Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
I completely agree. My small top up at 15.2p is looking like it may have been a good bit of business for once. It's got a long way to bounce when it does get going, but I am cautious about calling it yet.
I've had another little top up this morning. The results are inconsequential as they're effectively already known. The fact Glencore are willing to pay a year upfront is reassuring that the coy is a going-concern. The annual report should have some detail on the work that has taken place and the planned next phase, which I hope will lift sentiment. We've seen that a shift in sentiment with this share could lead to the sp doubling in a week. Last time my biggest regret was not buying more in the lows. If I have regrets this time round it's not going to be that again!
I agree completely. Anyone who thought they'd increase production over the last 6 months was extremely naïve when a. They said they wouldn't be drilling, and b. They operate in a permafrost in Siberia. The key will be the plan going forward, but patience is required. This time next year Rodney...
This share has had a consistent 30 - 35% growth in annualised revenues every 2 months for 14 months now. If it can keep this up, we'll be profitable this time next year. With the US market the growth rate may even speed up. Who cares about a little dilution? You should expect that with a growing, successful small cap. The point is that when this is in profit and still growing, the sp will be a lot higher!
To my understanding, the explanation given on the 10k failure was simply that pressure levels were lower than expected. Put another way; they drilled in the wrong places or the wrong way. Hence, they took on board a strategic partner with more technical ability and began the process of reassessing. There's no point holding them to the 10k promise when they've stopped drilling. The next phase of the plan will be out soon, and we'll have to see how that goes, but with the partnership the results should be a lot better. There's also the gas, which changed priorities, although I confess that the lack of news on that front is both a concern and a frustration! Patience will be key, but nothing's changed since the sp was in the 40s, other than the Ukraine tensions. The coy said back then that it wouldn't be drilling. At these prices i make this a strong buy, and may top up again despite my over-exposure to this share.
Happytom, not sure if you've misunderstood or not. There are two options: The option that expired was the one the company had to buy the shares from the bank, and that has not been renewed because it's worthless at current prices. The other is the bank's option to sell the shares to the coy at a set price. We extended this because if they were to exercise it this year we'd be crippled. They get a better price because they're effectively lending money for longer. The entire thing is effectively a finance arrangement, which is why the liability has been recognised in the accounts. We definitely didn't have any choice over the matter, but it's good to get a bit of breathing space to make that breakthrough in production we ultimately need. (Sorry if I've misunderstood your post answered a question you didn't ask).
I read it that Schlum were brought in to plan the wider drilling programme, not to increase production from existing wells, so I wouldn't judge them on that. The key will be whether they manage to drill more effective wells next time. Would be nice to have news of some progress, but if there was news already you wouldn't be able to pick up this share so cheaply.
I'm an old timer in rpo and have crystalised some good gains there. Down atm, but I'm generally very bullish on it. I hope to keep a small holding long term and see what divs it pays when it gets going. Having said that, the current situation with Ukraine and Russia is testing my nerves right now (tho its pushing oil and gold prices up, helping my aaz and fpm shares). Just need to sit back and see what unfolds.
Had a quick look. There are quite a few oil prospecting companies out there, and I've developed what i consider to be a healthy scepticism. Africa's not my favourite oil location, and a company far from profit with the majority of returns relating to fundraising mean its just too speculative for my tastes. Having said that, i missed out on a nice rise in tpl due to my scepticism.
Anyone got any thoughts on the possible risks relating to sanctions and Putin's reaction to them? Could that affect our supply? We're hoping to hook our gas up to the pipeline...could that revenue stream be jeopardised if Putin decides to turn the lights off in Europe just for kicks? Or what about the risk of being targeted as a uk listed coy? Forced buyout at under value by a big Russian oily? (i speak as one who has been in and out of kaz through their fiasco). All just scaremongering, and i don't think it will come to that. I think you're probably right that with the fear there'll be money to be made (or lost if the fears come true) but I'm going to at least wait for the fear to fully kick in before I consider topping up again here. Atvb to all holders...hold tight!
AVG is looking very impressive, I hadn't looked at them before, but they're right towards the top of my watchlist now (not just because it's in alphabetical order). Will add ISAT too I think. I've been watching PMO for a while, but there's always been something more enticing when funds have freed up, and went for FPM to add to my RPO because it seemed to be on the low side of its trading cycle despite excellent recent news, so I don't really want any more oilies until I offload some of the others. Andreaban - I am a fan of your policy of looking for companies with good/growing profitability for their price - keeps it simple. I didn't get into BEZ, because it felt quite similar to JIL which I got into before their big dividend but now I'm tied up in for the longer term. BEZ didn't take anything like the drop JIL took though, which surprised me, cos the dividend was based largely upon a single 'good' (i.e. uneventful) year, which will never be a long-term trend. I may pop back into GBO if drops back to the high 50s again. I can now add CRND, KAZ and EMG to my immediately recent 'cudda wudda shudda' list. I was literally a click away from buying into KAZ at 175p and then decided another share had more potential of a more immediate rise. My legs are getting sore from kicking myself so much. As for DLG, I'm surprised it's not risen more. I guess the likely increase of claims in the new year is dampening sentiment a bit, as it will be with ESUR. I hope holders here get a similar good set of 2013 results though.
Was it someone on here who tipped DOR? Whoever it was, I'm gutted I didn't listen to them now! I held off on that and CICC whilst I thought about them some more. Just a whole lotta shudda, wudda, cudda. I'm still in on IMG, it will come good eventually. I'll look into the rest, cheers.
I doubt there'll be a fundraising any time soon. The bod are keen not to dilute their share or put up more cash, and production, although low, is nevertheless cash positive now. It would only be if the lenders kicked up a fuss that fundraising would be necessary, and that is unlikely to be before 2015/16. As I understood it, commercialisation of the gas is the first priority, and the best we can hope for is news on that. That will fund further drilling, which in turn will lead to increased oil production, funding the debt repayments and ultimately dividends. As i say, that's my understanding of the long term plan. Should be well worth it at these prices if we get there. I'm hoping (being an optimist) for 100% divs in 5 years time on the latest top up price!
Nice to be missed. Sorry, have only been keeping a token check on things the last couple of weeks, but some of my shares have gone into profit again now. Sold CAR now and SYM, so have some spare dosh. Went into FPM today: I've been watching them for a while cos I like their business model and there's been plenty of good news recently, yet the sp is surprisingly low. Will have a look at BEZ now. I had been hoping to get back into KAZ and GBO, but both shot up just before the others. Gutted I missed the boat on COMS too. Looking at TMZ, but may see if it drops a little more. Any other suggestions gratefully received. As for Esur, it seems to have plateaued. I guess the floods will hit the bottom line short term. Glad to see everyone seems to be fairing well.
I know, just wanted to claim youth one last time. I'm not sure there are many falling into your category tho: they'd need to be using daddy's money if they were, in which case their dad would be the dumbest one. Most young investors have their own small amounts of capital. As for me, I appreciate I may have sold too soon, but I've given over worrying about that. I don't need to retire tomorrow, if I get the profit I was aiming for when I bought then that's good enough for me. If I end up in a share for a long time I may seek a better reward before leaving it. Everyone has a strategy, and whilst I could have done better a lot of times, I could have missed quite a lot of profit getting carried away with a share too.
...has made me a nice profit here Cueball. You don't need to worry too much about the youth (if I still qualify at 30), we're not all doing too badly. SYM also brought home the bacon for me today :-) ATB
Yup, I'm quite enjoying it in a perverse kind of way. I'm personally betting he's 24y.o city trader working for Mr Hargreaves, but guess we'll never find out for sure. I'm pretty sure the 40 years experience aren't his.
I know I should stop biting, but I can't seem to help myself: I like a bit of banter myself. I'm not going to slate your personality, cos I don't know you, but you've got to be sensitive to the fact that some people here will have lost a significant chunk of money. Your particular brand of banter isn't funny. As for your comments on people being too arrogant, you're the one stating/implying others aren't proper investors if they haven't read a specific book or think the way you do. I do agree that dead cat bounces aren't dependable, but neither are retraces. I personally prefer to look medium term; will this push back up again given time/is it now undervalued? If I think yes then I'll buy, and if the feline corpse does bounce I may cash in or I may stick. A final point I really can't get my head around is why someone who's been investing well for 40 years and prefers to put their money in a managed fund spends entire days and evenings posting repeated inflammatory comments on the bb of a share that's just tanked. I hope to be enjoying a comfortable retirement if I get to that stage. I won't hypothesise, cos you'll only play the victim, but I can't get it to add up.
SYM was mine - I bought in at 6.3p last week. It certainly isn't a risk free share, but I think they will comfortably make a profit this coming year, and the prospects for revenue growth look really good (as well as cost cutting that they have announced). Mostly though I think that the recent drops make it an attractive price, and a rebound to around 8 - 8.5p would be reasonable on even average news in line with reasonable expectations. Plus, I'm a sentimentalist at heart - I always like the opportunity to invest in a company you can be proud of. I always feel a bit dirty when I make money off the oilies (not that it stops me investing in them altogether). But then my wife told me that the biodegradable plastic bags don't work properly in landfill because there's not enough oxygen - oh well, shhh...don't tell anyone until I've sold. I see a few of you are in CAR - fascinating times over there. I had it on my watchlist from when one of you recommended it and decided to get in too, although a bit after the bottom. I hope it holds now. I figured that if you're not going to buy a share you are watching when it drops 35%, why have you got it on your watchlist? Also, the fundemental business is still sound, and the new technology will find it's place, even if it's not as revolutionary as first hoped. GLA