Calima Energy's June 2024 Quarterly Report: Key Highlights and Financial Overview
CALIMA ENERGY LIMITED (CE1) Share Update July 2024 Monday 29th
Calima Energy Announces Quarterly Activities and Cash Flow Report
Calima Energy Ltd (ASX: CE1) has released its June 2024 Quarterly Activities and Cash Flow Report, showcasing significant shareholder returns and a stable financial position.
Instant Summary:
- $80 million returned to shareholders on June 21, 2024.
- ATO ruling consistent with recent capital return.
- Net working capital of A$6.5 million as of June 30, 2024.
- Unmarketable Parcel Sale Process for shareholders with less than 59,971 shares.
- Director Lonny Tetley resigned on June 28, 2024.
Shareholder Returns and ATO Ruling
On June 21, 2024, Calima Energy returned $80 million to its shareholders, equating to 12.63 cents per share. This significant return underscores the company's commitment to delivering value to its investors. The Australian Taxation Office (ATO) has issued a Class Ruling consistent with this capital return, providing clarity on the tax implications for shareholders. More details on the ruling can be found here.
Financial Health and Operations
As of June 30, 2024, Calima Energy reported a net working capital of A$6.5 million. The company holds a 100% interest in the Paradise Field in British Columbia, which generates approximately A$350,000 in free cash flow annually. This stable cash flow supports the company's ongoing operations and strategic initiatives.
Unmarketable Parcel Sale Process
Calima Energy has initiated an Unmarketable Parcel Sale Process, allowing shareholders with less than 59,971 shares to sell their shares back to the company at $0.83373 per share without incurring any costs or fees. The shares will be canceled once transferred to the company, with retention notices due by August 29, 2024.
Director Resignation and Related Party Payments
Director Lonny Tetley resigned from the company on June 28, 2024. During the quarter, Calima paid A$89,739 to the company's directors or their related entities for director fees and associated services. This includes $12,635 paid to Burnet Duckworth Palmer for legal services related to the BSO sale, where Lonny Tetley is a partner.
Securities Movements
During the quarter, 355,250 shares were issued upon the exercise of Performance Rights under the Employee Share Plan. The company's current issued securities include 633,436,769 ordinary shares, various performance rights, and options with different vesting conditions and expiry dates.
The return of $80 million to shareholders is a positive signal, reflecting Calima Energy's strong financial health and commitment to shareholder value. The ATO ruling provides further confidence in the company's financial decisions. The stable cash flow from the Paradise Field and the net working capital of A$6.5 million indicate a robust financial position, which is likely to positively impact investor sentiment.
Investor Reaction:
Analysts are likely to view the $80 million return to shareholders favorably, as it demonstrates Calima Energy's ability to generate and distribute significant value. The ATO ruling adds a layer of certainty regarding the tax treatment of the capital return, which should be well-received by investors. The resignation of Director Lonny Tetley may raise some questions, but the overall financial health and strategic initiatives of the company are likely to maintain investor confidence.
Conclusion:
Calima Energy's June 2024 Quarterly Report highlights the company's strong financial health and commitment to shareholder value. Investors should consider the positive impact of the $80 million return and the stable cash flow from the Paradise Field. The company's strategic initiatives and robust financial position make it a compelling investment opportunity. Stay informed on Calima Energy's developments and assess the potential long-term impacts on your portfolio.