George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Of course you are absolutely right TYB. We will see a market correction in the not too distant future and the correction will not be driven by market forces. It will be a full scale market rerate. You will wake up one morning to a spontaneous jump to 4 or 5p. Then and only then will the market pressure take hold and drive the price even further. It doesn't happen very often but imv this company has all the ingredients for this to happen and soon. So much news to come and each day those potential awaited events are reinforced with back up news that clears the path for these events happening. It is important to note, the imminent price increase may not be initiated by the Nigerian or Congo deals. This will imv, come from the successful workover of Robbana, which will lead to the approval from the Tunisian Ministry of Hydrocarbons for the SLK concessions. Getting the Congo licence ratified in quick time or the Nigerian due diligence completed earlier than 90 days will certainly be a bonus. However, a drill ready position on both sites, unfortunately, does not speed up the acquisition process. That doesn't mean to say that these two offerings could not happen at any time. Lets keep our fingers crossed. DYOR
The Nigerian exclusivity deal is really quite something. Drilling before Xmas on an already proven field with a potential 10,000 BOE per day is a definite game changer. However, not quite over the line just yet. I'm sure a good bit of time is required to carry out extensive due diligence before any firm contracts are signed, could be another six weeks or so, definitely worth the wait.
It seems the annual report is showing that the approval has already been given for the 25 year licence as FV pointed out. Curious as to why this wasn't announced as a separate RNS. I can only assume they were trying to protect their position from any disruption to what can be delicate SPA negotiations. It was also stated that the timing of the licence award for ratification through Parliament could not be guaranteed, so we just have to sit and wait for that to happen.
One other quite significant point that seems to be overlooked is the EBITDA positive $2m profit after tax. This is a milestone that should not be overlooked and the analysts brokerages and institutional investors will not view this unkindly I'm sure. We should also note that this annual report is only up to the 31st March, and much has been done since then. So the next interim or half year results will be mildly spectacular in that they will include much, but not the Nigerian deal, if it comes off. Good find MG, would be quite controversial if they tried to sell the same asset to two different companies but that is very unlikely, and a discrepancy of this nature would become apparent within Zeniths due diligence.
Todays events have clearly shown that our CEO not only has his head in the right place but is relentless in his pursuit of making Zenith a successfully acclaimed international oil production company. Good luck AC and GL to all shareholders. DYOR
TYB - to reinforce your estimation of 2.5p by the end of the year. The sixty million warrants issued to institutional investors on the 7th May at an average price of 2.5p only have another 8 months to go. We must assume that back in May AC had a similar view.
We should not forget the joint venture agreement signed on the 7th July 2020 with a local company in Congo. The asset advantageously positioned in Kouilou, near Pointe-Noire, very close to the newly proposed oil refinery and not too far from tilapia was producing 300 barrels in 2019 but was suspended due to the licence expiration. Zenith, it was agreed, should be joint operator and majority partner in this deal, of which is one of the four deals potentially on the table in addition to Tilapia if we get the licence. The plan was to workover this potential asset in order to increase production. The results of our two upcoming workovers will give us a clear indication of the potential advantages and gains from workover activity.
Rushthedude - If you have such a low opinion of the CEO of Zenith why are you still invested. What is the point of being invested in a company run by a CEO that you feel has no capability to get your money back. Merely an opinion but I find it hard to understand why you are still invested.
Clearly much more meat on the bone than that shown in the report FV. I think AC expects news on the Robbana drilling any time after the 15th August, and the updated credit rating anytime soon. More importantly now eagerly awaiting approval from the new Director General in Congo to then be passed over for ratification through Parliament, a good few weeks to go on that I expect. In my experience, the seemingly lacklustre response to yesterday's report is normal. it takes time to work it's way through to the brokerages bloggers and pundits all wishing to place their stamp on the predicted valuation. Give it two or three weeks and we could potentially entice a few institutional's to give us the once over.
He must certainly have the view that either something good is about to happen or something has already happened. He cannot know for sure of a specific event to come because that would be classed as insider trading. Which can only mean the event has already happened and she may have already gone. fair point FV.
A word of advise Gosia, do not class Zenith as any other share. I have been there, done that with every other share over 20 years and believe me there has never been a Company like this. This is one to sell the house for.
gregpeck7 - I believe Gosia to be one of our Norwegian investors and may be unfamiliar with the language. I think it's is only fair to allow a few mistakes as we all welcome comments from all Norse investors regardless whether we agree or disagree with their comments. None of us are perfect on here, me included.
Gosia - I have no doubt you mean well for all of us but you are wrong on all three of your points. More shares produce lower value per share I agree, but not when the issue price of the new shares is higher than the present market price/value. The issue of warrants are over two years, so these warrants can be purchased at any time within that two year period, and I must emphasize, these warrants must be paid for in cash. This is money that goes directly to Zenith, no reduction in share value and no restriction of price increase. It's merely more money for Zenith when they are bought. Your third point I'll just say, there will be no dividends issued by this company for a very long time.
In my opinion this debt repayment is clearly in line with the eagerly awaited BCRA credit rerate expected soon. On the whole a very good move by AC. DYOR