Proactive Investors - Run By Investors For Investors

Greenvale Mining to offer AIM investors “very attractive” entry, broker says

Greenvale Mining to offer AIM investors “very attractive” entry, broker says

Greenvale Mining (ASX:GRV) could see a re-rating when it makes the switch to AIM later this year, according to City broker Old Park Lane Capital.

Analyst Barney Gray says the oil miner, which counts AIM quoted Tomco among its peers, offers investors the opportunity to gain “early stage exposure” at a “very attractive” initial valuation.

Prior to its planned London float Greenvale could be worth up to $40mln, Gray claims.

That valuation, which equates to A$0.30 per share, represents a significant premium to the price in Australia - where Greenvale shares currently change hands at just A$0.08.

Grey reckons any dilutive effect from new shares issued in the AIM IPO will be more than offset by the next phase of the company’s growth which will be enabled by the relatively modest injection of capital.

In a note to begin his coverage of Greenvale ahead of the AIM listing Gray gives the stock a ‘buy’ recommendation with a A$0.30 target.

Greenvale’s main assets are interests in three shale oil tenements in Queensland.

The AIM IPO comes after Australia’s rules for oil shale have been relaxed and at a time where extraction technologies are making significant advances.

“With improved technology now close to commercialisation, the inherent value in oil shale including low cost entry, low reserve booking costs, relative lack of reservoir risk and easily definable economics, makes it increasingly attractive to large integrated oil companies,” Gray said. 

“Consequently, we see strong commercial logic behind Greenvale’s strategy to develop its core assets to a sufficient level in order to attract the attention of the oil majors.”


To see the full Old Park Lane Capital report please click here

View full GRV profile View Profile


Related Articles

oil rig
Zubair Corporation will pay US$5mln in two tranches to develop Ntorya
May 07 2019
Output measured 602 barrels of oil per day in the quarter, compared to 607 bopd in the preceding three months.
Ukraine oil well
April 30 2019
In Ukraine, the Group’s assets are located near to Poland and Romania

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use