RE: 1p next and an opportunity for 10p+ by the end of this year15 Mar 2022 11:43
I was in the process of answering but actually Crownos’ post last night at 21.44 articulated almost exactly what I was going to say.
What I would add is that when investing in Aim plcs my philosophy is to look for the biggest gains possible. With SAR I bought in at 0.4 and sold a chunk at just over 8p (A x20+ gain and still holding quite a few even after the consolidation there). With TEK I bought in at 6p and sold at over 30p (& still holding quite a few). Both are at the forefront / cutting edge of their sectors. The risk is significant but so have been the gains. My due diligence always factors in the speculative gains to be made, which is why another of my favourites is TOM, as I can see the same rationale for investing that drew me to TEK and SAR. Crownos sums Tom up pretty well I’d say. This is what he said last night. Thanks in advance Crownos……
“So when you factor everything in and Tomco is currently just over $11 million market cap now then.... yeah, 10p isn't such a pipe dream. Of course that’s on the basis everything actually pan out and pans out before this years end!
And lets not forget, when extremely good news spikes a shareprice people will temporarily rocket the shareprice way beyond a companies actual worth before it settles down and averages out. So even if Tomco doesn't average out at 10p it has a good chance at spiking there for a good few days or week before it drops hard and levels out”.
As I say. See his post last night at 9.44pm for his background notes but I have included some of it below, as it mirrors the 1p to 10p scenario I have made. We’ll either get there or we won’t but for me TOM is at the tipping point. Will they do a SAR or a TEK ? Only time will tell. I think it’s looking exciting. Good luck, Brighty
Thanks to Crownos in advance for the below:…
“25x 100bpd wells = 2500 bpd, despite the oil rocketing in price lets say the mean average after this spike is $75 per barrel - $30 production costs on average for drilling - $5 fee per barrel for Valkor - $10 for transportation = Tomco gets around $30 profits per barrel, not taking into account tax etc. At a 360 day a year production equates to around $27 millon in gross profits per year on oil alone.
Next, the $130million in funding to build the 5k bpd plant and to purchase the rest of TSHII. If this happens then Vivikors contract with TSHII will transfer over to Tomco and Tomco will get $3 per barrel they produce ontop of the 50% of the profits from sand production they will already be getting, and lets not forget the $10k per month in ground rent.
Vivikor wants to build up to and produce a 10k bpd plant, but as stated in the RNS they are wanting 1k bpd smartish. On 1k bpd alone this is around 1.5k tons of sand and Tomco will get paid for half of this which is 750 tons. As I stated in a previous comment, frac sand is in a major crisis need right now and no doubt will do so for sometime to come, and this will no doubt be a focus area for this
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