Longboat Energy (LBE) is a company that I actually like and hope does well longer term but, having seen its share price double, I’m finding it hard to see where the value is up here and would be inclined to at least bank some profit...
Often I am left wondering what the point is of quite a number of small mining companies listed on AIM, as all they seem to do is raise small amounts of money to keep the business ticking over without ever actually achieving anything of note.
Every day until New Year's Day, we'll publish a picture of the view through a reader's window. Today's ShareProphets reader is Colin from Sirdal, Norway. Remember to send your Christmas view to firstname.lastname@example.org
In addition to tearing into Frontera Resources (FRR) in his morning email, the City's number one oil analyst Zac Phillips, albeit of shamed SP Angel, also reviewed the 152p per share offer from Norway's DNO for Faroe Petroleum (FPM). To paraphrase a famed piece of Norwegian football commentary, ‘Bijan Mossavar-Rahmani, Executive Chairman of DNO, can you hear me, can you hear me’…
A brief look at Cairn Energy (CNE) would leave many wondering how on earth the company can be worth its current market cap of more than £1.15 billion. Especially when you consider that although it is an oil producer, in H1 2018 it only averaged 14,400boepd, and there are many others on the market producing those sort of quantities with much lower market valuations. What you would be missing though is the fact that this company has huge future growth potential, both from increased production from its existing Kracken and Catcher operations in the North Sea, but far more importantly from the future development of the SNE field in Senegal and Nova in Norway.
Cairn Energy (CNE) is one of a number of oil producers which look to be unloved by the market currently, but I would expect that to change in the future. In recent years the company has had impressive amounts of reserves on its book, but has now moved to the stage where it is producing from several of those fields, and with more to come in the near future.
Jonny Mason, the Chief Financial Officer of Halford's (HFD) has been fined £12,000 after being caught drink driving a golf buggy at 6 miles per hour in Norway. Naughty Jonny was also banned from driving in Norway for two years and sentenced to two weeks in jail. But Mason is refusing to say whether he will return to Norway to serve his time.
Gulf Keystone (GKP) says that it is considering a hostile bid from Norway's DNO which comprises $120 million of cash and $180 million of shares. Given that DNO will be taking on a net $100 million of debt, post the restructuring the offer is remarkably generous but not half as generous as the market implies.
Hungary has become the latest European economy to slash its main interest rate into negative territory as it attempts to revive growth and stoke inflation. The National Bank of Hungary made the surprise move to trim its deposit rate to a record low of -0.05pc from 0.1pc, becoming the world's sixth monetary authority to take rates below zero. Hungary has joined Sweden, Denmark, Switzerland, Japan and the Eurozone, which have all ventured into sub-zero territory and Norway has indicated that it could become the next European economy to venture into negative territory.
Kodal Mining (KOD) sounds ‘cautiously optimistic’ about its Grimeli copper and zinc project in northern Norway in the wake of encouraging initial drilling results there, though as yet the stockmarket does not share this sentiment, having sent the AIM-quoted company’s shares down from a 12-month of 0.53p to 0.19p now. Established in its present form by private California-based resource services company Tetra Minerals, London-based Kodal hopes to establish a ‘small, high-grade underground mine’ at Grimeli, according to chief executive officer Luke Bryan, who is savouring drilling intersections including half a metre with 4.29% copper and 0.82% zinc and 0.97 of a metre with 6.39% copper and 0.82% zinc.