EPG Webinar on Sept 21 Hosted by ROK
Posted: Tue Aug 29, 2023 8:37 am
ROK Resources, one of the Canadian Juniors in our Small-Cap Growth Portfolio, will be hosting a webinar for us on Thursday, September 21. ROK's Founder and CEO, Cam Taylor will be joining me on the live webinar.
ROK sold some non-core assets in Q2, using the proceeds to pay off 90% of their debt. The Company's balance sheet is in GREAT SHAPE.
ROKRF closed at $0.26US on August 28th. My current valuation is $0.75US.
"The first six months of 2023 were focused on corporate debt reduction, accretive asset purchases, non-core divestitures and the integration of new assets, as well as the restructuring of the Company's hedge book to provide greater exposure to an inclining commodity price environment. Total debt was reduced by over 90% year-over-year, which has provided the Company with the flexibility to allocate additional development capital across some of the most economic plays in North America."
Q2 2023 HIGHLIGHTS
Production up 8% YoY: Production was up 8% from 3,054 boepd in Q2 2022, to 3,297 boepd in Q2 2023. < Current guidance is for a production exit rate of 4,500 Boepd at the end of 2023. They are currently completing the first three wells of this summer's 11 well drilling program.
Net Debt reduced by 90% YoY: Net debt was reduced from $38.4 million at June 30, 2022, to $3.8 million. Note: 2023 net debt calculation is inclusive of $7.2 million of the current portion of hedges to be realized in the next 12 months based on mark-to-market fair value.
Term loan fully repaid: The Company fully repaid its non-revolving Term Loan, 20 months prior to expiry without penalty. Since March 2022, the Company has retired more than $60 million of debt.
Credit facility renewed: The Company renewed its $22.5 million revolving credit facility.
2024 - 2025 hedges unwound: The Company made the strategic decision to unwind certain 12 to 24-month commodity swap hedges with the elimination of this requirement with the termination of the Term Loan. < ROK is heavily weight to crude oil, so their revenues should ramp up sharply in Q3 and Q4.
Lithium National Instrument 43-101 Technical Report Released: The Company announced the results of Hub City Lithium Corp.'s ("Hub City Lithium") National Instrument 43-101 technical report confirming an inferred lithium resource of 1.15 million tonnes of lithium carbonate equivalent.
Delineated Viewfield lithium asset: Drilled the second lithium test well at Viewfield and confirmed high Lithium concentrations.
ROK sold some non-core assets in Q2, using the proceeds to pay off 90% of their debt. The Company's balance sheet is in GREAT SHAPE.
ROKRF closed at $0.26US on August 28th. My current valuation is $0.75US.
"The first six months of 2023 were focused on corporate debt reduction, accretive asset purchases, non-core divestitures and the integration of new assets, as well as the restructuring of the Company's hedge book to provide greater exposure to an inclining commodity price environment. Total debt was reduced by over 90% year-over-year, which has provided the Company with the flexibility to allocate additional development capital across some of the most economic plays in North America."
Q2 2023 HIGHLIGHTS
Production up 8% YoY: Production was up 8% from 3,054 boepd in Q2 2022, to 3,297 boepd in Q2 2023. < Current guidance is for a production exit rate of 4,500 Boepd at the end of 2023. They are currently completing the first three wells of this summer's 11 well drilling program.
Net Debt reduced by 90% YoY: Net debt was reduced from $38.4 million at June 30, 2022, to $3.8 million. Note: 2023 net debt calculation is inclusive of $7.2 million of the current portion of hedges to be realized in the next 12 months based on mark-to-market fair value.
Term loan fully repaid: The Company fully repaid its non-revolving Term Loan, 20 months prior to expiry without penalty. Since March 2022, the Company has retired more than $60 million of debt.
Credit facility renewed: The Company renewed its $22.5 million revolving credit facility.
2024 - 2025 hedges unwound: The Company made the strategic decision to unwind certain 12 to 24-month commodity swap hedges with the elimination of this requirement with the termination of the Term Loan. < ROK is heavily weight to crude oil, so their revenues should ramp up sharply in Q3 and Q4.
Lithium National Instrument 43-101 Technical Report Released: The Company announced the results of Hub City Lithium Corp.'s ("Hub City Lithium") National Instrument 43-101 technical report confirming an inferred lithium resource of 1.15 million tonnes of lithium carbonate equivalent.
Delineated Viewfield lithium asset: Drilled the second lithium test well at Viewfield and confirmed high Lithium concentrations.