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A good set of results and good to see that the management have maintained the strong balance sheet position.

However, I am disappointed to see the continuation of the "Farm-in" debacle. This has been going on for the at least the last two years, how long does it take?! The company is potentially sat on +1bboe , surely any wildcat would want to drill the wells, more so in this oil environment.

The management, Katherine Roe, continues her Wentworth Resources like commentary "Additionally, we are progressing a number of opportunities to add scale and materiality to our business, enhancing the existing portfolio." Sounds a lot like the Sirocco Energy asset purchase that went to pieces. Although this may just be an excuse for in-action from the management team which makes their lives easier, collecting salary and bonuses with no risk taking and business expansion.

All-in-all a set of good results, but this company could really be flying but management are playing it too safe, more so with the strong balance sheet and potential of blocks 125 & 126.

I echo your views, the whole process that KMR has been through is bonkers.

Bringing new production facilities on at the peak of the pricing cycle goes against all capital cycle logic. At least on this point it looks like we are nearing the trough of the price decline. So should benefit from our lower production costs compared to other producers over the next few years.

The constant waste of shareholder money on what I deem to be "Token" efforts such as the pitiful buyback they conducted a few years ago that only benefited large shareholders. A sensible joint dividend and buyback would have helped to raise the share price instead of the mess we have had.

Management constantly being negative is not good PR and has detrimentally affected the share price performance. The company produces ~6% of global supply and they own the benchmark asset in Mozambique, they should be shouting from the roof tops. Instead it is constantly negative commentary, even in the years where we were raking it in!

On the licence, this is the greatest mistake. No business would invest in such a large project with no commitments from the local government, more so in current times with resource nationalism on the rise. I can imagine a few politicians are liking the look of the shiny new equipment bought and paid for by KMR shareholders!

I will maintain my shareholding as I believe in the long term market dynamics and the prospects of the business (At this point exit will be a buyout from a super major (Rio Tinto?) rather than organic share price appreciation), just not with the current management. As a result, I will be voting against the re-election of the management team.

I completely agree roppyus, it is very frustrating that they are incapable of any actual progress.

Why bother drilling in a jurisdiction (Egypt) that has historically and at present been slow to pay, even needing an IMF bailout to pay its arrears!

All this when they are sat on top of a massive undrilled field in Vietnam, correct me if I am wrong but I believe that this is the 5th time we have heard that they are "engaging with farm-out partners" how long does it take? Unless the field is not as large as we have been told.

My thoughts refer back to my time as a shareholder of Wentworth Resources, where Katherine Roe was previously CEO and sat around doing nothing of value, only collecting her salary and share options. Until she agreed to a takeover of the company that was daylight robbery for shareholders, refer to my previous post on the subject.

My fear is that she is playing the same game here, promising jam tomorrow (Not doing any large projects or M&A that would grow the revenue and balance sheet) and waiting for a larger company to buy Pharos, at a large discount to NAV, so she can exercise her options and move onto destroy another small cap oil & gas producer.

Hi DireStraits,

I am with Interactive Brokers and they don't allow you to own it as they don't have access to the certain market that lists SRB. No idea what that means.

But there is a workaround, I own Serabi shares in my IB account that trade on the TSX under the ticker SBI.

The only problem is the limited float on the TSX but it means that you can invest in this wonderful company.

I hope this helps.

I have it down as the 6th of June on Tradingview, so Friday.

Hi Beerbelly,

Thank you for your message, I am getting conflicting information as I remember reading that retail held circa 25% but I have also seen other websites mention 2-4% figure. Obviously if the 2-4% figure is right then we are at the whim of the large asset managers.

However, this still does not stop us from making our voices heard, as I do feel that there is the possibility that the management will just milk the company and sell it off cheap.

Agreed, I reckon we have enough retail control, circa 25% by my research, to force change.

You are right that they are dragging their feet on expediting the drilling of these blocks. I would even say now with oil in the $60s is a perfect time as many companies will now be looking to adjust their drilling schedules, so we can pick up the spare rigs.

I would suggest that we get a spreadsheet going where we can put our holdings in to work out what % of the shares we control. After this we can get a letter sent/motion at the AGM, at the end of the day without action we are just going to get more of the same. Only when people's interests (Remuneration) is threatened they do something.

I would be wary of Catherine Roe. I was a shareholder of Wentworth Resources, where she was previously CEO. It was a shambles:

She botched an attempted acquisition of Scirocco Energy's gas field by failing to acknowledge that the Tanzanian government had first rights on the project. As a result, the government simply used all of Wentworth’s research to acquire the field themselves.

She also established a share buyback programme that just happened to buy back the exact same number of shares that were issued to the board and management at the end of the year — effectively using company funds to subsidise their bonuses.

She repeatedly allocated cash for further exploration and resource expansion, but this was never spent — always a case of "jam tomorrow" under vague promises like "Regional M&A". On top of that, the company was a non-operator, so there was no need to set aside funds for such initiatives in the first place.

She then approved a transaction by a major shareholder, Maurel & Prom, to acquire the company for less than its tangible book value. Even after undermining shareholders with this deal, she once again overlooked the Tanzanian government’s first rights on the asset — delaying the buyout for a year as it went through the courts. During this entire period, the company was generating significant cash, but none of it was paid out to shareholders. She had signed an agreement preventing any distributions and locking in the purchase price, regardless of the increasing cash on the balance sheet. By the time the transaction closed, the company was bought for less than the cash it held.

As a shareholder here, I became concerned the moment I saw her appointed as CEO. Therefore, I would be very mindful of her policies — she may well try to pull the same tricks here, in a company with far greater prospects than Wentworth, and sell us out on the cheap.

I would therefore suggest we form a block of shareholders to hold her to account, as this company — with Blocks 125 and 126 — has the potential to be a multi-bagger and dividend machine. I do not want to see this company milked and then sold off at a bargain.

I own my SRB shares via the TSX as my broker does not allow me to buy in London.

The volumes were low in December, but now they are trading at multiples of this.

The price in London will shortly follow as the arbitrage opportunity becomes larger.

Wondering what the carrying value of the Koffiefontein mine was before it was put on care and maintenance?

As if the sale of the mine goes through, as the management mentioned that terms had been agreed. This would be beneficial for the company due to the removal of the care and maintenance costs as well as the proceeds being used to invest in mine expansion and paying down the company's debt.

I think its the market waiting for the results from the initial wells at Bock 125. This is because of the very muted market response to the reserve estimates that came out. I believe that it is a case of waiting to see if the estimates are in the right range.

This coupled with the receivables risk in Egypt has put a lid on the share price.

First time posting on this board, however wanted to add my personal thoughts to this thread.

Having been invested for the last two years in this stock I can safely say that the going is slow but steady.

The company is slowly returning to profitability after the pandemic, which allowed the company to cut excess and unnecessary expenditure, in addition to optimising free cash flow generation (£2.035mil as of the 2023 half year report). Moreover, I have stayed in a number of Safestay's hostels as part of my research and travels. Through doing this I can say that they are up there when it comes to the quality and consistency of the product offering. Moreover, every time I stayed in a Safestay Hostel, it was packed and almost entirely full.

I am of the strong belief that Safestay is lining itself up to create its own niche within the hostel space, with its competitors being hit and miss, through building out its own niche it is developing a moat that its competitors will have to attempt to replicate. This moat will become a strong profitability factor for the company and is already beginning to trickle through to the company's gross margin and free cashflow margin.

Through maintaining this growth I believe that Safestay will receive another takeover bid, as the value proposition of the company grows. The most likely candidate for an acquisition, in my opinion, would be one of the larger multinational hotel companies that would be looking to buy a recognised brand with a strong moat to access a younger demographic.

These are just my thoughts regarding the company and what I believe will playout over the next 5-10 years.