Major drilling campaign underway. Area surrounded by majors and a proven history of mining for copper, manganese and even gold mines in the companies portfolio. Potential to 25x bag. Microcap of 8m, previous sales of 250m of one asset by the same director under another of his companies.
Oversold, company is reopening for business, costs reduces, CFO to be made redundant & Group Financial Controller will adopt the responsibility, saving on a large long term salary and pension. Hopefully, they'll adopt a better hedging strategy long term to deal with drops in oil & gas prices.
Potential yield of 15% for dividend. Debt is being clear via asset sale, so less ongoing expenses. Oil prices are rising with brent rising from $20 to $35 now. $40 expected in 1yr time according to futures contracts, but it could easily rise to above $50 quite quickly as lockdowns end & demand rises for international shipping. The operating costs are only $10/bbl which is $30 cheaper than WTI costs. Book price is 50p, share price is 25p. Undervalued & oversold.
ALL SELLS. ASSETS REDUCED DUE BY £83M WRITE OFF CARRIED OVER YEARS 2018+19, LEADING TO NEGATIVE 41p EPS. ECONOMY IS FALLING APART. OIL COLLAPSED BELOW BREAKEVEN. MASSIVE DEBT BURDEN IN CORP BONDS ISSUED (CONVERTIBLE TO 50M+ SHARES => DILUTION RISK).