Business Case and Updated Fundamentals
I thought it might be worthwhile to do an updated post amalgamating and condensing the business case, strategy and general overview of the company. There may be some personal bias reflected in my post as obviously I have a vested interest and support the company’s approach. Any positive feedback, criticism and information from your own personal research.
Pros/Benefits/Advantages
-19 year working history, cash flow positive throughout that time.
-No history of debt or capital raisings or equity sell down outside of the IPO.
-Substantial commercial deal record with 34 divestments, of which are 25+ farm-outs.
-Prior commercial deal value estimated at between AU$700M and AU$1.1Billion .
-Partnered and/or transacted with some of the world’s largest energy producers including; Shell, Woodside, Santos, JX Nippon, Mitsubishi Corp (MIMI), Hess Corp, Apache, Sasol, Murphy Oil Corporation, PTTEP, Perenco, SapuraOMV, Schlumberger, Harbour Energy, Dana, and Equinor.
-Numerous multi-party ventures and multi-drill farm-ins transacted on Finder licenses.
-Demonstrated technical and exploration edge with 3 oil finds from 7 drills.
-Historic example - Original license holder and partner with Carnarvon Energy for the Dorado project. Finder’s technical work and prospect selection led to the drilling of the Phoenix-1 South discovery, eventual divested for cash and dorado project royalty (hundreds of millions in value).
-Coherent region specific project strategies .
-Actively adding new projects to portfolio and entering new regions.
-Discounted access to massive amount of exploration and technical data through sibling company Searcher Seismic.
-Strong cash management and proven discipline with an approximate average net drawdown of $600k per quarter.
-$400k - $500k in receipts per quarter from JV partners.
-Two year cash runway at current rate of expenditure.
-Company founders own majority of stock, out of escrow, and are holding.
-Tradable free float estimated at only 50M shares.
-Stable management in place for a decade. No revolving door.
-Share holder alignment through price target performance rights.
-Average time to farm-out transaction is due on multiple projects.
-World class project portfolio.
Risks/Uncertainties/Cons
TBC
Project/Asset Overview
Miscellaneous Details and History
Opinion
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