Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Kayel, part of my reasoning to hold on is that last timr a director bought in was just above 350, so fo me that created a minimum which has already been breached. Purely on this basis I doubt we will hang around at such a low price for too long, current oil (75) and gas price (2.90) suggest an EV of £7.5b, so around £6 a share. In fact, if those prices remain throughout 2022 and the hedges they described, 2022 fcf is £2.5b enough to pay off debt and pay a dividend. Tolmount reserves dropped from 40m to low as 20m, so reducing the life span by half by still producing 20k per day, sure they'll find more assets to acquire in 5 years to replace the hit.
Hi Oil
Interesting question you proposed, having a dig at YE accounts, something is fishy but not as you put. Its more about lack of transparency of what they done and came across dodgy.
Chrysoar had private equity of $1.1b, debt totalling $2.2b. Premier had public equity of $0.2b and $2.1b of debt.
So if you look at Chrysoar equity and Premier equity and debt you get 1.1 + 0.3 + 2.1 = 3.4b, giving premier just 5% value of the company. So far so good.
Here comes the dodgy bit:
1. Looks like they raised further debt of $1.1b, to pay of premier creditor and leaving them with $1.0b i.e. 18% of the company. Its dodgy, as I cant find anywhere them announcing them doing this and hence misleading us poor investors. But it makes sense as they have then been saying they had reduced net to 2.7b by end of may. Given they had announced in Jan how much share we were getting, it adds up that they had prob had debt of over $3b at start of the year. Otherwise how did their debt suddenly increased from 2.2 at 31 Dec to 2.7b by May.
2. Worst dodgy bit is after restructuring they gave themselves a share of 77% of the company by allowing debt as part of their holdings doesnt make sense as it is double counting. Having a look at this, I think FCA should investigate their dodgy practise, because the numbers dont add up.
Looks like we have been shafted!
Finally dbno questioning the stupidity of share price. Seems like a triple m propaganda only they know what and why they doing this. I've gone over the presentation many times, the fundamentals provided doesn't equate to such a stupid share price.
Thanks Hargreaves I missed my opportunity to buy at 22p.
But it's not letting me on Hargreaves. So I guess the mm are rigging the price for only sells go through! Probably lack of stocks to sell from their end?
I can see only a 89k buy not 100k
HL isn't letting me buy. How did you manage 100k buy?
Now the presentation is over, compared to previous ones I think they did a good job, they were more upbeat, confident and did answer alot of questions. Sadly not reflecting in share price. I'm expecting a quick rebound to over 4 quid in a week.
I just added another 5k at 390.
Captain kirk did say weather permitting tolmount by end Jan to fix the remaining 150 faults, so not much of a disaster, but triple m at play. Once debt is eliminated we can se good dividend growth over the years as well. Plus the downgrade in reserves is being offset with other good drilling activity elsewhere, again overreaction.tolmount represented no more than 10% of output, so a reduction in tolmount reserves doesn't warrant a 10% reduction in sp. They didn't say that tolmount has gone completely lol. The way I see it they do have a very strong balance sheet so the sp is stupidly very low.