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Spike, if value hits $10 a barrel then that’s a 9p share price. Still unfunded but firstly, if the well comes in as expected by ADV, the economics should make financing relatively straightforward, secondly ADV would have had to show CNV a credible funding plan. Maybe even letters of intent by funders.

Spike, you may misunderstand the economics of this well and reservoir. If ADV hit their 2C target then they expect to extract those 12m barrels over about 2 years at a margin of $70 a barrel at current oil prices. Yes, they will have additional costs such as corporate overheads and interest on the intended loan. So let’s say $60 per barrel operating cash flow. So to suggest that a value above $10 a barrel is not credible misses the particular economics of this project.

PoC
It could be gas on the basis that you never know for sure until you drill. But all the nearby fields with the same reservoir are oil, so highly unlikely.
I would have thought oil or gas was ADV's first question when they considered the opportunity and obviously rejected the gas possibility.

Think they’ve got market cap and NAV the wrong way round.

SP Angel note today wrong I think. Market cap is £26m not £34m as claimed. NAV around 40p a share adjusting for Lucyd raise at $20m pre money. Trading at 50% of NAV before further portfolio news.

Significant things also said were ‘investment bank” and ‘frothy markets’. Investment banks don’t bother with small deals. My interpretation is maybe a SPAC of Guident is a possibility over the next 12 months after signing a few customers. Also Cliff said maybe Guident had the lowest latency of any monitoring solution. So they have to be a front runner with any car company.

TKOTM,
7 of the largest 10 companies in the world by market cap have never paid a dividend. Please be assured they have plenty of institutional support.

I think it's just the possible pool of investors who can buy 7Dig at the moment is quite small.

For IIs it's difficult to justify a purchase before meaningful figures are released.
For PI's, some who look at these types of companies are already long. Other PI's are waiting for more guidance from a broker note or company presentation.
Herein lies the temporary buying opportunity.
Lots of shares go nowhere for a time and then say 10 bag within a year or two.

Yes, I think your possible revenue of £20m in 2021 sounds very credible. Not sure the costs would be as high as £15m but maybe I'm wrong. In any case £33m market cap will look very cheap.
Once we start getting some figures to guide us then hopefullly institutions will start buying in.
Maybe the Triller IPO prospectus will give us some meaningful licensing costs.

Yes, my view is even if Tesla don't adopt them on all their models (maybe just the Cybertruck), there will be more niche markets where extra range, so allowing longer time between charging, is valuable.
Vehicles like buses which are always stopping and starting could be a good market. 4x4 off road cars as well.

Gheko,
I hope they SPAC Guident. We'd get a vastly higher valuation once we sign some customers later this year than using TEK's AIM quote. Also, Guident is essentially a US company so a Nasdaq SPAC would be appropriate. Here's some valuations I posted on 12 Jan:

Interesting article in the FT today showing market caps of suppliers to EVs following SPAC IPOs. Lidar suppliers Velodyne Lidar at $ 3.9bn market cap and Luminar at $ 10.2bn. QuantumScape - batteries - at $19.3bn.
Wonder if Guident could SPAC in the 100s of $ m if shock absorber trials and software go well over the next few months ?
Not impossible compared to other suppliers.

So if it's a say 3% energy saving then 4 shock absorbers could extend the range by 12% ?

I 'm thinking commercial vehicles like taxis and trucks could be early adopters as they'll be able to work out the $ savings and range between charging benefit the easiest.

Thanks Goodtosee.
I see 2021 as a year of discovery for 7Dig shareholders and potential shareholders.
As we see more figures reported this year we'll realise the huge undervaluation of 7Dig.
What price the leading company that enables the vast social media and at home fitness and other environments use of music ?
It's got to be a lot more than the current £36m.
One other thing - I think the music companies love 7Dig because it acts as a third party auditor. If just say a social media company dealt directly with music companies, they could in theory game the system - say download one track to a 'user' then internally distribute it to real users. Much less likely if 7Dig is compiling the music usage data.
My guess is some of 7Dig's recent wins have been at the insistence of the music companies.

10p a share. That's £10m run rate profit at 27 P/E roughly, so £270m market cap.

I get that by taking 450m daily end music users - Kuaishou (350m) plus 100m others eg Triller.
Each listens to 5 music tracks a day. So 821 bn tracks a year.
The social media or fitness etc company pays 10% of what Spotify pays the music companies for a full track ($0.00325 per listener for Spotify). That's because many of the tracks used are only a few seconds long.
So that's $266m a year paid by 7Dig's customers to music companies. 7 Dig enables the music so it's 'charge' is 10%. So that £18m of revenue a year on costs of £8m equals £10m profit.

All complete guesstimates because 7Dig has yet to release financials giving us a clue but seems reasonable. Maybe a lower percentage but higher streams per social media user every day? People who use TikTok watch over 20 music based videos per day I think.
This doesn't include further clients wins this year eg another big social media client which could double the above if won.

PL said 'highly positive outturn in 2021' on page 2 of the newsletter.
Just IMHO they're having to be secretive figures wise at the moment so as not to jeopardise the big social media client negotiations.
Once that's hopefully landed, the figures coming out in interim and finals for 2021 will make this share look completely mispriced.

Maybe they want to clean up the share count to facilitate share buy backs from 2022 onwards. With the free cash flow they are targeting next year and going forward they could halve the share count in only a few years even at a 1p plus share price or £1 post consolidation. I hope they do share buy backs It's not obvious what other mining opportunity offers such good value.

Interesting article in the FT today showing market caps of suppliers to EVs following SPAC IPOs. Lidar suppliers Velodyne Lidar at $ 3.9bn market cap and Luminar at $ 10.2bn. QuantumScape - batteries - at $19.3bn.
Wonder if Guident could SPAC in the 100s of $ m if shock absorber trials and software go well over the next few months ?
Not impossible compared to other suppliers.

Maybe people have picked up on this already but Microsalt are working on a new version with sodium reduction going up from the current 50% to 80%. If this all works - and they should know within the next few months - that's a complete game changer.
Excess sodium - responsible for tens of thousands of deaths a year - could almost be eradicated.

There's another reason EV manufacturers could want Guident's shock absorbers - they can also be sensors. The electric current they produce is a function of all sorts of things like road conditions, weight of vehicle and contents, how often braked and turned. The current produced could be recorded and analysed. That data is very useful to both EV makers and others like traffic systems and road maintainers.

Like the fact Angola through equity ownership, royalties and taxes gets a very good share. If PA and team can pull everything together Angola is going to be looking like a very smart, well rewarded partner. Best investment in the new green economy by a country ?