George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. 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.
It just gets better by the hour
MM’s short of shares (again) hold tight - 25p by 1pm easily imho. 30p by close. Imho DYOR
17p to 23p another awesome day
Buying pressure crazy. Could well get back to 30’s as last week. Imho DYOR
A fully funded 18 month drilling campaign ahead, with the potential for exponential revaluations from the shares in the event of drilling success. That’s where this story is heading. ATB :)
Market is saying one thing, nickel is saying another. I’ll leave it to readers to work out who has probably got it right :)
Q3 prod is down 24% from Q1. Then you have negative cashflow on top.
And the rampers are suggesting NOG pays back $1.1bn lol
You may see you 25p in the next 10 minutes GeordieShores. Lol
Imho DYOR
Very tight spread now .
That’s not a double entendre btw.
We’re substantially undervalued. Even in the 50/60’s. Period. Potential for £££’s is realistic not ramping & even more so if offer is made. Imho DYOR
Seems the market isn’t buying the bears story. I wonder what they’re missing :)
2020 vs 2022 makes a massive difference. They have time and funds. For the rest of 2019 and next year they have a sizeable drilling campaign ahead, backed by schlumberger. What do you think will happen to the shares if they get a decent result? In that event, no one will care much about the berenberg price target, and debt concerns will be little more than fear in the rear view mirror, that some will profit from and others won’t. ATB
Look, I'm not hiding behind the Berenberg notes, but I'm basing my "2020 bond refinancing" comments on their notes. If Berenberg are wrong them I am also wrong.
However, NOGs share price of 19p after Berenberg's 25p estimate prior to the poor Well 41 news and after todays poor results seems pretty accurate.
What 2020 bonds, Geordie? Perhaps you mean 2022. If I believed every berenberg target on nog over time I would be a very poor man :)
Broker comments from 21/08/2019: Nostrum Oil & Gas is struggling to show its equity value, Berenberg analysts say. The bank says Nostrum Oil & Gas is facing an operational dilemma after disappointment at the Chinarevskoye field in Kazakhstan was replicated at the Northern area as well. Berenberg says the energy company will likely soon start refinancing processes for its 2020 bonds, which will be challenging if it can't achieve an operational turnaround by then. The bank cuts its rating to sell, from buy, and slashes its target price to 25 pence, from 200 pence previously.
And, that was before the RNS on 11/10/2019 saying "Following extensive testing on Well 41 in the Frasnian reservoir Nostrum has so far been unable to sustain a commercial flow of hydrocarbons from the well. The Company will now consider whether there are alternative approaches it can take to perforate other reservoirs. The Company does not forecast any production from this well in 2019".
So, fair value before the Well 41 news was 25p.
Today they have said revenue for the nine months to Sept 3oth to exceed $250 million, which is lower than the $311.4 million generated in the same period of 2018.
So, failing wells, turnover down and 1.1bn of debt.
Do you need to hear any more?
Here is the other response to Geordie from 24th. What 2020 bonds, Geordie? Await your response :)
“Geordie - fair enough, but one crucial factual error. They do not need to refinance their bonds until 2022 - they have more time than you suggest. Furthermore, you miss a whole variety of positives, for example... they have a substantial cash position, they are generating high levels of operating cash flow, they have 400m boe of reserves and one of the largest prospective resource bases in the area, they can currently buy back their debt at a fraction of book value, they have Goldman Sachs working on optimising the strategy going forward etc etc ... ATB :)“
What 2020 bonds?
geordieshores - you won't get a reply from the resident rampers on here. There isn't one. I've been posing the same question from 100p!
Okay, look. so many on here saying this is undervalued. Read my post from a few weeks ago. There are some good, factual reasons why this is "Fair Value".
They need to re-negotiate their 2020 bonds very soon or they cant survive. That's going to be difficult without a solid business case and currently they don't have one. What are they going to say "we are undervalued, renew our bonds please" . The issuers say "how will we get our money back?".
What is the reply????
Quite right sharebel. I sense a few shorters from lower down are changing their minds :)
Nothing at all in RNS to worry about despite attempts by some to convince otherwise which is laughable! It’s a good strong, solid update underlining fact this company is way undervalued. If the MM’s will let you, take advantage of the faux drop and fill your boots. Imho DYOR
It's going to try and bounce again off 17/18p. Could move up but don't get emotionally attached
See the uninvested derampers and shorters are back with their same old yet you’re still here guys taking down a share you’ve nothing to do with. That’s the clue.
MM’s need shares and this is an opportunist drop. We are worth triple this SP minimum on these figures alone and if there’s a takeover £££’s . Stay calm the MM’s are mugging you over if you sell now. Imho. DYOR
Doesn’t sound like a company going under to me. Next 18 months will be exciting if they can pull off a result .. :) “We are reviewing the reports and will look to factor them in when determining the 2020 drilling programme ..“
Lets say you have millions. So you but this for 38 milions ( market cap) but cash alone is 70 milion. And you get all assest on top pf that and debt not paid until 2022.