November 26th, 2020 | 12:40 CET
Plug Power, Saturn Oil & Gas, JinkoSolar - Leverage your depot!
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"[...] Recovery rates of more than 90% rare earths are another piece of the puzzle on the way to the economic viability of our project. [...]" Craig Taylor, CEO, Defense Metals
It does not get cheaper
Of course, the giants among the oil producers such as Exxon Mobil, Shell or BP immediately come to mind. It is not well known that these producers have production and production costs averaging more than USD 30.00 per barrel on the clock. The less well-known competitor Saturn Oil & Gas produces a barrel for no less than USD 12.00. This low production cost made the Company the cheapest oil producer in Canada in 2019. With a price target of USD 60.00 per barrel predicted by the Bank of America, the leverage mentioned above would come into play.
A clear objective of the CEO of Saturn Oil & Gas, John Jeffrey, is healthy growth, especially inorganic growth. Following the oil crash in the spring of this year, the Canadians have unique opportunities to buy up weakening competitors. According to the management, this is significantly cheaper and more efficient than conducting their own drilling programs. In recent months, takeover candidates have been identified which have a good risk/reward profile. The latest personnel figures suggest that the team is working flat out on an acquisition. A positive surprise at the end of the year may be imminent.
Jean Pierre Colin, one of the best-known minds in the Canadian natural resources industry, was hired as a senior strategy consultant. According to the top manager, "Saturn Oil & Gas represents a unique opportunity to build an oil and gas acquisition vehicle that can provide accretive growth and returns for its shareholders and other key stakeholders. (...)" Colin himself advised several senior politicians in the Canadian federal government during his career on five acquisitions by Petro-Canada of the country's largest oil and gas companies in the 1980s.
Colin has also served on the boards of many successful natural resource companies, some of which have sold their projects to significant players for more than CAD 1 billion. Saturn Oil & Gas has thus done its homework. In the last few weeks, the share price has been boosted by increased volume and rising prices. The share is currently quoted at CAD 0.12. If a sustained breakout above the CAD 0.15 mark were to be achieved, the way towards a two-year high at CAD 0.30 would be clear.
One billion for the Greens
The incredible sum of one billion USD was collected by hydrogen specialist Plug Power in a capital increase. With the cash already available, the US-Americans' cash reserves now amount to USD 1.7 billion. Management intends to use the money to expand and accelerate its "green hydrogen strategy".
Hydrogen plants under construction
Plug Power recently announced its plans to build five local, environmentally friendly hydrogen plants in the United States. The Company will continue to work with strategic partners, including Apex Clean Energy and Brookfield Renewable, to source cost-effective renewable energy. The combination of low-cost renewable energy, a strong capital position and proprietary electrolyzer and liquefaction technology puts Plug Power in a unique position to build this green hydrogen network.
Figures euphorically expected
Towards the end of the month, JinkoSolar will release its third-quarter figures to the general public. In the run-up to the event, various analyst firms were already hammering out increasingly optimistic forecasts. While the forecasts for earnings per share were still at USD 0.42 a good three months ago, the average of the experts now expects a profit of USD 0.86. The analysts are optimistic about 2021 and 2022. With the Q2 figures, analysts predicted a net profit of USD 0.65 per share but a profit of USD 1.20 per share was ultimately generated, almost 100% above the forecasts.
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