Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Oilfield services provider Halliburton Co on Monday reported a sharp increase in quarterly revenue, but its shares fell by more than 6 percent as investors eyed growing pipeline constraints in the Permian Basin.
https://finance.yahoo.com/news/halliburton-revenue-beats-higher-north-122339489.html
The USD is on a roll. PoO is actually holding up well in the circumstances. Rising USD boosts ENQ's earnings in £ terms.
All fixed now. Sounds efficient job "EnQuest can confirm that repairs to the process pipework at Sullom Voe Terminal are now complete and the incoming Brent and Ninian pipeline systems are operating," Enquest said in an email. https://finance.yahoo.com/news/uks-sullom-voe-oil-terminal-233359350.html
ENQ1 trading just over 90% now, the highest since the oil price crash, and much higher than the distressed levels of 35-55% of a couple of years ago. This should offer some support for the equity.
No not down tomorrow for tax reasons. People have been selling shares such as ENQ for tax-loss purposes (to offset profits elsewhere to reduce CGT). Such selling will finish today so that should help the price. Indeed not many people will have left it this late.
Remember we have started a new contract at start of new month and PoO is in backwardation so $69.36 was price of current contract last Thursday not $70.40.
As some anticipated Permian gas has such a low price that it's making fracking overall less profitable than hoped. See Bloomberg article: https://www.bloomberg.com/news/articles/2018-03-28/texas-sized-gas-conundrum-emerges-in-america-s-busiest-oil-field Hence rig count is virtually flat. Hoping next week will be better for ENQ. End-quarters and end-years can be volatile.
There could be some tax-loss selling as investors reduce CGT through realising losses to offset gains made elsewhere. This would finish next Thursday but bulk of it probably done this week with the looming holiday. Just a thought.
Rubbish! It's going to take much longer than that to make the transition to EVs. The average car lasts 10 years so there will be many legacy vehicles on the road in 2035, let alone 2028. Further charging networks will take time to develop, even in developed countries. Peak oil is still some way off!
See Galantas have won their judicial review in court in Belfast: maybe encouraging for the Dalradian planning process.
Volatile times! See enormous transaction of 470k closed for DNA on Thursday, presumed sell at 1.57. Wonder if this sale is by Buchans raising cash for developing the Newfoundland Zn property by further drilling; pure speculation of course. Anyway DNA rebounded to 1.65 soon after, equivalent to £1.01 even after rise in £ today.
Granted yesterday in Dublin (RNS out this morning) so new DALR and Buchans shares issued tomorrow, cancellation of MIO listing on Thursday, start of dealings in new DALR tomorrow in Toronto and on Thursday on AIM. CREST holders are promised their DALR and Buchans shares "No later than 14 days from the Effective Date [tomorrow]". Hope we'll get them later this week or start of next!
Yesterday Halifax/Lloyds said that the new Buchans unlisted shares could not be held in ISA accounts, with automatic transfer of the Buchans to a normal trading account. So there may be some liquidation from this. Not sure what those 1m deals are about late yesterday. The quoted offer price has not come down so much.
TSE:DNA is up 6% on news so offer should be OK to the Canadian shareholders. At DNA price of $Can1.37, offer is currently worth almost exactly 2.00p per MIO share.
2 big buys just in, so maybe on the turn. The technical position is obviously very weak after the spike with many frustrated recent buyers.
Forgot to mention MIO's 26% holding in Xtierra (XAG) a Mexican miner with silver and lead potential. At today's price for XAG of 5.5 Canadian cents, the holding is worth about £1m. XAG should benefit from the recent sharp devaluation in the Mexican peso.
Well I estimate the 2% NSR on DALR to be worth 0.51p a year per MIO share, before tax, from year 2 of DALR's operation, maybe 2019-2020. DALR will last 10+ years. Ignoring all MIO's other assets in Zn/Pb and Mn, think this makes MIO worth 4.5p over the period DALR is in operation. MIO could sell the NSR but think it would need at least £15m to remove such a valuable long-term source of income. Or MIO could keep the income stream and use it for developing its other resources.
Think we are owed an RNS from MIO now that the DALR feasibility study has been firmed up. Surely the 2% NSR royalty that MIO has on the DALR property is now worth much more than a footnote in the accounts. The Dalradian feasibility study appears to give support to MIO's valuation. Looking at the calculations for year 2 of operation, revenue is quoted at $164.2m and refining and transport costs at $10.3m so MIO's NSR (net smelter royalty) seems to be a minimum of 2% of the $153.9m, that's $3.08m in a year or about 0.51p per share per year after currency conversion. The first year is less favourable and the lifetime of the mine is obviously important, though it's predicted at 10+ years and may be significantly longer at up to 24 years. Anyway at MIO's current price of about 1.375p that's a P/E of 2.69. Obviously the cash is far from being in the bag with the usual uncertainties in a proposed new mining venture and it would be better if the gold price was the assumed $1250 per ounce than just above $1150 which is the lower bound for their calculations. Their working exchange rate of $1.20=£1 is now slightly less favourable at 1.26. The AISC is very competitive at $674/oz for gold. MIO could use the money to finance development of its existing mining properties. It looks set to lose c$1m dollars this year but at that rate it would still have $2m to spare or could increase exploration by 3 times. Of course DALR might try to buy out MIO's 2% NSR. There's a very guarded discussion on this at the very end of transcript of DALR's discussion of the feasibility study, suggesting the 2% royalty held by MIO might actually be under negotiation with the phrase 'if the price is right' used. The other 4% royalty is not regarded as negotiable.