very considered piece and shows what considered objectivity can be applied when you are not so compromised by holding these shares. Not commented previously on the RNS as it is tiring to have to write the same things. That said, this is a material change and one that is very telling. Valkor, as I have written before, were involved because they were getting paid to be involved. The money stops as the trial completes and they do not want to be hanging around in a moribund shell JV. Importantly I believe that Valkor could not care less about shares in Tom and they know it is a worthless vessel, but that Tom insisted on the transfer of Greenfield worthless equity and demanded that Valkor accept the offer of Tom equity. For as Diddy writes, if Valkor believe in the POSP concept they have the knowhow and capacity to deliver its potential and are the only party likely to get close to convincing potential backers. Tom is just a one man band with an inexhaustible supply of mug punters willing to buy the sham story, but it is not an entity that proper money will have anything to do with. Valkor also knows that by the time 3 years is up its stake will be in the low single digit percentage after the many inevitable dilutions between now and then. Next placing will be in September. This was the necessary precursor. A very barren winter awaits. Whether they find the 10% they need through the placing or they forgo the option, they have now entered what is likely to be a very long period of purdah.

[jaynealex] 28/8/2021 12:06

Thanks Busa

[lopodop] 28/8/2021 11:25

The important development is the acquisition of Valkor's 50% by Tom. This overcomes the 50/50 issues which could have wrecked Greenfield project.This a major plus for the Board and investors.
There will be a placing but the sum involved will not be material so no big deal and it will top up necessary working capital.
Therafter investors have to await news of the forward plan - expect surprises which may eliminate some of investors' concerns as evidenced here.

[lopodop] 28/8/2021 11:25

The important development is the acquisition of Valkor's 50% by Tom. This overcomes the 50/50 issues which could have wrecked Greenfield project.This a major plus for the Board and investors.
There will be a placing but the sum involved will not be material so no big deal and it will top up necessary working capital.
Therafter investors have to await news of the forward plan - expect surprises which may eliminate some of investors' concerns as evidenced here.

[busamitch] 28/8/2021 11:10

There is lots more in the Petroteq 10-K from last year.

[jaynealex] 28/8/2021 10:53

Talais your post 21734 ..the article states ..

Note, this article was written before the recent announcement from Petroteq about Valkor’s strategic investment in Petroteq.

I can't find the press release on that ...anybody got any details

[the diddymen] 28/8/2021 10:17

This is becoming very complex. Unless I am missing something, what has happened is that TOM have financed 80% of the R&D with Valkor through the Greenfield JV (TOM cash and Valkor kind). Post this agreement the product for TOM is the FEED study and an option to purchase the site. 100% of the financial risk of the development will sit with TOM. Whatever outcome Valkor receive a 29% free carry should it be relevant.

Valkor in the meantime will also be able to utilise the knowledge gained from the c$2m R&D JV spend with its general licence to use the Petroteq IP in the USA. TOM will probably have to rely on Valkor for the engineering and supply of the plant, should they be successful with the funding. Potentially more profit opportunity for Valkor.

Whatever happens outside TOM the biggest winner will be Valkor, and should Petroteq survive, they will also benefit from demonstration of the technology.

Here in lies a dilemma. Is it in Valkor's interest to cultivate a potential competitor should they want to become a producer (assumption - Petroteq licence terms unknown)? Plenty of scope here if someone wanted to be unscrupulous.

Against this backdrop TOM will take the FEED study to a bunch of financing operations looking for funding.

First up is that TOM will need more cash to fund the next three years (see Sage of Saint prediction). I have not checked the warrant situation but I doubt there will be exercisable options there - so it will be down to another placing. Legal and accountancy fees will be high, therefore say an extra £2m will be required. This is also the last throw of the dice so the price does not matter - say 0.3p/share or 667m shares. Even at 0.4p/share it is another 500m shares. The RNS is silent on the impact of an issue on the Valkor 29%. I cannot see why Valkor should take part in a placing. They could be a beneficiary of the demise of TOM.

Let us assume that TOM have bolted down the dilution issues with Valkor. Now for the hard part. A one man band has to go to the financiers with the FEED study and convince them that they have the capacity to deliver the project. The only party which can credibly provide the necessary comfort is of course Valkor. Now the financiers might start to wonder whether that there could be a conflict of interest here. Not least they will notice how TOM have largely financed a project of which the least risk beneficiary is of course Valkor. Aside from that Valkor would be in pole position to pick up the pieces, should the venture fail. If John Potter is able to pull this off he deserves every share option that has been awarded.

Just another thought, one way to underwrite the project for the financiers would be for Valkor to supply the equipment with a buy back clause should the venture fail. Again the proximity to conflict of interest of this option is uncomfortable

I think that one or two here will have mentioned that John Potter does have history, and if it fails they will be quick to point this out.

[talais] 28/8/2021 08:54

https://quorumzine.gitlab.io/quorum/content/2021/08/11/intriguing-biomsar-possibilities.html

[talais] 28/8/2021 08:54

https://quorumzine.gitlab.io/quorum/content/2021/08/11/intriguing-biomsar-possibilities.html

[talais] 28/8/2021 08:53

https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html

[talais] 28/8/2021 08:52

https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html

[wilson2] 28/8/2021 08:46

Why are you here, apart from trying to muster up some support for a company that has no intention of carrying out a £110.000.000 purchase