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ASCENT RESOURCES: Gas flows mean cash flows to develop up to 15 wells

Member Info for JDwag

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Member Since: Mon, 16th Jan 2012

Number of Share Chat Posts (all time): 6,260
Number of Share Chat Posts (last 30 days): 39

Last Posted: Fri 12:51

Post Distribution over the last 30 days

Fri 12:51

Maybe, maybe today’s USD / ZAR action shows (and so does the latest bond issuance with people queuing up to take it up) the ‘yield sheild’ In SA Bonds and Currency is still a mighty lure in this world of historically low yields in the developed world.

Thu 21:55


Spot on, the market is in effect giving South Africa all the ‘rope’ they need. It’ll end in tears.

Thu 17:27

Disagree, of course lots of things will need to be resolved before hitting those C1 Numbers, the biggest of which IMHO is the slower leaching rates encountered. But, big but, but If they can resolve the leaching rates issues, then with the USD / ZAR at these levels then with the extra leach heaps / capacity, they really should be hitting low $4ks once the accelerated stacking rates reduce, and with it hopefully a heavy reduction in C1 Costs. But we are a few quarters off that, let�s be honest.

Thu 16:42

Hedging / Fixing (Cu or ZAR) is as important for WTI as it is for me to breath Oxygen.

When you are in as much debt as we are there is no other option I am afraid, you have to be able to pay the bills and show your debtors (and largest shareholder) it can be paid. I am also a fan anyway, hedging at approx. USD$6.5k per tonne (Jan to May 2018 as they have done) and then at an average of USD / ZAR 1:13.33 (Jan to May 2018) allows them breathing space to start getting you house in order with production levels / Costs, but it also give you breathing space on when you next hedge / fix and at what rates you do it, for example, if they can get the deal to hedge / fix their USD / ZAR rate for June to Dec 2018 I�d want them to take it, same as if they got a deal for fixing 1,000 tonnes per month at USD$6.5 per tonne June to Dec 2018 I�d also want them to take it, it gives you certainty and means as and when Cu goes above that figure you benefit, however, should it slide back to USD$6k per tonne (for example) then it only marginally affects you.

If WTI was debt free, then yes, they could take the risk of �$8k copper in 2018�, but they aren�t, so they can�t!

They need to hit low (very low IMHO) $4ks C1 Costs to make this viable / a returned for PIs. Time will tell.

13 Nov '17

Not to get too far ahead of ourselves of course, we have currency and copper hedging to take us out to May 2018, however, it is looking mighty positive on the long term of the currency and copper movements and if this continues into 2018 when the operations bed in to a �normal� C1 Cost after the accelerated stacking due to the additional heaps being constructed then we may be in great shape. If the leaching rates �repair� themselves, then, even better, over to you Weatherly���.

13 Nov '17

Lots of things coming to a head in SA, ANC Elections are making investors glittery too, not to mention the spending plans (buying votes) of Jacob Zuma. Your watching a slow moving car crash.

11 Nov '17

Of course it’s all estimates and best guess ‘futurism’ but incredibly growth in Cu if it turns out to be right. Considering the low base from which India is coming from the demand picture could be explosive from them.

9 Nov '17

This isn't to do with WTI, this was posted in Error from the AMC board.


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