Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Putup are you sure you are invested in GKP. All your commentary has a negative slant which suggests you are not a holder.
It has already been clearly stated that SOMO will be responsible for the future sale and marketing of Kurdish crude, and NOCo will be responsible for the further technical development of the Kurdish fields – knitting them in with the future development of all Iraq O&G fields. NOCo will, of course, take local advice and knowledge into account in any KRI field development planning.
The point being, there is currently NO leaked overview of what such NOCo:KRI field development plans might include.
Until we have such knowldge It is foolish in the extreme to assume that any of the smaller independents have enough cash (or will have enough generated by local sales at silly prices) to deal with such unknown capital committments / Capex demands.
The fact that the possibility of a further capital raising was even mentioned is an indication that this is of major concern to the companies.
It should be of concern that the possibility of 3 or 4 operators going to the capital markets, yet again and all within a similar timeframe (and following such a value-destroying period) would be seen in a very negative light by the debt market.
4 might become 2…
Interesting article in Middle East Eye spelling out the dispute between Turkey and Iraq.
Seems Iraq jumped the gun to make a claim for the 1.4bln ICC award. But have missed the detail which Turkey have put forward explaining that when the full ICC is taken into account going back to 1973 then it is Iraq that actually owe 900+m to Turkey.
All of this should have been settled out of court. Dumbest thing is that Iraq has blocked the oil and revenue damage of 5bln. The Iraq lawyers should be fired for sheer incompetence.
Given the appalling history of Iraqis against Kurds this just rubs salt into wounds.
Even if the court case proceeds the pipeline should be opened immediately to max revenue and payments handled based on what is settled. Surely common sense should prevail.
Yep, 1382 posts, and only wrong once, when I bought those useless shares.
The truth often hurts,
When Brent reaches a point that Erdogan can no longer withstand the international political pressure. At the moment, he’s putlers fluffer but, he can’t keep that up much longer, he’ll need to get off his knees, scoop up his pride and get back to making real money.
When will the pipeline open?
A by the end of October after Erdoğan visit
B after October but by 31st December
C Some time in 2024?
JAdams
I’m not sure if you read the RNS correctly or you’re able to interpret what they were trying to communicate. The mention of external financing was the last on the list of options to retain liquidity. Only if: local sales, cost reductions and inventory sales have failed will they look to bolster the balance sheet with external finance. They were quite clear that: there is demand for Shaikan crude and current sales volumes are adequately coving costs. That alone will keep the wolves from the door but, with active austerity, the potential to increase sales and $80 million cash at bank, they have no requirement to go cap in hand to anyone at this time or anytime soon. The phrase is there because they want to be seen to be in control of a going concern, if it’s needed, it’s an option. Right now it isn’t.
If you're looking to get out, it would make sense if you talked the share price up, as you doom and gloom it, it makes more sense that you want the price to be lower, or maybe you are another misery loves company FUD let's have an argument you will see I'm right poster (surely not). They have finance options in place, there's no need for a share issue 💤💤💤
So why did they mention external financing then.
It’s so there’s no massive shock when the placing rns hits our screens
" Unless you think the business is failed and you just want out..."
No, it's mainly because I think further investment in Shaikan should be stopped until all arrears are paid and the contractual and legal situation fully settled with clear and stable route to market. We can't continue like this with a new crisis unfolding at every turn.
Meanwhile, risk takers must get rewarded, handsomely.
Best Regards ValueS
If a positive cash flow of any kind exists it should be returned to shareholders. Let the price stay at 70, 80, 90 p for 10 years, but at minimum return the 20/25 million annually.
ValueS,
I get the present direction of travel, as tenuous as it is.
I'm taking a position based on the sales possibilities, which are uncertain.
GKP can, to some extent, contain the costs.
The selling opportunities are a very different challenge.
Both the local interest in buying, and, much more importantly, the short term margins.
Why would we give back capital to shareholders right now when it may well be needed to shore up the Balance Sheet?
Unless you think the business is failed and you just want out...
Straycat, I did mention a positive cashflow of at least $2 m/m. Put in other words, GKP keeps the $80 m cash balance intact. Just in case!
Best Regards ValueS
"at this price the dividend yield is 68%. "
LOL! Kheldar has no clue.
Belongs to us as shareholders anyway so I would like some of it in my pocket let us not forget that
Why would a company that has almost half of its value in cash on hand and is turning over a break even not distribute cash in hand as dividends?
20 million dollars or 25 million would make a lot of sense in November or December especially if they have any confidence that the oil will flow soon
ValueS,
Let's repair the Balance Sheet first.
Put ourselves on the front foot again.
We took a lot of money in dividends when capital redistributions were on offer.
Let's dig in and hold (or sell, or buy!!).
In any case, now's not the time for any more redistributions of capital, surely?
Weathervane, 1382 posts and every single one dissing GKP, have u got a chip on your shoulder? lol
Filtered.
A redistribution of $25 m would really be a sensible idea (if not a must) if GKP can achieve a positive monthly cashflow of at least $2 m.
I personally prefer a buyback (for cancelation). With current SP roughly 10% higher than the OO price but the £/$ is about 10% lower than it was in 2016, it makes a perfect match with the OO equity issued in 2016!
A dividend, of course, would be equally good if it gets re-invested by the recipients.
Best Regards ValueS
This is not an Aim stock it’s a 250
Do what many did years ago, and rid yourself of this going nowhere company.
at this price the dividend yield is 68%.
people say the market is never wrong but for that to be true you have to have the right calibre of investors who won't panic. this maybe a contrary view but i think the majority of shares are being held by private investors and their ****ting the bed has led to the huge drop in the share price. i'm not complaining as i now hold a reasonable amount of shares.
the key thing for me is that there has been no selling by the institutional investors as if there had been then they would have to notify the market. my understanding is that any increase or decrease which goes over or under a % needs to be reported.
prior to the pipeline being closed gkp was trading around the £3 mark which is ridiculous when you consider it was producing 50k bopd. this was mainly down to the fact that although gkp have a legal contract with the kurds, the iraq government believes it should have a say. the friction has kept large iis away from gkp.
what people need to bear in mind is that the court did not say the contracts were illegal but the fact that turkey had no right allowing kurdistan oil to flow through the pipeline without agreement from iraq government. the impasse between turkey and iraq has led to the pipeline closing and the position we find ourselves in. to be clear the uk courts have already rules that the contracts are legal.
now, this isn't great news for gkp at the moment but stop thinking short term and look at the bigger picture.
if and it is a big if iraq and turkey can come to an agreement and iraq and gkp can come to an agreement on the contracts even if it does mean giving a slightly bigger slice to iraq then what do you think will mean to this share price. the previous £3 will be peanuts to what gkp could be worth.
for me the big rewards are well worth the risk. at current price market cap is £200m. iraq will not be want to be seen as a pariah in the financial world so worst case they may buy gkp and pay us £250m to avoid any length legal battles.
as usual on aim put in only what you can lose as in this wild west people actually do lose all of it on a regular basis lol
atb and dyor
The only reason anybody would do that would be if we were in debt we have no debt
That would make absolutely zero sense when they have 80 million dollars and local sales are successful and what would they fundraise for anyway
Why would they need a fundraise??, they are not spending any large CAPEX, in fact costs are being reduced, and current sales are more than adequate to cover overheads,
the only reason BOD would raise money is to pay themeselves their full wage entitlement, imo or Pay out Dividends??, but that would not make sense