TAP 0.00% 7.8¢ tap oil limited

Resources to Value

  1. 48 Posts.
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    That was the theme of the presentation by TAP in May 2020.

    What we know - and please run your own checks.

    Market Cap today at 7.7cps is ~ 33 M$ AUD (so about what the directors are recommending they buy the company for at 7.8 cps).

    Cash held at end June = 26.7M$ USD (say 37 M$ AUD). I am not factoring sales since end June but that info will come out for end of Sep very shortly. So the cash backing was 8.6 cps back at end June.

    In summary simple terms, the directors are recommending the company be privatized (all small share holders sell) for a price below the cost of the cash in the bank. Image....bushrangers in suits (or perhaps not in suits).

    So - yet again - we are to believe that this is a board acting in the best interest of all shareholders? Not so.

    Profit for 19/20 included write off of 9.4 M USD largely due to Oil Price decline (which has since stabilized). Was this prudent? A very conservative move IMHO and likely to be reversed as oil price rises with demand lift in 2021 so a gain now a real possibility. Reserves are still very good at 1.45 MMBBL on a 2P basis (remember - no debt). No value for 1.45 M BBL of oil that will generate significant cash in the years to come.

    This is a company that has a franking credit balance of 65M A$ (end 2019) - with none of that built into the 7.8 cps forced sale price either.

    There is no way small shareholders should be voting for the boards recommendations at the next meeting.
 
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Currently unlisted public company.

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