Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Excellent summary ! Many thanks and well done ZENGAS, very good of you.
Thanks Zengas and others - much of what Zengas reports is in the podcast below if anyone hasn't heard it.
(The share buy back isn't mentioned though)
https://www.savannah-petroleum.com/en/podcasts
7E deal firmly closed and over with.
Gas to new customers at/around $7.50 versus equivalent diesel price of $15/mcf.
1 new customer pre christmas + more in the coming months. Couldn't sign any deals due to awaiting deal closure and especially not with distressed 7E still with the assets at the time.
I suppose it will be interesting to see the make-up of the soon to be announced first deal and we may get a clue as to what future ones could entail given the huge and environmentally unclean/noisy diesel set-up not to mention cost advantages.
Again mention of opportunity now for adding more assets including oil.
If share price remains weak in future, then no or small div and would start a share buy back instead of Div.
Although Niger drilling plans not elaborated on - a bit more explanation on the number of plays and more upside potential than previous. Hard to beleive there wouldn't be significant repeat success up those flanks which he described and which they expect.
Re stabilistation of assets - nothing reuired other than normal ongoing maintenance of assets for good working order etc.
Said Niger production of 5k bopd would depending on oil price range give $30m - $50m free cash flow. (Think this was the EPS phase 1-2 reaching 5k bopd to Zinder).
Company has access to export pipeline and amount depends on spare capacity. It's supposedly a 200,000 bopd pipeline and expandable. Last report was CNPC planning 90,000 bopd and Niger expecting to export hundreds of thousands of bopd you so would think 20k bopd would be possible at least and very attractive for any farm-in partner on top of the Zinder supply.
Former bondholders who got shares firm holders. Think he said one had been buying more and these were significant investors in the old 7E before. He thinks its PI holders who are main sellers and expects to attract new/additional Institutional holders when he does the investment case presentations with them shortly.
Calls it a severe disconnect in valuation. Always potential to be taken out/offers which like any board would have to consider.
First gas deal, followed by CPR, Niger plans etc is what i beleive was the rough guide of coming newsflow.
As i see it, Now the deal is closed and first new gas customer imminent, nothing else but to get on with it and grow the business and deliver.
agree with your point about the technology, allied to the fact that AK was evidently moving away from his mic at times I could not always make out what he was saying. however I suspect it was the best tech solution they could come up with at short notice, and felt that the call was unavoidable despite AK's pre-determined location, given the SP drop after the big news last week. that quibble aside, I am only more encouraged by the content of the call (the 90% I could make out anyway), it put some meat on the bones for me and am more than happy to be in here, confident it will ultimately come very good but perhaps just over a slightly longer time frame than some might have anticipated. But DYOR etc..!
Re: The guy was dialling in from Nigeria.....
Well that's really positive!! But doesn't the Internet exist in Nigeria?????
The guy was dialling in from Nigeria - likely between meetings ahead of bringing on new customers and getting the CPR and trading updates out in the coming weeks
Very very disappointing!!
The use of such a medium i.e. A Telephone call with appalling acoustics, was quite primitive! All other Investee companies which communicate do so via a computerised webinar! The quality of the acoustics and transmission have always been far better.
That, coupled with no real detail of future actions made that presentation a shocker for me!!
Thank goodness one can SEE the potential! If not, today would NOT have inspired me!!
GLTALTH's
NK