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300M Development cost ,they are going to sell down to circa 50% to fund -so are we getting a free carry ? 8.5% of 300m is 25.5m That's a big chunk out of the valuation i would say .No one is going to give them any thing like pro rata evaluation if they sell it now.
Try reading the company RNS valuation....might help you understand it !
Https://www.londonstockexchange.com/news-article/EME/mako-gas-project-updated-plan-of-development/15621592
I dont care jasper
show me the valuation
Gazza...try reading the thread. Another one for the bin.
Load of $h1t
i valued my bathroom taps at £50m
where is the breakdown of the valuation
They have not cottoned on yet this is a screaming buy. ALGO's so far determine the price. They do not see the possible sale and farm down and what it means to the share price. 7 pence value for 1 pence. Deal of the century.
700% upside? Wow wow wow. Cant be! Way to cheap if that is the case. That`s 7 pence a share.
£77M value....£10M market cap. That cant be right? 7 times upside?
"Gas sales will be priced against Brent oil." Brent now flirting with $91
£77m adds another 7.8p to SP. Thanks for sharing. GLA.
I recall an interview from Conrad where they mentioned US$300M project costs and they would look to fund that by decreasing their stake from 76.5% to 50% in Duyung ~ that would value EME's 8.5% stake at US$96M / £77M ...just throwing those numbers into the mix as well...whatever the value multiples of the current mkt cap....DYOR IMHO GLA
Https://www.londonstockexchange.com/news-article/EME/mako-gas-project-updated-plan-of-development/15621592
This was released by EME in Sept 22, stating an NPV of US$49m for 23.8 BCF. Conrad since updated their numbers to best case 413BCF which is also the number in the non binding terms agreement. That increases EME share at 8.5% to 35BCF and equates to a 47% increase, so NAV increases to $72m (£56.5m).
No buyer is going to pay full NAV as they will want a share of the upside for themselves. Let's assume a simple 50% of £56.m NAV, so buy out price £28m NAV. There are 981m shares now in issue, so on that basis 2.85p per share for Mako approx.
Apologies for my ignorance, I am new to this.
If the news is good then why the price drop?
Nearly 400bcf. and gas priced priced against Brent. Then a possible further 400bcf. Anyone want to crunch the numbers. How much is our 8.5% stake worth I wonder.
Management certain this deal will now materialise. So what is the value of the whole project with long term gas sales agreement?
Standard legal wording which is driven by statute. For those having undertaken any M&A activity this is normal. Legal GSA will follow without any doubt imo.
Anyone care to guess how much EME will get for its stake in this project? It is more than £10,000,000 and market cap right? How much more?
I believe the technical term is ‘covering one’s backside’.
"Focus will now be on converting this significant milestone into a binding gas sales agreement. The existing terms will be welcomed by those parties currently participating in the sell down process to fund the development of the Mako gas field."
This will no doubt give confidence to any potential partner/acquirer to continue positive discussions to draw up terms for any deal.
This is super news for EME. Nice agreement to have in the bag.
Although it is non binding it looks certain to go through. Very good for EME
Note: The terms of the gas sales agreement remain subject to negotiation and completion of legally binding documentation. Further details of the gas sales agreement will be released to the market once the agreement is executed. Whilst the Company is confident that a binding agreement will be reached, there can be no guarantee that the final documentation will be completed and/or on the terms currently envisaged
Https://www.google.com/amp/s/www.theedgesingapore.com/amp/news/oil-gas/sembcorp-signs-non-binding-term-sheet-gas-sales-agreement
Sembcorp Gas, the wholly-owned subsidiary of Sembcorp Industries, has signed a non-binding term sheet with West Natuna Exploration Limited, which is a wholly-owned subsidiary of Conrad Asia Energy.
The term sheet outlines the key terms and framework for a binding gas sales agreement (GSA) for the Mako gas field in Indonesia.
Https://conradasia.com/investor-centre/
2 seperate RNS for the presentation and accounts, both worth looking at
Conrad say that the GSA key terms were agreed in September 2023 and is expected o be finalised in the coming months.