Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Data out this week shows declining surpluses in both metals let's hope this trend continues thereby firming up prices.
The global zinc market surplus narrowed to 17,400 metric tons in July from 75,900 tons a month earlier, data from the International Lead and Zinc Study Group (ILZSG) showed on Tuesday.
The global lead market surplus narrowed to 23,300 metric tons in July from a surplus of 63,500 tons in the previous month, data from the International Lead and Zinc Study Group (ILZSG) showed on Tuesday.
Jadestone Energy is considering alternatives for managing production at the Montara oilfield offshore Australia, which could see a replacement floating production, storage and offloading vessel deployed on the asset.
The Singapore-headquartered E&P player’s chief executive Paul Blakeley said: “We have a project ongoing to look at alternative ways in which we can manage the remaining life of the Montara asset.
Pleased to see they are not consigned to an upgraded planned maintenance schedule for the life of the fpso, but looking at alternatives which may result in a replacement vessel imo this is good news well worth investigating, we wait to see what comes from this review.
Any oil company is not without risk that goes with the territory, you can ask BP about that and countless others, JSE is undergoing massive investment in Akatara to grow production and the company.
Management could of just sat on their hands with projects they have producing a steady income stream with work overs to maintain production, however they chose expansion.
I don't see JSE as any riskier than other oilers their bank balance is only under stress due to investment decisions, and by the way we have loans not fully utilized to cover for further setbacks.
If Akatara wasn't being put into production, the Montara issues would of nothing more than a bump in road.
How they handled that event which turned into a crisis is questionable but their acquisitions and growth plans are not.
They had originally budgeted for oil at $65 net debt at end of fy 23 approx $110m, with oil at its current levels ($70-90) it's projected to be around $50m or less, I would suggest that gives them some leeway and reduces the financial burden.
Drop may be linked to US stock market performance which is trending lower, we started out okay then traded lower after lunch which suggests what's going to happen in the US effects us here they seem a bit downbeat today, anyway they sneeze and we catch a cold.
Other than that Cu trending lower with Lead and Zinc more or less stable chart wise we are following Cu down.
Shame really hoping we could stay above 200p.
Current production 16.7boe/d as per recent presentation for the beginning of September, probably seeing some traders exiting with a healthy profit if they bought in the low 20s.
Good to see the oil price holding up above $90 this will ease the financial burden as we ramp up capex payments for Akatara keeping our net debt position to around $50m which is a huge unexpected bonus if it holds.
Perhaps it's an exchange between ii, with another rns due to confirm who has picked up their 4.4%, what ever has occurred it hasn't collapsed the sp for such a large transaction.
Https://www.investorschronicle.co.uk/news/2023/09/19/jadestone-energy-claims-operational-turnaround/
I would add to their comment if you look at today's results presentation slide ref balance sheet strengthening there is a shaded area added with oil in the $70-90 range, September projection the impact this has on expected net debt is significant down to about $50m from $100m+
So it looks to me we having some good fortune with the oil price and for us it couldn't come at a better time.
Ref production stated from Sept 11-17, 16,700 boe/d.
Or should I say power/electricity instead of gas.
In the power sector, a falling UK carbon allowance price has put the cost of UK gas-fired plants at a discount to its neighbours, leading to power exports to Belgium, France and the Netherlands.
With wind generation set to rise this week, UK flows to the continent could start to pick up to the point where the UK becomes a net exporter.
This seems good but I believe there is a carbon border adjustment mechanism coming into force from the EU which would mean we have to pay more to export the gas.
IC review of KMR results from August a bit old now and nothing new for us that follow the company but it's always nice to read another view thought it would be worth posting.
https://www.investorschronicle.co.uk/news/2023/08/15/kenmare-resources-revs-up-shareholder-payouts/
Broker comment
The quality of CAML’s asset base came to the fore yet again in H1 2023 as the group maintained an impressively wide EBITDA margin despite the twin challenges of weaker base-metal prices and inflationary pressures on costs. The robust financial performance enabled CAML to declare a 9p interim dividend, maintaining its position amongst the top yielders in the junior mining sector. Capex requirements should reduce materially from next year.
Decent results in my view considering capex of approx $30m expected this year with only about $12m being sustaining capex the rest going on solar and back fill projects.
If look at the five year Cu price it's doing just fine, Zinc has pulled back to traditional levels from a unsustainable peak, Lead is in an upward trend for the last Twelve months.
Imo cash would have been stable without additional capex even with increased inflation costs.
Moran's review of the company worth your time to peruse the details.
https://moram.substack.com/p/guide-to-the-lng-market-sericas-tailwind?utm_source=substack&utm_medium=email
Hi Isa, although not invested here at moment still lookin now and again to see what's going on, I thought the results were good net debt down now at low levels, drilling to extend mine life close to the existing mine, okay full year guidance down a little maybe the market doesn't like that, the other projects progressing.
With all their projects on the go and now lithium while it's great to grow the company how will these be funded going forwards some from cashflow plus debt plus share issue? that might cause some caution.
Still looking good, not checked if there is a presentation explaining in detail the way forward which would address funding issues.
Positive broker note out today.
Kenmare Resources (“KMR”) has released solid interim financial results, supported by higher ilmenite prices and shipments. Despite a poor operational performance at Moma in H1, semi-annual EBITDA was US$110.4m, +12% vs H&Pe and +5% YoY. Net profit also beat our estimate by 13%, allowing KMR to declare an interim dividend of US17.5cps, +58% vs H&Pe and +59% YoY. As previously mooted, the Company has also confirmed a US$30m share buyback
Shell looking to sell assets in Nigeria but it is not Sepl?
https://worldoil.com/news/2023/7/31/shell-resumes-talks-to-sell-stake-in-nigerian-oil-natural-gas-fields/
First impression from those pictures taken after the ballast tank refurbishment had been carried out, it looks clean and in good nick albeit at a distance, its beginning to lean towards some pipework issues/leaks associated with the pipework circuit to the alarm rather than a breach of integrity between the two tanks, as per the example of a similar issue on the oil tanker.
Still we won't know for sure until the nest rns either way this issue will be resolved one way or another engineering wise it can be rectified, so another set back.
This highlights the necessity of regular planned maintenance and testing of circuits and systems to guarantee functionality.
Criticism is easy when issues arise its the ability of the management and engineering personnel that counts when rectifying these issues certainty JSEs management have been tested of late.
As you rightly point out Saudi Arabia needs higher oil prices to implement the changes needed to alter it's economic landscape, however it makes me wonder why they are so keen on cuts without others being encouraged to cut in alliance with them, it couldn't be because they have declining supply could it?
In the past when increasing supply they missed their target, keeping a watchful eye on Saudi, on day when Goldman increased their oil demand upwards due to firmer prospects in the US and India.
A quick glance at the five year Cu chart shows copper has done remarkably well imo going up from $2.77 in Jun 2018 to $3.96 today, factor in paying off Sasa into the bargain and being debt free Caml poor sp performance seems unwarranted, as Caml sp at that time was around 225p while languishing at 185p seems a disconnect.