RE: This week?22 Nov 2021 10:44
Ps - I kind of agree, yet disagree with elements too.
You are right in terms of terms of Sound Energy's independent valuation which clearly only really shows longer term share price value based on Phase 2 development with a current SP value of about 1p with Phase 1 contracts in place.
However, I would suggest that this may not quite be accurate now in terms of the longer term SP with Phase 1 contracts actually across the line which IMO would differ from the last two or three lifts (then fall back) in SP as at those time there was so many unknowns and the longer term future of Sound Energy was in doubt . My rationale for disagreeing being, Sound Energy would now become a sustainable and profitable company for over the next 10 years with approx income of £25-40million a year (year on year for 10+ years). This amount would not only give the opportunity to create a long term financially secure future for Sound with the huge upside of Phase 2 contracts intended to complete in the next year or so with sound being keen to maximise the revenue over the 10 year TAX holiday period in Morocco, but also having such a large slice of existing licenced area to further explore and then profit from.
Although I accept your caution and logic with informing investors based on past antics and the 98% drop in SP I still think that the new BOD are clearly achieving key milestones (albeit with slipped timescales) with a clearly defined and set out long term plan business which is coming together bit by bit.
As Graham as stated, we may never get back to those dizzy heights of the previous SP, but he will aim to give long term value here and I believe the next milestone will change perspectives for some and may well make Sound a more viable long term company to invest in.
We will see when news lands!
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