Updated Pitt St report.....still undervalued ;)Keep well cheers...

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peto2810

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10/12/20

14:48

Post #: 49486525
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Originally posted by peto2810: ↑

Hi Dan, agreed and thanks for sharing

Hard to fathom for a long long time many holders and research reports have called this undervalued, company continues to tick boxes regarding retaining + increasing asset value wealth :/

'Valuation revised to A$0.015 – A$0.018 per share
We have re-worked our DCF model by incorporating the JV’s
acquisitions and their expected cashflows to be generated
from forward gas sales. On a per share basis, however, we
trim our valuation range to A$0.015 – A$0.018 (previous:
A$0.019 – A$0.022) caused by the dilution of an expanded
share base following the company’s recent equity raisings.
Key risks we see in BRK include: 1) extended period of weak
commodity pricing; 2) partnership risk and 3) execution risk.'
Valuation metrics
DCF fair valuation range (A$) 0.015 – 0.018
WACC 10.0%
Assumed terminal growth rate 0.5%

Re-rating BRK
BRK currently trades at a large discount to its intrinsic value and we believe
the undervaluation of BRK is due to a lack of investors awareness about the
company’s business model and the negative oil pricing outlook.
However, we believe BRK will be re-rated by the market upon the occurrence
of the following events:
– an improved oil pricing outlook;
– further acquisitions of value enhancement producing properties;
– better-than-expected flow rates from existing wells; and
– higher acreage prices in the Anadarko Basin.

Despite another report with the above extractions highlighting the perceived value, I'm afraid without 'market or investor awareness' it would seem only the first of the DSU's Jewell drilling and completion to be the only market factor that will re rate the SP value.

I wait to be proven wrong.

Keep well cheers Paul

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Updated Pitt St report.....still undervalued

Keep well cheers Paul

BRK Price at posting: 0.7¢ Sentiment: Buy Disclosure: Held
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