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For those still in oil stocks this week, please remember to diversify. Oil is plunging to the low $30s this week and no one knows how far it could drop. So please only invest money you can afford to lose and that your family will not need in the short term
Considering that this deal would lead AAU to £24mill cash, with 83% salinbas remaining and 23% kiziltepe, debt free by next month and an already strong balance sheet, this is still priced at value stock levels, even though it's arguably a growth stock. Next couple of months should be excellent. GLA
I think the reason for the decline is that the profit for the period (after tax) is lower than most people expected (£669,000), especially with the noise about having £2.2 million operating profitability. Also only £219,000 of this is attributable to shareholders. With the price of gold currently up, over the short term 7p is more than a reasonable valuation. However, if the final year net income is over £2 million, then a market cap between £12million - £14 million is also reasonable imho
At this point not much tbh :) Like I've said previously; asset wise, it's very promising, but they need to reduce the boards pay significant to align more to shareholders. For them to be receiving 6 or 7 figure salaries just to buy more Union Bank shares makes no sense. Yet the share price is now sub $1. I'm still tempted to buy, but would make more sense buying Global X Nigeria or directly buying union bank shares rather than through this middle man
Ariana resources are once again the most viewed share on HL. For a small cap gold mining stock to be more viewed than lloyds and royal dutch shell should testify to the fact that we're sitting on a good stock. GLA
Definitely some positive movement going on considering that we are the most viewed share today on the entire LSE on HL. Hold tight to your shares ladies and gentlemen. Expect a significant movement over the next 1-2 months and presumably more further on
I've continued watching Lekoil since I sold (pre-scam madness). At these values (anything sub £16.5 million), the price to risk seems very favourable. I'm ready to get back in again. Just waiting to obtain full value from one of my other stocks
There are a couple of interesting elements to this stocks: Expecting a Q4 report showing quarter gold production 10k+ oz, YoY revenue grow +16% (QoQ) based on the gold price over the pass few months, average realised gold price $1500+, which should translate to revenue of over $64million, however expecting more in the high $60s/$70 low seventies. Yearly gold production of around 46k - 48k. This should all result in the dividend being maintained/ possibly increased
I'm sure that I can speak for most by saying that it looks positive on every front here. Increased production levels exceeding guidance, $30 million loan repaid by april and ontop of all this, the $25 million acquisition for 50% of the mine in feb, and gold over $1550. All of this for a market cap sub £30 mil is still excellent value. Should be a promising couple of months. GLA
Just as thought, lekoil have been conned. How nobody saw this is anybody's guess. With also the Feb fees to consider, tomorrow is likely to be extremely painful for lekoil shareholders. Anything above 3.5p sell would be lucky
I think for everybody, upon more research (i.e. simply visiting the website) we can all see that Seawave are the problem. The lack of quality on their website combined with the company having no news history, no listed employees and info copied from other websites is the biggest concern. I think Lekoil were innocent in the matter, just unwise with the lack of due diligence. The pre RNS price was 4 - 4.5p. But now with the £600k loss, cost of drilling equipment last week and the loss of reputation, I'm expecting a sub 3 - 4p when the suspension is lifted.
From the Hargreaves Landsdown website:
LEKOIL SHARES SUSPENDED AFTER QATARIS QUESTION LOAN
(Sharecast News) - Shares in Lekoil have been suspended after doubts were raised about the validity of a loan agreement supposedly struck with the Qatari Investment Authority.
Lekoil announced at the start of the month that it had struck a $184m financing deal with the sovereign wealth fund, thereby securing funding for the appraisal drilling in the Ogo field off the cost of Nigeria. Shares in the company soared on the announcement.
The seven-year facility was due to be disbursed in five tranches over 11 months, with the first drawdown due in February.
But on Monday, Lekoil said that the QIA has since approached it "questioning the validity" of the loan. Sources at the QIA reported having no knowledge of talks or of the loan, according to specialist website Energy Voice and the Financial Times.
"Lekoil is urgently seeking to establish, alongside its legal counsel and nominated advisor, the full facts of this matter, and pending this clarification, the company has requested that its ordinary shares be suspending from trading on Aim with immediate effect," Lekoil said in a statement.
Lekoil added that it had so far paid out $600,000 "in good faith" to Seawave Invest, which introduced the company to people purporting to be from the QIA.
Seawave is a consultancy based in Accra, Ghana, that specialises in Africa-focused cross-border transactions. It has so far declined to comment, including hanging up the phone on the Financial Times.
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I also had a look on the seawave website, where I see no historical transactions, no names of company ownership, and grammatical errors throughout their website and prospectus. So it looks like they were likely misled by Seawave
Having been a previous medium term holder, this is very sad news. I sold out of Lek a month prior only because I needed to diversify my holdings away from oil stocks. Based on my understanding of the RNS, Seawave invest Ltd managed to conn lekoil into believing they were in contact with the QIA, when in fact they were not. Essentially it's a £600k loss for the company, but the company still can focus on Otakikpo. After coming back from suspension, you're likely looking at sub 4.5p if you're likely, more likely 3 - 4p based on previous records. For those long term holders who have been here for a while I hope it all works out in the end, considering that most invested based on a legitimate RNS being released.
Bought a chunk of these today, although they are showing as sells. P/B is really low (sub 0.3), price of gold just hit a 6 year high, yet the share price is the lowest it's been in years. Easy buy. Good luck all