Breakout year for AlvopetroHere are the facts:
a) signed contract with Mitsui subsidiary (Bahiagas) for sale of the produced natural gas generating this year in excess of USD 20m, according to online sources from the management USD 30m in '22. Unique pricing structure - very safe and beneficial for the company.
b) current blocks value according to management and official reports:
Gomo reserves and resources have the potential to be approximately 3 times larger than our core Cabur project.
Cabur NAV CAD 147m
Gomo NAV CAD 147m x 3 = CAD 441m
Cabur + Gomo = CAD 588m
If there are about 100m shares that would mean CAD 5,88 / share NAV.
c) dividends announced
d) share buyback program announced
e) two high impact drills ongoing with results due to be announced during the course of the summer
f) management with a extremely successful proven track record in South America
g) all analysts covering agree company is significantly undervalued
h) company is pioneer in natural gas business in Brazil. Broke the petrobras monopoly for sale of ANP standard natural gas supply. May become acquisition target for players which would like to enter the privatisation process of Petrobras.
What next?
How can it get better and why is nobody paying attention?