Post by
goldwatch69 on Feb 16, 2024 5:56am
Enterprise value
I suspect VLE will be pumping 10 million bbls annually by Q3. At 85 a bbl, cash flow after tax works out to US$250 million for one year according to my calculations ... (85-15rsga-25opex-20tax) x 10 million bbls.
With last year's cash covering this year's Capex, about half should cover another six months into next year. That should leave close to CA$250 million in net cash.
With that in mind, EV (market cap - cash + no debt) would be CA$150 million, not even close to current market cap. And EV to operating cash flow after tax of over CA$300 million would be less than 0.5.
The industry measure compares EV to EBITDAX. That would come to a mind boggling CA$150 million over CA$600 million EBITDAX... 0.25
The industry peers are over 2 !! One day the market will wake up to this. This ridiculously low valuation should correct itself by year end or first half next year. SP should double easily, if not triple.
Let's see what the next 3 trading days bring... may see some follow through on yesterday's breakout... 5 to 6 bucks would be nice.
Comment by
Suppe11 on Feb 16, 2024 7:21am
You forgot the tax pools (worst case Wassana only) + the Rossukon royalty....