Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
The problem is there's still hefty debt on the balance sheet (£600m with lease liabilities)...so the net cash position is negative. I don't know what form the debt takes though and who the creditor(s) is and are...
Without debt this company would be undervalued, considerably but there's still a cash outflow and MM needs to target the indebtedness
I still think THG's a great company though with a decent future
Https://twitter.com/baroninvestment/status/1764288724760752472
falcon oil & gas (fo.v fog.l fac.f) announced that strong ip30 day flow rates have advanced the beetaloo to pilot development. the shenandoah south 1h well in ep117 achieved a commercial ip30 flow rate of 3.2 million cubic feet per day (normalised to 6.4 million cubic feet per day over 1,000 metres), significantly higher than pre-drill expectations.
flow testing of the shenandoah south 1h well will continue for the next 60 days to achieve average ip90 flow rates to better determine the well’s estimated ultimate recovery and the flow rate results are expected to be announced in april 2024. the beetaloo jv partners of falcon and tamboran resources (tbn.ax tbnrl) will now progress development plans for the proposed 40 million cubic feet per day pilot project at the shenandoah south location.
the project is expected to require six 10,000-foot development wells initially to achieve plateau production of 40 million cubic feet per day. drilling of the first of these wells is planned to commence in q2 2024 and the jv is targeting first gas in h1 2026. at the end of january 2024, falcon held ~us$5 million in cash and has the benefit of a further a$16.67 million gross (~us$2.5 million net to falcon) carry to support immediate activities.
falcon is funded to commence drilling of the initial two wells in the program and will evaluate opportunities to support funding the remaining capital commitments to reach first production, including issuance of equity and/or debt, evaluation of pre-payment for gas from the proposed pilot project and potential farm-down opportunities.'
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Buy backs don't work except in an accounting sense. They are a complete waste of time. Dividends are real. Cash is real. Oil reserves are real. Oil rigs are real. Oil tankers and oil silos are real. All real assets.
The market will afford a company a higher rating due to factors related to an improved physical operation of the company in question.
I think physical, not accounting. It all comes back to cash, assets and income and if those three aren't improving year on year then the company ain't gonna get bid up by investors.
No amount of accounting shenanigans can change the reality of a company's real performance
Current market cap = £203m
Consider the company's assets (cash, stock on shelf, buildings etc), its debts and then its commercial worth going forward (future profits, future cashflow and future orders) and its industry leading position and tech which takes years to carve out from nothing...is that worth £203m? Do the maths yourself
Look at the medium term chart over 5 years. The price has hovered strictly around 5p since late 2020 after dropping to below 2p during the pandemic.
So from a tech chart point of view the price looks pretty stable at current prices assuming no internal (loss of contracts which I don't see likely) or external shocks (market collapse etc) unless SEE decide to dilute with another placing, which if they do will surely be the last the company will ever do now they're on the verge of free cash-flow...
I personally don't think there's much downside from here. I believe the risk-on is to the upside but these are weird (some might say realistic) markets so feck knows..
dyor. I've been buying SEE and selling SEE since time immemorial. They've always been a jam tomorrow company in terms of profits and free cashflow but it looks like they're on the cusp of that changing so one might argue that now maybe the time to buy and tuck away
But SEE does need to start releasing contract news with Smarteye landing another hefty contract with either Kia or Hyundai...
you pays your money
C1 -
I posted it last week!
We don't need involvement of a creditor on our balance sheet, a recipe for disaster in terms of corporate control. Stick to placings which I believe would be warmly welcomed now commerciality's (partial as we await the 90's flow rates and further fracking) been confirmed.
We don't need debt. No debt. No debt. No debt. Debt is a cancer in small companies. It destroys equity. A small company has no choice but to dilute equity. if it cannot pay its way. Share placing, warrants and selling a further stake in our licences to pay the company bills until cash-flow starts or until monetisation (ie takeover). That's just the way it is when there's zero cash-flow and a diminishing cash in the bank
The size and scale of this contract endorses CPI's liquidity and commercial capabilities. It also cements market confidence in CPI's future and that cannot be underestimated. I reckon more contracts on the back of today's news