Trinidad-focused producer Touchstone Exploration's guidance for next year was below forecasts says Shore Capital, but the house broker adds the company tends to be conservative in its projections.
This is also the first production forecast including the new Cascadura field, so Touchstone might be choosing to be even more cautious, adds ShoreCap.
In addition, Touchstone is currently in a phase of rapid production ramp-up and with production growth now expected to be weighted towards the fourth quarter of 2024, estimates for next year are very sensitive to the precise phasing of drilling activities.
Touchstone confirmed that it is in advanced discussions with its existing lender to increase debt capacity in the early part of next year, but ShoreCap remains “very comfortable” with the funding position.
The broker’s risked NAV estimate remains at 140p/share.