Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Rom, Flegg will not be missed. He sold SQZ shareholders a pup when he was part of the team that rejected a £4+/share bid only to accept a crap merger with Tailwind. SQZ shares never recovered and are a tad over £2 today. The fact he's going 2 days before an ops update and that a replacement hasn't been announced is interesting though.
IMHO..there are at least three aspects to this..
Firstly start ups/early life companies which chrys investment in require cash during the early years to get going. When interest rates are low this is 'easy' but when interest rates are high this increases costs , changes the risk profile and reduces the amount of future profit in the equation.
Secondly when people can earn 5% risk free from a bank then they are less likely to invest in higher risk investments which means there are fewer buyers. In chrys case this has been amplified by Jupiters decision to sell out (from a holding of over 25%)
Thirdly the IPO market has effectively been closed for almost 2 years so realisations from the chrys portfolio have been thin on the ground. A knock.on effect of this is that the valuations of the portfolio have not had a lot of support from the market in terms of confirmation that the are correct/under value.
The good news is that all of the above is changing and the headwinds are about to turn into tailwinds.
Interesting note from the analyst. I'd add that the forthcoming disposal cash if/when used for buybacks will boost the share price even further and reduce the discount particlarly as the Jupiter selling pressure ends.
Hoping for a decent one...
Good update - Thanks
Glad I topped up yesterday but anyone know what driven the jump today?
Jupiter, down to 4% holding now from 12% over the last quarter (and 25% prior). I suspect they will exit this quarter and the downward selling pressure will finally be relieved. Assuming all goes to plan in April I think we could see a significant re-rate.
I'm a holder of both ENQ and ENOG (Energean) and have been for some time.
IMHO ENOG is not interested in ENQ and never has been. ENOG is at the opposite end of O&G profile to ENQ focusing on developing new fields and predominately gas with the Med being it's core base.
Any deal between ENQ and ENOG would be for ENQ to take over ENOGs UK NS interests. ENOG will happily exit the North Sea if it can find a buyer for it's minority interests in NS operations. The Scott and Telford ops (both operated by CNOOC ) and in which ENOG has a 10% stake are the most likely if indeed any such deals are being mooted.
Hi Stevo, why do you say that Golden Eagle is a dog?
I get that production levels have been poorer than anticipated but the initial $250M payment for it was earned from it in 14 months ( Jan 23). I know there were contingent costs on top and that a final $50M was paid in July. As you know GE is a non-operated asset and is now throwing off free cash .
Even with oil at $70 the EPL will still apply. It would need Oil at less than $71.40 for 6 months AND gas at below 54p/therm for 6 months also. As the smirking Hunt said at the time he did not expect the floor to be trigerred.
Hi Red, not sure where you get $30m reduced opex from as I read it as $25m in reduced opex. ENQ also have a further 2 months before y/e to reduce debt further so Tarmacs s/s looking good.
All in all a very solid update given they had EPL and final Golden Eagle payments to make in 2H.
Clear water now through to 10/24 and use of puts over costless collars is proving v positive.
I anticipate an opec announcement this week that should help oil prices and next week the choppy waters of the Stockholm delisting will have been calmed.
I look forward to a reflection of the above in the share price over the next couple of weeks.
Was surprised by the Gov fiscal comments but perhaps alludes to something coming down the line.
Thanks for that info Romaron, I'm not surprised Kamrat is there or there about. At the end of the day the oil price will be the oil price. It reminds me of the old question. ' How many oil price forecasters does it take to change a light bulb' . The answer is of course '7', plus or minus 10.