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I have it as assets just over 150m and liabilities just under 50m, not a big believer in formulas but if use NCAVPS - 150-50= 100m / 141000000 shares gives us value of 70p per share
Forgot to Add ZOL has less debt than it had at 1.70 as well
Phoebus please explain where you have the minus 60k net current asset position from?
Totally agree Indolent, obviously a couple of wells haven�t gone to plan and they are waiting on some seismic data on how to improve production, however Zol has gone through a massive drop in o&g prices and hasn�t incurred any real losses and have made some cost cutting measures to counter this. they have vertualy the same cash in bank and production levels around about the same time as when the share price was �1.70.
Now that wasn�t the update I was hoping for, could be one for the back of the draw, just when things were improving in the o&g world, still hopeful for the long term
I think maybe you have sold out at a loss, ever heard of the term buy low sell high? Our current assets valued @ 9.5billion rub= $166m , liabilities 2.5billion rub= $43m values us at $123m - current Mcap $19m that is over 6 times lower than true value, I for one know Aim is a risk however calculated risk i.e. Buying undervalued stocks not selling undervalued stocks is the way forward. Nothing is guaranteed but each to their own
Mmm, I have read the report thanks, think u may be getting consolidated financial report and consolidation mixed up they are referring to the fact they have condensed the report not consolidation that screws investors over
Don't know of many others in Aim making profit, this company has never done a placing at a reduced price as hasnt needed to because they have cash in bank plus would only hurt the main shareholder (Abramovich jnr) as his holding would be diluted i agree Russia is a little volatile place to do business but in the grand scheme of things zol has been through oil prices in the $20barrells and ruble at all time low, personally think this is a well run company just not bothered about hype and pump and dumps this will come good if oil and ruble hold up and both gain strength
I don't think they care to much about the market, 95% held by a handful of Russians with no interest in the current price, they are only interested in the company making good money, share price will look after itself if we start making big profits. With regards to the loan we inherited this with our acquisition of dial alliance(our producing licence) this was $50m now down to 30m and reducing at $5m per year, this will turn into profit once repaid. Not sure where consolidation was mentioned?
Not 100% what I was hoping for with the 10% drop in production, however 33% rise in profit to $1.19m, cash in bank up to $6m and Brent at 2 year high, they are confident we will be back up to 100% by year end and ruble holding up well, been a slow burner over last year but looks to be moving well in the right direction financially
Definitely has its risks, sanctions shouldn't effect zol directly as oil and gas will always have buyers China for 1, but the strength of the ruble is everything to zol and that is effected by Russia's general prosperity and sanctions aren't helping, putin must have an end game as sanctions don't bother him, may feel sticking close to china could end up being the trump card
Not sure how we are down around 14p, ruble is hitting 18month high and oil price is close to 18month high and our output has been increasing and we have been reducing cost, surely our share price should be hitting 18month high and not all time low
now we have 2 billion ruble revenue per year which at min is 58 rub/us = $35m and if it was to return to 30 rub/usd which it was a couple of years ago = $67usd with higher oil/gas price will easily be over $100m
Was 20/1 consolidation so would be 0.7, back then was just a cash shell with no cash, shows how silly the price is today
We made profit in 2016 with ruble at its weekest in years and oil price at lowest in years, there has been improvement in both in 2017 and hopefully will see a return to the norm eventually, should progress well as zol have made there existing assets profitable in very bad conditions.... should see over 100m mcap with good market conditions
Fortune favours the brave, zol has been cutting costs and making the best of what they have in the current climate, with the wind in the right direction we have some serious legs, 20m mcap is well undervalued for 10,000 bopde 100% ownership and virtually no debt it's only the ruble value that's hit us hard and o&g price, will see revenue up again in half year report...
86% of revenue was derived from gas sold to Mezhregiongaz, a Gazprom subsidiary, at the transfer point on entry to the Central Asia - Centre gas pipeline system. The gas prices are fixed in a contract with Mezhregiongaz and are subject to indexation. We anticipate that an increase of 2% in gas price indexation will be approved by the Russian Government in June 2017 which will subsequently benefit the Company. The remaining revenue was from oil and condensate sold directly at the Western Gas Plant through a tender process to a small number of different buyers. The Company is considering alternative channels to increase liquids realisations such as exporting to Baltic countries, commodity exchanges and electronic b2b platforms.
Back in 2014 the 2 billion rubles revenue we made in 2016 would have been @ 30rub to usd would have equate to $66m revenue plus both gas and oil price were roughly double then so looking at $122m revenue so £1.70 would have been good value
Everything is out of zol's hands, good future prospects but all hangs on politics, all depends on how much pressure Putin is under to improve the Russian economy, if willing to ease tensions in Ukraine and Syria the west will reduce sanctions, the Ruble will strengthen and we will start to make some big profits- current m/cap 24m should easily be 3 or 4 times that. Could easily see no improvement though if the current path continues,
Only downside is we have to wait around 12 weeks for the results to be published