Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
3cardbrag- have you seen the Gamestop SP today, currently buying at $118 down from $331 on Friday, talk about clambering to jump ship. I have little doubt some of the hedge funds would had been loading up shorts at the back end of last week, as I mentioned on Saturday, will have made a pretty penny with the mass selling!
I was watching the price of it on Thursday after I got a message through my trading platform that they had stopped clients from from opening new long positions. Price opened at around $280 from $150 the previous day, hit almost $500, with a low $120 and closed at around $200. It gapped up on Friday and swung between $250 and $415. It's crazy when you think it was trading at $20 up until the middle of January! Lets see how far it drops back next week, as traders will have to sell if they want to see a profit. Also, I would imagine hedge funds and other traders may well be taking short positions at these greatly inflated prices, as who is still going to be buying at $331, nobody with any sense that's for sure!
I may pop on to Reddit and tell them how under valued Vog is, as they will do a far better job of driving the price up than management! :-)
It seems the items we really want some positive news on, didn't even get a mention. Selling a gnats fart more gas ain't really going to slow the depletion of cash. Roy Kelly has been in place little short of a year, its almost Dik by another name thus far, not sure he has achieved a great deal really?
They certainly would if the had a bit of sense and didn't want constant headaches in trying to get paid. They also have other potential new projects, so will likely weigh up the risk reward and decide thanks but no thanks. I guess we will see whether there is any mention of it in the next update, as there must be discussions ongoing.
Happysparrow, I will have a look. Do you not think Aksa watching the whole saga of Vog being shafted by a government backed company, may not have put them off a little?
dactions- I think RF was recently banned and looked to come back with yet another name a couple of days ago but that has been removed too by the looks of it.
There is no doubt there is money to be made in GOOD QUALITY Aim stocks, 75-80% of stocks I hold are currently list on Aim, SLP, JIM and TSL are 3 which have done very well. I even took to buying another African gas supplier in Wen, as small company like Vog, but at the other end of the management and profit spectrum.
happysparrow- Something on Eneo and West Med is possible, yet I would not hold my breath on Aksa being a surprise anytime soon, as I previously went onto the basic Aksa website to see where it looks to be in their own pipeline of projects, and it is only listed as a potential future project. Lets see if the potential project gets a mention in our next update. My main concern is without any of the previous mentioned surprises happening, they have little to drive the SP up, as we know based on current operations, they will need to tap the market for more cash within 6 months, as their operational costs are too high to turn a profit. I would feel more comfortable if Roy Kelly had spent more of his professional career in the Magic Circle as opposed to also rans in the oil and gas industry, as it's rabbit out of the hat time, rather than strawberry conserve in the distant future. I continue to hold more in hope rather than expectance, which is seldom provides a rosy outcome, but we shall see Mr.Sparrow.
I guess if you were lucky enough to buy from lower levels, is it worth holding into the next update? I had recently considered just taking a 60% loss and just getting out. If I had been at my screen when the price intraday touched 8p a while back, I'd likely had lightened up my position. The question is, what are the odds and likelihood of the next update containing more positive news than negative? In my opinion for it to be positive, it needs to contain something unexpected, like West Med sale or Eneo coughing up some dough.
Any rational thoughts most welcome.
That's certainly an interesting find there, we must be due an update soon as we've not had any news since the results back in September.
Most of trades are barely even pocket change.
Yup corruption is rife in that part of the world, but vog did not do themselves any favours. Saying that I recently invested in Wen who are based in Tanzania, but they are in a much better position than vog, no debt and profitable, plus pay a 6% dividend.
Cameroonian State royalty obligation
Following a protracted negotiation with the State of Cameroon, in August 2020 the Group has concluded a long-standing dispute regarding the Logbaba Concession agreement, and in so doing has crystalised a liability to pay back-dated royalties to the Cameroonian State in the amount of US$10.2 million (net amount due by GDC). GDC and its joint venture partner are seeking to ensure that the royalty amounts payable are netted against amounts due by the Cameroon State for their participating interest in the Logbaba Project and accordingly the Directors have included an assumption in their forecast that the amount of US$10.2 million will not be paid within the next twelve months as discussions continue in relation to the State's participating interest in the Logbaba Project. There is no guarantee that the State of Cameroon will accede and any requirement to pay the royalty in the short term would have a material impact on the Group's ability to continue as a going concern.
From the notes there could be a ruling at the end of January. The above was taken from the last set of half year results.
Hopefully the first of many for you!
Looking at the chart after the close today, was pleasantly surprised to see we are not far off 2 year highs, volume has picked up the past couple of months. Katherine Roe is on the panel for the energy event on proactive investors on Thursday, glad to see she is out helping drum up some further interest.
I had signed up to watch it 6pm on Thursday, if anyone is interested here is the link https://www.proactiveinvestors.co.uk/register/event_details/311
I just signed up for the proactive investors event, will be interesting to hear what she has to say, and whether she provides any clues as to the future. It's good to see her getting out there and promoting the company, as interest is pretty minimal at present. This company has plenty going for it, debt free, makes a reasonable profit, healthy looking balance sheet and pays a very generous dividend.
There is an interesting video on the Wentworth website where Katherine Roe is interviewed by Malcy, which I believe was from the end of November. Well worth a watch for those who have not seen it.
Yup all very positive there, solid update.
Very interesting presentation yet more importantly extremely positive. If everything goes even close to the laid out plans for the company, the future looks bright with huge potential of capital growth.
Very pleased I got in quite recently at just over 32p, within 2-3 years I can see growth of 4-5x from my entry, and that would only be back to a little above their pre-covid price, perhaps im being a little too conservative?
Yup you sum it up pretty well there. Its more customers we need not more gas, especially at the ridiculous cost of the last drilling program!!
Well the median P/E of oil and gas companies is around 10, so using that to get to 50p, a market cap of £120m, they would need operating profits of £10-12m a year.
At present that is very unlikely considering where we are at present, yet if Roy can eork miracles who knows......
Garrone- who highly recommended him?
Have the pump and dump brigade left the building???