George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Daysleeper, I wasn't debating the potential evaluation of Eland, I was simply saying that I doubt they will ever pay a dividend. I don't know much about Seplat to comment but ill certainly use it as a PEER alongside Lekoil moving forward
Check out slide 21: http://www.elandoilandgas.com/files/1214/9329/1346/06_Upside_potential_Final.pdf I believe these are gross figures, but on a rough calculation you could be looking at net production on par with Seplat in a little over a years time, if all goes according to plan. Seplat has an EV if GBP 1.2bn - about x 6 the current MCap of eland, which has no or very Low debt.
Kev, if this gets anywhere near 80k bopd production, that’s on par more or less with PMO’s production rates, but without the huge debt of PMO. If you look at the other big Nigeria producer Seplat (SEPL) it’s producting at about 36k bopd and has an EV of GBP 1.2bn and a PE of 8. Eland has a PE of 2.7 and an EV of GBP 40m. Same in country risks as Seplat and production growth prospects much higher. It seems to me that as production at Eland continues to increase, it should rerate to the sector norm - the closest comparison I see is Seplat. If that happens I think you could be looking at multiples of the current sp and in the relatively near term too. I’d encourage all to look at the capital markets day presentations on the website.
Yes I would agree with you, but it�s so tempting to top slice this, but however I look at it, just can�t as the rewards are staring me in the face. If the directors suddenly sell a few I may follow suit, I have looked at the projections on elands website and production peaks in 18 months time, at a staggering 8o k bopd, that�s some figure for a aim oily, my guess is the company will nye on complete all the workovers in the various sites geb, opuama etc use the capitol from the oil already shipped and sold to fund the campaigns, which makes perfect sense, I think then once these are almost complete, I really do reckon firms come will in with a toe in the water offer, as everything will be in place,I�m holding on dare I say for a �1.80 price tag for my golden nuggets. Possibly more. The directors have a wealth of knowledge in this area and far from being mugs, time will tell. Regards H.