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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.
Another Aim lifestyle company.
Over promising and under delivering.
Oil price also forecast to fall from here with global slowdown. Shareholders here have missed out on the oil price boom related rises that other companies have seen.
They don't have any money for any acquisitions and can't raise any with the share price being so low unless they want to massively dilute everyone.
Lack of transparency from the company doesn't inspire confidence while they continue to eat away at shareholder funds - the costs of running this tiny operation must now be disproportionate to the size of the company yet nothing being said about implementing a cost saving program.
Another abysmal failure - Immupharma where the Directors have also be receiving handsome rewards for not delivering in the last RNS the Directors agreed to forgo a big chunk of their salaries. That's what we need to see here as well.
Where has this joker come from. The West has blood on its hands. The US is responsible for causing the most loss of life/starting wars in the last few hundred years through its intervention on false pretences - one example being the lies about weapons of mass destruction in Iraq and consequently causing the loss of millions of lives. In the US you have a police force that is shooting black people without attempting lawful arrest. There is corruption in this country except that it is more discreet and not as open as in other countries.
I don't see you boycotting these countries.
You are not genuine in your posts imo as you are blatantly ramping Polx on the other board - a 1 billion pound company next year. Lol!!!! Get real the company is forecast to make years of losses and will need to raise funds again possibly next year as it is quickly burning through cash. None of these blockbuster type companies with innovative products etc has fared well in the last 12 months why will Polx be different? If you were a genuine poster you wouldn't be ramping on the Polx board.
I was invested in Polx but sold at prices near the £1 level having bought in the 20s looks like you are sitting on losses there. No need to make up rubbish though to get yourself out of the situation you find yourself in or if you are trading it to post what suits your investment at the time.
In the scheme of things the market cap of the company is over £300m so only minor dilution?
Energy has been one of the best sectors performance wise. This was the time to reap the rewards of the oil and gas rally they don't last for ever.
We are told that UOG is a safe stock as it is producing then it should show up in the share performance figures.
Whichever time period you look at whether it's 5 years, 1 year, 6 month, 1 month, 5 day the share price performance has been abysmal.
Long term investors have been let down by the Board - how much do the Directors take? They are the only ones profiting and the story is a familiar one....the next drill will massively increase....or Jamaica or Maria (which are years away and no plan yet for funding those) or an acquisition. Where do people think the funding will come for a sizeable acquisition when the share price level does not favour a placing and the company has struggled to pay the BP loan choosing to extend it.
It seems some of the tampers are here actively trading hence the positive OTT views but this has failed lth.