Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Posts: 469
for those that want to reconnect on GEEC and share information and thoughts/insights as the company moves to wards scaling production in 2003/4.
Posts: 608
Thanks for starting the thread Troy. I'll confess to snapping up some sub 5p shares in my wife's dealing account during the last couple of weeks, with a view to holding them indefinitely for an eventual divi. Brought my average down to under 10p too.
Posts: 608
I see that the GEEC chat page has now gone, so this is now our remaining line of communication
Posts: 608
The old chat is still accessible for now by using the direct link, although not through searching.
https://www.lse.co.uk/ShareChat.html?ShareTicker=GEEC&share=GEEC.L
Posts: 608
GEECL TO INVEST $700MN TO BOOST CBM OUTPUT IN INDIA
NATURAL GAS NEWS Jun 2, 2023 6:15:am
Great Eastern Energy Corporation (GEECL), an Indian coalbed methane (CBM) producer, plans to invest approximately $700mn over the next few years to increase gas output at its Raniganj (South) block, CEO Prashant Modi tells NGW. “We are going ahead with an efficiency capital expenditure programme in this financial year [FY2024]. This is expected to increase gas production from the existing CBM wells. We plan to further undertake drilling of another 144 CBM wells starting next financial year,” he said. “Thereafter, subject to government approval, the company may undertake d...
https://www.naturalgasworld.com/geecl-to-invest-700mn-to-boost-cbm-output-in-india-interview-105445
Posts: 608
Interim Results for the Six Months Ended 30 September 2023
https://www.geecl.com/pdfs/IFRS-Financials-30-09-2023.pdf
Posts: 469
Thanks for the link Bismarck. I notice that JP Jenkins have a mid price for GEEC at 4.2p so no real move from the price that GEEC was at delisting. Then again difficult to see why it would be. I like the look of the results. Revenues up around 38% and profit after tax up over 100%. Rest of this financial year is about increasing existing well production and then additional CBM wells next year. Balance sheet headroom look to be able to accommodate at least $100m of debt for expansion capex. I notice also that in the notes to the accounts that there have been two favourable court settlements in favour of GEEC that should bring $20m or so cash into the business. Add in a farm in at some point when they know whether shale gas is an option. All looks to be going in the right direction still. Might see if i can pick up a few more shares through JPJenkins in the not too distant future. Indian government have put in place measures to simplify and speed up approvals for pipeline land acquisition as well so this should mean that we are on the verge of a connection to Kolkata.
Posts: 608
Hi Troy
Looking at the JPJenkins site that 4.2p price appears to have been the result of one trade on 20 September? If you do pick some up please let me know how you get on and whether you were able to do it through a mainstream platform like AJ Bell or whether you needed to use the broker that Jenkins suggest (www.sharedealactive.co.uk), and if the latter, how you maintain custody of the shares after purchase.
To be honest if there are still sellers willing to part with them at that sort of price in any significant quantity (a 90% or whatever discount to NAV) I'd have thought either the BOD would have snapped them up themselves or done a buyback? I know I would in their position.
Posts: 608
List of brokers from JPJ website includes AJ Bell, II and HL but they are SELL ONLY
https://jpjenkins.com/download/11095/?tmstv=1696346175
Posts: 469
Hi Bismarck. Hope this message finds you well. Thought i would post a link to an encouraging article
https://www.goodreturns.in/news/kolkata-gail-gas-pipeline-clean-fuel-boost-gen-1330215.html
while pipeline is only one piece of the puzzle for GEEC, its completion is likely to increase demand through time for GEEC gas. Then the main question of how they are going to pay for the huge capex plan over the next few years needs to be answered. Given that they are profitable, lowly geared and growing year on year again i think things are looking good. One way or another if the progress continues and they develop out the field fully (especially if with shale gas reserves as well) the true value of the shares will be reflected in the share price - private or public. Feel like we are finally getting a bit closer to the end game.
Posts: 608
I'm well thanks Troy, you too I hope
Thanks for posting the article, it is indeed encouraging to read that Gail's pipeline will finally be completed.
I am looking forward to seeing their FY23 results when released in a few months. For FY22 they made $3.16m or 5c/share then in the following 6 months to 30 Sept 23 alone they made $2.67m or 4.5c/share, so would be great if that keeps up for the remaining 6 months of FY23 with $5-6m or 9-10c/share for the full FY23.
The financing of shale will be an interesting problem to solve. They obviously have some ideas and must have had some discussions with potential partners. No news releases of course, it would be nice if they would provide quarterly or even 6 monthly updates.
Posts: 469
All good thanks Bismarck.
Am i right in using then an earnings based measure of valuation for a rapidly growing resources company as a baseline valuation? so in this instance roughly 8p of earnings which could be put on a 10x P/E. and then look at the resource based valuation once we have certainty that GEEC can get this resource fully extracted (which remains to be seen still with the immature end market and financing questions still outstanding). Obviously, with it being private its a bit of an academic question with relisting, buyout or long-term divi stream being the only ways we get our return. Just nice to have a handle on a theoretical value.