Obtala Resources Share Discussion Threads

[michaelfenton] 02/11/2016 16:26

Jack Jebb - do you happen to know what the water situation re your vast swathes of cultivated land is like?

[zcaprd7] 02/11/2016 16:12

Apology accepted. It isn't detailed enough...

[jack jebb] 02/11/2016 06:30

A vast swathe of cultivated land that will produce agricultural revenues of $100m a month, and a huge forestry area where sales will be likewise and recurring.

Apologies if this is not detailed enough.

[zcaprd7] 01/11/2016 19:52

Any analysis to back up £4?

[michaelfenton] 01/11/2016 08:10

JJ tomorrow/today would be great but then again so would 2018.

[jack jebb] 31/10/2016 16:29

Well I dont expect it tomorrow, Philip.

In 2018 probably.

[mrphiljones] 31/10/2016 14:03

£4????????????????????????????????ROTFLMAO...I feel thats a touch rampy 24/7..;-)))

[jack jebb] 31/10/2016 12:55

Its what it will be that matters. If they can achieve what is possible here, then the market cap will be over 1 billion pounds, or over 4 pounds per share.

[zcaprd7] 31/10/2016 12:49

Yes. So what is the proper nav?

[michaelfenton] 31/10/2016 08:32

zcaprd7 - well maybe not in strict accounting terms but will improve the bottom line hugely. A real bonus.

[zcaprd7] 30/10/2016 10:43

Hmm, tax break equals increase in nav?

[michaelfenton] 28/10/2016 09:31

Thanks Scotty - beam me up.

[scotty1] 28/10/2016 09:03

Friday 28 October 2016 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


hxxp://www.shareprophets.com/views/24847/obtala-stance-upgrade-though-we-are-almost-100-ahead-on-this-share-tip

EPIC code: OBT
Obtala - stance upgrade though we are almost 100% ahead on this share tip
By HotStockRockets | Friday 28 October 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

We first tipped this one at an 8.25p offer. But shares in Obtala (OBT) now trade at 15.5p-15.75p on the back of yet more evidence that new boss Miles Pelham really is delivering.

The latest news is from Mozambique where Obtala's forestry subsidiary has been awarded Centro De Promocao de Investments (Investment Promotion Centre - CPI) status within Mozambique, conditional on a $3 million phased investment plan.

This gives it exemption from VAT and customs duties chargeable on goods/machinery needed for production expansion for a five year period and a corporation tax rate of just 10% for each of the next five years as well as freedom to repatriate profits outside of Mozambique. And there is a guarantee of equitable compensation rights against assets being expropriated and arbitration through World Bank's International Centre for Settlement of Investment Disputes and/or ICC.

Miles Pelham, Chairman of Obtala commented:

"The award of CPI status by the Mozambican authorities is a highly significant and welcome development as we seek to bolster our production capabilities within the country. We anticipate that the forestry division will drive revenue expansion and as such CPI tax benefits should have material future impact on our bottom line. The exemption from VAT will reduce the level of Capex required to bring our Forestry assets into full production.

This award underlines our already strong commitment to Mozambique. As well as providing inward investment we anticipate that our activities will have significant positive social impact through job creation, training and upskilling of local labour and a sustainable approach to forestry operations."

Pelham is delivering. We have now enjoyed a long chat with Pelham. A couple of things are clear. Firstly it is now obvious that Obtala is a producing profitable business - or rather it soon will be. This business will be reporting very real and material profits in 2017.

Secondly, the tax breaks referred to in the update are massive. The net effect is to double post tax returns on Mozambique forestry. If one looks at the valuations external investors have placed on the forestry assets in real deals it is clear that NAV is now well in excess of 35p per share. As such we upgrade our stance to buy at up to 17p with a target of at the very least 25p to sell

[zcaprd7] 27/10/2016 00:17

Hmm, makes that volume a couple of days again a little bit suspicious, do we have a leaky ship, or is it the chaps who granted the license?

[michaelfenton] 26/10/2016 15:32

RNS seems well received after initial drop. Bodes well for future profits?

[jaykaytee] 26/10/2016 15:28

Positive announcement and up we jink!

[blue59] 26/10/2016 14:58

? Is there a share split planned then?

[jack jebb] 26/10/2016 09:47

Not a lot to say till it reaches 100p.

[zcaprd7] 25/10/2016 23:05

Quite a chunky volume yesterday, very quiet on here, which is unusual...

[michaelfenton] 22/10/2016 06:19

True half of Africa is starving is an exageration however strvation is quite common. But food production will grow and yes UK will benefit from that.

[zcaprd7] 22/10/2016 04:39

I don't think half of Africa is starving? Likewise, children don't stand around drinking out of puddles. They're not stupid. You're watching too many adverts from ngos and charities ... With a solid brexit in place, Africa can start selling its food without subsidies to the UK, and grow itself out of poverty.

[blue59] 06/10/2016 08:36

He had a job????

[mrphiljones] 05/10/2016 19:42

Zap please be careful of JJ his last job was for jackanory.....:-)))