Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Well Var have said they are taking a 530 million USD write off at Balder today in their results,, so not going smoothly right now
GD
AA likes to be the one in charge, he is a mega millionaire he will not want to take on a serica role where he can't control the narrative with his own mgmt team. He has a lot of skin in the game here and wont want to sell his shares cheaply/loss. It's a case of waiting out 2024 and hopefully all goes smoothly at Baldur as that's the money maker.
So I make that around 8x PE ratio which is more than double the sector average
With gas prices continually falling this looks vulnerable to lower levels in months ahead unfortunately
Been ruminating myself on whether Serica has its eye on Kistos. Mr Austin with a 17.5% shareholding would have to be in agreement methinks and the gas price is not exactly upwardly inclined.
It wouldn't surprise me and the Serica shareprice is languishing close its low point since the descent from 443p ( which seems an age ago), with Kistos sp in a similar descent. Perhaps economy of scale presents itself and Mr Austin would certainly pigeonhole exceptionally well into a senior role at Serica.
Both of those are a distinct poss imho giving a decent return from here
Serica just had there RBL over 500 mill confirmed today
Unlikely unfortunately
They have to pay steep windfall taxes. Cash balances report minus tax to come. This government must be the worst I can ever remember
It’s very possible then that our market cap is currently less than the sum of our cash less debt.
The last interims update way back in September stated ;
“ Net cash and cash equivalents stood at €247 million at the end of the period, with net debt of €42 million following the assumption of Mime Petroleum's outstanding bonds”
So i would think that net debt has been significantly reduced since then. Also production has likely increased in the last quarter.
Very unfortunate that Andrew would just present the cash without the debt.
Would be nice to know where we stand.
Whilst i think all will come good here, the company could really do with improving their comms - some sort of regular update would be a start.
As Shell gets approval for Victory with its 179 Bcf of recoverable resource and 150 mmcf/d of gas production levels, which tie into the Greater Laggan Area infrastructure and hence generates tariff revenue for Kistos is clearly good news for the company. It also extends the life of the project and. its infrastructure and of course reduces operating costs so good news all round for the company.
I wish he'd put what debt/net cash was instead, we have to try and figure it out
Thanks Woodster - I think we took over Mimes debt of around Euro 40 million. So we should now be net cash positive.
We have debt as well that we took on at the time of last year's acquisition. We shouldbe net cash though now -were due 40 odd million in december from norwegian government
Https://www.shell.co.uk/about-us/news-and-publications/media-releases/2024-media-releases/shell-invests-in-the-victory-gas-field-in-the-uk-north-sea.html#:~:text=London%20%2D%20Shell%20U.K.%20Limited%20(Shell,homes%2C%20businesses%20and%20power%20generation.
Yahoo says market cap is £142 million, RNS mentioned just now by NQM says cash of EUR 275 million at year end. Have I got this right? If so we are currently valued at less than cash!
Berenberg raises Kistos price target to 485 (475) pence - 'buy'
I assume so,
Redemption date of the bonds was 22nd December and the company states in the rns that at the end of the 2023 calendar year we had cash and near-cash of approximately €275 million (including estimated tax receivables).
Very good news regarding the victory development too. From GLA we have had approximately 100MMscf/d going through the Shetland gas plant. From memory the plant has a capacity of 500MMscf/d, so our operating cost per MMscf/d has been relatively high.
Once Victory is online (and hopefully Edradour west and Glendronach) we should be processing 250-300MMscf/d with plenty of spare capacity for further additions.
aimo
The fact that we have to make an assumption isn't great comms, however that would be my reading although there is also n mention of the level of debt or net debt/cash. I know AA likes to minimise the blah blah but nevertheless either say something or say nothing!
Morning, are we to assume that YE cash was €275m after redemption of the 76.8m of the bond in December? If so, that’s brilliant news
With no comms from management, does anyone have a view on what we will hear on next (and could therefore be a catalyst for share price growth)?
Think there might have been a decent buyer in market today.
Big cold spell for whole of europe starting this weekend and looks to be quite extended.
I would forget about Serica trying to buy KIST, that was just a tit for tat response with KIST trying to buy SQZ, it wasn’t a real offer
I think we are at an inflection point, we have good opportunities in all our jurisdictions. The next 2-3 years are about turning those opportunities into profits. That is what I hope AA is concentrating on.
Kistos is the one true 'dog' in my portfolio at present but I'm still confident that AA will turn that around. As he said "We built a profitable business and then the government came along and took away all the profits"
He will readjust.
BDEV +9%, GSK +4%, LGEN +6%, SHEL +11% SQZ -4%, KIST -29%