You might want to pay the full price Hank, company could really use it by the look of things...
iP - this story is a couple of weeks old now, but there is some info I wasn't aware of including the downstream infrastructure.
https://www.stokesentinel.co.uk/news/stoke-on-trent-news/companies-team-up-etruria-geothermal-6048329
One disapointing aspect is that the heat netork is not reliant on the geothermal as there will be gas boilers. It is understandable with hindsight and I suppose derisks a new (to us) technology implementation, but my crude calculations were based on it being 100% geothermal heat network. Remains the most exciting area of diversification regardless.
It would be nice if Mr Steep could remember the name of his client. Thats third time I've counted that he couldn't think of our name.
Go Barbara. She has Mr Mark getting high pitched again which is a good sign...
Topped up today at 0.6234. Not worried about the Cineplex nonsence and have been keeping a close eye on attendance levels at a sample of locations. Although Bond was a little disappointing in numbers, it does appear to have kickstarted significant footfall return. Harry Potter specials over haloween week were particularly successful so there may be some legs in exploring more retro flicks. It feels to me like the 85% footfall target for year end is on course and even though I'm on most of the streaming platforms myself, I think people will ultimately realise that it isn't the same at home. Big movies need cinema as much as cinema need them IMO. Good luck.
Wish I could answer you Stew, but I was confident that the mid 16s was the bottom. So much potential brewing here, it's hard to understand why no one else appears to be noticing. Maybe throwing so much behind shale in the past and getting fingers burned has lost market confidence.
I suspect full year results due Apr to be positive, but hope for some progress updates on various diversification projects to push it along before then. In particular mention was made of further deep geothermal projects in conjunction with other suppliers. A couple of announcements along those lines could be exciting... Good luck.
PDT. You really took that comment to heart. What you, I, or for that matter Vladimir think regarding the Climate conversation is largely irrelevant. Policy makers and the market will ultimately determine our path. Investing in a company whose main revenue stream is in fossil fuels should tell you that I am no crusty, but we do need to be conscious of sentiment which is I believe is currently strongly behind CO2 reduction. Good luck.
PDT - you have been busy. Some of your posts border on climate change denial which I wouldn’t prescribe to, but from an Igas position it seems like they are prepared for almost any turn in energy policy/sentiment. Hydrocarbons aren’t going anywhere soon, but Igas are well placed if/when the transition impacts. Clearly any possibility of fracking returning to the table would prove the most exciting short term SP prospect, but it feels like a supplementary long shot which shouldn’t be necessary to send the SP northwards. The core production business is performing well enough to deserve a higher MCap on its own and now three exciting diversification prospects building momentum in the background. Good luck.
It does just seem to get crazier Stew and makes you doubt your sanity. I often think shares I have invested in are undervalued, but I can not recall a company being as significantly under appreciated as Igas. Hard to see why the RNS today isn’t worth a conservative £2m on the Mcap, even at this early stage, given the credible partnership and an estimate of scale of the initial projects. If nothing else the downside must be dissipating almost entirely. I do understand that there might be more exciting short term opportunities about but surely this is one of the best prospects to stick in an ISA or SIPP for a year or two?
PS - thanks, I had only skimmed RNS this morning. I am pleased that Igas are continuing with their cautious financing approach. Reaction as is disappointing here which is acommon theme, but upward pressure must be really building below the surface. I feel we need some form of positive story around our core production to really ignite the fuse.
More good news. Any green energy pies we don’t have our fingers in now? Pleased to see more positive diversification plans linked to credible deliverable projects which show a real ambition by igas to grow into a long term net zero environment. 25 to 40 MW will be £20m+ (?) with Igas 50% responsible for the costs. To complete the circle it would be nice to know how all the diversification projects will be funded, but this can still only be viewed as great further progress. Enough for the market to notice?
I agree Stew. I suppose if I'm playing devils advocate, there are lots of exciting prospects around just now, particularly in energy and this is a small cap producer which is only really on the cusp of turning it around after being burned for getting into fracking heavily. Spike showed potential for interest but KOGs persistent selling killed all the good news and interest has waned. At current SP, its great value and I see little downside with undervalued core business and huge potential upside. We really need company to get the comms pipeline going. Good luck.
In terms of Canada showing preference for local business. Google - Nortel Canada vs UK pensions case. A few parallels to this case and the counsel for the losing side - Nortel Canada may sound familiar to you...
https://www.goodmans.ca/People/Alan_Mark/?srch=cineplex
Last two trades in normal time - both sales of 666 shares each… an obvious sign of who is controlling this SP?
Welcome Stew. I agree SP should be higher. I’m verging on becoming a ramper for IGas but I don’t understand what I’m missing or why there isn’t more interest. I get a forward EV/ebitda of around 5 with a barrel load of further potential upside - deep geothermal, hydrogen, gas and oil prices, fracking sentiment. I keep adding, now over £20k which is significant for me. Hoping for some positive news soon.
https://drillordrop.com/2021/10/11/igas-will-not-appeal-against-planning-refusal-for-springs-road-shale-gas-site/comment-page-1/?unapproved=279872&moderation-hash=6d765a78693429589fa8c9e51b2e093f#comment-279872
Interesting article. I suspect this will result in further asset write downs if not already recognised, but there is a sense of confidence and moral responsibility in IGas’s position. I’d be more concerned if they were desperately clinging to hope.
Nice to see a form of normality return to the buying patterns and SP movement, but this really needs a correction into the low 20's at the very least. Still expecting at least one TR1 which may help. GLA
Lifting the moratorium would be stage one. Would be no point in lifting it without either significant public opinion shift or a plan on how to incentive and engage locals and councils. If you look at the central government advice around planning for wind farms and other green energy, there are ways to exert pressure. Can’t see it happening anytime soon, but the fact that it is being discussed and may be for some time now can only increase speculative interest here. There will be some lag before all of the impacts of the current gas and oil price hits the end users which could create a very long conveyor belt of reasons to regurgitate the question.
Any views on why the comparison below seems to be giving IGas a £96m EV?
https://twitter.com/OilGasTracker/status/1445342393226629126
I have it under £40m which would make it competitive in this list before considering its advanced diversification positions?
I would say rightly Pawn. I consider myself sympathetic to the environmental cause but until we can do without hydrocarbons we should try our best to be self sufficient and the debate against fracking was flakey nonsence from jumped up locals rather than genuine scientific concern IMO. Igas now well placed without it, but much of the balance sheet right downs I believe to have been down to the fracking moratorium so any media change on fracking can only add potential upside.