Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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@schlemiel - if this company becomes a 'cash machine' as you say( nothing wrong with that per se), then please can the BoDs please install an ATM near me?
This will be a mix of static costs and variable costs due to qty of oil
Would be better to split these to reflect more accurately lower and higher production
Total cost of a BOE for Hurricane sits between $27 to a max of $30 . The figure includes all costs interest , BP , production costs ect and after this cost, free cash is generated .
The calculation is based on Cash held during Oct ,Nov and December where movements involved CB buybacks , income from one 530k Tanker and the resulting monthly adjustments to Cash held .
The aforementioned highlighted a Net monthly running cost of around $8m which reduces Cash held each month and is adjusted upwards every 58 days approx with income received .
The one variable that should improve our cash picture is lower interest from Jan 2022 onwards as the CB's have been reduced by $150m . Around $1m per month saving .
Bottom line we should add around $33m ( after $8m Jan costs deducted ) to our $50m cash pile within the next 5 Days .
As stated above, in the worst case our net cost is $30 boe .
it strikes me that if well 6 production (& depletion( & Brent continue to perform better than projected in the Business Plan the old BoD presented to bondholders. that (back of envelope sums), there could be 5.5 mill barrels generating $425 mill revenue post July 22, rather than 4.7 mill barrels generating £337 mill, till economic production limit is reached
or in other words, that from Jan 22 - Aug 24 end of economic life well 6 could produce 6.2 mill barrels generating circa $560 mill revenue. deduct operating costs (it's beyond me to work them out) - and one is left with a huge net profit sum for HUR (one well only, producing till Aug 24)
Goldenbadger1 - how do you arrive at the 8 million total costs?
Should be debt free by the next offload with cash in the bank. MC is £91m. At current oil price that’s about the same as free cash from 4 offloads, or six months production. Such a shame ADUK is no longer around to see this.
This company's quite 'literally' becoming a cash machine....
Pick up around 530k at minimum $78 boe gives $41m
Total Expenses Hurricane $8m January .
$33m + $50m Cash in the Bank $83m .
CB Debt $80m ( interest covered in $8m ) so we can now cover Bonds .
With an $8m charge in Feb , suggest small bridging finance to Squash Bonds .