Afentra Share Discussion Threads

[mount teide] 01/5/2023 09:18

Midas has a decent following and the article reads well.

'The agreements mean that McDade will end up paying out considerably less in upfront cash than he would have done had the deals completed straightaway.'

The better researched spotted this many, many months ago and, that for a June 2023 completion date, the structure of the deals would see Afentra pay only a small fraction of the published headline price for the assets..

The Sonangol and INA deal structures and recent oil price weakness(since recovered after OPEC+ cut production to support its preferred $80-$90 oil price range) has created a very material market dislocation investment opportunity at Afentra.

Despite Afentra now likely to pay only a small fraction of the headline price for the assets and with the price of oil still comfortably above the $75 average price in Q4/2021 when the O&G industry broke it's all time FCF record(set nearly a decade before when oil averaged nearly $150/bbl after adjustment for inflation).......Afentra shares can still be picked up some 10% to 20% cheaper than the price they averaged in the 8 months following the announcement of the acquisitions, when the full acquisition headline price was expected to be paid.

ie: Afentra shares are now available at a 10-20% discount to the price when investors expected the company to pay the full headline price for the Angolan acquisitions!

AIMHO/DYOR

[rimau1] 30/4/2023 13:00

Tipped in the daily mail midas column

[yawn1971] 26/4/2023 16:26

Some hefty trades going thru post 4pm

[mount teide] 18/4/2023 15:15

African small/mid cap companies are overwhelmingly INVESTORS not TRADERS type of investments - principally due to the regulatory approval process for acquisitions, planning and environmental consents, license extensions, oil/mining exploration drilling etc proving far more drawn out affairs by Western standards.

Long may it continue - as it can often throw up remarkable value and growth opportunities.

[onedayrodders] 18/4/2023 15:00

Glad to see short term traders getting flushed out today

[upwego] 17/4/2023 23:40

Very nice news indeed :)

[onedayrodders] 17/4/2023 18:32

I guess by all accounts, Mr Griffiths had no choice with his recent sales, but I doubt he enjoyed today

[wbodger] 17/4/2023 17:38

It closed above my average for the first time for weeks. A rare day when the time of the RNS could be guessed from the share price trading graph.

[mount teide] 17/4/2023 15:58

‘This Licence Extension addendum (the "Addendum") is to extend the Block 3/05 PSA from 31 December 2025 to 31 December 2040 with improved fiscal terms that strengthen the economics of the permit’. Like the sound of ‘Improved Fiscal Terms’!

[zengas] 17/4/2023 15:22

With these two acquisitions significantly paid down by now i'm hoping that they come through this year on one or more "Similar scale and larger operated and non operated on and off shore opportunities being evaluated"

You should get faster deleverage in paying down the next asset(s) with these two almost cleared.

[onedayrodders] 17/4/2023 15:11

I'm guessing when all signatures are in and it's a 100% done deal ... the RNS will spell out the impact of the accrued sales so far so all can see.Should be a major catalyst for another re-rating ODR

[eringael] 17/4/2023 14:41

Great news - shame I trimmed a few shares and sbets this morning just to manage potential risk, will see if it settles a little lower in the next couple of days to add again, massively derisked now

[mount teide] 17/4/2023 14:34

Typo Correction to previous post Axl should have read AET of course!

[mount teide] 17/4/2023 14:29

Good clear update - a management with its finger on the pulse. Bought a few more - these deals are getting ridiculously cheap considering the cash accrued to AXL from the effective economic date.

[onedayrodders] 17/4/2023 14:22

happy days

[rimau1] 17/4/2023 14:07

Excellent, proceeding to signing, one down one to go!

[loafingchard] 17/4/2023 14:03

I for one appreciate the regular updates...

[astralvision] 17/4/2023 13:56

RNS with an update on the acquisitions now out.Still sounds like it will be a while before the main acquisition is announced, imv.Still, the longer it takes the less AET will have to pay, so the wait ain't too bad, so long as it completes.

[rimau1] 12/4/2023 08:45

RG must still selling down? Even if the INA long stop date is extended again the deal is already signed off it will just be a timing issue.

[palisz] 12/4/2023 08:27

INA Acquisition SPA long stop date of 17 April 2023. Should hear by next Monday!!

[mount teide] 11/4/2023 14:03

The total debt required to finance the Sonangol deal should now be reduced to a small fraction of that announced in the Aug 2022 Presentation, as the additional cash accrued since 1st October 2022 through to May 2023, is likely to be worth $45-50m, against an expected debt facility for the asset of $62m.

The Key terms for the $62m debt facility are: 5-year tenor, 8% margin over 3-month SOFR2 - so a massive future debt interest payment saving will be made as a result of the extended completion date and high average Brent rate from the previous expected closure date.

[upwego] 11/4/2023 11:18

Just took 46k shares bringing my average 24.5p happy with that..

[peakyblinderssss] 06/4/2023 13:43

What are some drawbacks and benefits from an investor pov? What are some smallcaps in the clean energy sector would u look at?

[onedayrodders] 06/4/2023 11:06

True, however I think overall, it's time to close out this part of the journey we are on so we can move on to even bigger and better news.

Despite accruing income in the interim, it will be holding up their general plans

[kevjones2] 05/4/2023 22:53

It's encouraging knowing revenue is paying for a huge chunk of the purchase. Not too pushed at all about when the deals are fully complete once the revenue is flowing in.