Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Personally I think they were ‘guided’ to perform the restructure. The whole company has gone from a ‘shooting star’ to the ‘boring’ company JF mentioned. However, we are not boring we have a world class asset licence which will produce for years.
Even on the very conservative numbers based on current CPR we are well undervalued. I think one of the reasons for that is true lack of confidence in the current board.
I think we can all speculate why he is going, the wording in the RNS suggests he has done his job and it’s time for someone else. Let’s face it both Sami and Jon were brought into GKP to sort out the balance sheet (At our expense) this has been done.
Now the company is in a different place financially we now need a different skill set to push us forward, we are in a great position at the moment but this BoD and specifically this CEO needs to deliver the stated growth plan as he has failed on his promises multiple times including:
- improved communications
- original timeline for 55k bopd was Q4 2019 but now shifted to Q1 2020
- revised PSC
Neither Sami or Jon have added any shareholder value, it’s time for them to deliver or let someone else do it. In my opinion the large institutional investors will demand this.
Putting aside the lack of confidence in the pair we are is good place right now to deliver significant growth and value back to shareholders.
GLALTH
https://ir1.q4europe.com/asp/ir/GulfKeystone/NewsRead.aspx?storyid=14332386&ishtml=1
No surprises in the annual report which is good really when you consider the reserve downgrades other companies have suffered e.g. genel
So hopefully receive payment confirmation RNS by the end of the week, expecting payment to be slightly less than last month. Payments from next month should be significantly higher due to less downtime etc.
I would expect us to go ex-dividend shortly after the AGM on the 21st June so fully expect the share price to rise towards that date. There is a lot to look forward to here as a long term holder I genuinely can see light at the end of the dark tunnel.
GLA
New presentation on website
https://www.gulfkeystone.com/media/120756/gkp-corporate-presentation-may-2019-website-final.pdf
I know what you mean this BoD has been a disaster and the sheer lack of interest in shareholders is shocking. I have emailed investor relations numerous times and never had a response. I do not trust this BoD at all but looking at the fundamentals I feel more confident than ever in getting my original investment back and some.
GL
So Chevron walked away clearly disappointed they couldn’t get their hands on proven reserves to bolster there declining resources.
I know a small company with massive potential and decent proven reserves at a fraction of the cost :)
The AGM date hasn’t been confirmed yet but normally takes place in June so we should get an announcement over the next few weeks. The proposed dividend for this year is $25m plus a supplementary dividend of another $25m so total of $50m split between the number of shares in issue (229.47m) which works out when converted to sterling around 17p.
A third should be paid soon after AGM late June/early July and the rest after half year results probably around late Sept/early Oct.
GLA
Correction: next months payment will be lower too due to work over work then we get back to higher payments for volumes sold during March. All in all quite a decent payment considering the drop in volumes due to workovers and the oil price drop during them months.
Look forward to seeing some hefty payments in the year ahead.
If you read this article its quite interesting, yes alot has changed since then both postive (route to market, fully funded, dividends etc) and negative (dilution of us shareholders, handing back of other fields and paying for the privilage etc). But one this that has been constant is the operational performance of the field barring the usual natural declines (without investment) the oil is still there and we now have a plan to get it to market. Interesting read anways.
https://seekingalpha.com/article/739961-gulf-keystone-petroleum-what-is-the-14-billion-barrel-shaikan-field-worth
GLA
I tend to agree in that we are now in such a strong position to be taken out now would NOT represent best value for us shareholders unless it was as such a massive premium. There is such a big disconnect between the share price and a fair valuation based on:
- the asset (unfortunately just the one now although it is the 'jewel in the crown'
- strong balance sheet with cash holdings over $300m (approx $200m net)
- great free cash flow with regular payments
- strong oil price
- fully funded to develop to 110k bopd
- dividend payments in excess of 7% with alot of scope to increase
I will personally feel more comfortable once we are sitting at a fairer valuation of around 1.5-2bn then a nice bidding war would be great but would be happy to hold and take the dividends.
GLA
https://oilprice.com/Energy/Energy-General/Chevron-And-Occidental-Start-Bidding-War-For-Anadarko.html
If only this was happening for GKP
GLA
https://www.fool.co.uk/investing/2019/04/11/these-recovery-stocks-are-flying-should-i-buy/
After enduring the 2 hour webcast I am now a lot more comfortable that we have gone from a sell me outfit to a fully fledged producer. For years I think two much emphasis has been placed on us getting taken out which eventually I think will happen but the difference now is that instead of hoping waiting to be taken out we are moving forwards as an independent producer that will become one hell of a cash cow.
As a long term holder who has suffered like many I am feeling more confident than ever that not only will I get my original investment back over time I will also be getting a regular income off a steady dividend. The future is bright...three big ticket items today:
- self funded (no need for cash calls)
- dividend policy
- reserves stable and becoming more proven
Not many companies with our valuation can put a tick against the above.
GLA
Well some really positive news and some less so:
- lovely to see dividend policy introduced
- great news about being fully funded for total expansion
- encouraging news about increased 1P and no decrease in 2P (at least where not doing a Genel)
Could do better:
- FDP needs rework before being accepted
- PSC still not agreed (although the contents of this seem to becoming less important given sales agreement in place and all latest presentations indicate 80WI)
We are massively undervalued at the moment and I would hope people will no recognise this given the free cash flow being generated and hugely exciting future.
GLA