The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The company has already forecast results is at the top end of expectations.... this makes not sense, especially as Ryanair just posted results better than pre-covid this morning... Every major airline is posting record results and recovery.
He also said very clearly the Market CAP does not represent the value of Cambay at all. And The local hydrocarbon board are excited...
So 50% of Cambay is worth than £5.5M UKPs, I would what he thinks Joe had it at Cira £35m UKP for 55%... 5-6 X times market cap, some years ago with a lot more things sorted out now and much high gas payment rate.... 10 X times putting Cambay at around $150m USD..
North of 0.44p would be a great place to be, and not unrealistic if the flow rates are good and a JV partner/deal is quality.
It would value the field the company @ around $50m USD, which I know is still less than $60m+ USD Joe was expecting a few years back, with more proved now then then.
I am not sure they have ever managed to produce gas profitably yet, because of high initial costs and poor flow rates.
I remember reading a P/L years ago where the direct cost of production was higher than the revenue, it was early days and they were still learning how to extract the gas optimally.
Cant not the logic at all, like others have said it seems to muddle the outcomes not improve clarity at all.
It could be blessing though, if the older four frac zones with the new method turn out to be much more productive with the pump, but I just don't see it being helpful, as they will need to run the original four zones until they drop to steady rate of flow before, using the pump, which no onw knows how long this will take, and what further complications and unknowns it will create.
It feels uncomfortable to me. the DGH micro managing like this ... what is their agenda?
I just wish they focus on the now and stop chasing rainbows so far in the future.
I been mostly silent for long time, I have never liked the direction or focus of Roland, Joe was a much more what I think SYN needed and he quit...
There is just not volume of shares being traded yet, this is struggling to move to realistic valuations.
MM is looking for shares and quoting in buys in 10m blocks which makes me think MM wants a holding at this level.
Still think it is spending resources that SYN does not have at this point... but maybe there is a pot of gold if they can keep chasing that rainbow for the 8 years.
I would much rather the focus was getting Cambay working better, into cash positive production and JV agreed tbh.
Could just be stop losses.
I have been thinking of putting one in the last few days raise, but my holdings are too big. Anything over 5M shares on an auto order is unlikely to trigger at the rate you want, but only at best i have over 50m... so