Tomco Energy Share Discussion Threads

[fenners66] 29/2/2024 13:48

History tells us it achieved losses

[goulding1215] 29/2/2024 13:22

I don’t think so. Good sign?

[haggismchaggis] 29/2/2024 12:39

Two big buys gone through, was it anyone here?

[the diddymen] 29/2/2024 11:46

1d, it looks like a/some gamblers getting a bit of gearing through spread betting. If the share price drops the position will cost dearly.

[1dutchman] 29/2/2024 11:00

Curious. What does a 5.5% position in TOM achieve?

[the diddymen] 28/2/2024 16:53

Latest RNS indicates 48m shares purchased, or c£24k. Despite the purchase the share price has looked a little soft.

[fenners66] 28/2/2024 09:37

goulding1215
27 Feb '24 - 21:41 - 31270 of 31270
"The BOD actually said at the AGM 2 years ago “we are a sand company where the byproduct is oil."


Sure you remebered that properly ?

Perhaps it was more like - a company built on sand with a by-product of snake oil - 2 years later no operations nothing produced but narrative ?

[lopodop] 28/2/2024 07:37

Dear Goulding1215
If if if no no no move on!!!

[fenners66] 27/2/2024 21:57

goulding1215
27 Feb '24 - 21:41 - 31270 of 31270
"The TOM machine produces"

No shame , just bare faced lies. TOM has no machine , it does not own a machine and never did - it was the commercially failed CORT machine that PQE (how are they not in liquidation having not released accounts etc?) always owned, TOM just genourously donated money to it.

[goulding1215] 27/2/2024 21:41

A little bit deserted over here. So, while everybody is unhappy with proceedings so far, myself included but I do see some hope for the future. Of course it will all depend on the bond maturing for want of a better word, and cash in the bank. We all regard TOM as an oil company. Well it isn’t, it is a sand company, because the sand is worth more than the oil. Why? Because there is a world wide shortage of sand particularly silica for glass. The TOM machine produces 1.5 barrels of quality sand for every barrel of oil. Currently oil is selling at 77$ pho. Sand is selling at about 85$ per barrel.Tom will be unique in its revenue for one machine, maybe 2? We know that TOM Owns a lot of oil. Who knows what the sand is worth? The sand is not going away, been there a few millions of years, and with a world-wide shortage. There is no oil shortage even with Russia sanctions. So, I see the sand being dominant in the company’s future. The BOD actually said at the AGM 2 years ago “we are a sand company where the byproduct is oil. If we can get this funding sorted, I am hopeful that TOM has a bright future.

[1dutchman] 27/2/2024 14:41

In truth, this would be a good time for the advisors to cast off TOM. Unlikely to happen as long as they are receiving their fees, but they must see the writing on the wall and can theoretically exit now with a (arguably) clear conscious. I'd also say the same about Board/management changes, but that's highly unlikely and would require a change to said narrative.

[1dutchman] 27/2/2024 14:37

I agree Fenners. And since, by definition, they have not yet failed to raise funds when needed, they can continue to tick that box. I have yet to see the auditor who won't sign off in this situation. All of which is to say, it may be summer until the next wave of excitement around funding. In the meantime, the other thread will continue to have palpitations about news out of Valkor/QSR/Triad/Vivakor/Ecoteq (take your pick) and cast the slightest move as a harbinger of full funding being just around the corner. Despite all factual evidence (and history) to the contrary. The narrative continues...

[fenners66] 27/2/2024 13:07

Its funny that the technical definition of going concern is the ability of a company to meet its future financial obligations as they fall due, when a company has no actual "going" or "concerns" ie no business , no cash generation no profit.

As long as the directors express confidence in being able to issue new shares , that dilute to oblivion all the previous new shares that kept the Audit from being qualified, then they can pass the test - effectively as Mathew Jones can see from the share price after his buys - they are saying that they believe in charity will enable them to continue to pay their wages , so they can continue to beg for more charity ad infinitum.

[the diddymen] 27/2/2024 10:43

1d, the narrative nature of TOM means that the accounts should be pretty clean. The Valkor loan was taken out sometime back and even if the auditor signs off, they should have no valid action. The only risk to the auditors might be new shareholders; then having seen the other thread in action, that risk is not substantial.

The going concern note in last years accounts stated:

"Accordingly, given the Group’s current cash balance, the convertible loan facility referred to above, and, based on a positive history of raising funds, and the fact that the Valkor loan is only payable on completion of a suitable funding transaction that provides sufficient funds to complete the Greenfield purchase and pay off the Valkor Loan, the Directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern."

the key words are " and, based on a positive history of raising funds,". Will the auditors sign off when it is clear that they do not have the positive history?

[1dutchman] 27/2/2024 07:51

It would be nice to think that the auditors would call a halt to this charade. But in my experience, the auditors will raise a going concern note, the directors will sign off and cite their undying confidence in their ability to raise necessary funds, and neither will face any consequences when the company subsequently goes bust. After all, it's the AIM market. Where investors come to get fleeced and no one takes responsibility.

[the diddymen] 27/2/2024 05:55

.....or if they are so confident about securing the funding, then they could personally subscribe for a tranche of shares at the next placing.

[lopodop] 26/2/2024 15:24

Or auditors propose Groat and co directors personally guarantee ongoing financial support for necessary period.
Otherwise …

[fenners66] 26/2/2024 11:45

Suggestion to the auditors -

When TOM ask you to take new shares instead of cash for the audit bill...
call time on this and qualify the audit report...

[the diddymen] 26/2/2024 07:18

Just a week ago the normal suspects were indicating an imminent deal. Instead they had a deeply diluted placing. The placing will finance the company for another 6 months or so. The problem from the deep discount is that the auditors will not (or should not) sign off the going concern on the basis that the Directors believe that they can raise sufficient funding from the markets. TOM have to sign off the accounts by the end of March to avoid suspension.

It will be interesting to see how the company deal with it this time.

[the diddymen] 23/2/2024 08:11

T1 - a listing will have a bit more value (if only time value) but whatever, there is no value in TOM, the company's only functioning asset is the payroll.

[the diddymen] 22/2/2024 11:59

F66, linking to 1d's earlier post the outstanding £0.47m will be costing £120k pa - half JP's salary.

The £0.47m will wipe out any listings value, ergo shareholders will not see 1p.

April going concern sign off only 5 weeks away!

[1dutchman] 22/2/2024 11:24

Fenners - thank you for the good analysis on the Valkor loan. So, there is some continuing debt to clear up as well before anyone might chart a new course. Clever tactic agreed by TOM/Valkor. The subterfuge just gets deeper and deeper.

[fenners66] 22/2/2024 11:10

Re the Valkor Loan

30-11-2022

"The Company announces that the terms of the Valkor Loan have now been further varied to extend the repayment date for the remaining US$1,000,000 principal amount of the loan to the completion date of a suitable funding transaction for Greenfield that provides sufficient funds to TomCo to, inter alia, enable it to affect repayment. "

However they repaid some past that date -

"As at 29 June 2023, the Group had cash reserves of approximately GBP415k, and an outstanding loan due to Valkor Oil & Gas LLC of approximately GBP0.47 million (approximately US$0.6 million) which is repayable on completion of a suitable funding transaction for Greenfield."

So as they said in their last full year accounts the idea that Valkor was only repayable on a finance solution was
a reason to ignore it as a going concern issue.

Then they repaid $400k by the next interims.

A cynic would say that Valkor still wants its cash and TOM are I guess still paying interest (at about 30%?) but if Valkor said it was repayable on demand it would mean an audit qualification and kill the golden goose.

This way the zombie still gets to issue new shares , pay interest and make some repayments.

After all its just a change of written word in a document , a change of narrative - they are both experts at narrative.

[1dutchman] 22/2/2024 11:04

To dig a bit further into the seeming success of AIM narrative companies, is it better to have one consistent story with multiple failures to deliver? TOM would imply it is. Are shareholders are more likely to stay loyal despite the same repeated lies because they think they understand the plot? TOM is a good example of this, continuing to be propped up for 4-5 years on the same story, despite an abject failure to deliver. Logic would say this company should have disappeared long ago. But it isn't logical. Taken over an even longer period, CORT was really just an extension of the RF and other novel extraction methods that has kept this company meagerly funded for so long. Would it have worked as well if TOM had instead, say, ditched Utah after RF and turned to offshore Falklands, subsequently ditched that and instead tried their hand at the North Sea? I doubt it. Sorry, I'm rambling, but it really is an interesting phenomenon that has drained a lot of pockets. Quack doctors and snake oil were eventually (mostly) finished by regulation. Where's the AIM Regulation to protect investors from quack companies?