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Big Banc Split Corp T.BNK

Alternate Symbol(s):  T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.


TSX:BNK - Post by User

Bullboard Posts
Post by rehsifylfon Jan 26, 2011 11:16am
504 Views
Post# 18028457

Q4 & Q1

Q4 & Q1Based on the flooding in December, I'm not expecting great numbers for Q4, but I've been having at look at Q1 so far and looks like it will be stellar.  So - if I was someone interested in taking out BNK I think I'd want to do it sometime before the Q1 numbers are out (and by out I mean, Q1 is finished, because thats when you'll be able to calculate numbers to within spitting distance).

Brent is holding strong and Jan will average >$96 US.  The royalties are coming down as higher % of production moves to new production so they should be well under 13%.  65% of Brent price per bbl seems to be steady for BNK heavy and ops/sales costs should also be steady - so that's> $62.4 per barrel, Royalties <$8.11 bbl, Sales $5/bbl, and op costs $11.00 / bbl - reads netback of $38.29/bbl.  Avg Q1 production should be ~13K/day *90 days.  I get netback of just under 45M for Q1.  Production, price of Oil, and 2P should all go up as the year goes on.  So you have a company with lots of reserves left to prove, throwing of enough cash to do it without borrowing, and virtually no debt.  Once the thermal pilot gets going (and it seems that is has been very much delayed so that they can get production up after the slip in Q3) the 2P should substanitally increase.

The wild card seems to be the stability of the country, but they want into the EU, and the EU would love to have the largest oilfield in Europe - so I expect that will trump the concerns over how everyone is getting along.  For Canadians, if you think this only happens elsewhere - google 'October Crisis' and look for any long term effects on the Canada or the economy.

Bullboard Posts