Firering Strategic Minerals: From explorer to producer. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
NBI's interim results look okay, the balance sheet is looking less precarious than six months previous but is it offering good future investment value at current levels. In the last HY report cash generation from operations was down almost 50% to £1.7 million (2015: £3.3 million) year on year but this indicator does not capture the efforts the BoD have gone to reducing the company's gearing, debt and improving the balance sheet. Last year at the interims there were 18,589,886 shares in issue, the share price was around 205p for a market value of £38.12m Today there are 26,114,752 shares in issue, at 90p values the company at £23.5m The placing conducted in April has provided a floor at around 75p for now and oil prices are near their 6 month highs, not that that is any great indicator of future direction - "Looking forward to 2017 and beyond, there have been some more reassuring announcements from the oil service majors who form part of our customer base. They rely more on the activity levels in the oil fields rather than the oil price itself and they believe the worst is over and are predicting a return to more positive levels of business in the future." Net debt almost halved to £8.4 million (2015: £16.2 million). The total raised in the placing was £5.3m. The fall in Sterling has also contributed positively, reducing balance sheet gearing "as the majority of our net assets are held outside the UK", According to the company "current trading, despite the decline in revenue, is continuing to generate sufficient cash flow to pay down existing debt as scheduled" What's more encouraging I think is net assets at 30 June 2016 were £43.7 million (31 December 2015: £35.9 million). The rise in the value of net assets comes in the wake of the falling Sterling. This has had a positive impact of £4.8 million on the balance sheet according to the company as more than 90% of net assets were outside the UK. Due to the dilution this equates to £1.68 per share (31 December 2015: £ 1.94). Providing GBP continues to weaken or remains low and the price of oil breaks higher in the coming year which is possible given recent announcements concerning OPEC this would be my preferred play from 80-90p. However worth stressing this is not so much a play on the strength of the business, GBP will likely remain low against most currencies as we creep towards March 2017 when the Prime Minister is s due to trigger article 50. Two exceptional events (placing & BREXIT) changed the balance sheet here. Come year end there will be a clearer picture of free cash-flow and debt reduction going forward. I think £30-35m market value could present itself if GBP stays low.