Share price post dilution22 Aug 2020 13:42
Just did a quick calculation to see where the SP maybe heading post dilution!
Net Assets end of June20 $490m
Andrew addition $230m
Debt reduction $300m
Total net assets after the above $1,020m or £605m
Weighted average shares in issue as at June20 850m
If RI is at 22p, addition of shares would be approx 1,850m, with total shares in circulation being 2,700m. Share price would still be 22p.
If RI is at 34p, addition of shares would be approx 1,200m, with total shares in circulation being 2,050m. Share price would roughly be 30p.
All in all, the SP may stay in 20-30p range in both scenarios. So, have we already seen the worse? Who knows?
Now, the interesting bit is additional income that will be generated from extra production. This will surely improve our net assets position, and if brent price improves, it will further increase shareholders value.
I believe the upside potential is greater here than any further falls. However, one has to be patient to reap the rewards, and for me, it’s not running thin yet.