Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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So, good news all around. But for those of us who have never been in this situation before, should we sell now or is the price likely to rise over coming months? If not, they are sold automatically by the end of the year? Do we have an option to keep them? Thanks for any advice.
I think they're getting a bargain.
Hold or sell?
166pps all agreed with Seplat . Nice
The next drill though may excite
I would really welcome some objective, informed insights. I assume that the markets simply don't want to buy because of risks
Thanks for replying, Nickel. Some fairly hefty sells going in today....but the fundamentals and forward guidance (from the house broker, I assume) make this thing look stupidly undervalued to me.
2019 PE 4.25; 2020 PE under 3. Trivial debt pile. Strong management team. Revenue growing like the clappers.
I'd welcome any comments to the downside for balance (and hope we don't get the usual drama queens ranting about someone being a "deramping" (not even a real word) troll - some of the posters on these bulletin boards are appalling).
Don’t know I’m afraid .
This weakening now not just to oil but because the buybacks have completed
Very quiet day yesterday I guess the market is just waiting for news of the additional 5,000 barrels from Gb 4 to come on line in October. Can’t fault Eland for hedging on the scale of the overall production it’s not massive 645,000 bps. The decision will have been time when oil prices looked to potentially fall off a cliff (and made for sound budgetary control reasons). In fact every they do is well thought out and planned. A bit like a Volvo with a Cosworth engine lol. Good luck fellow LTH’s.
When (or indeed after what volume has been fulfilled) does the hedge expire, Mr Ni? Any idea. Thanks.
Sorry but the upside is limited because that hedging price is just too low and the rest is being sold into a retreating oil price. The likes of Pmo and Rre have theirs hedged in the high 60s .
I’m on a couple of other boards (where I’m also invested) and the chit-chat is properly hectic.
Look at Eland though:
Trailing 12 months PE of 5.3 projected PE on 2019 results of 4.2, 2020 under 3: chicken oriental.
Price below book value.
Little debt.
Growth assets.
Quality management.
This coiled spring is hiding in plain sight.
DYOR, but I’m tempted to buy more (despite my fairly large position and being long up the wazoo in AMER, another oiler).
No company in their right mind would scrap hedging policy. Oil was at just over $50 a barrel a little over a month ago. therefore when the hedge was taken out it wasn't at an "extremely low price"
Perhaps you knew the future?
Yeah but it’s extremely low price , they should look to scrap any hedging policy unless they have any financial concerns . Maybe they do ?
End Oct dividend likely to be about 0.78%? Is that right? Seems v small for such a healthy company. Have I missed something? Without higher dividends and delivery of anticipated higher SP, why does everyone hang on?
The hedging also provides protection against downside. Every company hedges. They have too.
Anyway, its roughly 30 days production from Opuama alone. Hardly a bad thing.
Totally limits upside and poor decision making by management
My favourite stock right now is DGOC on AIM a very well run USA gas producer.
ELA is also a promising company.
Some may see a small Nigerian Oil company as risky, however my Norwegian (Equinor) USA DGOC and Canadian Encana shares also carry risk if a Left Wing, CO2 obsessed, anti capitalist, anti oil company, government gets in!
Very quiet on this board these days being an old git remember there loads of chat on this board back in the day lol. Held ELA for over three years admittedly there have been few bumps along the way but it has always delivered. Back in the day ELA even had to do a placement to fund Opuama drilling campaign. Look at us now Op exploited and we have moved on to Gb. Company investing in a new pipeline to service Gb. Fortunately unlike the early days less worries was trouble in the Delta. As promised they have rewarded investors (in a prudent way) with a dividend . Looking forward to Amoebe exploration well and future drilling prospects within their license. To investors history suggests this share in never gonna deliver quick rewards. Everyone knows share trading can be risky (and I am into a few) particularly on the casino AIM. However ELA is as safe as it gets. Keep up the good work George Maxwell. Roll on Gb5 results.
Maiden interim dividend declared of 1 pence per share representing an approximately $2.6 million return to shareholders. The dividend will be payable on 31 October 2019 to shareholders on the register at the close of business on 18 October 2019
· Ongoing share buyback programme increased by a further £3.0 million on 20 March 2019 to a maximum of £6.0 million. Since commencing the Programme in November 2018 Eland has purchased 4,363,573 shares at a cost of £5.3 million, representing an average price of approximately 120 pence per share
When should we expect the first div?
Well regardless of the net debt figure, which seems to be due to infrastructure investment, the market seems to like it, highest sp for about 3 months, looking forward to first divi, the first of many.
Welcome back Hughes:-))
Glad I bought back in yesterday :-)
Totally agree Alessandro. ELA taking long term stance by investing in infrastructure. Great company and well managed.