George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
BASF have said they want out for definite. They are removing all upstream oil from their portfolios and its what they are aiming to do no matter the potential. No matter because there will be buyers and maybe share buybacks in the future.
I see how you mention management failure. I believe it's good management as prices that have been mooted for the areas harbour have been linked with have been very high. I'd rather have a purchase that was value for money and the right option for us to take.we are very quick to criticise the management of companies on these message boards. There will only be a limited number of M and A available. In areas where tax is a lot lower so the prices are a lot higher to purchase due to the high oil prices. And with the tax on profits for UK fields being high them it isn't really as attractive and easy to purchase at present in my eyes. I'd rather good management with a sensible price than a kneejerk purchase because Mike wants an M and A now.
Our share porice has been hampered for sure by the government money making scheme. However I agree with the buybacks as the share price is such a low level that for long term holders it has the potential to be a very clever way of thinking. Including a natural increase of the dividend by the removal of shares.
I am at a paper loss and a fairly significant one however I am not panicking. There are plenty of wells producing oil and gas in harbours hand and some being developed abroad. We are debt free. If they manage to build a pot behind them and purchase/takeover etc with the money they have accumulated then all the better as i would rather purchase with free cash than using debt facilities that at present are becoming unworkable (reduction of debt ceiling and also interest rates). Furthermore with the more damaging hedges over the next couple of years to expire makes it a good long term plan to buyback shares. I hope for more soon.
Happy with the results, seems like we are on track. It was this part that kept me wondering. Does this mean from that from 2024 they can amend the amount of hedging or what has been announced (due to previous restrictions) has to go ahead?
As part of the redetermination, we amended the oil and gas price hedging requirements which are now linked to the amount drawn under the borrowing base. This means that while we remain under 10 per cent drawn there are no minimum hedging requirements on our business. Approximately 50 per cent of our 2023 production is hedged - comprising 64 per cent of our gas production and 33 per cent of our liquids production - due to historical hedging requirements.
Because in the longer term it would be better for the business. When we eventually become debt free, I would expect to see HBR as a more attractive option (prior to any acquisitions/mergers etc) and more investment. To buy them at a low price and when news happens then it would be a much higher percentage increase. On top of that it improves the value of the dividend as well.
If you are in only for the short term then perhaps it's not great for yourself but for longer term holders, I can only see positives.
Normal daily circa has ranger from 240 to 500. There have been days where its been less but because of the increase in share price today, they cannot buy so much as they can only have a limited price rise over a certain number of days (I think 5% if someone is able to prove me right?)
Https://www.egdon-resources.com/investors-2/share-structure
Well HBR have had a 8.53% interest in Edgon resources prior to today so I am guessing this must ne due to the takeover by Petrichor
Very good update, only 200m left in net debt which is impressive. Once debt free then I feel confidence will grow. Would like to eventually see a M&A from FCF to underline the strength of the buisness instead of using debt facilities. (Also a nice small saving on interest payments).
Nice to see we are on course for our targets and stll another $150m of buyback to go.
Why would it increase though? Have they started drilling? Is cash coming into HBRs coffers?
Its great to see there is an opportunity to make cash for HBR but until there is something workable in place then why should this increase a lot? Once extraction occurs and of a good quality then the share price will rise.... until then we wait.
Slater what is your end goal here?
IMO, HBR have a lot of potential.
1. They provide a dividend (which is good for LTH such as myself... I bought into PMO when it was peanuts at covid time).
2. Share buybacks. Even as you exclaim it makes no difference, my dividend this year is bigger than last year thanks to the dividend. Furthermore if there ends up being a rush for shares due to positive news then there would be a difference.
3. Debt. 800 million in debt at the last update so down from 2.3 billion the previous year. Surely you have to admit that is a nice drop in the debt and hopefully a small drop in debt in the next update in May.
4. Production costs are low and making a good profit on each barrel of oil and gas that is pulled out. That is the goal of HBR after all.
5. OPEC. Wanting to keep prices above $80 a barrel is good as there will continue to be hood profit on each barrel produced.
Cons
1. EPL - Obviously this affects HBR (even then it is a profits levy and not on all production which is a relief). If they find a floor price then it will improve, if not then we will have to work with what we have.
2. Diversification. With the EPL it makes sense to looks at other areas which HBR have declared. There are good prospects within HBRs portfolio already but they need to be started to make a difference to the share price so no movement for a while there unless they buy new cash generating production elsewhere. The question is when will they do this so not to pay over the odds? Will they wait till they are debt free first?
3. Economy. Well just now we are up the ****ter. Less money people have to invest, less holidays/use of oil and gas which will drive the prices.
In my eyes, we have a very good prospect that is cash generative. Reducing debt (to hopefully nil debt next year), good oil prices and good dividends alongside share buybacks which will help improve my dividend.
The government are blinkered and wont do anything until producers stop producing.... They will raise taxes this way and still get away with it. Once UK production drops and taxes reduce then we may see the government change its approach but im honestly not holding my breath. This is why its vital for outside UK acquisitions/partnerships to avoid these heavy taxes.
I honestly dont know if its excellent as its just a submission. The approval process is the key and we can see how fickle and complicated getting the approval can be. This is why I think the share price hasnt moved because there is still nothing definite happening.
Once the approval, then thats when we can get excited and perhaps the share price can move forward.
Good news and a step in the right direction but nothing exciting yet happening.