Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yesterday's chart said extensions to 2081, 2516 and 2833. Looks like RRE has just flown past the first!
Year high matched. They will take all my stock from me at 2106.5, looking good
Agreed. I don't think the price at RRE reflects the safe jurisdiction we are in as well. North Sea is a great place for an oil producer
The book looks a bit strange! Not a lot of stock available, which is why it's rising fast imo. But who knows!
Yup! Here it goes again!
Good chart on Twitter for RRE by AntMwah. The next week will be interesting! :)
Has anyone noticed the 500 share buyer? Just buying in blocks of 500 shares all day.
Looks like it can go up pretty quickly from here. Book hasn't looked like this before! :)
If they can get it for £60-80m I think it would be a good buy.
Buyback is the way!
Cash at end of Q3 - $16M
Inventory - $4m in gold
Debt - $45m
Debt after cash and inventory - $25m
Q4 estimate (by me) - 30,000 x $650 profit per ounce - $19.5m
So I think the debt will be gone by Q3 this year. They will probably hold a good sum in cash for unforeseen circumstances. But after Q1 they should be adding cash to the balance sheet with no significant outgoings.
Exploration - based on the 15% of free cash flow. Using a conservative $500 per oz profit it should be $55m a year (based on a conservative 110Koz). So after exploration expenses $46.75m a year profit. Plenty of cash for buy backs or whatever else they have planned.
All my own workings and opinions btw. :)
Could be, It was Dana that RRE bought Arran from, so I'd like to think they would be at the table for it. If they did acquire it, it would be under the threshold for a reverse takeover. Coincidence?
Also, why does it seem like decommissioning only applies to RRE. There are other oilys listed with huge debts and decommissioning liabilities. But it doesn't seem to hold them back much.
Good spot. Fits RRE's profile, very similar to Arran. $246m isn't bad for another 13kboepd. A good buy for Rockrose if they can get it at the same price.
At this oil price and production they should be making around £224m this yeat. Next year when the production is over 50% higher, the profit could be 1.3x the current market cap. Just need patience.
With the low gas price, does anyone think RRE is no longer seeking gas assets? I think they will be even more interested, potentially trying to reduce the price of the asset they pay for by arguing the low gas price. Gas assets I think will be getting negotiated for:
Zennor - Britannia tie backs
SSE - 20% Greater Laggan Area
Dana - 50% Tolmount
Agreed, when I worked it out a while back it looked like cash would remain fairly level with the high Capex this year and next. Would be happy to be wrong though!
Even without an acquisition RRE will have close to £250m in cash and earning close to £250m EBITDA in 2021 with over 30K boepd. It isn't really hard to see why it would double from the current £250m MCap. Imo.