Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Of yesterdays results hopefully similar write-ups will get seen far and wide to a larger audience and spread the success of Sepl.
https://www.thisdaylive.com/
Yes great results today echo what has already been said, what I wonder is with the disarray in Nigerian oil markets with some players feeling the pinch with high interest rates does this offer Sepl an opportunity to pick off a bolt on acquisition with their cash pile? Just a thought.
Is it possible that when prices normalise for oil and gas that a legal challenge could made against the wft, if not then this does not bode well for any investment in the UK if the government decides upon a political stance against any industry it chooses to demonise then who or what will be next.
I see Norway have subsidised EVs to the of £4B with discounts to buy free parking and tax concessions etc yet ice vehicles have still increased in number in Norway this tells a story when Norway is held up as the poster boy for EV adoption.
Oil and gas even though out of fashion is still seeing increased demand which shows no sign of decreasing.
With gas prices there lowest since 2021 before the Ukraine debacle and prices set to fall, the winter has been mild and gas stocks throughout Europe are at there highest for this time of year, oil prices are hardly breaking all time highs so is the wft due for renewal or challenged as it only supposed to be for gains which are deemed extraordinary to normal market conditions.
IC also has a page write up on Sqz and has it as a buy, which is better than hold or sell, perhaps the worm is turning.
Sibanye concludes it's pgm restructuring programme with Anglo American also in the process of doing likewise, hopefully these actions will in time reflect in higher pgm prices.
https://www.miningweekly.com/article/sibanye-concludes-restructuring-negotiations-at-its-south-african-pgms-operations-2024-02-23
I have no idea what the implications of this report are for Nigeria oil and gas but it doesn't look good or if it will impact Sepl opinions appreciated.
https://politicsnigeria.com/fx-crisis-oil-and-gas-dealers-threaten-shutdown-as-70-of-downstream-businesses-collapse/
Here we go again, not enough copper how many times have we heard this?
Copper stockpiles are looking decidedly unhealthy after top producer Codelco reported an 8 per cent drop in production for 2023, at 1.4mn tonnes. The Chilean state miner is closely watched by metals traders because of its significant output. This year’s production will remain weak as well, making an uptick in the red metal’s price more likely – UBS analysts said yesterday that consensus expectations had just shifted from surplus to deficit and this would likely continue.
“In our view, the probability of a strong rebound in mine supply in 2025 is low and if the market moves into deficit in 2H24, we think tightness is likely to persist for an extended period,” the UBS analysts added. Copper has dropped from $8,500 (£6,724) a tonne at the start of February to $8,100 a tonne this week, as per the London Metal Exchange
All I would like to add is I would take the offer as well although I would probably plough it back in to who bought us. This is a great asset which with the right management and outlook would be an outstanding investment.
I have come to conclusion that our management think only of their positions and salaries, they know we undergoing considerable capex when moves of wcp are required yet when the company has made good cash flow and profits over previous years has squandered it on buybacks on several occasions to let investors out.
This type of action is fine if there are no major financial obligations to the company on the horizon but not if like us we have considerable spend going forward, so the management are happy to burden the company with debt in a rising inflationary world, no wonder the banks love KMR.
These actions imo make us less attractive as takeover target, when I think about it much of these moves could and should of been mainly financed via cash reserves not bank loans.
In the CMD update early 2023 in their estimates both new barges were included,
plus we have the updates to existing plant with a design review in progress estimated at $41m to be confirmed which is extra spend.
This is a great asset, which is being financially mismanaged.
Well after a quick read through first impressions are I am surprised the market sees it as positive in today's environment.
At the end of the day it comes down to the financials which in my opinion they have wasted $30m on buybacks which have done nothing for the sp and reduced the mcap of the company. Only for this money to borrowed again when they refinance their terms.
At 31 December 2023, Kenmare had net cash of $20.7 million (2022: $27.5 million net cash). Cash and cash equivalents were $71.0 million (2022: $108.3 million) and gross bank loans, including accrued interest, were $50.3 million (2022: $80.8 million).
So we should be sat on $50m net cash, secondly do they know what they are doing with the move to be $71m out in their estimations in the space of 9 months or so, and their reasoning seems to be enhanced safety contingency if I am reading it right.
Thirdly guidance is down on this year which was down on last year this is a suprise to me because last year from memory we had the lightening strike and slimes issues which have been addressed so I am surprised we are not beating this years numbers.
One thing management can't detract from is the asset it's self which is up there with the best, long mine life so even our management should be able to make good cash flow, and with the capex they have spent on power surge breaker, green credentials new barges etc they must be running out of ideas after this next move and the updates to other areas, so I can see an end to the expensive cash burn items and more sustaining the operation we have, so ultimately a cash building situation, the building blocks are in place for this to happen, lets get the wcp move out of way and see.
I sold half my holding back at £4.50ish but have added back at these lows hopefully we can get back to those highs.
If you have been holding decades it would be a shame if we fall back lower however markets are crazy at present and we do have a quality asset at a low sp hopefully this quality will shine through in the end.
Well Contango what's changed for you to take such a drastic change of opinion from .....I will buying this dip, ... to .....no better place to park your money in 2024, all in the space of a few weeks.
I unlike you don't rate the management with their half glass empty tone at every announcement so no doubt when they finally do post the update there will be caveat attached which will detract from what should be good figures from this world class asset.
In the unlikely buyout scenario can't see that happening with the wcp move in the offing, although after is a possibility, with these duffers at the helm probably 30% above the average trailing sp.
Today's price action on reflection seems harsh, Blakeley learned the hard way over the Montara issues and the continued investment in Stag and Montara is to ensure maintenance is at highest order possible so that no further issues arise with these assets whose importance to the business is fading by the day as their production becomes a smaller percentage of production.
The other news in the update seems to of been overlooked, so it looks as though another few months are required with no further setbacks and Akatara making first gas on time.
Looking at the presentation the cash position does look robust with $220m available via cash and bank facilities and with renegotiation expected to increase further.
Blakeley did hint at further acquisitions we are always looking and can't talk about what we are doing incase it doesn't come to fruition.
Anyway there is no point bailing out at this low level
Yes the end of year net debt position is a surprise, however with extra spend requirements for Stag and Montara with their age related issues is disappointing, it makes think they are being watched closely by the regulation body and can't afford any more missteps or incidents.
While guidance for the year is a positive looking much better, going forward they need to deliver on expectations.
Excellent update today are far as company operations are concerned, we will have to wait and see what happens with pgms, with more unprofitable miners at the top end of the cost curve ceasing operations its a process of time for these actions to reflect on spot prices.