The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
A labour victory has been priced in. Read Berenberg's latest note. Also, our UK assets are a fraction of the whole portfolio. So has almost no further impact to earnings. All growth is coming elsewhere.
From this interview - he states they will mine c.3m carats a year. decade on the 29m resource.... "be open for decades" - on the 1667-344m . I cant see them mining 3m a year?
Gemfields mined 37.2m carats last year.
Any thoughts?
Also mate, if you actually read the tweet, you'd see the answer at the bottom...
For your homework this afternoon please read the following. I will test you tomorrow morning. https://www.investopedia.com/ask/answers/070314/how-do-i-calculate-pe-ratio-company.asp
I didn't
Wow I'm almost as bad as you!
Eur342.51m market cap even.
3.4 p/e
Crikey lad.
Net earnings = 275,482. *365 = 100,550,930 a year. Market cap of 310.74m
Equals a p/e of c.3.1,
They also posted their net cash for the year a couple weeks ago...
If you still think its 1.2. Maybe you should lump?
Its not a PE of 1...
BffJill - where is he going wrong in his calculations?
Kistos (Buy): Dutch tax headlines yesterday pm - reports yesterday indicated the Dutch government is considering imposing a solidarity tax on oil and gas companies. Details are sp**** but media reports essentially describe the EU’s proposal for a 33% tax on excess profits generated in 2022 - excess profits defined as those which are more than 20% above the average of 2019-21.
View: we recently included the 33% tax for 2022, and the Dutch proposal of a sales levy in 2023/24, into our base forecasts and valuation. Therefore, if confirmed, the solidarity tax would have no effect on our numbers or 670p price target. Reiterate our Buy rating.
Kistos's H1 results highlight excellent operational performance in the first half, and strong cash generation with the company comfortably in a net cash position. We expect cash flow to strengthen in H2 with the Greater Laggan Area (GLA, UK) assets now in the portfolio, and the company's unhedged production fully exposed to the strong UK and European gas price environment. The company remains focused on growth and will use its balance sheet to grow through acquisition, and also develop organic opportunities in the portfolio. If gas prices stay high through much of 2023 it is likely, in our view, that the company will also have the flexibility to return some cash to shareholders. Kistos remains a core holding in our E&P coverage given its pure-play exposure to gas pricing, and we reiterate our Buy rating.
Backdrop - European gas markets remain tight whilst Europe continues to grapple with the security of energy supply following the Russian invasion of Ukraine. So far, continued pipeline flows from Russia, US liquefied natural gas (LNG) cargos and weaker demand owing to warmer weather have eased pricing slightly and helped rebuild inventories. At 537 TWh, gas storage is currently 49% filled, 5% below the five-year average for this time of year, having bottomed in mid-March at 25.5%. I continue to expect the market to remain tight, especially as we head into next winter, given that reliance on Russian flows remains unsolved and expectations that competition for LNG molecules remains intense. Therefore the environment remains very attractive for gas exposed E&P’s… with the generation of strong cash flows and attractive FCF yields
Drilling down - The current portfolio comprises production and development assets in the Netherlands (acquired for €223m in May 2021) and the Greater Laggan Area (announced in January 2022). The investment case is supported by low unit costs and high European gas prices (European gas prices (TTF) averaged €99.5/MWh in Q1 2022, and UK gas prices (NBP) averaged 232p/therm), ensuring that production growth is highly cash generative. Pro forma costs for 2021E c$6.40/boe, sit at the lower end of our coverage. Kistos generates a FCF of £296m and is trading on FY 2022/23 EV/EBITDA of 0.4x/0.5x …our risked is NAV 886p/sh.
PRODUCING ASSETS -
Kistos’s current net gas production originating from the Q10-A gas field, sits at c16mmboe. Based on our long-term modelling, we arrive at a risked NPV of Gbp661 per share contribution to Kistos
GLA - assets possess a CO2 intensity of c13kg/boe, roughly 40% below the UK North Sea average of 22kg/boe. Current gas output originating from the GLA stands at 4mmboe net… leading to GBp209 per share on a risked basis
UNDEVELOPED ASSETS: Glendronach development adds a risked incremental value of c€89m net to Kistos (January 2023). The licence partners are working to mature the project to FID during 2022, with first gas expected in 2024. Further, Orion holds c43mmboe net, which we currently expect to be brought onstream in 2024, contributing 619p to our risked NAV (at a 75% chance of success). In addition, despite the Q11-B appraisal result the company continues to examine a potential tie-back to the Q10-A platform with an update also expected later in 2022.
"In a mixed operations update GKP has confirmed strong YTD production from Shaikan of 44.9Mbbl/d, with FY22 guidance tightened to 44-47Mbbl/d (PHe current FY22 47Mbbl/d). Robust production against a backdrop of a strong oil price has put the business in a strong financial positon. US$190m of cash dividends (26% yield!) have been declared, along with plans to call the US$100m bond in July. Elsewhere, politics has added uncertainty to the outlook, with FDP approval yet to occur and an escalating dispute between the KRG and Federal Government complicating the picture. We remains Buyers, TP 348p."
The company is now debt free. This anticipated update comes on the back of recent receipt of net $38m payment for April crude sales and payments of a $25m ordinary dividend on 15 July and a $50m special dividend on 29 July.