Member Info for Jonfon

Boris Johnson looking to increase North Sea production

https://www.ft.com/content/654b3cb4-f98c-49d5-bd80-0b87260b14f1

How do you know it will be tomorrow?

And yet our share price barely moves. I remain invested but, like many other investors, I wonder if the SFR windfall is there for the benefit of employees rather than shareholders?

No sense to this value. The market cap is now below what the SFR shares are worth alone. Just panic selling.

This company looked like they were doing all the right things, giving quarterly updates etc. Now we coming to the end of January and still no news. Very bad form

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

Allan Gray have offloaded all their shares. Hopefully nothing holding us back now. Onwards to £3!

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.

Anyone know what's driving todays big drop?

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?

Next week we should release the best quarterly result in the companies history, along with a notice we are net cash positive. Hopefully that will bring us back around the £3 mark

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.

Natural gas prices up 20% this week. Only about 25% of production hedged at the time of the report. Kerching!