St Peter Port Capital Share Discussion Threads

[tullynessle] 17/4/2011 21:40

If the NAV is around 130p (or even 117.7p) then another share Buy-back may be a reasonable option for the Company?


Extract 1:

As at 12 April 2011, the Company had a cash balance of approximately GBP21.5 million.


Extract 2:

The NAV per share was then further enhanced by the reduction in issued share capital following the Company's buy-back of 2.4 million shares at a price of 50 pence per share, also announced on 26 October 2010.

[tullynessle] 17/4/2011 21:28

The RNS dated April 13, 2011 and entitled "Net Asset Value ("NAV"), Realisations and New Investments" advised excellent progress by SPPC. The reported Net Asset Value per share at 31 December, 2010 was 117.7 pence, an increase of 26.7 per cent from the net asset value of 92.9 pence as at 30 September 2010. (See Extract 1)

The RNS indicated also "a further gain from the recent sale of warrants over 17,710 HRT Petroleum shares." - details at Extract 2.


Accordingly, it appears that the current Net Asset Value per share is near to 130p (an additional 13.6p per share deriving from the sale of warrants), acknowledging also that "Changes in exchange rates and in the value of quoted holdings from 31 December 2010 to 12 April 2011 have had a modest negative impact on current NAV per share."



Written in good faith - however please check if my calculations are accurate.

If correct, then the current Share Price (74p) reflects a discount of some 43% to NAV.





Extract 1:

NAV

The net assets of the Company as at 31 December 2010 were GBP82.8 million, giving a net asset value per share of 117.7 pence, an increase of 26.7 per cent. from the net asset value of 92.9 pence as at 30 September 2010.


Extract 2:

The Company also held warrants over a further 17,710 shares, exercisable at a cost of approximately US$4 million. We recently exercised these warrants and have subsequently sold virtually our entire resulting holding. The proceeds of the sale of the warrants generated a further gain, net of the exercise cost, of US$15.5 million. The overall gain from the original investment of US$5 million is US$28.8 million and the multiple of net proceeds to original investment is 6.7x.






Date : 13/04/2011 @ 13:12
Source : UK Regulatory (RNS & others)
Stock : ST Peter Port (SPPC)

RNS follows....

[spectoacc] 15/4/2011 15:47

@Tully, you on holiday or something? ;)

Seems we'd been losing a few weak holders ahead of Wednesday's NAV RNS, causing a bit of a fall. Can't copy/paste the whole thing but link on newsfeed above: NAV £1.17, cash £21.5m, a couple of new investments made, some small realisations, & general good progress with more realisations expected.

Not surprised someone bought 75k at 2p over offer earlier today; even here mkt cap only £52m. Possibility of wind-up within a couple of years & on current performance, NAV destined to go higher yet.

[tullynessle] 06/4/2011 15:52

Have added to my SPPC holding.

- Excellent strategy adopted by Manager

- Access to Commodities and Developing (Growing) economies

- Significant discount to NAV

- Potential for early and significant newsflow


All IMO / DYOR

[tullynessle] 06/4/2011 15:47

Re Post 19


The Presentaion at Post 19 is worth reading - I liked the method used by Brazil Potash to map their license area (for Potash) - basically by securing access to Core data acquired by Petrobas in their exploration for Oil & Gas in the same basin.

[tullynessle] 06/4/2011 15:44

Brazil Potash appears in SPPC's "List of Investments" in the Final Result's RNS dated 22 July, 2010 and also in the Interim Results RNS issued on
29th December, 2010.

Interesting to gain an insight into another portfolio company.



1. Brazil Potash website




=============================================================

2. Presentation

Amazonas, Brazil Potash Project

8 September2010



==============================================================


3. Press Release, 8 Sept, 2010


POTASSIO DO BRASIL DISCOVERS NEW POTASH MINERALIZATION AT THE AMAZON BASIN AND MOBILIZES THIRD DRILL RIG TO THE PROJECT IN BRAZIL
FOR IMMEIDATE RELEASE
• New potash discovery in the Amazon Basin represented by a drill intercept with 1.86 meters grading 32.59% KCl in drill hole PB-AT-10-02
• Third drill rig mobilizing to the project area to accelerate potash exploration program
• Company has funds required to complete drilling program in 2010
• Potash off-take arrangements in place with major Brazilian Agriculture Coops: CCAB & CONAGRO
• Success of this project will contribute a major new domestic source of potash for Brazilian farmers
Belo Horizonte, Brazil, September 8, 2010: Potassio do Brasil. ("PBL" or the "Company") is pleased to announce the discovery of new potash mineralization on its Amazon Potash Project in Amazonas State, Brazil (the "Project"). The Project is located within the Amazon Basin adjacent to the Petrobras Fazendinha and Arari Potash deposits.





=====================================================================

[tullynessle] 05/4/2011 14:51

See also Post 17:

SPPC's investment in HRT Petroleum appears PARTICULARLY INTERESTING.

The information at Extract 1 is taken from the "Interim Results for the Six Months Ended 30 September 2010" which were released on 29th December 2010.


With respect to HRT, SPPC advise the following, (taken from Extract 1):


i. HRT Participacoes em Petroleo SA ("HRT") .... have achieved post IPO liquidity.

ii.HRT raised approximately US$1.5 billion in an IPO in Brazil on 25 October 2010 and has since seen its shares trade well.

iii. Since the IPO, we have sold virtually our entire holding of shares in HRT, generating a large gain.

iv. We originally acquired the holding for US$5 million, but the balance sheet as at 30 September 2010 carried the holding at a written up value of US$7.5 million. We sold the shares for GBP14.5 million gross, but were charged withholding tax in Brazil of GBP3.3 million on our gain.

v.Post balance sheet we have therefore generated from these sales alone a gain of GBP6.5 million in relation to our carrying value at the period end.

vi.In addition we hold warrants over a further 17,710 shares, exercisable during the next four years at a cost of approx. US$3.8 million. These warrants currently (as at close, 22 December 2010) have an intrinsic value, net of the exercise cost but gross of any tax, of GBP10.6 million.

vii.As the balance sheet at 30 September 2010 carried the holding in HRT at a much lower value, the subsequent gain in HRT (realised and unrealised) will have significantly increased net asset value per share above the figure reported in this statement for the period end.


THE RESULTS' RNS WAS ISSUED ON 29TH DECEMBER 2010 AND SPPC CLOSED THEIR REPORT ON 22 DECEMBER 2010 (SEE VI. ABOVE).

USING THE INFORMATION PROVIDED IN THE RNS AND AT THE LINKS MENTIONED BELOW IT APPEARS THAT THE VALUE OF THE 17,710 WARRANTS OWNED BY SPPC OVER HRT SHARES, HAS INCREASED BY SOME USD 1,753,290. [SUCH FIGURE EXCLUDES THE OTHER VALUATIONS MENTIONED AT (vi.)]



Extract 1:

Realisations

Over the last few months a number of companies in our portfolio have gone public. Several have achieved successful IPO's in that they raised new money, generating a significant uplift in value for us, but without generating a liquid after-market.

Two of the companies in the portfolio, HRT Participacoes em
Petroleo SA ("HRT") and Creso Exploration Inc ("Creso") have achieved post IPO liquidity. HRT raised approximately US$1.5 billion in an IPO in Brazil on 25 October 2010 and has since seen its shares trade well. Creso reversed into a public company in June 2010 and has subsequently raised new equity in two placings, including one with Franco-Nevada Corporation, one of North America's leading financiers of gold exploration companies.

Since the IPO, we have sold virtually our entire holding of shares in HRT, generating a large gain. We originally acquired the holding for US$5 million, but the balance sheet as at 30 September 2010 carried the holding at a written up value of US$7.5 million. We sold the shares for GBP14.5 million gross, but were charged withholding tax in Brazil of GBP3.3 million on our gain.

Post balance sheet we have therefore generated from these sales alone a gain of GBP6.5 million in relation to our carrying value at the period end.

In addition we hold warrants over a further 17,710 shares, exercisable during the next four years at a cost of approx. US$3.8 million. These warrants currently (as at close, 22 December 2010) have an intrinsic value, net of the exercise cost but gross of any tax, of GBP10.6 million.

We do not believe that any further Brazilian withholding taxes should be applicable to any exercise and disposal.

However, it is not clear whether this will be the case, nor at what rate any tax would be levied if it was indeed applicable.

As the balance sheet at 30 September 2010 carried the holding in HRT at a much lower value, the subsequent gain in HRT (realised and unrealised) will have significantly increased net asset value per share above the figure reported in this statement for the period end.


Link 1: "Interim Results for the Six Months Ended 30 September 2010" - released on 29th December 2010.





Link 2 - HRT Petroleum Share Price

(For share price press the Download button)


(a) At IPO on 22nd Oct 2010 - Closing share price was 1,200 Reals

(b) At 22 Dec, 2010 (Closing Date as per vi. above) - Closing share price was 1575 Reals

(c) At 4th April, 2011 Closing share price was 1740 Reals.

(d) The increase in share price between 22/12/10 & 4/04/11 is 165 Reals

(e) The increase in the value of 17,710 warrants over the same period as (d) is 2,922,159 Reals or USD 1,753 290 (at X/R 1 Real = 0.6 SD)





Link 3 - Expedia Exchange Rate for Brazilian Real versus US Dollar

At April 5, 2011 X/R is 1.00 Real = 0.60 USD

[tullynessle] 05/4/2011 13:13

See also Post 18:

HRT Participacoes, (HRT Petroleum), appears in SPPC's "List of Investments" in the Final Result's RNS dated 22 July, 2010 and also in the Interim Results RNS issued on 29th December, 2010.

Interesting to gain an insight into another portfolio company.



Link 1:

HRT Petroleum – Corporate Profile & History




Link 2:

Presentation HRT Petroleum – Investor Day – January 2011




Link 3:

HRT Participacoes – Fourth Quarter 2010 Results / March 2011






Link 4:

SPPC's Final and Interim Reports, 2010

[tullynessle] 03/4/2011 09:31

More information about Buried Hill's licensed Blocks in the Gambia.

The following extract is interesting - it is taken from the article at the link below.

As yet there does not appear to be any timeline for drilling the prospect - perhaps there will be more news with SPPC's next results.....


Extract:

"Senergy (GB) Limited, an independent oil and gas consultant engaged by the Company, has reviewed the exploration potential of the Licence Blocks and based on its assessment, the directors believe that there is substantial exploration potential with more than 20 prospects identified on the Licence Blocks in five independent play settings, primarily in the lower cretaceous. Oil seep studies and basin modeling indicate that hydrocarbon generation has taken place.

The Alhamdulilah Structure is a four-way dip-closed structure with five stacked reservoir units. The structure covers an area of approx. 24km2 over five mapped reservoirs with a gross thickness of 1,000m and a potential resource range of 560-1,000 million barrels (MMbbls). Other play types in the Licence Blocks include stratigraphically-trapped fans and slope channel complexes of Turonian-Campanian age, Upper Jurassic and lower Cretaceous karstified reef build-ups and four-way closures and eroded shelf clastics onlapping the shelf edge.

Senergy has indicated that, combined, these provide a total unrisked, mean recoverable potential for both Licence Blocks in excess of 4,600 MMbbls."






Gambia: African Petroleum enters into agreement with Buried Hill to acquire interest in offshore Blocks A1 & A4


24 Aug 2010
Based on reports from independent oil and gas consultants Senergy (GB) Limited, the directors believe blocks have significant exploration potential, with more than 20 prospects identified,

African Petroleum will assume operatorship of blocks, which cover a combined total area of 2,668 km2, and have agreed to pay 80% of the forward costs incurred on the two blocks from execution of the agreement to the end of the initial exploration period,

Government of The Republic of the Gambia has approved the agreement and the extension of the initial exploration period by a further two years (until 31 December 2013).

Article continues....

[tullynessle] 03/4/2011 07:50

Re Post 13:

There appears to be progress planned for Buried Hill Energy's two exploration Blocks offshore the Gambia.



4th October 2010
NSX Announcement
African Petroleum enters into contract with TGS‐Nopec to acquire 2,500
sq km of 3D Seismic data offshore The Gambia

West African focused oil and gas exploration company, African Petroleum Corporation Limited (NSX: AOQ)("African Petroleum" or the "Company"), is pleased to announce that it has signed a contract with TGS Nopec to acquire more than 2500 sq km of 3D seismic data offshore The Gambian, at Blocks A1 & A4.
African Petroleum announced on 23 Aug 2010 that it entered into an agreement with Buried Hill Gambia B.V. to acquire (via a farm‐in) a 60% equity interest in the two offshore, The Gambian exploration licenses.

[tullynessle] 02/4/2011 23:11

Hi SpectoAcc

Bought a few SPPC in March and hope to research the holdings a bit more - will share results on the BB.

Not too much information at the SPPC website.

I plan for the holding to be a longterm investment.

[tullynessle] 02/4/2011 23:03

Buried Hill Energy appears in SPPC's "List of Investments" in the Final Result's RNS dated 22 July, 2010 and also in the Interim Results RNS issued on
29th December, 2010.

Their proposed operations in Turkmenistan appear iteresting - although there does not appear to be any information at the website as to the timeline for operations to commence or farm-ins etc.

The Board of Directors and Operations Team are interesting - they appear to have a wealth of experience (profiles available at each name).


Links 1-4 Buried Hill Operations (Turkmenistan) / Operations (Gambia)/ Board of Directors / Team











Link 5:

SPPC's Final and Interim Reports, 2010

[spectoacc] 01/4/2011 15:02

Thanks @Tully. Gone quiet on SPPC for a while but looking forward to some good newsflow this year.

[tullynessle] 01/4/2011 14:51

Royal Nickel Corp appears in SPPC's "List of Investments" in the Final Result's RNS dated 22 July, 2010 and also in the Interim Results RNS issued on
29th December, 2010.

Interesting to gain an insight into another portfolio company.

Link 1: Royal Nickel Results and review for 2010.




RNC Releases Year-End Financial Results and Review of 2010
Mar. 25, 2011 (Canada NewsWire Group) --
TORONTO, March 25 /CNW/ - Royal Nickel Corporation (TSX: RNX) ("RNC" or the "Corporation") is pleased to report its review of activities and financial results for the year ended December 31, 2010.

Highlights 2010

•Completed a NI 43-101 compliant Preliminary Assessment of the Dumont Nickel Project which showed that a 100,000 tonnes per day operation would generate US$1.1 billion in after-tax NPV8% and produce over 64,000 tonnes of nickel per year on average over the life of the operation.(1)
•Completed bench scale metallurgical testing of 70 samples from the Dumont Nickel Project using standard test procedures.
•Commissioned-through a third party contractor-a dedicated mini pilot plant, operating at 20 kilograms per hour, to further optimize the flowsheet and completed mini pilot plant testing of seven different composites from various locations within the Dumont Nickel deposit.
•Completed a $45.1 million initial public offering in December 2010 (with gross proceeds of an additional $6.6 million received in January 2011 on exercise of over-allotment option).
•Completed a $5.0 million private placement financing through the issuance of 2,500,000 shares to Ningbo Sunhu Chem. Products Co. Ltd., a leading Chinese nickel distributor.
•Incurred a net loss of $13.0 million in 2010, compared to $7.6 million in 2009.


RNS continues.....


Link 2:

SPPC's Final and Interim Reports, 2010

[tullynessle] 31/3/2011 08:48

Celadon Mining appears in SPPC's "List of Investments" published in the RNS dated 22 July, 2010.

Not sure how the Origo investment reported today impacts the valuation of Celadon, (and in monetary terms the value of SPPC's holding).

The RNS provides interesting details about Celadon's assets and projects.


Link 1



Acquisition of stake in Celadon Mining Ltd

RNS Number : 9458D

Origo Partners PLC

31 March 2011

31 March 2011

Acquisition of stake in Celadon Mining Ltd

Origo Partners plc ("Origo") is pleased to announce the acquisition of a 9.7 percent equity stake, in Celadon Mining Ltd ("Celadon"), a Chinese focused coal exploration and mining company, for a consideration of approximately GBP8.0 million.

Celadon, through its Chinese subsidiaries, owns four Chinese coal properties in the eastern sector of the Qitaihe coal-bearing basin in Heilongjiang Province, northeast China, which include one sizeable exploration concession (39km(2) ) and three mining concessions. The total resource base of these concessions is estimated to be 260 million tonnes (according to Chinese classification) distributed over 25 coal seams discovered to date, comprising a mix of high ranked coal including PCI and meager coal. Based on previous and ongoing technical review work undertaken by international mining consultants, Origo estimates that a mineable resource in the region of 100 million tonnes could be achievable, but is not confirmed at this point.

Celadon produced small amounts of coal in 2010 and plans to expand production to over 1 million tonnes per annum over the next 3 years, which will be substantially funded by existing operational cashflow. For the year ended 31 December 2010, Celadon's unaudited revenue and profit after tax were approximately GBP2.4 million and GBP4.8 million respectively, with a non-recurrent gain of GBP5.9 million arising from the disposal of other mining rights during the year. Celadon's current cash balance is approximately GBP66.9 million.

The main project area is located within the Boli area of the Qitaihe basin (one of the largest anthracite bases in China), approximately 80km east-northeast of the city of Qitaihe. The transport system around the Boli coal mining area is well developed, and includes access to a provincial highway (at 13km distance) and a regional rail network (at 40km distance). The majority of the coke from the Qitaihe coal basin is transported to steel producers across northeast China by railway. Coking coal is also transported to the Russian port of Suifenhe and exported to Japan and Korea.

Upon completion of the transaction, Origo will hold a 9.7 percent equity interest in Celadon, representing the largest holding in the business, excluding that of the founding shareholder and his affiliated entities. Other shareholders in Celadon include regional and international institutional investors.

Origo acquired the stake in Celadon from various funds investment managed by GLG Partners LP. The directors of Origo consider, having consulted with Liberum Capital, its Nominated Adviser and Broker, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Commenting on the announcement, Chris Rynning, Chief Executive of Origo, said:

"We're delighted to have acquired a significant stake in a fast growing producer of high quality coal at an attractive valuation. Celadon Mining should become a significant producer of high grade coal within the next three years and is well positioned to supply growing Chinese demand for coal given the proximity of its concessions to existing infrastructure. We look forward to working with Celadon to deliver their ambitious growth programme over the next few years."



RNS Continues....



Link 2




From SPPC Final Results dated 22 July, 2010.

Celadon Mining Ltd

GBP3.7m subscription in two tranches

Chinese Government backed company which has acquired major coking coal mines in NE China.

[spectoacc] 25/1/2011 14:10

String of small sells knocked it back, someone getting stopped out of other positions elsewhere?

[rolvenden] 12/1/2011 07:57

SpectoAcc

MM was most probably TD Waterhouse , they have been screwing me for years, always extra premiums !!
And website frequently down, information figures wrong !!

[spectoacc] 11/1/2011 10:30

82p for 1k at 76/79? It's ultimately heading over a quid IMO with "real" NAV nearer 116p and many investee co's due to float this year, but MMs having a laugh charging someone that..

[spectoacc] 10/1/2011 16:25

79p to buy 22k when the quote was 75/77; nice...

[spectoacc] 07/1/2011 15:24

An interesting 65k at 74p today, presumably a buy judging by where the price has moved up to. Don't see many large trades on SPPC.

[miti 1000] 31/12/2010 11:55

SpectoAcc,

Nice spot .Looks clearly undervalued. Have been buying as well.With the IPO's in the New Year , this could really fly higher.



Bob Morton, Chairman of St Peter Port, said:
"In the current improved stock market conditions for commodity-related stocks a
number of our pre-IPO investments have come to market or expect to come to
market in the next six months. These developments offer the potential for
further significant realisations, generally at a significant premium to our
carrying cost. We hope to be able to report further progress in realisations
when we next issue results."

[spectoacc] 30/12/2010 11:05

Eg:

"St. Peter Port Wednesday said its net asset value per share increased 2.3% during the six months to Sept. 30, to 92.9 pence, and added that since the period ended it realized big gains on the October IPO of Brazilian oil explorer HRT Participacoes em Petroleo SA (HRTP3.BR). Shore Capital estimates the company's NAV is now about 116 pence a share.

Shore said St. Peter Port has GBP16.3 million in cash at Dec. 23 to make new investments. There are promising opportunities related to commodities like oil, copper and iron ore, he said. "


So: a natural resources-focussed IPO co, with a NAV of 116p, cash to invest, & many more of its investee co's to come to market over the next year or so, currently trading at only 71p.

[spectoacc] 29/12/2010 16:03

Excellent statement today, well worth a read. Not surprised it's going up again; miles below last stated NAV, let alone "real" NAV adjusted for in-period disposal.

[spectoacc] 16/12/2010 16:22

Going well so far, though I wonder if there's an overhang, judging by the amount of buying only shifting it up a few % a day.