Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Bit of a wiffilly interview............ If he pulls DRC off, he has still got to "trade" the money out of the country and the change of Lithium strategy to high volume export because the price of Lithium has halved this week is weak, if he can do that now.......why not before?
Pretty desperate but but AB might fly...........!
Stevo - thanks and concur and Tigar, see Stevos last post, the tax would effectively be greater than 75%! Bonkers!
Thanks peeps, 150m of EPL in 2024 would suggest net 350m FCF, so buybacks etc potentially possible 2024 on that basis or the 150m is too high.
Not sure about net debt being 625m at year end, I am hoping 575m or less. Brent currently at 89+, which will help.
ENQ down close to 1% whilst Brent almost up 3%............
US will keep its oil for itself or increasingly make energy security a leverage for other economic or military advantages, the Russians have already played the energy card during the Ukraine crisis, the Iranians are likely to be sanctioned for any number of misdemeanours and the Saudis and Gulf states will flex their muscles and pricing as long as their oil lasts and the Middle East crisis does not escalate. Then we have all the economic and environmental restrictions placed upon the industry in the UK, some good, some simply unrealistic against a background of growing tension around the World with anyone of half a dozen serious scenarios likely to kick off and adding further pressure on mass migration due to war, genocide, economic and plain old pestilence and starvation.
So the question for the government: Is it the right time to penalise the O&G industry to the point of destruction, kill jobs and expertise, dent GDP and UK competitiveness, and finally reduce the UK's energy security ahead of a financially realistic plan for net zero and workable renewable source and associated infrastructure is in place?
The government needs to get a grip and get real, it cannot play King Canute and King Herod at the same time, the tides of climate change and society's demands requires some real planning, in the real World and yes on a Global scale, but not at the expense of crippling the UK so that everyone else can go on burning Fossil fuels which are finite anyway. Ultimately, can we as individuals give up our lifestyles and can those aspiring to have a Western standard of living give up their dreams?
Dreams postponed and belt tightened - I am heavily invested in ENQ, foolish in retrospect, I did not realise how stupid Sunak, Hunty and Co could be, should have invested in destruction and defence stocks. Despite the backdrop of doom, I still believe as ENQ continues to get its debt under control thanks in large part to high POO, shareholders will have some sort of party between 30-60p within 18 months. November's update should help us refine a timescale.
Totally agree, Brent up 2.2% and ENQ down with almost no trades?
At $87, can anyone give me an educated guess at current net debt reduction per month?
Can't wait for the end of November ENQ update........
"Two Just Stop Oil protesters jailed after scaling a bridge at the Dartford Crossing have lost a bid to challenge their sentences at the Supreme Court."
Three years prison will make some extreme protesters think twice about taking action that impacts or endangers the public.
I get the feeling that the "public" are starting to realise there are no short cuts to net zero and if they society in some recognisable form is to survive then fossil fuels will be part of the transition and NS O&G needs to be part of that transition to renewables.
Still believe we should be pounding politicians of all parties, key figures and stakeholders and the media with concise arguments/potential impact of the current form of EPL - common sense usually dawns and hopefully it will n ot be too late - unless you are a lemming!
From Telegraph article: "Mark Carney has said it is “not right” to expect countries with oil and gas industries to “shut down overnight”, admitting that fossil fuels have a role to play in net zero.
The former governor of the Bank of England said it was important for economies to “build up the alternatives” before winding down oil and gas production, adding that it was impossible to “divest your way to net zero”.
Speaking at an event hosted by the International Monetary Fund annual meeting in Marrakech, he said: “In economies that have conventional energy — so oil and gas production — you can’t shut those down overnight. That’s not right. That’s not a just transition.
“You need to build up the alternatives. You need to work with the communities, train people, undergo the transition and all elements of that need to be financed. And they are equally worthy.”
Mr Carney, who now serves as UN special envoy for climate action and finance, added:
“You can’t overnight divest your way to net zero, you have to be investing all across the chain.”
Mansardman, if we did not have the tax credits and a decent management team I might agree with you, but we have a team that has delivered major debt reduction, met recent project timescales and costs and completed some decent deals along the way. When the government of whatever colour realises that NS O&G is an integral part of the economy and transition strategy, EPL will be relaxed and we may yet have a 40p party even if it is not 60p anytime soon.
The November update is going to be crucial, so that we can have a good look at the figures and I believe ENQ will give more detail on the form and time table for shareholder returns in whatever form.
Does anyone know how many individual shareholders ENQ has?
I always wonder as to how many shareholders have been directly affected by EPL across the Oil sector and indeed, the energy sector. If it is 10,000 then of little consequence in terms of political clout, but if 500,000 hold shares, then that would potentially be equivalent to 1.5% of those people who actual voted in the last general election. It is all hypothetical, but I cannot afford to vote labour unless I cut my losses and leave the NS O&G sector completely. Having said that ENQ with its FCF and Tax Losses/credits stands as good a chance of any of the NS O&G's to recover some of its shareholder value/MCap/sp.
DYOR but personally holding on for the ride and will re-assess at the end of November after the update.
Thanks Stevo, I overlooked that salient point, better just keep hammering away at the politicians and media whilst ENQ looks for more favourable places to operate before all the tax losses are used up.
I have to say with Russia and probably about to be joined by Iran under further embargoes following the latter's likely involvement/support of the attack on Israel, perhaps Sunak now has an out over EPL and North Sea. That out being energy security during transition to renewables, given the UK and Europe are largely dependent on Russian and Middle Eastern oil and gas, it makes sense to be as energy dependent and economically strong in an era of growing crisis.
As a minimum, they could increase the O&G prices before EPL becomes effective to say $95 for POO and allow all capital losses, plus give assurances for the future. This would immediately have a positive effect on NS O&G businesses and might make finance more available, ease stress on financial covenants and make investment more likely as business cases would instantly be more viable, but it would need comforting words from Labour as well, who if elected will want the revenues from the NS to help balance the books, which it will not do if in imminent and evident decline foreseeable.
Thank you FiveO, high priority but no timescale. I hope they are not waiting for a RRR fire sale and it would be good for RRR to get DRC or a Lithium contract in their bag to strengthen RRR's position in all respects.
Can't quite figure today, gas up 1.4% and PMG down 3.21%, radio silence sine the last RNS in June, that is a long time for no news. Beginning to wonder if TC et al are turning up to even turn the lights on? Well, at least we'll get a snapshot of what they have been up to in about six or seven weeks time................
Can anyone tell me what is happening with the Australian Gold Field Licences?
It has all been DRC - gone quiet - Lithium - getting eerily quiet - Australian Licences - have they gone to Greenland or Cyprus Bank or been stolen away like everything else, including shareholder value ?!
I don't get it?! De-list from the UK stock exchange and move your registered office to a more favourable tax regime, bingo the costs are covered and taxes reduced. I know it is a bit more complicated than that but others have done it, both companies and individuals. Result - the government will no longer need to worry about EPL or Justopoil, although we may have trouble turning the lights on to read are benefit slips once we are all levelled down.....but that me be a blessing if its your neighbours day to wear the shared clothing!
The Iron Lady would not done anything as daft...........oh err mmmmm poll tax, in some ways right or fair idea, but impossible to implement as opposed to EPL - wrong idea, but dead easy to implement, even retrospectively.
Is it the increased Global temperature...........what is going on with the World at the moment? Russia/Ukraine, West v's East, Kosovo, famine and mass migration and now Hamas has kicked off with an unprecedented attack on Israel.
What will be result of this latest conflict, surely a severe response from Israel and then what?
I assume that this is going to have some impact on the price of oil and gas, in the past tension always signalled a rise but will further conflict impact the Global economy? Logistics and Suez may also be impacted by a new full blown state of war in the Middle East.
Thankful that ENQ assets are situated in relatively benign locations at this point, let's see what this week brings, on a micro level ENQ low sp doesn't help, but on a macro level, I find this all very depressing.
Aviva and LGEN's MCap are currently in the same ball park, so if there is a bid for Aviva, why not LGEN. After all LGEN in my view is very undervalued and simply based on dividend, 2 x dividend cover without considering the assets and long term nature of the business.
Personally, as long as there is takeover news in the sector, sentiment will carry LGEN to a higher sp, personally back to 265p is a reasonable short term target.
Krak, I think ENQ shareholders and all NS O&G's shareholders deserve a medal!!
40p is a good two year target if POO and production hold, although we could be there this year if hunty scraps EPL.
I think posters are right in saying we should ask questions of our MP's in writing, anyone suggest some concise knock out questions?
Every 10 years of investing, I have a bad year and this is definitely an annus horribilis of the highest order!
Five £25,000 purchases between 16:15 and 16:21, someone is making an investment in ENQ.....
Krak, don't you mean £260m.......
What an hysterical joke !