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Following the appointment earlier this week of Miles Pelham as Chairman, Obtala Resources (OBT) has updated on its strategy and outlook, with Pelham emphasising “I am strongly committed to enhancing shareholder value by monetising the substantial capital investment made into our African ventures in recent years”.
The update notes that, in addition to currently-being-fulfilled forestry orders from China, Thailand, Vietnam and South Africa, “there is also further qualified interest both domestically, in South East Asia and in the Middle East”.
Meanwhile, fresh produce sales continue and it is updated that “we currently have, amongst other crops, c.500 tonnes of mixed melon varieties and butternut at various growth stages in the fields to be harvested over the next couple of months”. It is further added that “we now have everything ready in terms of certification and packaging options, and are working with suppliers in Europe, Middle East and Asia to secure orders for our dried produce”.
This all reinforces Pelham’s earlier view that “the company sits at the cusp of healthy revenue expansion”, while it is noted that it “will continue to seek investors into its forestry investment vehicles” and“has cash balances of $1.1 million as of 27th April 2016 and has no imminent large ticket operational items to fund”.
The shares have responded to 7.875p, but we continue to believe this could just be the start of fresh positive momentum here and continue to rate them an asset-backed buy - to further see why the company can be seen at UK Investor Show this coming Saturday.
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