Wednesday 28 May 2014

Morning Mumble: LGO (Leni Oil & Gas), "why" am I holding...(sighs) & Wolf Minerals

LGO's Reserves Clarification, Trinidad was issued yesterday! So not only do they admit to pushing out information that has been previously released on the 22 January 2014 (wouldn't that normally get criticism in certain pages?). We can add this to the need for the placing more recently, that had LGO not pursued their "legal" claim would have avoided any need to conduct a placing.

Its becoming annoying to hold a position in this stock albeit up, as on the one hand the assets are good and that's about all I rate...I await Ian's "transcripts" but suspect I'll be living on the moon full-time by then. We shall of course 'ignore' the need for a placing currently being considered for an 'associated company.....'Alas, today's spudding will remove any 'need' for further clarification on the next 3 deviated wells with this Goudron Drilling Update. Sarcasm is often lost, today my humour is dry.

I'm not sure of the relevance of Hemerdon Tungsten Project Construction Update for Wolf Minerals albeit we can be satisfied with the news some trees have been planted and earth works commenced? What next, Friday's drinking session RNS?

Weir Group pulls out of Metso Corporation Merger which I suspect the Market will be relieved at this news but what next for Weir? Getting on with a nicely hedged company between Oil/Gas Services and Mining..perhaps a suitor for Weir now? They've kindly lifted their skirt, over to Flowserve Corp (NYSE:FLS) and Catapillar as GE is 'too buys elsewhere...

With Anglo Asian Mining (AAZ) news I've elected to close my short with the final audited results for the year ended 31 December 2013 ('FY 2013') confirming the dire position of the company if you include "the working capital loan." The cash costs, albeit not stated as "all in" may benefit the company assuming they can actually start funding themselves with cashflow as this currently is not the case. Is it a buy? I would not be sure, but its certainly about the money unless "another placing is needed" which will be confirmed soon enough either way by the progress of the company. 

This morning I have closed spreadbet positions in Hochschild (HOC), typical to do it then it drops further, I had hoped for 125/128, but need to reduce a few positions and take some profits!

Atb Fraser

2 comments:

  1. Fraser- LGO seem to get those Goudron RNSs out most days- the one about reserves yesterday did make me chuckle as they felt they needed to confirm they came from their 22/1/14 RNS- still all publicity seems to be good publicity (like the WLFE non news RNS you have spotted too today) so I await both companies reporting on their plans for breakfast tomorrow am shortly :-))

    Re RUR- the deadline is the end of the week for their Bolivian payment- given that they have promised in the past and been disappointed, what are the odds that the Bolvs will cough up this time?? and if not, will RUR agree to a lower payment if they settle in June?? As a holder I hope this nonsense is over soon and RUR can concentrate on developing their assets (which they haven't mentioned much recently) and the Santiago listing isn't far off either. Peter Earl has no doubt been told that the cheque is in the post so lets hope the posties dog doesn't chew it up :-))

    Cheers. The Leggie

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  2. Fraser- So RUR finally get the renegotiated $31.5m today- the statement that follows was well written and points out that the Bolivians have made their economy non investable for outsiders by these regular nationalizations. RUR may even update re their other assets soon but the internal loan to Birdsong goes and there could be enough for some gin for the board today :-))

    Off to get some pitches sorted out for the weekend shortly, then T20 v Durham at Trent Bridge at 6pm. Have a great weekend.
    Cheers. The Leggie

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