Share
re: Ann: QUARTER: NZO: NZOG June 2012 Quarter...
Excellent, and pretty much ensures the 0.060NZ DIV. We can probably add in the near future another $5m to the total from the Pike River Coal Sale.
With the Reserve upgrade in Kupe and approximate quarterly income of $27m NZ from Kupe and Tui, this ensures NZO's longevity and financial security for many years to come.
NZO is already an undervalued SP. With a projected yield of 7+% up to 0.860NZ or 0.660AUD this proves quite attractive. Especially if there are any further dollar rate cuts, which are presently mooted to occur. Present Cash to MCap is in the top 3% of the market, which also bodes well.
Quite a number of projects coming to fruition, success in any will further enhance NZO, that's pretty much a no brainer. A success at Kakapo may well project NZO to another level altogether. Whether or not NZO get further farm-in for that project though we will have to wait and see. With the present economic climate, that appears to be no easy task even with the risk/reward ratio.
One generally considers small exploration companies a high risk, high return venture. However, when evaluating risk for NZO, I look at the present long term income along with yield vs DIV. For me this considerably de-risks my NZO investment for some period to come. A positive result at any of the venture allows further upside to NZO, a negative result, keeps my value at around present with a approx NZ 25% MCap yearly income, that's nothing to sneeze at IMO.
Well, I got a little sidetracked, I only came in to say I am quite happy with the latest Quarterlies.
If anyone has any thoughts, I'd be happy to hear them.
