Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Ok office - waiting for your example of a better comparable? Or have you got no substance to your comment?
Relax - We have cash coming in, a world class asset and it appears that something interesting is going on in the background re a potential T/O - Be patient and be thankful you can buy / top up at this level.... I challenge you to find a better (producing) asset with this level of potential / proven reserves for this market cap, intact find me another one for under £50m - You can’t and that’s x2 where we are now for starters. This share has a unrisked NAV of around 10X current share price and a potential risked NAV if £2.39. Stay strong GL all!
Woodie - I couldn’t agree more re takeover. Based on Seplats recent acquisition of Eland Oil we look cracking value even @ £50-100m based on current share of production and reserves.
https://www.google.co.uk/amp/s/www.proactiveinvestors.co.uk/companies/amp/news/904794
Nothing goes up in straight lines - I’m confident this will recover to a multiple of today’s price.
You’d guenuinly struggle to find a comparable that is currently producing, has this much potential and such a small MC.
The new CFO (Edward During) has only been in place for a month and has excellent pedigree. Prior to this Edward was CFO for all Addax companies in Nigeria (SINOPEC group company). Led the organization's Accounting and Finance, Commercial, Business Planning, Insurance and Risk Management, Internal Control and Audit and IT functions. Member of the Board of Directors, the Leadership team, and the Tender Board. SINOPEC has been widely reported to be interested in Lekoils assets - Now the question you need to ask yourself is why would he risk his reputation and job security (10 years) to go and work for a ‘minnow’ with a M/C of only 16m. Either 1) Your CONFIDENT in asset, SURE you’ll be arrange finance and you have potential to gain a life changing amount of equity or 2) (And more likely) A trusted inside man completing due diligence for either a partial/full takeover, asset sharing agreement - Note the reserves in CPR. Both of which will result in multiples of today’s price. The strange thing about this appointment is that no RNS has been issued, although it has been confirmed on both LinkedIn and branded web.
In terms of near team cash flow an uplift was completed on 25th Jan with proceeds totalling $7m, an additional $7m is due in another 4-6 weeks too. - This should give further confidence/security Re: cash position. In terms of production For the full year 2019, Otakikpo averaged 5,305 bopd gross with 2,122 bopd net to LOGL. This has been further increased this year where production averaged 5,860 bopd gross with 2,344 bopd net to LOGL - Providing this production can be maintained an additional 77k barrels over the year - Again positive.
The near term deferred payments to Optimum which covers sunk costs - $2.0 million to be paid on or before 20 March 2020 and $7.6 million to be paid on or before 2 May 2020 will be covered with monies received from Shell (c$14m from uplifts) - Positive.
The elephant in the room is that LEK are required to provide evidence of its ability to fund 42.86 per cent. of the costs and expenses for the drilling of the first appraisal well (Due July 2020) and this is where Edward comes in :)
Our assets are WORLD CLASS, our reserves are WORLD CLASS - The fundamentals will shine through - stay strong and be patient :)
GL All.
Have a good feeling ;)
First to 5p - BLOE vs LEK .... I know where I’d rather be MEM
You’re giving advice and rate BLOE a strong buy? Enough said - I’ll sell up on Monday
Currently producing over 5k BOPD. New CFO (Funding specialist / gearing up for potential asset sale) £7m Cash due imminently, another £7m in 4-6 weeks. Current market cap £18m - Looking at all options ... full sale / partial asset sale / funding M/C isn’t going to be less than 50m short term (Re-rate coming) and has so much more potential to kick on higher. Look at charts - All the signs are there - GL all - THIS IS GOING TO BE BIG!
Waiting for some upward pressure before I jump in - Feel like I must be missing something ... To good to be true even if funding required short term - An existing producing asset unlike most on AIM @ £16m M/C - Bizarre
All unclear - appears to be cash flow issues with Zen at the moment -Too much going on and not enough focus -I’ve had to split my investment across both. Best thing for me is AAOG keep asset and get funding through Forum and Zen actually focus on there existing assets and produce something of note rather than constant dilution and creative accounting.
I think that’s the point mudpump - Loan for £250k is still outstanding ... as yet nothing received by AAOG. This along with no movement on bonds, no comms from AC and the recent dilution has made me split the risk. Like Wraith I’m here because I believe in the Congo asset. I agree with ACs ‘Ferrari / Skoda’ analogy. I’ll be happy either way as long as licence is renewed and evidence of clear funding is provided in the short term. Can’t feel like there is some truth to the ‘Russian links’ / ISA shares @ AAOG. On a separate note I haven’t invested yet but can’t get my head around M/C of LEK (16m) due £14m in cash and producing 5k of oil per day with further development potential- feel like it’s too good to be true so sitting on side lines - must be something I’m missing!
@ 3p - Must be missing something ...
Sea7 agree - Split my investment today - have a feeling the Congo acquisition is not a done deal Just yet. Significant upside with AAOG if it doesn’t go through and they can get some funding. Interested to see if AC can pull off the bonds.
Dipped my toe back in a Skittish - have a feeling this is not over (last three trades are mine) although two coming up as a sell - decided to split the risk between AAOG and Zen. Hopefully get some luck - GL All!
I doubt he has given up on Azar - likelihood is there is some truth to what Italian is saying and Zen has encountered some problems (which will require a work over). AC has also probably over stretched himself with new acquisitions (Congo will require signing fee) but he must have faith in asset and confident this will add significant value to the business long term. I’m sure he has already completed DD and has had an unofficial nod that this will fully complete which will be his current focus (as outlined in today’s RNS). Bonds will support on both of these fronts - Without doubt there is going to be some turbulence but current market cap is not reflective of potential IMO - Stay strong
Gets worse ... get out while you can - hopefully small spike this morning - good spot