CTP MISLEADING LANGUAGE and USE OF BARTER, page-2

First 2 Last

Share
Profile

Follow
aabbaadd

1,060 Posts.

142

15/08/20

16:56

Post #: 46566014
Share

Originally posted by aabbaadd: ↑

CTP's description of Dukas plan being " free carry " is inaccurate.

Further completion of Dukas will either cost CTP AU$3 + million cash or 30 % of current 100 % ownership of EP82.

In both scenarios there is either direct cash cost or indirect ownership cost as future asset value reduction.

CTP is in effect BARTERING.

Paying cash $3 million CTP recovers 15 % ownership of DUkas taking total ownership to 45 % - CTP is then responsible for 45 % drill and associated costs which are $4.5 + million.

This increases CTP planned spending 2020-2022 by $1.5 + million to $135 million.

Bartering 30 % EP 82 to Santos exchanges short-term cash flow retention for potential long-term asset value reduction.

Santos Dukas operator has first and complete knowledge of Dukas data. Santos' long continuing Dukas involvement makes it implausible it would surrender 15 % Dukas now - it would only do that if some catastrophic new information were known - is new information to come to hand before new drilling ?

CTP's phantasy farm-out financed development plans, use of obscuring language, cashflow juggling kaleidoscope are red flags warning collapsing house of cards.

Expand

Language continues to be problematic for CTP executives. In Quarterly presentation Orange drill was described as " largest exploration prospect to date " and " could be very large discovery. " Zevon " potentially much larger than Dukas. " Despite the seductive language the only thing that has moved the share price significantly down was earlier downgrading of resource and now upgrading of resource, moving share price modestly variably up - those events indicate shareholders are have become desensitised to companys use of boosting words and concepts.

Company comment about Dukas drill costs was more comprehensible. " To be clear CTP may have to put money into Dukas redrill." Previously cost is given as AU$3 million. If CTP recovers 15 % of Dukas ownership, which is one possibility, taking its total ownership to 45 %, it would then pay AU$4.5 million of Dukas drill cost - redrill could, given geological complexity, exceed budget and cost CTP more.

CTP Price at posting: 8.5¢ Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply