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clock Created with Sketch. 21/05/20
16:31
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Originally posted by samizdat7:
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Per the last quarterly report (released 23 April, HZN is in a net cash position - USD3m net cash as at 31 March 2020. As at 31 March it had USD28.4m in cash, and USD25.4m owing on the seniro debt facility.What is HZN presently doing with its cash? What are its cash requirements? (all info from the quarterly report):in a favourable position as we evaluate appropriate growth opportunities. " . What will HZN's cash position be by the end of Calendar 2020? What will HZN do with this cash: repay more of its senior debt? Probably, but this is likely be be incremental (eg. recent USD4m repayment).retain cash towards the Beibu WZ 12-8 East Development? Yes probably, but not all the cash is needed for this purpose - and most of the cost will not be incurred until 2021, 2022 by which time further cash will have been generated.- buy into another project, or buy more of an existing project? Maybe.- corporate activity / M&A? Maybe.- retain some for legal costs etc re PNG? Probably- use for developing PNG assets? IMHO unlikely in the near term.- other? Dividend easily pay a 1c dividend and retain sufficient cash for its existing business and requirements. Further, this would reduce shareholders' exposure to fines or etc arising from PNG issues (as the cash would be in shareholders' pockets).not to pay a dividend would be if there was a compelling need to retain cash for specific high-quality development or corporate opportunities.The above is based on publicly-available information (particularly the most recent quarterly report) and my own thoughts. Obviously no-one should pay attention to anything I say, and you should do your own research!!
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An unknown is the possible upcoming expenses at Mauri after Jadestone Energy finalise their purchase of 69% later this year.https://www.jadestone-energy.com/wp-content/uploads/2020/05/JS.2019_ANNUAL.REPORT_200506_2pp.pdf https://www.jadestone-energy.com/wp-content/uploads/2019/11/Presentation-Maari-Announcement-vf.pdf
(20min delay)