Undervalued2 Feb 2025 20:30
Huge news for $DNO & other Kurdistan Oil producers!
& Thanks @john78846295 for your outstanding coverage.
As a reminder, after the re-opening of the pipeline, $DNO will be able to "instantly" sell its oil from Kurdistan (currently 17.6k barrels per day net-entitlement) for spot prices, instead of the ~$35 they were receiving up till now.
That could be a windfall the size of ~$250 million at current spot-pricing.
+ that's on top of the US$300 million in arrears DNO should still receive from the local Government.
==> Combined, we could be talking about a windfall of US$550 million, or almost 50% of DNO's current market cap.
Hence why I believe this firm is grossly undervalued, and it is one of the largest positions in the fund I co-run.