Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
My thoughts are the market is pricing in the big unknown. Sealion.
If sealion proves to be success PMO will rocket. Also the market is seeing the fluctuations in the share price and I think alot of people are trading this share for short periods, taking 5-10 percent and waiting for the next opportunity, which doesn't help.
To me this update should more than offset the POO drop last night. Shows that PMO can thrive at these oil prices. They are already starting to hedge 2020 production.
Production very impressive, exploration looks exciting, projects in the pipeline. Future is very bright
Premier has hedged 43 per cent of its second half 2019 oil entitlement volumes at $69/bbl and 14 per cent of its 2020 oil entitlement volumes at $66/bbl. Premier has also hedged a significant proportion of its remaining 2019 and 2020 Indonesian and UK gas volumes. The Group’s complete hedging schedule is set out at the end of this release.
Net debt reduced from $2.33 billion at the end of 2018 to $2.15 billion at the end of June as a result of free cash flow generation of $180 million, ahead of budget due to strong production. Premier’s covenant leverage ratio (covenant net debt/EBITDA) at the end of June was 2.4x, down from 3.1x at the end of 2018. At current oil prices, Premier forecasts 2019 full year net debt reduction in the upper half of $250m to $350m guidance and continues to expect a year-end 2019 covenant leverage ratio (covenant net debt/EBITDA) of less than 2.3x.
Looks really good to me
I think we will see more shinanagans though. No doubt will have an effect on oil when these incidents do happen.
Ah I see. Thanks Geo for the clarification. I'll do a little research on this as per MO link
Thanks for the reply Geo and MO.
Am I lead to believe that PMO have sanctioned the building of a platform for this project. Seems like a lot of investment for a less than 99% chance of success ?
Pardon my ignorance folks. I honestly thought this was more of a sure bet. I'm aware of Solan but I thought this was more of an extreme exception rather than a say 15-20 percent rule.
I've never heard any solid info either on what went wrong at Solan.
Cheers
Stealmetinternet
What are the factors that may cause it not to be a success geo? I thought they had proven resources there?
Honest question btw. I'm genuinely interested
Would they be exporting oil perhaps?
DBNO doesn't do fundamentals so no point in asking him.
https://www.fxstreet.com/economic-calendar/event/bcf389bd-5fe2-4bd1-b1e0-d0b3910ba944
API release
Agreed, a little bit of profit taking on both Brent and PMO. This won't last long
Spread seems to be tightening between Brent and WTI. Anyone know why?
Perhaps Geo can impart some words of wisdom. Are we likely to learn anything new from the latest Zama appraisal drilling?
Anyone got any info on the IEA report? I believe it's out today at some point. Thanks Stealie
That only equates to 6 million barrels of oil. Not sure that's going to effect prices all that much
I think Sea Lion weights heavily on the SP. Massive up side but this is an undeveloped region. It's isolated, there are logistical issues not only completing the wells but also getting the product out. They can and will be overcome though imo. They have a really successful project in Catcher under their belt and I think it will be a similar project in terms of technology but I'm guessing the market won't forget Solan in a hurry.
What a surprise, members goes and our former resident contrarian returns.
Looks like it wasn't, Is recovering well but what do we think the drop was about? Not great debt repayment in Q1? On my reading it was only about $100m. Is that correct?