Tomco Energy Share Discussion Threads

[fenners66] 12/9/2021 14:06

It seems rmart - does not like me reading and quoting from the RNS's

I did post on the other thread now that has been moderated, seems that means the post is actually removed so I have to write it all again.

Nevermind , I can still ask the questions....

So ,
Since I did not get an answer (BS or otherwise) how did Tom get involved with Petroteq and Valkor in the first place ?

The None answer, has led me to read the accounts for myself , which make interesting reading.

Lots of Directorship changes in the last few years , some only staying for a matter of months, whilst this process of testing CORT was underway, given the propensity for TOM to issue directors' share options one would have thought that sticking around to be a non-exec and attending about 12 meetings a year and attracting multimillion share options at lower prices (allowing higher priced options to lapse) would be a no-brainer if the director saw it as a serious proposition.

How many public listed non-exec directorships do we see a lot of directors holding at the same time - I do not see that as a blocker.


Because of the massive options, and exposure to the any potential gains it is obvious that the directors do Not have to put up their own cash , so they have not done much.
Some judge companies on the basis of how much skin in the game the directors have.

There are a lot of interesting changes between the last Annual report and the last interim, going to work through those , so work to do there.

However there is some stuff that no-one has mentioned , at least recently.

TOM has £1,314,000 "invested" in "exploration and development licences comprise nine Utah oil shale leases covering approximately 15,488 acres"

Of those 5,758 acres expire on the 1/10/2021 so 37.2%

The licenses are not amortised.

Because..

The Group continues to renew the leases set out above as and when they expire and has no reason to believe that the leases will not continue to be capable of renewal in the future.


So the question is :
Is the renewal for free ?
A paper exercise ?
Or is there a cash cost involved , such as $100k to extend a land purchase option for 1 month?

Of course if they get too busy and fail to renew then , they should write off £488k of the investment , but that could not happen surely?

I note that the accounts refer to the Covid Pandemic as to why they have not done anything with Turboshale, and the £10m invested in it , (Intangibles and licenses), however that has NOT stopped progress with the Cort technology that they do not even own 80% of .......

IF this works.
IF they get the funds for it, seems likely the £10m invested in RF will be put on hold.
For how long?
They have ignored it for the last 18m

So when do the licenses get amortised, when do the intangibles.
How will the balance sheet look if that happens?

[rmart] 12/9/2021 13:34

Oh for goodness sake fenners go and post on the other board ffs we are not interested.

[the diddymen] 12/9/2021 13:23

johnpayne520, give me some of the other shares you are invested in and I will check them out. Fenners is also good at spotting duff ones.

A rule of thumb. If Mixi/Goulding/JoeYangtze is invested, don't invest.

[lopodop] 12/9/2021 12:32

RMART
You are very unwise to rubbish the views of others. TOM has an appalling history of getting it wrong and investors have probably been wrong to be so supportive. Look at number of board changes and payoffs. JP has very little experience in TOM's field so if the non executives and all their consultants get it wrong, you can whistle for your investment. A receiver will give you SHORT SHRIFT IF EVER COMES TO IT.
You may have only have a few bob in TOM BUT anyone with a material sum should be biting their nails until hopefully positive news in a couple of weeks.

[the diddymen] 12/9/2021 12:24

Reichsmart you are being disingenuous. They might just be able to stretch to the 10%, but they will not be paying salaries or creditors.

Only 19 days to go, so let us see


(In response to : Diddy has been hanging around for years a real Tom hater as he lost everything.

He is a complete plonker, no placing is needed to funds the 10%.)

[lopodop] 12/9/2021 12:21

Thrgef
No no no! Pointing out some very important risks that exist. Do not blind yourself. If any part of the anticipated funding does not materialise, TOM is going to be in a dangerous position, placing or no placing.
Of course it is concerning for everyone involved, some have been here for years. The AGM gave a positive view of the road ahead, but little detail of the risks apparently.
It would be wholly wrong for people who see the problems to remain silent.
The next week or so is going to be very tricky for TOM. HOWEVER if the deposit is met by 1st October that will be stage 1 over and investors may relax a while. But TOM will be very unwise to avoid a placing - that really is taking a big chance for many reasons.

[rmart] 12/9/2021 12:17

Diddy has been hanging around for years a real Tom hater as he lost everything.

He is a complete plonker, no placing is needed to funds the 10%.

[thrgef] 12/9/2021 11:28

People really trying super hard to undermine share sentiment over the weekend. Laughable and so transparent

[johnpayne520] 12/9/2021 11:23

Diddymen: So why do you come on here and try to deramp the share price. Go and find a share you want to buy and deramp that so that you can get in cheaper. We don't want your comments and advice. You are reducing the value of my shares - go away.

[ducky fuzz] 12/9/2021 11:06

LOL SL .. Malcolm and John could be anybody.

[stuart little] 12/9/2021 11:04

Ducky, Malcolm and John.

[the diddymen] 12/9/2021 10:51

OK, if there is no placing before 1 Oct, do you agree that they will have to forego the $300k deposit on the 10%, because they will be unable to pay the 10% deposit - or find another fudge to delay eg another $100k?

(Just for the avoidance of doubt I will not be buying shares. I do not think that TOM will get the financing)

[ducky fuzz] 12/9/2021 10:38

Boy you are an optimist. I think we will get to 1p when we get the news we are expecting.

Did Groat say couple of weeks for the Tar Sands purchase. Should be concluded
while Potter is in Utah from next week onwards. DF

[rmart] 12/9/2021 10:13

Should be a few buyers tomorrow then. 1p possible?

[rmart] 12/9/2021 09:59

No placing, you are not going to buy in cheaper so forget the placing scaremongering.

[talais] 12/9/2021 08:55

Now viewed 681 times,

[lopodop] 12/9/2021 08:35

TD
Somehow TOM has to pay the deposit by 1st October. To fail or delay will damage credibility.
The alternative would be to drop this land deal altogether and pause, grounds being technical issues unforeseen. SB has apparently interests in various sites elsewhere - ? Could these be possibilities.

[the diddymen] 12/9/2021 08:08

I am not sure what your post 12265 adds to the discussion reichsmart (or 12249 for that matter)

In my view the Board have to get a placing away before 1 Oct (or not complete on the deposit/find another fudge).

Also in my view the current share price is almost irrelevant to the placing price. TOM is on a cliff edge with the financing.

The placing should only be sufficient to ensure that TOM can cover the on going, legal and professional costs upto the financing period, pay the deposit on the site, and leave sufficient for the directors to be able to claim solvency.

My 0.3p of last night is too high. This needs to be lower to get it away. 0.25p? A stab at say £500k, or 200m in terms of shares.

At least then TOM has a proper chance to convince a third party to finance the project. In my view that is unlikely, but that is at the core of the disagreement.

What do you reckon?

[wilson2] 12/9/2021 06:17

Time will tell rmart

[lopodop] 11/9/2021 19:50

SL
Even with an immediate placing of say £3million TOM will be operating on a knife edge. Should the anticipated third party funding arrangements fail wholly or in part for just the land balance, where is the cash to come from - a £3million placing? Forget the plant situation.
A placing price will be determined by reference to many financial factors and paucity of cash reserves is just one. The risk assessed will dictate the ultimate price
and it could be a severe downward adjustment.
You really are out of your depth if you can't see this. Of course the directors played it down so as to not cause alarm. But you can bet the Board are having a few stiff drinks - it's a very difficult call for them and a big gamble. A wrong move and dire consequences; the chairman is a smart operator - he'll make the right call and explain why. So that should be stage one done!

[stuart little] 11/9/2021 18:48

I got waffle. Thought so.

[the diddymen] 11/9/2021 18:18

If the Board did not need to it would have used one word in their AGM replies to the Board questions: No.

Here is the extract from the interims. No surprises then. "As at 21June 2021, TomCo had approximately GBP1,390,000 of cash reserves available to it. The Board believes that the Group has sufficient funds to cover its expected and normal outgoings for the next 12 months. 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."

(Note at this point they did not know that they would have to pay for 100% of Greenfield commitments and costs, nor the legal costs of acquisition, nor the legal costs of varying the option)

Then the Board statemenet for the AGM:

"The deposit of US$300,000 can be credited against the US$2 million cost of acquiring 10% of the Membership Interests."

A further $1.7m (£1.23m)is therefore required on 1 Oct.

Cash burn between 31/03 and 21/06 was £860k.

As at 21 June they had £1.39m and on 1 Oct they need £1.23m. That leaves £160k to pay all the hungry lawyers (Greenfield and option extension) and all the professionals required, plus the salary etc between 21 Jun until now.

The Company were quite open in the interims that they needed to raise cash. They would have waited until the finals if they could have waited. They could not.

The morons that occasionally slip over here mistakenly believe that the share price will determine the dilution. Maybe an influence, but TOM could only be about for a few months if they cannot find finance for Greenfield. Anyone buying into the placing knows that there is a high risk of a blow out in 2021. The price of the placing will reflect that risk. 0.3p? Even 0.3p is generous.

Where I will agree with the morons is that if management pull it off somehow, that could lift the share price, although there is a small matter of financing to deal with.

Either there will be a placing before 1 Oct, or TOM will not exercise its option.