Blam I think you have about 2 weeks at best . 24 th of April - annual report and then end of month quarterly
I have never relied on broker coverage to buy and sell but find it an important input to check my own assumptions and metrics
Euroz numbers tell a very positive story A few highlights include - estimate of year end cash balance 97 m usd( doesn't include rsc cash of another 50-60 m usd ) - cash flow for 2014 - 240 million - ebit to more than double PE of sub 3 for 2014 and 15 . ( now this is very unlikely to remain this low and even a move to 4.5 will see roc on in the low 70s
They also make the comparison with HZN which has similar reserve and resources numbers , roc offers 3 x the production , has cash instead of debt and yet is trading at half the EV of HZN
Now what I like is none of Euroz assumptions seem overly optimistic Brent at 105 Aud at 90 And the assume only 50c per per 2c resource boe where I was in my calc assumed 1 dollar. In fact this difference would bring my 89. Valuation down to almost the exact figure as Euroz . In summary - I thinks Euroz estimate is very much in line with mine . Euroz end off the note saying that they see considerable upside to valuation should Phase 1 deliver production increases and even more of phase 2 converts some of the 2 c resource into reserves
ROC Price at posting:
47.0¢ Sentiment: LT Buy Disclosure: Held
