Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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We just need the borders to open and we can get back on track. looking at the latest the restrictions are in place until the 8th November.
Argentina have been hit fairly bad with Covid cases but have been looking at the charts and there slowly coming down as they head in to there spring/summer time.
hopefully light at the end of the tunnel.
Excellent summary there Linns! One thing I would like to add. Many companies (including sound) have/had WAY bigger markets caps WITHOUT a penny of revenue. Market cap is also based on your assets . If we have say a 100bcf reserve at PA and MA then the value of echo will not only be judged on production albeit I agree the future increase in production provides the cash flow to grow the business further. If PA and MA are a combined commercial gas project then I don't believe for one minute we will be valued under 4-5p .. this current sp accounts for nothing as far as I can see. Bring on the news Echo, we have been patient enough!!! :-)
Taking note of the Gas/Oil production/revenues for H1 as announced in the interim report for H1 2020, you can extrapolate that full 2020 figures when accounting for the c45% better pricing, to deliver cUS$13.8m for the full year. Going forward, if the revenue achieved from a stabalised production at Monte Aymond delivers an average rate of 5 MMscf/d when brought into production, that's 50% of Echo's existing daily gas production to add into the mix. And if CLix-1001 & the additional 16 workovers gives (at least) another 50% uplift to rates of current daily production, then these initiatives alone would propel Echo's daily gas production and put annualised revenues (purely based on current pricing and not higher LPG pricing) in the range of cUS$23m for a full year when everything here comes on stream. Similar production rates compared to the likes of President Energy which carries a market cap US$30M. President don't carry as much debt as they did, but they've been paying that off through their 'organic growth strategy'. So, it just goes to show where Echo could be in the not too distant future and how the share price could in my opinion increase 10-fold from where we are (still only 4p per share). Interesting also to reflect on the 23,000,000 Options granted to Martin in Dec 2019 and the 15p 'value cap' which was set at a 5.75 x the option price 2.6p. Gives us a good insight into where the company is setting their growth targets for the medium term.
Once the news starts flowing, I can only see this going one way, but that's just my opinion.
Also per commercial announcement on the 29th of June, ECHO managed to renegotiate gas sales price with 45% increase from previous sales price of US$1.95 per mmbtu to US$4.37 per mmbtu (45% increase).This is for an average net sales volume of 5.6 MMscf/d.
Interestingly this sales volume is also equivalent to the volume they discovered at the Monte Aymond single well (5 MMscf/d).
With the VAT savings and cost cutting measures they have already undertaken, I expect a positive production update coming up with a cash flow positive status.
Looking at the financials, cost of sales were more than revenue ( $1,630,494), but the average oil sale price was $34.7/bbl. Oil price now is around $42/bbl, up by almost $7/bbl. They may even have benefited from the governments price fix at $45/bbl. There will be significant positive revenue increase due to global price correction. I feel confident that they have changed this around. If oil price continues to recover, surely it will have a positive impact on our revenue. AIMO
chablard, youappear to be the only one suggesting .01p
You've got to laugh when people are discussing .01p . Such a tight spread tells us that peeps don't want to sell so cheaply and they are struggling to attract buyers.
Yes, my buy at 0.41 this afternoon went through as at sell.
The 0.41 and above are buys and the 0.4 are sells
Looking at the trades today are they mainly buys but showing as sells once again!!