Member Info for Balanced66

Yes S_T and another earlier on.

You can't read it seems as well. I gave you the source of the capital light comments and it seems you don't listen as well go listen to the presentation again.

I can understand the frustration of lth on this board when you have posters like this and others who don't have anything better to do than clog up share based discussions.

Yes we got your point about the distribution but there are other opinions.

If you don't like it go elsewhere. Lots of stocks available!

I disagree. Happy to receive a distribution.

A capital light business model and they have more than sufficient funds to expand for the core business.
There was £0.9m of physical capex in H1, which is small so "it is a capital-light, know-how-heavy business model." (from Stockopedia analysis).

Any acquisitions will most likely be bolt on so cash they have and will build going forward through cashflow is sufficient. Acquisitions not likely for a while yet so why keep the cash? The presentation explained this well.

We will have to disagree.

Also recommend as a buy by Stockopedia.

In the presentation the company mentioned organic growth being the focus as they have many opportunities to go after. Acquisitions was mentioned and the company said not yet.

The company does not need to spend a lot on capex as it is a low capex business.

In that scenario a capital distribution makes sense. Investors don't like to see large piles of cash on balance sheets not doing anything.

Agreed. Some people don't have a social life it seems and they need the company of anonymous posters on chat boards!

Still not sure what all the relevance is of this non share related chat. Last time I checked the board was for HVO discussion. Smacks of desperation by some posters.

Any way to offer some balance here is some more information on the said group.

https://www.nytimes.com/2022/09/22/us/politics/project-veritas-lawsuit.html

Not the same methods is it? One is lawful by law enforcement agencies and the other is a criminal activity. Some people are not able to distinguish between the two it seems.

So we're responsible for the multinational Pfizer? The quality of some of the posts on this board is shocking.

Looks like a nothing story to me - it's not even on the Daily Mail link anymore.

I found it on another website and it is clear that if the story is true then all that is being discussed is theoretical experiments (yes NOT been carried out!) and the alleged discussion is in the context of CONTROLLED experiments, if they were ever carried out. These are all FDA etc regulated pharmaceutical companies. Isn't that what big pharma do, carry out experiments? Lol.

Look up Pfizer and past controversies there have been a few whether they are valid or not I'm not sure as there is a lot of scare mongering on the internet. They haven't stopped Pfizer becoming the third biggest global pharma company in the world over that time! But again what relevance is this to HVO a small circa £100m company? None.

Previously this was being touted as a "producer" and comments made such as other small oil companies are on higher valuations and aren't producing etc.

Now the talk is of selling assets and realising cash. So it has gone from being a producer to an investment type company trying to make profits from assets. Lol. If I wanted to invest in an investment company there are lots around on big discounts to NAV. One of the comments below mentions exploration recognising the reality of the situation and the increased risks. Previously this was heralded as low risk wells etc.

Not sure if an acquisition is possible as debt will be high and a few million is unlikely to be enough to buy a decent asset.

Company should have raised cash when the share price was higher. The cash balance will dwindle away pretty quickly.

Most of the popular and well known gold mining companies and for that matter most global mining companies are in jurisdictions other than Western ones. This is the norm. Even for companies of the pedigree of Barrick Gold, Anto***asta etc. Look at something even like Franco-Nevada perceived as a safe investment and it invests globally and only around 35% is in the US and Canada.

That is the nature of mining. If investors cannot accept these risks then mining as an investment theme is not for them.

What AAZ have to their credit is a very strong relationship with the Azerbaijanian government which is sometimes lacking with other mining companies.

A solid profitable operation with huge resources underpins the lowly valuation.

Shambles really. The shenanigans with borrowing shares and governance issues are really worrying. It's high risk now with mounting liabilities and very low gold production. The 24k Oz production seems to be a pipedream.

Puregold another company and what can happen when things are poorly managed, production is low and debts are unsustainable.

One of the most ramped up shares as mentioned on this board a while ago by someone. I have to agree with that statement.

Some good US inflation numbers should lead to dollar falling further but I'm no expert in that area. Copper in break out mode. It is normally used as an early signal for recession or recovery.

China may be partly behind this rise but inflation looking better than before and just now US producer price index is showing a big fall.

All positive imo going forward.

https://www.fool.co.uk/2023/01/17/3-aim-shares-id-buy-to-hold-for-the-next-10-years/

Have to agree with Vistaman. The house broker valuations are normally just pure fantasy as I have seen these types of valuations on other shares.

A low price achieved which will extend the runway for this lifestyle company. However it is not going to increase production through another asset purchase as some were calling for. A share buyback is a waste of time as it will not address the economics of the business and most buybacks lead to shares falling back to the pre buyback level.

@02 I don't think the market is punishing UOG for lack of progress on Jamaica. Obviously if there is real progress and good news on Jamaica the share price should reflect that. The market is probably not adding much value for Jamaica at the moment as the BOD have not really shown yet they can do a deal on it

UOG is being punished imo for the fall in output and the lack of success in new wells to increase/stabilise production.

There may also be concerns about funding if as posters here have correctly assessed cash levels have been depleted. The market is punishing companies that may/will need to raise funds imminently. Distressed share placings by a number of companies recently have wiped out existing shareholders.

I'm not suggesting that's going to happen here but if cash levels are severely diminished then that will raise concerns in the market. Debt funding with dwindling cash flows and existing debt might not be possible unless a further debt consolidation is done not sure what that might involve or the terms.

If cash is still plentiful for next 12 months at least then any concerns should be allayed. Just my views.

Thanks for the link Jono. So all very vague.

"It is recommended that if the degree of commitment is not such that the accumulation is expected to be developed and placed on production within a reasonable timeframe, the estimated recoverable volumes for the accumulation be classified as contingent resources.

Contingent Resources may include, for example, accumulations for which there is currently no viable market, or where commercial recovery is dependent on the development of new technology, or where evaluation of the accumulation is still at an early stage."

If they were talking about a sale they would say "interested parties" I think. A number of options sounds like a review, like a strategic review to say we can sell it, we can develop it for £xx amount by ourselves or with a joint venture party etc etc. So a report on options before deciding on which one to pursue? Sounds to me that this will take some time to actually progress and "due course" in the RNS doesn't give any time frame that's immediate. All imo.

"We are making good progress on potential options to maximise shareholder value from this licence and will provide further updates in due course." Sounds like the same kind of statement that has been made on the Jamaica prospect! Is this the start of another long waiting gaming?

There is also the reference to "contingent resources" and the uncertainty of these. What does that all mean?

"Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources, by definition, are not classified as reserves due to several conditions including but not limited to the uncertainties of future oil prices and performance of the initial pilot wells in the first phase of the field development of the project which must be resolved to ensure commerciality. There is no certainty that it will be commercially viable to produce any portion of the resources."

Coldspy

You were ramping this on other share chat boards yesterday including AAZ which I'm invested in. Think of anyone who bought yesterday on your ramping this stock and now sitting on a big loss the next day.

You guys seem to be backing a bunch of amateurs when their are other well established gold miners on better valuations without debt and better management.

Many of these kind of forecasts/valuations are not reliable or bear any real world relevance. Weren't there broker forecasts saying this is worth 26p plus might still be around those broker forecasts. Yet the share price is at less than a penny. Lol.