Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This board is becoming really comical these days... There we have Geowiz again with his 3d survey that we actually really don't need! Welcome back! I think you'll make good friends here with Astrol. He's a bit more aggressive and has this intimidating thing, but that's all just good fun. Let's see what the shareprice does today. The question right now is if Fidelity will increase its stake further or perhaps take over the company completely? That would be wonderful!
Wow.. FIL Holding now holding 11.4%, on 22 April even. More to come even perhaps?
They can really force change, so time to get in touch with FIL. Astrol, do you have any contacts in FIL holding by any chance? That would be so helpful, very much appreciate your support in this one!
Astrol,
So a new website, an ESG report, some presentations to market the company, and a slight recovery from the all-time-low 6 months ago? That's it? I asked for MATERIAL achievements, that benefits the company and shareholders in the long term! G&A has barely been reduced, our biggest shareholder just sold out (despite the wonderful ESG report? How is that possible...).
Katherine has so far failed to deliver anything substantial. No licence extension, no increased stake, no significant G&A reduction, no work to increase gas demand. Yes, her marketing work is appreciated, but it's not worth almost a million per year!
I can't believe how naïve you are.
Finally, about 30% of the shareholders support Mikkel's effort last year to demand a significant G&A cost reduction. So did I, and I will support all such efforts in future as well. And I'm not he same person as Mikkel, in case you are thinking that.
Oh, and please stop with these little underwater threats... I honestly don't care. I'd love the company to sew me for "libellous content"... "Wentworth sewing it's own shareholders for asking critical questions".... Glorious! :-)
grsshaw,
I think you are right, the cash pile must have played a role as well, it's high time for a special and large dividend. There's even a risk for the shareholders with such a cash accumulation: the company doesn't need more cash, so why stay listed on a stockmarket at all? Take the company private and pocket the money! Screw the shareholders....
So Sustainable Capital, previously WEN's largest shareholder, is out completely. Did they lose hope as well that this company would finally change? I really wonder..... What a terrible shame, they must have lost a fortune on WEN, like so many other long term holders. Will we know who has picked up the shares?
I'm pretty sure that I hold a lot more shares than you Astrol. And no, I am actually not sitting on a loss, I', just above breakeven (had to wait 5 years or so for that). But yes, I am very frustrated with this company. Despite the MANY exchanges I had with management, they refuse to change. Promises for sure, but zero achievements. Again Astrol, can you name a single material achievement from the last two years? Sorry to say, but I find the performance unacceptable for the salaries that managements reserves for itself.
katherine is a lightweight CEO, who has no background in oil or gas. Saying that, that's in principle all we need. My only problem is her outrageous salary: a package worth USD 988,673 in 2020 with on top of that 3.4 mln new share options. That's way more than what many much larger companies pay. Can you name any material achievement last year? Or the year before? Anything please, just not a new website or a slight recovery from the all time low share price, or the tiny dividend. Even Bob, who was supposed to be leaving will actually remain on the payroll for another two years..... Noted also the change from USD to GBP in his salary? Absolutely deceiving!
Astrol,
It's your first post ever here in this forum or LSE in general, and you immediately question my reasoning... It's almost too funny.
Good for you if you bought in at the all time low of 15p. You made a very nice profit. Just keep in mind that many long term holders bought shares at much higher prices, some well above 50p even. This "excellent dividend" is only excellent if you accept that ~20p is the norm, for others it is actually rather tiny.
My point is: we have a great asset but a terrible management that doesn't stop spending and self-rewarding. We are not the operator, so doing nothing (and spending nothing) will only improve our financial position.
My personal view: with this management we will, with a bit of luck, reach 40p in a few years time. With a truly lean management that embraces it's non-operating role, we would be at 40p today already. We are wasting money left, right and centre and a new website certainly doesn't compensate that. (in fact, the old one was perfectly fine).
So, back to your, what is your agenda here? You are planning to start a new hype here? Good luck with that...
I fully understand, I'm absolutely gutted myself. We are held hostage by a grossly overpaid, lightweight CEO and an incompetent "director/president". I truly can't think of anything that the company has achieved the last 2 years. If you read the changes to the LTIP program you almost have to puke. Retroactively linking the performance options to past dividend pay-out instead of share price? How on earth do they get away with it. Shareholders should be over them like a rash complaining about the atrocious company performance, complete lack of achievement and outrageous rewards. The reality is though: hardly anybody complains. Nothing will change. The main objective of this management is to fill-up their own pockets, and I expect it to stay that way.... Such a terrible shame.
Good luck with your other investments Thordon
A terrible read. It's truly sickening how this board rewards itself. Katherine alone earning USD 988, 673 in 2020, with a massive bonus, for doing nothing at all. And Bob will still be on the payroll until 2023, earning GBP 180,000 + USD20,000 a year as "President". Absolutely shocking!
https://wp-wentworth-2020.s3.eu-west-2.amazonaws.com/media/2021/05/04070755/Wentworth-Resources-Annual-Report-2020_WEB.pdf
We are not in some US unconventional play. Producing 100 Bscf out of a single well in a conventional gas field with high permeabilities is not unusual at all. I see no reason to doubt the production forecast in the CPR. The forecast is based on a normal p/z DCA (decline curve analysis) combined with an Mbal / Prosper model. The difference between the 1P and 2P forecast is that the production forecasts are constrained by the gas sales outlook: the 1P forecast is capped at 82.5 MMscf/d and the 2P case at 92.5 MMscf/d. Again, read the CPR. Also the ending dates differ. We don’t need more wells in the 1P and 2P case, and we won’t need any new seismic surveys before we start exploring again.
But good luck to you. I don’t think that WEN is a company you want to invest in.
Geowiz,
This is getting a bit silly. Again, we don't need to drill more wells for either the 1P or the 2P case, and we also don't need new seismic. Have a look (again) at page 81 and 82. The remaining CAPEX is for a facilities upgrade (compression), a workover and some minor well interventions (re-perforations). The next development well (MB-5) is offshore and will unlock the 3P volumes.
On another topic: good volumes today, and a very nice price increase as well, encouraging! :-)
Geowiz,
This is getting a bit silly. Again, we don't need to drill more wells for either the 1P or the 2P case, and we also don't need new seismic. Have a look (again) at page 81 and 82. The remaining CAPEX is for a facilities upgrade (compression), a workover and some minor well interventions (re-perforations). The next development well (MB-5) is offshore and will unlock the 3P volumes.
On another topic: good volumes today, and a very nice price increase as well, encouraging! :-)
Geowiz,
Before you post comments like this: read the CPR. You clearly haven't done so.
First of all: The field is mainly offshore and we are fortunate to have good quality 3D seismic data.
Secondly, development costs for the 1P reserves is practically the same as for the 2P reserves: 50.28 mln vs. 50.50 mln (100%), see page 81 and 82 in 2020 CPR (link below). So WEN will need to invest approx. 16 mln (32%) in the next few years. Note that our cash balance exceeds this sum already today, so we could pay for it right now if it was necessary. For the 3P reserves, the total sum increases by the way to 28.3 mln (32% WEN share), see page 83.
Finally, the CPR is reviewed annually, since 2014, by an independent party. Have a look at their website.
https://www.wentplc.com/investors/shareholder-centre/
So it was Sustainable Capital that sold. Pity. But who is the buyer?
Geowiz,
"One trick pony".... "coming off plateau"... you sound like a reincarnation of somebody from the former Aminex lunatics brigade.
You can criticize WEN about many things, but not reserves. We are not even close to plateau. The Mnazi Bay 2P reserves (445 Bscf on 31 Dec 20, 100%) are enough to flow at 122 MMscf/d for the next ten years. The next development well is expected to add another 190 Bscf or so and exploration will add even more. The facilities are currently designed for 130 MMscf/d. Have a look at the latest CPR on their website.
Amazing indeed. Did Bob really sell all his shares? The notification must come I would think.
Ozsurfer, net profit after tax is only 3,428 mln. G&A remains as high as it has always been, at 5.4 mln, which is outrageous for a non-operating company. You surely can't be happy about that I would think. Personally I think the 2019 results are, again, poor, but I agree that the outlook is very good.
An absolute travesty that G&A costs are still around 5.5 mln (for a non-operating company doing nothing at all) but this is all compensated by the wonderful news that Bob McBean and John Bentley will be retiring this year! :-) I truly can't be happier! This will open the door to a lot more later this year!
Time for a few new songs perhaps? :-)
https://www.independent.ie/irish-news/u2-guitarist-theedge-backs-nuclear-power-as-a-solution-to-climate-problem-40326014.html