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It goes by rail to Turkey. That is almost certainly via Russia, else it would have to be through Iran, which would be worse. I think the share price has always been suppressed by the risk an asset has in that part of the world and now that risk could well materialise.
SFR released a great quarterly report. RNS from MTR. No movement in the share price. It's like everybody has just lost interest.
I am not entirely happy with Cobre, but given the join venture between the two companies on the Kalahari exploration, I think it may be a good hedge on nothing turning up. However, that hedge is there to stop us from investing all we have in Kalahari exploration or diluting SFR value through new share issues.
If we just going to blow money on other questionable explorers, there's no point Cobre even existing.
I couldn't agree more Re the distribution policy. To be honest, the way they are treating the Sandfire shares makes me reluctantly rate these as a hold but I am erring towards sell. MTR has a trading arm that supposedly makes a profit investing in "undervalued" miners. The company continues to post a small profit, but when you strip out the dividend paid by Sandfire, the investment arm is not making money. It seems to exist only to keep the jobs of the companies employees.
What concerns me most is that they have used a large number of the Sandfire shares as surety to loans used for investing. The biggest chunk of this money has gone to SAU, which has turned out to be a complete failure. There are also occasional fundraises, diluting the value of the assets they have.
I think that management need to take a careful look at whether the company is there to provide value to shareholders or as a job creation scheme.
https://www.businesswire.com/news/home/20211111005832/en/tastyworks-Continues-Posting-Record-Retail-Trading-Reaching-1MM-Contracts-Daily-and-Robust-Adoption-of-New-Crypto-Products
I million contracts a day at $1 a contract (the minimum fee) = $250 million a year revenue.
I think it's a mistake in the RNS. This report said Allan Gray owned those shares on 2 Aug 2021
https://markets.ft.com/data/equities/tearsheet/profile?s=CAML:LSE
Even if the North Sea never happens, the money being earned in Canada makes this company worth far more than it's current market cap. As things stand, this is more a natural gas than an oil company. Natural gas is seen as the bridge between the more damaging fossil fuels and renewables, and some are even calling for it's use to be encouraged as part of the road to net zero emissions.
I can only think the share price is so low because the BOD have made too many mistakes in the past.
The UK is in the midst of an unprecedented energy crisis. Renewables failed us and we are having to go back to coal, the evil of all evils. I am all for a green economy but it won't happen overnight. Anyone living in the real world should see that we need to phase out coal, then oil, then gas.
The truth is there a powerful pressure groups who don't seem to realise that importing oil and gas from the middle east / America is far worse for everyone than drilling for our own. With Scotland agitating for independance and the impact a London based decision to stop drilling would have on their economy, I'm hoping the government are smart enough not to buckle to pressure.
There's been a lot of debate on here about whether we would dilute or borrow to fund the new well. Is it not possible that the revenue from the natural gas spike would pay for the drilling and we wouldn't need either?
Cheapsharesboy - nothing is happening now, but there is always the risk of something happening. That is the only reason I can see that these are not in double digits. Earnings, cash flow and growth are all there. Perhaps some see a moral issue with IGG, so are reluctant to buy, but I wouldn't think something like that alone would account for such a big discount.
Investors have been spooked by law changes in Europe and the US that have had a bad effect on prices. While Europe remains an issue, the US, which is a much bigger market and in which we are established, is liberalising gambling laws. If games like Roulette and blackjack are lega, financial market derivatives shouldn't be a problem.
I agree £21 isn't realistic, but double digits most definitely is.
Correct me if I am wrong, but only about half the natural gas production is being sold through the pre-agreed contracts, the rest is being sold on this current major upswing. These hedges end in October, after which only 10 000 GJ/ day was forward sold.
If I am right and we've got the tight winter everyone is expecting, profits should triple.
The exploration will only wrap up at the end of next year and then it will be a few more years before it is mined. I think that too much can happen between now and then for investors to get excited.
By now we will be net cash positive. A lot of money was spent this year on CAPEX, which will depreciate over the next few years. This will reduce the tax bill, leaving a better bottom line. With the recent increase in commodities prices (copper is well documented but less well documented is Zinc and Lead have been at Multi years highs in Q3 as well) this is now a great cash cow.
The negative side is that aqusitisions will cost more as well. My ideal scenario is no aquisition and huge dividends over the next few years. Next best is keeping cash aside for the end of the current cycle when we can pick something up cheap. Hopefully there were lessons learned when Sasa was bought just as lead and zinc peaked.