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Newport Exploration Ltd NWXPF


Primary Symbol: V.NWX

Newport Exploration Ltd is a Canada-based natural resource company. The Company is engaged in the acquisition and exploration of resource properties. In addition, the Company holds a 2.5% gross overriding royalty interest (the Royalty) on any hydrocarbons produced on certain petroleum exploration and production licenses in Australia. These include licenses being operated and explored by Beach Energy Ltd. (Beach) and Santos Ltd. (Santos), both major Australian oil and gas producers. The Company’s mineral exploration project is the Chu Chua Copper Gold Deposit (Chu Chua), which is located approximately 30 kilometers north of Kamloops, British Columbia. The deposit is a Cyprus-type volcanogenic massive sulfide body hosted in two steeply dipping lenses of massive pyrite-chalcopyrite and magnetite up to 40 meters (m) thick, with a known strike length of 400 m and a known depth of 250 m.


TSXV:NWX - Post by User

Post by JayBankson Aug 31, 2021 9:18pm
343 Views
Post# 33792616

A little analysis on the Income Statement

A little analysis on the Income StatementJust to run some numbers for the gang:

AUD-CAD: 2,136,958 x .92 = 1,966,001.36 (CAD)

Shares-Dividend Payout: 105,579,874 x .02 = 2,111,597.48

Income-Payout: 1,966,001.36 - 2,111,597.48 = (145,596.12)

As we can see we are still falling a bit short of supporting the dividend on the royalty. (Not taking into consideration the minimal corporate costs)

Hopefully the new wells going into production become accretive soonish but I expect it more in 2 quarters more than the next Q. I would also like/expect to see oil sit in the $75-80 range rather than the 68ish we are currently sitting at.

If you are investing it this, I strongly encourage a stop-loss or trailing stop-loss. I finally set mine at .425 after getting in at .40, if the price gets up to .50 I will likely up the stop-loss at .44 or .45.

Not trying to be negative, just realistic, overall I'm invested because I'm active, positive on the royalty outlook for the short-medium term, can monitor fairly closely and I feel I can make a solid return here. With a dividend yeild this high there are lots of red flags and everyone should be realistic about your expectations and be aware of what your getting into with this name.
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