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You have it In a nut shell OF plenty to wait for here imo
Gambier,
after the sell the new crew exit stage left... given a large crew from Twitter this time round.
You can also invest in the successful news!
Driver is the increasing cash and recent/on-going operation successes (OK driven by gas prices.)
50's seem reasonable to me also for now. So there is no difference in opinion!
Higher possible with new wells on-going converting C2 to P2, on-going asset sales and whatever corporate actions the swelling cash provoke.
“Really surprised at the level of drop here”
Why? People who bought when there was very obvious value have taken profit.
If you were to buy in now you need a compelling story beyond just gas prices (gas prices being the driver of the recent price surge).
Current SP look like a reasonable ball park valuation, maybe a little low (50s probably still reasonable).
Really surprised at the level of drop here.
Twitter suspect No. 1!
In 6 weeks time this will be chased up awaiting the next set of resultsThey are bound to be exstremely good whilst also being in the middle of the winter season.aimho
An article has appeared on Times.co.uk website.
In essence, UK likely to sell various armaments to Ukraine to counter risk of future takeover by Russia once nordstream2 pipeline in use (bypassing Ukraine). Suggests meddling at moment would be counter productive as needs existing (through Ukraine) pipeline for Russian gas exports.
Maybe it’s matters like these which weigh on investors and keep the SP lower than it might be if JKX was drilling on the Isle of Wight.
Link below (paywalled).atb
Britain in talks to sell missiles in first arms deal with Ukraine.
https://www.thetimes.co.uk/article/47fa87a6-31ed-11ec-afd6-aa3ee2eb8a34?shareToken=70f4ddf64514c8c5aadc0abcbe5d8b8e
No worries over the gas price fundamentals changing in the short term.
A TASS report this afternoon says that gas prices are set to remain at the current level according to Russian Deputy Prime Minister Novak.
hTTps://tass.com/economy/1351999
As I suspected jkx are focusing on Ukraine and may seek acquistions as reported on Market Watch
What do JKX plan to do with all this cash? I can't see any history of a dividend payment nor a presentation outlining dividend policy...
I understand cash may be used to hopefully grow organically, but surely with such a large cash pile compared to market cap, they would pay a dividend?
Thanks for that useful info,could be selling due to panic on surposed delay
The results from a 10 day flow testing of the R110 well on the Rudenkivske licence won't be out for at least a week.
It's already gone past the point for a complete failure of R110 to hit the target. If the reservoir section's net pay was too thin to justify completion of the well then negative results would have been reported by now.
TD was on 10th October at the earliest, then allow a few days for completion and perforation of the well before starting a a suite of production tests.
I think the flow test results are more likely to be positive the longer this goes on before an RNS.
SP looking a bit oversold right now. Don't know why? This coming quarter will probably be JKX most profitable to date.
Looking forward to an upward rebound soon.!!
Sorry Gambier 18.5 to 55p in a very short time…. And yes 4-5 months is a very short time! You can’t expect people not to sell out if they doubled, tripled their money!
We’ll talk again in 12 months!
‘Gambler14 - If you don't see the difference between having $30 million extra in the bank and hoping to have $30 million extra in the bank there really is no hope for you’
As a driver for increasing this SP by 50% in three months, no I don’t see a difference.
Gas prices are solid, as is well performance. What do you think the market wants to be sure of? That the money isn’t stolen? You should have more confidence in the company.
Gambler14 - If you don't see the difference between having $30 million extra in the bank and hoping to have $30 million extra in the bank there really is no hope for you.
“At the moment it's cash levels and expectation of good results over the next quarter that is driving the SP. What will increase the SP is if that expectation becomes fact. In 3 months time we should have an update showing a big jump in cash levels and hopefully a very positive outlook for the future. Then the SP could rise to the next level”
I think you are being obtuse. What is the difference knowing the rate cash generation and the actual cash. Is it: I can see the rate of cash generation according to gas prices that can’t really go anywhere and so that is 45p, but hold on, 3 months later I see a balance sheet and now it is 70p. So your position is that the SP will rise massively based on hope - hope that the market has some superstitious requirement for 3 month conversions of rate of cash generation to actual cash ?
Don't rule out a takeover of some sort in the meantime imo
At the moment it's cash levels and expectation of good results over the next quarter that is driving the SP. What will increase the SP is if that expectation becomes fact. In 3 months time we should have an update showing a big jump in cash levels and hopefully a very positive outlook for the future. Then the SP could rise to the next level.
your either a bull on commodities or not. so little now with a company that is confirmed to be making good money is about what they do today or tomorrow its all global, macro economics that dictate the direction of the commodity prices and what is coming next.
so in the next four months are commodities staying strong, going higher or are we going to see drop in demand and loss in prices? potential good inflation head as the costs tend to be passed straight onto the next customer but not always. invested and watching this one until xmas, more to come.
“Gambier - The price of gas doesn't have to rise for the SP to get to 60/70p”
I didn’t say it did, that was the claim of another poster. I merely asked, according to that claim, what the gas price would need to be.
“Every month at the current high price (or even lower) is putting money in the bank - the more money in the bank the more pressure on the SP to rise”
But that is objectively true, it isn’t a new discovery for the market to make. And nobody is going to magic new gas out of nowhere in the next 6 months, so gas prices are going to be strong and that will be reflected in JKX cash generation, that is a certainty.
So something in addition to this will be needed to make a jump into the 60s or 70s. If you buy in at the 70p you will need think that it is going to go to 80+ in order to make that a rational investment. Gas prices and cash generation is leaving the SP at nearly half that.
I’m asking for the drive to those much higher SPs. At the moment people are offering nothing beyond what is already objectively known by the market.
So, disposal of assets? Maybe. Ending of court cases? Maybe. Drilling success? Maybe. Announcement of a new strategy?
Gambier - The price of gas doesn't have to rise for the SP to get to 60/70p. Every month at the current high price (or even lower) is putting money in the bank - the more money in the bank the more pressure on the SP to rise. If JKX do bank $30 million over the next 3 months the SP will rise. If they sell the Russian and Hungarian business's for decent prices it will go even higher. In the near future the SP will jump around a bit, but it will move in the right direction before the next update.
Jmo 80's before years out
“The price of gas is going up and will make it go to 60p to 70p not rocket science”
Ok, so you are assuming at the current gas price the SP is stuck around high 40s / low 50s. What price is gas going to go up to in order to get the SP into the 60s or 70s? It not being rocket science, when is this likely to happen?
The price of gas is going up and will make it go to 60p to 70p not rocket science
The russian sale makes perfect sense as turnover in gas value is blurring the true value in ukraine and also takes away the political uncertainty.