Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Been a while since I was invested here way back when they were drilling the central shaft, lost my nerve when the currency had it's issues, however the company still managed to perform through all the trials and tribulations of Zim.
So with the expansion into other areas took advantage of the sp decline.
Good to see the recently announced share purchases by insiders although modest by their wealth status, Jse has had imo a bit of misfortune if and buts, if Maari had come off, if routine maintenance during the pandemic had been kept on schedule at Montara, repairs done in dry dock, it's all water under the bridge now.
The future looks promising with Montara getting back on track slowly, Stag getting it's infills, the North West Shelf with further acquired interest expected, Akatara first gas due H1 2024, then the assets in Vietnam and Thailand.
It shouldn't go unnoticed that our misfortunes occurred when we entering a period of high capex activity, which compounded the lost revenue.
Management here have an eye for good quality assets at good prices unlike one of my other holdings sqz, management's reputation here has taken a hit but I expect them to respond and in time the sp to bounce back as they expand production and generate increased revenue.
Good to get the bond settled and paid off, the reopening of the onp in April is good news hoping that it stays open giving us more options for oil sales.
Recent production above 20k boepd has been great, introduction of dividends and buybacks bodes well.
The company is in a great position with more wells to drill happy to hold, especially as all seems quiet on the protester front and Ptal doing its bit for the local population.
Having thought about the refinancing and the deferred debt payments the company probably new a significant increase in alsc was coming which would impact what the company wanted to do, which was either continue to pay the debt down at a rapid rate or continue to drill and explore their other areas and quantify reserves but couldn't do both, so they have chosen to continue to explore, which in turn grows the company.
The transfer to gas should have a meaningful impact as Nigeria have plenty of it at reasonable prices for in country use, interesting times.
Can't disagree with anything you have said ISA, what has come as a surprise to me is on the guidance for this year the increase in aisc without any explanations, I think the unexpected rise this year to just over $1k is fair enough.
Any thoughts?
With hindsight repairing the FPSO in situ has turned out to be wrong decision repairs taking much longer and more expensive due to lack of bed space on Montara which is being increased horse and bolted comes to mind, plus the stand by vessel costing $8m, positives are production expected to average 6k including planned maintenance without it would be 7.5k for the 9 months to December.
More wells requiring gas compression coming back online shortly within weeks.
Good to hear Montara will become less important as other projects come to fore with future acquisitions likely to be in the areas of current operations.
Telling is the other FPSO is being towed to shipyard for repairs, some rebuilding of trust required, but I feel they have learned an important lesson.
Fabulous update today everything seems to be working like a well oiled machine, cash balance eye watering, Manolo has the midas touch, excellent company growth in difficult circumstances with the political backdrop.
Onwards and upwards.
A lot of negativity around however there is a lot of cash being spent on gas production early next year, this and the acquisitions are reasons for the reduction in cash balance plus drifting into debt.
Jse is still a growth company production is steady and oil prices holding at good levels, with further acquisitions to come.
Not sure why the additional compressor and service of the current one hasn't been dealt with during shutdown but I suspect there will be a good reason.
What is being put into place now will ensure increased production and revenue next year.
Honest update we know were we stand.
Today Rh has had a bounce $7900, Pt 1025 and Pd $1450
Car manufacturers worldwide have increased production figures since the start of the year, it seems only the UK has increased sales of EVs but they are way behind ICE sales as a percentage of sales however the increase is a suprise though considering the incentives to to buy EVs was dropped in January.
So is today the day we see recognition that the manufacturers are finally running through their stocks of Rh and other PGMs and are beginning to restock via the market?
If production continues at current levels then that increase will in time flow through to PGM demand and price increases, as suggested by Mining Weekly.
Germany also pushed back on the demise of ice vehicles in 2035 by getting the EU to agree and state if they run on e-fuels synthetic petrol and diesel then that's okay, expect more back tracking in the following years that's the first foot in the door to slow down the transition.
With the gold price breaking $2k we should be generating plenty of free cash flow, combined with significantly reduced debt repayments in the short term the company will have sufficient cash to drill and prove up resources at Makosa, Maka, Mansa and Sambara meanwhile we wait to see how this all this exploration pans out.
Great update today and some good news regarding the Talara refinery now in production and expectation is for 100% this would suggest the outlook is improving for the onp pipeline.
https://www.petroperu.com.pe/english/authorities-carry-out-an-inspection-visit-to-the-new-talara-refinery
Snippet from Precious Mining Weekly full article download from link below.
Balancing these demand and supply changes, we expect to see a market deficit of 631koz this year. This is a similar magnitude to the deficits seen last year (625koz) due to similar year-on-year growth in supply and demand. Factoring in the above short-term drivers, macroeconomic picture and fundamentals, we arrive at an annual average of $1,690 for 2023, up several hundred dollars on current levels. This includes the price peaking above this level at a high of $1,980, failing to recuperate a $2,000-handle before eventually falling back. With two years of annual deficits totalling 1.3Moz, the recent price weakness seems counter-intuitive. However, we believe that similar factors as those discussed in last week’s Weekly, which focused on the impact on the rhodium price, are at play for palladium. Automakers currently hold an abundance of PGMs, as they bought a larger quantity last year than they utilised. This overstocking has left the industry with an unusually long position in palladium, undermining their near-term demand requirements. Furthermore, this outcome has led to gloomier investor sentiment. Adding to investors’ concerns is the awareness of projected surpluses in the coming years.
https://metalsfocus.us3.list-manage.com/track/click?u=65e61541e75b9ce36f9b00274&id=8ccfe2d2e3&e=bf06856695
In the suit, Seplat asked the court to declare the use of its official letterhead by Orjiako to make an offer in the sum of $300m, without recourse to the Board, a clear breach of the terms of their subsisting consulting agreement and a breach of the Companies and Allied Matter Act, 2020, among other issues.
From the above it will be interesting to see what his explanation is for offer of $300m for what and to whom
I don't understand what some posters expect here, do think starting up production after being shutdown for months is just the same as turning the water back on when you return from holiday?
Common sense would say there will probably be further issues as more wells come back on stream items of kit, seals, valves and sensors etc which may have to be replaced, nothing major but regular issues which come to light as a pipe run comes back into use, items that can only be tested fully under pressure.
Precious Metals Weekly features Rh this week and reports on the outlook and supply download the article from the link, things are not as bad as Rh price suggests as the fundamentals are strong.
https://mailchi.mp/metalsfocus/precious-metals-weekly-5386878?e=bf06856695
Three are plenty of oil companies to pick from if folk are uneasy with the management here and their running of the company, or if you have lost trust in their ability to run it effectively then its time to find a new place for your money.
If you happen to be a day trader then obviously today's action will come as a big disappointment with such a muted response to the long drawn out procedure to get back to producing oil again, albeit we wil be nowhere near full production levels which will take time, however to restart production is brilliant news to me.
Pleased to see we are back in production, some very encouraging words from our CEO for the rest of year with more acquisitions in negotiations, it will be very interesting to see what deals he can pull off.
"I would like to thank everyone in Jadestone who has contributed to the safe and successful restart of Montara operations as we look forward to putting this challenging period behind us and returning to business as usual. It is a relief to see operations at Montara being restored and we look forward to increasing production and cash flow. We also plan to return to growth, having completed three acquisitions within the last six months, with several new acquisition opportunities in the pipeline. Near-term organic growth from the Akatara project remains on track and with our first infill drilling programme in Malaysia, reinforcing the point that 2023 will be a big year for Jadestone."