Scancell founder says the company is ready to commercialise novel medicines to counteract cancer. Watch the video here.
Results for 2017 will not show profit and this is all priced in imo with SP at all time lows. Once they come to pass the market will start looking forward. The company is profitable now. We have the $40 break even figure with brent touching $79, that equates to $2.3m gross PROFIT for the year. The big expense from the last 18 months will have been the cash injections into AJE 6 plus the costs incurred from the JV dispute in 2017. This is now behind us. 2018 sees the infrastructure for increasing flows already in place, brent flying, JV partners aligned. I can't see the SP staying below a penny or two by year end. All we require is a work program update to increase flows and we should be off.
My own feeling is that the focus should be AJE 6, increase production whilst Brent is booming. Operational costs will come down as the FPSO has plenty of capacity. Originally it was designed to handle in excess of 19000bopd. The increased flows will help secure project finance for the gas development which is a large project and will require big funds. AJE Oil should be the sole focus as the sector continues to recover.
https://twitter.com/JimPrice83/status/994160665991532545?s=19
My figures for 2017 are very different to the �2m gross profit at current prices. I have calculated a gross profit for the year of c.$500k, there are obviously a lot of unknowns and the bottom line figure will be largely determined by the expenses. I don't think we will see the �2m expense from YE 2016, this should be slashed by a half at least. if not, the company needs to give us a proper breakdown of where the cash is going.
The company will not have hit profit on the bottom line for sure. There were large fluctuations in the flow rates last year, planned shut ins for maintenance and an overall much lower price of Brent with higher opex plus JV dispute costs. The story for 2018 is a lot different. The macro environment for oil is much better, material cuts have been made to the OPEX, JV dispite resolved, upgrade in reserves from the turonian allows scope for new development. We have now stabalised flow rate data from the turonian which can be used to help secure project finance. None of this is priced in. Past performance has been poor but the tide will surely turn this year.
Any further development will involve CAPEX that will increase the NAV. Whether this takes place via equity funding or otherwise is not an issue so long as the financing is infact for growth and asset development. The company has great potential now to scale up production. Stefan tells me that they will fund future development via project finance at asset level. With Brent soaring we are making c.$35 profit per barrel with OPEX taken care of. That is >$2m gross profit for the year and should easily take care of expenses. I hope to see a massive reduction on expenses in the next set of financials.
I hear Stefan is very happy to speak to and meet investors if you reach out to him. I know a few who have received the offer to lunch with him. He seems to be coming out of his shell since the JV dispute was resolved.
Good news no doubt. It will have put the share on a number of radars which is a positive. I think we need to see some directors buying to inject confidence in the stock followed up by PR. This has always been an issue with Stefan but it needs to change. He has a lot to talk about now and I hope we will see him emerge from his closet in the weeks ahead.
Panoro have updated. Significant increase in the reserves!
I have generated my own calculations for p&L and the financials. Twitter allows sharing of graphics which is a lot more convenient. Happy for anyone to get in touch
If people can contact me on twitter @jimprice83 we can collectively share info. There's plenty i'd like to discuss and share and can start a private group for it. My holding is sizeable and I'd be interested in talking further on a more user friendly forum.
That should read �10m+ and not �20m+
FYI fellas I have spoken with Johnny Hon and voiced my concerns regarding Stefan's lack of shareholder engagement. He is still involved in the company as a consultant and put me through to Richard Carter. I have requested an email response to my questions and lo and behold Stefan has ducked them again! I don't know why the Chinese are backing him, there has got to be a bigger story here at play, no one bangs in �20m+ at premiums to get zilch in return.
Time stamps and spread. All bed and ISA trades show as sells
One is a sell and the next is a buy back. It's a straight forward transfer into an ISA account, has no effect on RSP and share price.
The placing overhang looks to have cleared. MXO back to its old self again, moving on the slightest buying pressure. The CPR should crack 1p, I'd be disappointed with anything less.
Panoro mentioned in their last RNS that an update for CPR would be published in Q2. I emailed Stefan regarding this and he reiterated his 'hopes' for March. I reckon April personally and will keep an eye on Panoro. They are more transparent with their shareholders.
I have also had comms with Johnny Hon who is acting as consultant to the company. He has a long term view and said he will be doing all he can to assist them over the next 2 years in particular. Things are going well but obviously he couldn't elaborate further.
This will be debt secured against the company's assets with repayment terms structured against cash flow generated by the project. Essentially it will be a non-dilutive to shareholders the specifics of which I don't know as yet. Once the CPR is out, plans for the FDP will follow and with that clarity around the financing mechanisms. With regards to the OPEX I refer to the break even costs post development. Imagine if 2 additional wells in the turonian rim push the OPEX breakeven into the $20s? The company will turn into a cash cow which is significant given our small mcap as it stands.