Member Info for norb

https://northenergy.no/wp-content/uploads/2020/08/NE-Interim-report-Q2-2020.pdf

I dont expect much to happen short term after Q2. Need to see a higher MCAP of REACH, and the market beginning to appreciate the investment in TXP.

REACH didnt fly away. As expected, but it should build a strong momentum the next couple of months. We already know that Q3 probably will be better than Q2. SP is not very far from the initial investment NORTH made in REACH. Just below NOK 2. All we need is a broker or two to realize what is going on with NORTH and REACH. Not that the majority in any of these two camps seems to care much about increasing their values.

But most important, Q3 will be even better.

Impressive work by REACH despite Covid-19 and weak market conditions overall. Excellent figures even with negative impairment measures. Solid Cash flow. Goldman is holding a position of 1,2 mil shares which I believe will hold us down. This comes in addition to a lot of tired PI`s. Dont think we will fly away short term.

REACH record results

https://newsweb.oslobors.no/message/512035

REACH (the associated company) is presenting Q2 on August 25th. Interesting to see whether strong operational figures and utilization also ends with strong financial performance and cashflow.

Financed with cash from NORTH ?

Heads up ! I made a mistake in my estimates earlier today. I forgot the intra-group merger. I believe dividends to the minority interest was paid in Q2 (and prior to the merger which was approved in July). MNOK 140 in cash is based on the assumption that dividends have been paid.

******NORTH Q2/2020 estimates******

Figures MNOK / (MGBP)
Change in NAV
+ TXP 49,16 (4,11)
+ PLCS 1,46 (0,12)
+ IOX 1,05 (0,09)
+ REACH 11,99 (1,00)
- IOX bonds 0,54 (0,05)
- GE 4,69 (0,39)

= PL Q1/2020 58,43 (4,89)

= Equity Q1/2020 302,75 (25,31)
- Dividends to minority 21,4 (1,79)
+ Expected earnings Q2 58,43 (4,89)
= Equity Q2/2020 339,78 (28,41)

Shares 119 047 065
Each NOK 2,85 / GBP 0,24

******NORTH Q3 estimates based on closing values August 19th******

Figures MNOK / MGBP
Change in NAV
+ TXP 22,49 (2,09)
+ IOX 1,01 (0,09)
+ REACH 20,30 (1,74)
- IOX bonds 0,58 (0,05)
- GE 4,69 (0,40)

= PL Q3/2020 38,53 (3,46)

= Equity Q2/2020 339,78 (28,41)
+ Expected earnings Q3 38,53 (3,30)
= Equity Q3/2020 378,31 (31,71)

Shares 119 047 065
Each NOK 3,18 / GBP 0,27

Its often argued that you should expect to see a 20% discount on shares in an investment company like NORTH compared to NAV. Never understood why, but the current discount on NORTH is off the sheets. Also going forward.

Based on the assumption that NORTH still sits at cash around MNOK 140 / GBP 11,98,

******NORTH Q2/2020 estimates******

Figures MNOK / (MGBP)
Change in NAV
+ TXP 49,16 (4,11)
+ PLCS 1,46 (0,12)
+ IOX 1,05 (0,09)
+ REACH 11,99 (1,00)
- IOX bonds 0,54 (0,05)
- GE 4,69 (0,39)

= PL Q1/2020 58,43 (4,89)

= Equity Q1/2020 302,75 (25,31)
= Equity Q2/2020 361,18 (30,20)

Shares 119 047 065
Each NOK 3,03 / GBP 0,25

******NORTH Q3 estimates based on closing values August 19th******

Figures MNOK / MGBP
Change in NAV
+ TXP 22,49 (2,09)
+ IOX 1,01 (0,09)
+ REACH 20,30 (1,74)
- IOX bonds 0,58 (0,05)
- GE 4,69 (0,40)

= PL Q3/2020 38,53 (3,46)

= Equity Q2/2020 361,18 (30,20)
= Equity Q3/2020 399,71 (33,66)

Shares 119 047 065
Each NOK 3,36 / GBP 0,28

I will look into Q2 and current NAV figures before end tomorrow. Exciting times ahead of us. I appreciate your support and interest.

Even better. New contract to REACH

https://newsweb.oslobors.no/message/511661

Its interesting to see that NORTH is sensitive to how REACH SP performs, while TXP SP and its potential seems to have little or almost no effect. Probably because the market has been left in the dark too long about the true nature of this position. Also why, or if they still sit with a lot of cash at hand. We will soon know.

I am the guilty one. I just had to see what happened if I filled the allmost empty gap from 1,7 to 1,99. Sorry about that. But it also confirms what to expect if really good news arrive.

This is speculation based on some simple facts. Nothing else.

NORTH is holding 1,8 mill shares and bonds worth approx MUSD 1 in Interoil listed at OSX
https://www.interoil.no/

Largest shareholder in Interoil is
https://integracapital.com/

GM in Interoil approved an increase in capital in June, and they can issue 80 mill new shares - a 50% increase from 153 mill to 233 mill shares.
https://ml-eu.globenewswire.com/Resource/Download/e3099b80-bc6e-41c6-a9a7-5bceb3b97194

It is expected that Interoil will invest in new assets. Such as Lithium or other natural resources in SA
https://www.interoil.no/wp-content/uploads/2019/07/Interoil-IOX-Prospectus-18-July-2019.pdf

I suspect there is a link between NORTH and Integra Capital which has a strong position in Argentina/SA. Especially based on the network of its President Jose Manzano
https://en.wikipedia.org/wiki/Jos%C3%A9_Luis_Manzano

Integra is already invested in Lithium
https://smallcaps.com.au/latin-resources-backing-argentine-investment-house-key-lithium-project/
http://desarrolloenergetico.hernandobry.com/integra-recursos-naturales-explorara-tres-salares-en-jujuy-en-busca-de-litio/

NORTH is probably still sitting at around MGBP 12 in cash since the tax dispute was settled in April. I havent seen or heard any news about new investments in Q2, but I wouldnt be surprised if NORTH was invited to take part in investments in new assets facilitated by Jose/Integra Capital. Directly, or indirectly through an increased position in Interoil.

My two cents. Probably less.

Dana, yesterday MCAP of NORTH closed at MGBP 17,6 . If we recognize cash and all other assets on their BS at face value (cash balance is MGBP 12), NORTH`s 12,6 mill shares in TXP are valued at minus MGBP 1,29. So if deep pockets are heading for a controlling position in TXP, why not pay a premium for NORTH as part of taking control in TXP ? Makes sense to me rather than buying shares from PI`s at AIM and TSX.

Tobin, it was about time they both came to live. NORTH should at least read close to NOK 2 by end this month. We might even see REACH heading in the same direction. Strong Q2 figures are expected from both companies. Operational figures from REACH have been impressive throughout Q2 and July, and NORTH has to recognize its share of PL from REACH as an associated company. NORTH is still a very cheap entry to TXP if we compare its share compared to NAV.

hm, but a bit farfetched dont you think ? NORTH was a E&P company after all until a few years back.

Dana, considering NORTH`s 12,6 mill shares it seems like a long way to go ? Even if "they-whoever they are" already are supported by other major holders of TXP ?