At last we get an investor presentation from SDX and we get to hear the CEO speak.
The presentation was good and I thought he came across very well. He covered the business well and outlined the potential of the continuing exploration campaigns.
I agree with you s/t regarding the wells in North Lalla Mimouna, he says that they will either extend the pipeline or compress gas near site.
I think it will all depend on what they actually find, with the potential for gas, condensates and or oil it could be that decision is revisited.
A shame about the questions, only time for two, the first was good and the second poor. MR had already covered the fact that our customers were on long fixed contracts.
What wasn’t said and wasn’t asked, was if they continue with just the existing business model in Morocco, where are any new customers coming from. They have had those eight customers for a while now but no mention of where any additional customers are coming from. Having the gas to supply those eight customers for years to come is all well and good but surely we want the business to grow.
MR may have ideas in that area but if he has they weren’t mentioned or nobody asked about it.
A very good day though and I hope this is the first of many interviews/presentations that are given. With positive presentations like that and hopefully success with the drill bit we might finally get investors to take interest.
It was good MR mentioned twice that the SDX market cap valuation is only twice their 2020 operational cash flow. Given the fundamentals here that is very cheap.
I appreciate cash flow isn’t profit but when the drilling campaign ends, the capex falls significantly but the income stream remains constant, that is when SDX will have a lot of spare cash that they then have to decide what to do with.