Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Not posted for a while due to oil price and Covid19 but as both seem to be improving thought I would as I still hold quite a few.
Firstly why can I not see the latest RNS on here about the drilling contract.
Secondly, nice to see us rise, all due to clarity and drilling contract signed, also those who think this is a 10p share pre drill are in my view naïve, it will be higher, if they strike oil with the structures they have this will be 60p plus easily and I hope at that point they sell to a major.
AIMO, DYOR.
The oil price as we all know is down for 2 reasons the Covid 19 which hopefully will ease as time goes by although it will be a long haul and the other is the Saudis flooding the market with oil because Russia would not agree a cut, not sure how this will pan out but unless the oil price goes to minimum $50 a barrel all oil companies will have major issues.
How can BPC drill for oil with a price at $20 there's no profit especially offshore, to that end I closed all my trades a week or so ago, I do hold some bought and paid for and will add if things change but unless we get huge cuts in production to cover demand which is reducing rapidly because of Covid 19 and Saudis trying to bankrupt nations including themselves and believe me America will not like it one bit its looking dire.
On the day of the last RNS I sold all my trading shares by 8.03am @ 3.23p just bought back and unless anything odd I will hold. I have not sold any of my core holding and wont until drill when I will top slice 20% and leave the rest for the result.
I am annoyed that SP stated that we have our rig in the Podcast and clearly it had not been signed so they did not have the rig, very poor and that made me wonder, anyway I decided to buy back not all I sold as I am cautious now.
Good luck and I hope we now get a farm in. that was my main reason for buying back.
Well I still maintain this as a buy but with EA approval and CLN imminent I am surprised at the price, now 4p on the bid, clearly some are concerned that something is not right, this virus is killing the markets, where is this coordinated response by central banks to smooth the markets.
I still think a farm out will happen, if not the CLN but the price of the CLN was it 2.5p lets hope they don't start flipping for a quick profit, should have locked them in for a period. I wonder if they will simply draw down more from the Bahamian investor
That's a big cut by Opec and needed, lets hope they stick to their quota.
I will be surprised if we do not get an RNS tomorrow.
On the CLN has there been much forward selling, difficult to tell but not in huge quantities although I may have missed it, I would have thought there would be with the CLN although they may just sell say 20% and let the rest run, probably sell some whilst drilling to reduce the risk.
Therefore my bet would be on a farm out although BPC on first drill would be the operator, I would be much more confident with a farm out, a big outfit would supply the finance for a percentage obviously but we could get perhaps 3 drills all paid and some cash for work to date, just my view
DYOR. IMHO.
Whilst Coronavirus is clearly a major issue, have you noticed how much the BBC and SKY are so hyped about this, not just on tv but on phones etc. Its all so doom and gloom, at present we have 40 cases of the virus population in UK 65 Million, of course people need to be advised but its pushed down our throats all day every day.
People panic, buy food that's not necessary and virtually stop everything, yes its serious particularly in China, South Korea and Italy but the media need to reassure people not press the panic button, no wonder the markets collapsed and BPC barely moved after the EA.
When last week the markets collapsed and the DOW had the biggest one day fall it was first on the news, today when the DOW had its biggest one day rise it was barely even mentioned.
The media need to get more responsible with reporting, yes Coronavirus is important and the message needs to get out there but put it in perspective.
Morning all,
Superb news today on the EA and not surprised were up even with the virus causing chaos in the markets, one thing though is huge forward selling in my view with the financing, yesterdays was it 48M @ 3p presumably the lower of the last 5 days, what a profit and as I see it this will happen on every drawdown, so great to see it up but the dilution suffered is a pain although better than the CLN.
A farm out is by far the best option in my view.
IK,
This is quite a big shake presumably to hit stops at 5p or just below or there is a huge sell, I haven't sold any shares and won't until drilling starts, although might consider recovering 20% pre drill not made my mind up yet.
I expect this to rise into the close.
That person over there has completely ruined the boards I am going to stop my Level 2 as don't want to listen to that constant crap, might be a bot though, if not they are complete fruit bats just utter madness.
Morning Interestking,
Superb posts very insightful and shows the huge potential, I have read all your posts and found all of them informative, I did note you thought the OO and MF would be well oversubscibed and I had hoped it would be, I am not being disrespectful here just saying that none of us get it right all of the time.
I believe you are the most informed poster here and do look forward to your analysis and in depth views.
Lastly on options you mention hedging at drill time, everyone must make a decision take part off and let it run will be my option probably !!
What is your view in respect of hedging as far as I can see that's it. You could at that point short some but I cannot see how else, could you explain.
Many thanks and hope I can still come for a drink despite being in Cumbria
Flyboy,
Cash burn !!! Good grief you need to bring yourself up to date, look at the funding we have, the key here is the CLN and with it were off, if not we need different finance but I have no reason to suspect we won'; get the CLN , a cheaper alternative would do or a farm in.
All this talk about drilling dates, listen to what the company says, they have to drill April, two reasons they have to drill this year or they lose the licences and that would be it and if they delay we are into hurricane season, get a grip.
I read your post,
"Maybe not Bonum, I'm hearing a huge placing is coming!"
You post up details like that and you should read the FCA warning on here, they act on false information or insider knowledge, it can influence people to buy or sell its called market abuse.
Just thought you should know.
https://thenassauguardian.com/2020/02/11/leno-breaks-ground-on-25-mil-headquarters/
Just looked at those 1M trades, they do look like buys, so why has the price fallen, is it something to do with the MF either that or there is a huge sell in the system, lets see, I think this will move back up quite quick today.
IMHO.
I have read the Proactive article which I thought was excellent however I am some what puzzled by their valuation, they state
If Perseverance proves to be a discovery and the UBEST estimate of 1,030mm boe is reclassified as Contingent Resources, fair value, which would be a combination of the volumes from Perseverance and the remaining portfolio, could be up to $1,014mm (36p/share), a significant step change in value.
How is 1030mm boe worth only $1014mm or 36p per share when also taking into account the remaining portfolio, I must be missing something it is worth far more ?
IMHO
Morning all,
Good news on test drill could see us 8p to 10p, really !!
My view is that pre dill we will be 8 to 10p alone, with a farm out could be 18p to 20p, if we are alone and fail to hit it will probably be 0.5p or all over if we hit then no idea but as a starter 60p plus.
IMHO.
Don't let them get your shares, its doom and gloom with that dreadful virus in China which is spooking the market, but nothing has changed here.
Those MM's are going for your stock and have dropped it quick, do not be fooled and watch any stops.
IMHO.
Afternoon,
Interestking, I agree with views, had a small top up 50000 @ 3.40p so a bit higher than now but I feel comfortable, I now have a nice round number, I expected some retrace however I formed the view that the mm's need stock and much more news to come.
In addition it sounds to me listening to todays Podcast that a major partner could be close which is my preferred choice, that way we would get cash and more drills.
IMHO.