Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Agreed. The irony is that if anyone were really paying attention, they would realise that low WTI actually works in DGOC's favour as it dampens shale production, which is DGOC's main pricing competitor as gas is a byproduct for the shale guys which gets dumped on the market and depresses US natural gas prices. Anyway, not my problem - sold some of my DGOC at 130 knowing that it wasnt going to hold there so will buy back (more shares) at 1.11. Thank you Mr market .
Thanks - interesting. From what I read in MI, they have the rights to current and historic tailings dumps of the 6 sites, and the Momentum Investor piece states these locations have a remaining life of 7-10 years. You are correct that Semancor is a major operator with numerous other sites, but there is indeed no visibility of future additional contracts. Ultimately, if they cant obtain new sources, then this is a run off play of these locations, which would explain a relatively low apparent multiple (though a large part of the multiple being so low are the eye watering price levels their PGM content has reached - if these arent maintained and there is a reversion to pre 2020 price levels, then the multiples wont look so low) . They have indeed upgraded their recovery tech, reducing talings volume used by 20-30% on half their sites, so that helps but ultimately means there is a finite volume of tailings to be processed.
Thanks for the tips. Price of course spiked on Monday before I could sort this out but hopefully there will be a few bumps down like today. I do however have another more fundamental question on SLP which you guys who are obviously tracking it more may be able to answer. I came across them reading The Momentum Investor coverage which was positive plus the IC piece. One thing that does concern me though is the very finite tailings supply they have with the 6 Semancor sites only having a remaining profitable life of 7-10 years . No visibility on additional site agreements with Semancor and with the metal prices going where they are there is a significant risk of miners keeping this to themselves. Any of you guys have some gen new supply sources - comments from the company on this?
Quick question to you guys - have been following SLP for a few weeks now and decided to buy some stock, but discovered I couldnt find any on the Saxo trading platform I use. Where do you guys trade it?
Hi guys - am new to this particular thread but have been in DGOC for a while and do my own analyses (Im a professional investment guy) which has raised some questions I have which maybe someone here has an answer to:
1) My base assumption for their gas price is Henry Hub - I noticed however significant discounts in their realised unhedged price in Q3 2019 vs HH spot price (DGOC's 1.91 reported vs HH Q3 average of 2.34- around 19% discount). There were much lower discounts in Q1 and Q2 19 (2%) though Q3 and Q4 '18 also showed mid teens discounts. Anyone have any idea what is happening here? My working assumption is that they are selling into locations with pricing discounted vs HH hence their pipeline acquisition strategy to redirect to higher priced locals, but they haven't been particularly transparent on this despite talking about it in general terms. Anyone here have better info?
2) Has anyone seen any actual capex figures for their SWM program? I very much like their apparent ability to sustain the volumes of legacy assets but the question is at what cost/ return. The $19mio H1 capex cannot be all SWM or they would be heavily negative NPV territory. I note the H1 19 report states they are getting SWM payback in days or months, which is reassuring but am curious to therefore know (a) actual SWM costs and (b) what the rest of the capex is going on - anyone have data?
3) anyone figured out what is going on with their NGL prices - they are way different to any market pricing I can find, hedged or unhedged
Thanks in advance to anyone who has looked into this