Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hang in there, Fem.
We’re not expecting any news yet! The Sundagas situation is looking dubious, but we’ve had good news on the Dunrobin prospect; we’ve finally got the seismic data and there’s a ready-to-go farmin with “a big European” player.
I’m not an oil geology expert, but I’d guess that Seismic data reprocessing isn’t something that is quite so vulnerable delays because of COVID-19 restrictions. So the analysis is almost certainly progressing, and an announcement will come in due course.
One huge plus this stock has is that it’s not a one-horse race. The board has (very wisely, in my view) got at least three irons in the fire: Dunrobin, Timor-Leste and Peru. I’m also invested in Canadian Overseas (COPL) - similar business model, SP 3x BOIL but it’s got ONE prospect - a Nigerian production sharing contract that expired at end of September. It SHOULD be renewed (but this is Nigeria we’re talking about) but I (and a lot of other private investors) am on tenterhooks waiting until the news drops!!
Boil is a pretty good bet for a micro-cap PLC. It will only take good news on ONE of the prospective projects and you’ll see a major re-rate. X10 or x100 is not the slightest bit unrealistic.
Hi RKTech,
Many thanks for that insightful assessment. I was desperate to get in before the PSC news dropped in the last week of September and heaved a huge sigh of relief when I got in for 10k at 0.29.
Been grinding my teeth in frustration as it’s dragged on and the SP has slid to .25.. but you’re right. This was entirely predictable - we are talking about Nigeria, not Germany or Sweden LOL.
the board expressed their confidence about the PSC in an RNS, then put their money where their mouth is by issuing options at 0.3. The SP slide since then is just the old Warren Buffet thing all over again. People don’t want to get rich slowly!!
I’d love to get rich quick... but I’ll take slow over not at all, any day!!!
Good luck all!
I’m not trying to de-ramp here, cos I’m in for 10k that’s now worth 6. But the rigs are a red herring - we haven’t even got the seismic data for Dunrobin, and we’re putting three rigs into the Firth of Forth (600 miles away from the Dunrobin prospect)?
The northeast coast of Scotland is littered with decommissioned rigs that no-one knows what to do with. Check this out: https://www.alamy.com/stock-photo-three-oil-rigs-sitting-in-the-firth-of-forth-near-edinburgh-because-97667248.html
Hi CawCaw-
You make a good point. Maybe 10p is a bit ambitious, but on the other hand, the SP is as much a reflection of investors’ hopes and aspirations about the future potential of the company as it is of the balance sheet.
Bottom line is that there are a lot of small-cap PLCs who have the rights on underground assets worth many multiples of their market Cap, but no immediate prospects of getting the assets on the market. Thats a huge choke-point - but if any of them can show a clear path to drilling in the next 12 months, then the brakes will be OFF.
It might be 1p, it might be 10 or 50. And where it peaks might not have much to do with the balance sheet. If you (as a CEO) can show that you’ve stepped up from being able to SPOT assets and get a PSC, to actually getting black gold out of the ground and onto the market, then there’s a big re-rate coming.
In my humble.
A solid day, and on the back of NO news.
The options issue at a SP of 0.3 says it all. The board are confident that we are going to be out of decimals and into whole numbers in the near future. At least, that’s the message.
You’ve got to factor in the wild-card of Nigerian corruption, and if the board are GENUINELY confident in the extension, it probably means that the right people have been paid off (cringe...). Of course, they have to STAY paid off...
Sadly, that’s the reality of bringing natural resources to market in the developing world. Messy, dirty and unpredictable.
I’m holding for 10p plus.
Hmmm... options at 0.3 not looking so attractive now. Which I guess means the management team know something that makes them confident that those options are gonna be worth a hell of a lot more than 0.3 in the future. Hopefully, the not-too-distant future...!!!