Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Strange coincidence that directly after the Neo / Zennor deal was announced this week, our SP started moving south after being static for weeks.
Never mind, yet another opportunity presents itself to add a little more ..... soon be overtaking Mommur at this rate. :-)
Another great day by the look of things.. on separate note. Am i rght in saying that production net to serica could be 33 thousand with r 3 and Columbus by year end. Then the following year 45 thousand.bod equiv
A takeover would be a relief and would be at a premium to the crap we have here. Would put us all out of our misery too and could move in to something giving better opportunities for for return
Thought this share was going to make my fortune instead it’s made my blood pressure rise as I see the share flounder
Quintuscurtis. I think alot of lth are beginning to lose patience now. Not only that but my feeling is that a good few of us are approaching an age where time is running out in terms of this.The bod are no spring chickens either. Maybe they would do better to invest the cash pile into a large o ang player. Shell or bp springs to mind.
Totally agree. Something has to give if they want to make an acquisition in this environment.
My strong preference is that this company continues as an independent but I think this is becoming less and less likely.
Hopefully we get some good news on Columbus and R3 shortly.
Good luck to all LTHs. All in my opinion only
Has the point of no return been reached for SQZ to acquire a real bargain ..... I think that may be so.
Our relationship with BP may still prove fruitful, but as you mention Paul, the driving need to obtain an absolute bargain has to give way to the resurgence of the sector. Recent NS M&A have been around the $13/barrel, so an outright acquisition outside of a BKR style transaction limits SQZ greatly .... we either take on debt and/or increase equity.
We are both aware of the wolves that surround us ..... none more so than Viaro.
aimo.
I think it will be much more challenging for SQZ to get a deal over the line than many expect. Their criteria (gas, operated) plus a very high hurdle in terms of profitability means very few deals will fit. Speaking as a shareholder I’d rather have them buy quality assets that are slightly expensive than continuing to sit on the sidelines.
For me, the Shearwater/Andrew assets are the litmus test as they appear to be a great fit for them. If they continue with this ‘only at bargain basement valuations’ mentality they are going to end up with nothing and there are better growth opportunities with companies whose management understand that you don’t have to wait until the ‘perfect’ deal comes to grow your company through acquisitions.
I don’t think they have ever closed a deal that was competitive ... they’ve always used their BP connections to get a look in at North Sea assets that were ‘off market’ (Erskine and BKR). In the nearly four years since BRK was announced the company has sat on their hands and the share price reflects, in part, a lack of faith in them getting a deal done. Contrasted to KIST which is a cash shell that trades at a premium of approx 100% to it’s cash value because the market believes AA will deliver value creating transactions. In four years AA built RRE and our management was unable to get anything done despite the historic fall in oil and gas prices last year. No wonder why Mitch hasn’t reached into his pocket to buy SQZ shares ... he’s probably bought KIST!!!
In my opinion only.
Maybe if they did inform the market our share price would be trading at a more realustic level. Surely they could do this in some way .
Oh, forgot to add Remus to the list of Neo, Enquest, Kistos, Tailwind, Viaro to name a few actively looking to expand their NS portfolio.
Upomega,
"Surely newkotb any approach should have been intimated via an rns.... "
No, not at all ....... until the deal is done or someone goes hostile, until then, NDA's will no doubt be in place. Also, don't forget that if our board think any approach materially undervalues SQZ there is not legal requirement to inform the market.
For sure NS M&A has truly kicked off ..... imo, watch this space for more.
aimo & atb
Surely newkotb any approach should have been intimated via an rns.
Hopefully we will benefit by this. It is a shame that serica is now more likely to be taken over rather than rapidly expanding. Which back a long kept me holding.
So we have .... Neo, Enquest, Kistos, Tailwind, Viaro to name a few actively looking to expand their NS portfolio.
I would find it inconceivable that SQZ have not been approached given what we have to offer esp come 2022. Add-in the perfect control of our SP and you have the makings of a great story for ACW autobiography... " The Life & Times of a Hydrocarbon Addict" ....
aimo
Also, Zennor only have 40mmboe of net 2P reserves too .... so £450m is imo an excellent deal for Zennor.
Now if SQZ could pull off a deal on similar grounds, it has to value us at least upward of >£600m, 224p/s which is not far off quoted fair value price of ~217p .
https://finance.yahoo.com/news/serica-energy-plc-lon-sqz-053151148.html
What this does show is UKCS assets are wanted and at a fair price atm.
aimo
Yep,
Interesting that £450m got 5kboepd production, taking Neo to ~85kboepd and are known to be targeting ~120kboepd this year, SQZ's production would allow Neo to easily hit that target...... hummmm !!
Another one bites the dust. It is a shame that we could not have been the purchaser.