On 4 September 2017 trading for Company's shares has been suspended due to the advanced talks with a third party that may lead to a reverse takeover.
On 4 September 2017 due to the Company’s request trading on AIM (LSE) for its shares has been suspended. The Directors of the Company informed about advanced talks with a third party about potential reverse takeover. Until completion of the talks, trading will not resume. In coming weeks in case of successful talks, details of the intended transaction will be published or confirmation of discussions cessation will be provided.
Low cash cost, low current capital expenditures and stable production volumes let the Company generate free cash flows in stable prices environment. Considering no debt and strong dividend payments tied to revenue, we regard the Company as both perspective equity investment and perspective business model with adequate asset base.
Until clarification of the details of the intended transaction, we keep our Buy recommendation and target price of 290GBp per share unchanged.