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Ithaca

Jam2Day
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Ithaca

#655929

Postby Jam2Day » March 26th, 2024, 12:41 pm

Does anyone have any thoughts on why Ithica is at such a low valuation? Good cash flow and reasonable profitability. I know these small oilies get marked down on the POO simply because it can be more easily quantified based on flow and reserves. The irony is that the more speculative explorers can be ramped or trashed on a whim. There is obviously the background political nonsense to consider which is certainly pressing down on the sector in the UK.

yyuryyub
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Re: Ithaca

#655976

Postby yyuryyub » March 26th, 2024, 3:31 pm

"There is obviously the background political nonsense to consider which is certainly pressing down on the sector in the UK."

To a large extent, you've answered your own question.

For UK based O&G producers, I ask myself "what sustainable yield would I require to make me feel comfortable that an investment has a good chance of paying off?" Would I buy Serica at 12% ? I would want something of that order, probably more.

Many years ago, I bought a large holding in RGB mining, the remains of the UK Coal industry, when most people considered it to be uninvestable. That turned out extremely well, thanks to their land and property holdings. Hard to tell how UK energy sector will play out. I sold my entire holding of NG last week, as I didn't want a top 10 holding with such a large political risk attached.

Jam2Day
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Re: Ithaca

#656321

Postby Jam2Day » March 27th, 2024, 7:03 pm

yyuryyub wrote:"There is obviously the background political nonsense to consider which is certainly pressing down on the sector in the UK."

To a large extent, you've answered your own question.

For UK based O&G producers, I ask myself "what sustainable yield would I require to make me feel comfortable that an investment has a good chance of paying off?" Would I buy Serica at 12% ? I would want something of that order, probably more.

Many years ago, I bought a large holding in RGB mining, the remains of the UK Coal industry, when most people considered it to be uninvestable. That turned out extremely well, thanks to their land and property holdings. Hard to tell how UK energy sector will play out. I sold my entire holding of NG last week, as I didn't want a top 10 holding with such a large political risk attached.


If we do see an economic slowdown then the POO can be expected to weaken which must surely be lending weight to weaker prices. If we do see a recession I will not be at all surprised if the fossil 'bete noires' find favour. Thanks for your feedback.


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