Report

Update: Repositioning to ensure Gazelle progress

As a result of current market conditions, Azonto has announced organisational and cost initiatives, including the departures of Rob Shepherd and Andrew Rose (MD and CFO respectively). Gregory Stoupnitzky will step up, leading a reduced team, which retains notable West African experience. These measures should ensure the “viability of the current portfolio whilst facilitating the continued maturation of other potential opportunities”. Although regrettable, we see this as necessary for the long-term good of the company. We have adjusted our valuation, assuming a delayed start-up for the Gazelle development (late 2016) and reduced G&A, which results in a revised undiluted NAV of 1.46p/share. However, we stress this does not account for dilution required to fund Azonto through development; in current circumstances, this may be significant.
Underlying
Calima Energy

Provider
Edison Investment Research
Edison Investment Research

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