Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Hmm..... In case Ntorya turns out to be a failure/non-commercial, it will cost WEN 9.25 mln. In case Ntorya is a success, it will cost us about 44 mln (16 mln to SCIR + 35-6.25 mln remaining development costs), but the return will be a several times that sum.….
Personally I think there’s probably a 50-80% chance of failure, but luckily we can afford losing 9.25 mln. Perhaps this is indeed a necessary evil...
That took a long time!
impossible to buy or sell reasonable volumes of this share.
The Company forecasts average gross conventional natural gas sales, which will be classified as Additional Gas, as defined in the PSA (as defined herein) of 70-76 MMcfd during 2022 representing a 10 MMcfd, or approximately 16%, increase to the prior forecasts of 60-66 MMcfd. The increased gas demand forecast is primarily driven by encouraging discussions with the Ministry of Energy (“MoE”), TPDC and TANESCO to increase gas supply to new power generation facilities expected to be commissioned in 2022.
https://twitter.com/WenResources/status/1526186717375516672
https://www.theafricareport.com/203472/tanzania-new-gas-entrants-likely-as-industrialisation-gathers-pace-wentworth-ceo-says/
Hi Agd50; point taken. I'm not a day trader, more a buy and holder. I'm holding because of the potential and opportunities, which your post intimates, but i am increasingly starting to agree with many here that feel this is more of a mgmt self gratification club. I do think they are unambitious as opposed to conservative, lack vision. Increasingly i see that they are merely churning the asset - and a number of stocks i hold do the same - the difference is the benefit of that churning seems wasted on disproportionaly high mgmt costs, mgmt renummeration/reward rather than being shared amongst the shareholders.
As an aside, it was raised here about the appropriateness/cost of buying like 20,000 shares at a time every day under the buyback - it does lean to a very relaxed unfocused mgmt style. That said, i find it amazing that the buybacks are predominately at 21 or 21.5p a time......how are they getting a purchase price that i can never get near? As such the purchases are accretive, but in their number aren't really that great a show or confidence, and not going to engender a reevaluation of the SP.
In summary i remain very positive on the potential, but growingly wary of the management priority/ability.
You are correct damofarl, but this stock is not for day traders. Just confirming that the new president is eager to get this done. The lng facility will without doubt secure the value of wen and reduce the risk and open up opportunities beyond the arrangement with TPDC. Time to attempt a buy-in in some new gas field in the neighbourhood ?
agd50; obviously a positive link that you shared for the future/potential, but reality is it really has no immediate or short term impact; WEN aren't party to those discussions, and all being well it's a 3 -7 year time frame to realisation, so nothing that's going to change our day to day here, move the SP....
https://www.ghanaweb.com/GhanaHomePage/africa/Tanzania-to-sign-30-billion-LNG-project-1527122
https://www.sharesmagazine.co.uk/events/event/shares-investor-webinar-280422?utm_source=twitter&utm_medium=social&utm_campaign=investoreveningwebinar280422
Thanks to Fjones40
The only truly excellent news is that production reached a record of 98.5 MMcf/d in Q1 2022. Net profit will go up fast at higher rates:
2020: 65.5 MMscf/d: net profit = 3.4 mln
2021: 81.6 MMscf/d: net profit = 6.1 mln
At 98,5 MMscf/d I expect a net profit of about 9 mln, at 130 MMscf/d about 14,2 mln (only after drilling MB-5).
Downside is of course that no shareholder will care about the very high G&A costs, when production levels are above ~100 MMscf/d....
No debt, large cash holding and lots of known resource with a growing demand. SP should go up and an 8% annual dividend whilst you wait. What's not to like?
Nice cash pile burning a hole in their pocket but as Mick points out high G&A for a non operator. The only way to balance that is to either reduce G&A by cutting heads etc (Just increased head count) or spend some of that cash on Development and help balance the G&A.
Presentation looks good on future strategy looks promising. Kinyerezi-1 extension due this month. sounds v promising going forward.
Decent numbers, but much can be improved still. Reduce G&A by 3 million and increase dividend by two million; then it would be excellent. The opposite is happening unfortunately: G&A is a million up compared to 2020 and close to record levels, at 6,4 mln. Without counting the new venture opportunity costs even.
Excellent final year results - well done board
LNG project with talks to be concluded in June, export from around 2030 if all goes well: https://www.voanews.com/a/tanzania-seeking-to-join-exporters-of-liquified-natural-gas/6508028.html
Many thanks Alph, very interesting.
“Insufficient natural gas that could be transported to Dar es Salaam to fire the turbines in order to produce electricity that could significantly add to the national grid formed me to summoned owners of Mnazi bay and Ntorya wells. I have given them 18-month-ultimutam to increase production,” he said.
They want more gas from Mnazi Bay. Easy, sign a new PSA and M&P will drill!
https://www.thecitizen.co.tz/tanzania/news/why-tanesco-reassembling-is-necessary-3761092
They have probably paid one payment for the whole buy back program , don’t you think ?
The daily buy backs are frequent and small, and aren’t lifting the SP at all. The daily RNS seems a bit OTT to me - can they not aggregate and report monthly? Would be a lot cheaper.
After yet another year with a lot of pretending but zero achievements, even more bonus options for Katherine. Absolutely infuriating. Why does she not buy some shares herself? If absolutely necessary perhaps with a discount (30% max?) linked to the achieved NPV growth. Much simpler, much fairer.
No wonder the company moved to AIM... they wouldn't get away with this anywhere else. So frustrating!
Damofarl,
I've searched the internet on this but can't find anything unfortunately so hopefully somebody else with more knowledge on this can tell. The impact could be significant though: say it costs 1000 pounds per RNS (I have no idea!), then that translates to two pence admin costs per share for a small purchase of 50,000 shares.
On top of that there may be even more fees, such as cancellation fees or for holding the shares in treasury, so altogether extremely expensive if this is done on a daily basis. Maybe you are right: LSE could be an interesting investment, I need to have a look at it… AIM alone would be even better I think!
mick2020; good question that!
I hold a couple of stocks that give daily RNS's on their NAV and i thought the same as you; checked LSE and as you say, thought wow those fees are chunky, but couldn't find anything specific regarding individual RNS issuance cost.
Did come away thinking the fees are a licence to print money and should invest in LSE......