The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Remember folks....these numbers are just for T3...... a lot more to come yet......
Thanks for the link to to Malcy's interview with Paul. Here is malcy's analysis of the situation. I must say I agree with him and think the knockers on here are missing the point... but what's new. Delays are commonspread (I know!) in this industry and generally worse in Africa. It doesn't usually affect the investment case - indeed, I was expecting such a delay on SD and it didn't stop me investing. People are so short term these days - I wonder if the whole concept of investment is fading away. Anyway, over to Malcy!
Full year results from SDX this morning and whilst almost all the data was already known they were a very impressive set of numbers. Net revenue was up 37% to $53.7m and more importantly netbacks were up to $41.7m ($28.9m). Cash was down slightly to $17.4m ($25.8m) but that figure is also good given the $44m invested by the company last year. Production was 3,574 boed last year but will double this year with the bringing on of South Disouq where the central processing facility, the 10km pipeline and the four well tie-ins are complete and ready to start production of 50-60 MMscf/d in the middle of this year.
In Morocco business is going extremely well, SDX has picked up three new customers recently and are expecting two more this month, the Peugeot factory should go fully operational in May thus making suppliers, who also take SDX gas keen to deliver. The target of production by the year end of 9-11 MMscf/d may therefore be achieved earlier than expected and with new customers paying towards the top of the $10-11+ range the economics look stunning. More importantly, SDX has announced that it is restarting its drilling programme in Morocco with a 12 well programme in the autumn of which three may be in this year.
The drilling campaign in Morocco, along with a number of exploration and infill wells in Egypt are all funded internally by SDX coming from existing cash balances and free cash flow which is helped by a 36% fall in receivables during the course of the year. With South Disouq coming on-stream in the middle of the year and the Morocco campaign scheduled for 3Q 2019 the stage is set for SDX to flourish and they are plenty cheap enough at the moment so upside progress of a substantial nature should be made
Just some thoughts for discussion.....(which I think have already been alluded to...)
1. Was it the TSX listing that complicated the prospective BP RTO deal? hence the delist?
2. PW has stated in interview and other media formats that SDX have a target of 75 000 boepd by 2020
(The BP deal may achieve this figure)
3. In interview....PW said with reference to the BP deal " a deals not dead until its died 3 x"
4. MEA name change?
I am expecting news regards the above sometime this year.....
you gorra laugh...lol
hxxps://total-market-solutions.com/2019/02/15/business-in-botswana
As this story unfolds...MTR will simply consolidate the share issue.......just have to wait for the right conditions.
I recently watched a debate (Bloomberg) regarding oil price and the Saudi economy. The Saudi economy NEEDS a $60 - 70.00 poo to even function and ministers have indicated that they will cut production to what ever level is required to achieve it.
When you know your right.........load up big!
Copper to rally 10% over next 3-6 months as economy perks up, Citi says
Feb. 4, 2019 11:51 AM ET|About: Freeport-McMoRan Inc. (FCX)|By: Carl Surran, SA News Editor
Citigroup turns bullish on copper, saying it expects the metal to rally by 10% over the next 3-6 months on expectations of a U.S. trade deal with China and increasing confidence in a global economic recovery.
Citi’s forecast follows a 15% drop in the price of copper over the past year to $6,116/metric ton, driven by a slowdown in China’s economy, but the firm sees copper prices hitting $6,700/ton in 2019, driven by a 2% growth in Chinese demand "led by strong growth in late cycle construction completions and power infrastructure investment."
Slowing sales of cars in China also will be offset by growth in electric cars, which use more copper, while copper inventories are at a 10-year low and are set to fall further in Q2 of this year, Citi says.
Fair comment Keithb1......I watched him on the SDX BB.....same MO.....he made his money and left.......it comes down to whether your a trader or an investor and if you have done your research for near term or long term gain. I think we all know MTR could quite easily 10 bag...in time..good risk to reward ratio IMO...and Sprotts....and the managements. I have been 60% up and 60% down on quite a substantial investment here.....to many times I have sold a holding for a meager gain only to watch it x bag some years later......not going to happen here....I will be letting the story develop..win or lose! GLA
Drawn in?.....remember; 'Technical Analysts' are predominantly employed by Brokers and Investment Banks and charts made freely available to highlight the points at which a buy or sale should be made....Why should charts and charting software be made freely available?....to generate broker commissions of course !...some investors and traders attempt to exploit these points in the investment cycle which are usually driven by sentiment in the short term....The true value of a company will be ultimately driven by cash flow - profit ...and conversion of assets, goods, or services into cash....Bonkers appears to be a short term swing trader and enthusiastically hypes the charts accordingly....not a crime.......Conversely, my colleagues and I have invested in the fundamentals and belief that the spectacular potential assets here may ultimately be converted into cash and the companies valuation will re-rate accordingly....good luck to Bonkers ....and all that sail with him :)
Great presentation.....really puts the potential in context!
Thanks Forest....
Gonna be massive....District Scale......just got to stay the distance!