The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
In the latest Vimeo cli which was posted 2 weeks ago, Graham does suggest that the committee would be meeting within a fortnight and that it would be signed off by the end of May. I would like to think that the traders will start loading up again next week in readiness for the long awaited news.
I'm still baffled why we are sub 2p considering we have sorted the tax issue. Theres no rhyme or reason to stock market movements sometimes!
Post period end, the Company entered into a settlement agreement with Morocco tax authority on a phased payment schedule back ended over 6 years of approximately US$2.5 million as a full and final settlement against a claim of approximately US$23.95 million.
I can't help but think we will hear the courts decision at some-pint next week on the tax issue. How long would it take for the Moroccan Tax authority to put forward their case, then Sound to present their case with supportive reasoning why the initial judicial review was floored. Surely the High Court appeal judge would be able to make his decision fairly swiftly, hence if it was in the courts last week surely we must have a finding next week. I have no experience in these matters so would appreciate others thoughts.
It was good to finish the day at 1.85p considering the huge amount of selling around 1.90p. A fairly even volume of buys vs sales today has hopefully consolidated the share price at this level ready for a move over 2p. There was always going to be a lot of selling as people locked in their 100% rise from recent lows. Hopefully we won’t see any retrace from here and instead there will be another decent rise tomorrow as shareholders digest todays presentation which I thought was really encouraging . The courts verdict must be soon so hold on to those shares!!!
A significant step up in activity at Sound Energy PLC (AIM:SOU) has set the company up for ‘multiples’ of upside according to stockbroker SP Angel which today issued a ‘buy’ recommendation for the AIM share.
SP Angel’s new price target is pitched at 8.2p per share, signalling significant scope compared to Sound’s current share price of 2.59p (following Tuesday’s 8% rally in London).
The stockbroker, in a note, described Sound as “a low-cost gas developer onshore with strong ESG credentials and a clear route to first gas production and revenues in early 2024.”
“We think Sound’s recent share price strength reflects the market only just waking up to its potential as it enters the execution phase of its Tendrara gas development in Morocco,” SP Angel analyst David Mirzai said.
“Sound currently offers investors an attractive entry point to those seeking exposure to a low-carbon energy play in an emerging setting that benefits from strong gas pricing and domestic demand.”
SP Angel noted that Sound Energy’s first phase development at its 75% owned Tendrara is underway to deliver 40bn cubic feet of gas sales to be converted into LNG and sold to Afriquia Gaz which is responsible for transportation and delivery to downstream customers – phase two will subsequently see the use of the nearby Maghreb-Europe Gas Pipeline (GME), with Sound’s gas taking up capacity following Algeria’s political decision to cease supply into Morocco and on-to Europe.
The broker highlighted that gas sales agreements have been signed for phase two, meanwhile, financing talks are making positive progress, with a final investment decision anticipated in the fourth quarter of this year.
Mirzai added: “In our view, the pace of the development and activity levels over the last 6M have accelerated significantly.
“We think management’s delivery on a monetisation strategy for the gas resources at Tendrara has successfully transitioned the company into the execution phase and well on the pathway to revenue generation. We have updated our financial models for news flow and reiterate our BUY rating and target price of 8.2p per share.”