Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Brilliant, thank you for the informative post. That is exactly what I was after. I was trying to weigh up the potential value of the 3x exploration and 1x producer. Hmmmm food for thought. With the cash I have free for this part of my portfolio (high risk) I am looking for potential 100% capital gain (just jumped out of SLE with that, maybe too early but I don't like to be greedy). Have any of you looked at VML also?
The spread is horrific in the morning in particular. So prob best not to buy/sell at that time, imo. Also, forgot to mention that this was one of the first shares I traded, so maybe a little biased! I see it at these levels as low risk, but reasonable (not spectacular though) sp increase. I'll stop hogging the board now! :-)
Lol, well balance sheets are a bit of a lottery, especially with aim shares to be honest. The $26m will simply amend the value of their other assets compared to the share capital of this particular company. Basically the way that the company would do it, is that issued share capital is basically the liabilities (plus any debt / loan notes etc etc) must equal the assets. So supposing that $26m is written off as an impairment, that will shrink the "assets" part (see March RNS for full year results). Look at "Intangible Assets", that will reduce by $26m (or some from property), but then the "Share Premium" will also drop - as assets and liabilities always have to balance (see 145,209k on both sides of assets / liabilities). All this does is reflect the value that the market currently place on the company. So not hugely relevant to be honest. An example of this would have been the dot com companies - their intangibles were always very high - there was not really any net worth to them, other than the value shareholders had placed upon that particular company. And as the market cap of the company was for eg. $100m, even if their only assets were a couple of servers in a basement, their intangibles would be say $99.9m, and equipment would be $0.1m. Obviously a very simplified example there! In my humble opinion, here you have a revenue generating company, with a modest income and modest plan for low-risk exploration in supra salt layers, to increase their income slightly. They have more than enough money to cover this year from their current cash alone ($25m cash, $8m projected spend) and for that they will get 3x exploration wells, hopefully increasing their proven resources, and 1x producer well. That's my reconing. I have a modest target SP of 140p, but again, this I perceive to be a realistic and likely sp. Bonuses to this would be in the form of greater resources (could cause a re-rating) and a resolution of the legal issues - which would be a c. $20m booster. Also, a large seller as Flirker says is hopefully running out of shares soon, and so we could see a bit of a rise. Not many of these shares are in free-float, so again, that's a positive for me as you only need a fraction of the trades for a larger share movement. Only my opinion and reasoning for my investment here, could be 60p tomorrow! GL whatever you decide to do
Hello, I am not stalking you I promise :-). Thanks for that, my balance sheet immaturity showing there again! So minus 26 m USD, I presume by then that had already been factored into the price. The research continues. I do like recovery type shares, especially ones already producing. They say never BUY into a lawsuit but it could work either way. PPVN, in your humble and honest opinion (as a name I know and have read very good posts from previously) what are the pros and cons here? Don't worry, I am doing my own research but always good to ask others also.
Hello! Another face on the board! :-) Impairment charge - basically the costs for the well are being taken off the P&L sheet for the company. As it was a sub-salt well they had quite a bit of value placed upon that well as an asset. Seeing as it didn't produce, its net value now to the company has unfortunately declined to 0.
Can anyone explain this sentance to me? "As disclosed with the Interim Results 2010, an impairment charge of approximately US$26 million is anticipated for this well". That was the only part of recent few RNS that I did not understand. I like the look of this company and am researching currently.
I then have another read of the below RNS from 2008 before they had the legal problems and the SP was circa 500p. What if these were resolved and were able to put the wells into production? From the last RNS it looks it may be a possibility so if I'm not totally wrong here then the future may be bright! Looks like capital have sold a few recently which hindered the rise but someone bought them and more. They did get them for 61p so you cant blame them. I think they should have waited just a little longer though.... http://www.investegate.co.uk/Article.aspx?id=200803260701107547Q
Bit miffed as to the drop today... seems to be on very low volumes so not particuarly concerning for me. Might get a few more of these, if they are at this level for too much longer...
Buy, sell,neither? Appears to be a buy going by the ask at that time. Something a brewing?
chunky buy to end it, looking forward to next week! GLA
Nice post, some wise words. Lots of buying should hopefully move it up soon. I hope so as bought more today, moved some funds from NGP which typically is up 12% so it better. Always the way ay!!!! GL
No news but nice rise and some steady buying, hopefully see some more of those biguns later ;) Hi Johnie, I'm sure the likes of the VOG,XEL,BLVN boards had there quiet days in the past. A busy boards means I'm late to the party and less profit to be made, I love a nice undervalued and unloved share. IMO its way undervalued and plenty to look forward to, to name a few..... Spud of Urozhainoye-2 in Q1, 3 exploration wells 2011/2012 which look very promicing, results of the 2 succesfull Vostochny Makarovskoye drills and start of production. Plenty of upside and with $25, no debt, producing and cash positive not much downside IMO. GLA
As this is a quiet board and your mention of being gutted about not being in on the rise made me think of my own thoughts on missing out on some other shares rang a bell with me I thought i'd put together a few thoughts - you can take them or leave them but they are things I've been told in the past and they have helped me quite a lot. Firstly, my reasons for investing in VGAS - it was actually one of my first trades back a couple of years ago, and I made a bit of money on that trade so i've always kept an eye on this share. I have probably 30 or so stocks that I watch - I find any more than that and I can't keep up to date with p/e ratios, earnings, what the company is up to etc etc. So when this dropped below 80, I refreshed my mind about the company. Firstly, they had $25.4m in the bank as of 1st November 2010, with no massive expenditure since then, or forecast for 2011 (so probably no dilution of shares). Secondly, the Trans Nefta legal case seems to be going in their favour, and could see a resolution soon. They are also revenue generating, and I personally think oil and gas prices are going to rise, hence my interest in this sector. VGAS also have few shares in circulation - quite often Russian companies will have individuals or institutions that will buy and hold the shares for years and years - there are fewer than 50% of these shares in free float, hence the frequent wide spread. The failure to find really large sub-salt resources was not an issue for me - its always risky as from what I understand the salt layer clouds the seismic readings and can reduce the CoS significantly - that just gave me an opportunity to buy in at what I perceived to be a low price. Spudding a well is when the rig is mobilised and physically starts drilling. From then, depending on the well type completion to TD (total depth) will be between say 25 and 60 days, depending on how deep it is. VGAS are planning 3 exploration wells (cheap, and help identify where hydrocarbons are but not producers, also they increase the proven reserves of the gas/oil field) and 1 more production well for 2011-12 (see RNS of 4th November). Their focus is now on further exploitation of the supra-salt field that is already producing. Supra salt is where the hydrocarbons are above a salt layer, so the CoS is much higher, and this will materially increase VGAS' income, with minimal expenditure. The CEO has mentioned that they intend to increase revenues (thus further reducing the chance of dilution) and increase the value of the shares. Lastly, some advise I was talking about. I was told by a friend a while back to never kick yourself for missing out. There are lots of opportunities out there. If you buy a share (and you want to buy a lot) buy half, and if it rises you were right and can buy more, if you still think its a good purchase. If it falls, you can always de-risk if you so choose by averaging down. I'm doing a long contract s/b on this share too, so no CG for me...! GL
Well done lads you had a good day!! well done. Im absoutley gutted and learnt a valuable trading lesson today, 2 weeks ago or so, I was looking at these and the only thing that put me of was the lack of posts on the board. So as you lads are back Im intereted, reading the information on the company and pottential demand required fro europe there is a hell of alot of scope for value....... would you agree? I dont fully understand the whole spudding and drilling process but when are we looking for results or is there a drill program for 2011?
Even better open tomorrow hopefully. Managed to get more at 82 this afternoon so I'm a happy chap. GLA
Closed @ 90p... Good-oh...!!! :-)
It never came back out of auction - was in for a good 8 mins...
Where we headed?
Another 2m, think they may have an inkling ;) Nice one Geo looks like you too got your advance tickets at a discount, others may have to pay a premium choo choo. GL
Bought these shares at 11:13 this morning for 81p exactly a share. Now the buying price is 89.75p LOVELY JUBBLY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Something definitely going on, agreed. No-one buys £1m+ without some sort of hankering as to where the SP is heading! Looks like we are the only two on the train... Hopefully will be joined by some others before too long! GL
BIG ass buys, and spread closed nicely too. I thought something was going down and its certainly not going to be the SP imo. God speed all!
With you on that one, hopefully see some movement soon. GL
on the buys, with some nice ones of late. Cant see this staying round the 80's much longer so I'm having some more if I may. Looking forward to the next update..... spudding of Uzen #11,update on VM field, result of workover. All good stuff I hope :) GL xxx
Willy is in too and is confident of a nice rise here soon. Last update - Producing 1376 bopd, cash $25 and no debt, drilling another well on Uzen in Q1, low MCAP for all this I believe. Majority of stock with large shareholders so think this is gonna move it when the good news comes. Looks like the massive drop was well over done to me. What really tickles willys pickle is the VM discovery though, the legal dispute looks very much in their favor and when its sorted let the production commence! The wells have tested successful and in line with their expectations, and I think the expectations were high! Good Luck all xxx