Deutsche Rohstoff Group Starts 2023 with Strong Q1 Earnings and Increased Production

May 11, 2023 [crocon media – msch] – Deutsche Rohstoff Group has reported a strong start to 2023, with increased earnings and growth in oil and gas production. In Q1 2023, the company generated earnings of EUR 14.6 million, corresponding to EUR 2.86 per share, which is an improvement from the previous year’s EUR 12.8 million and EUR 2.36 per share. Key highlights include:

  • Revenue of EUR 42.7 million, a 50% increase from the previous year’s EUR 28.1 million
  • EBITDA at EUR 32.3 million, significantly higher than the previous year’s EUR 25.2 million
  • Operating cash flow of EUR 42.9 million, compared to EUR 6.8 million in the previous year
  • Oil and gas production growth of over 38%, amounting to 976,832 barrels of oil equivalent (BOE) and 477,191 barrels of oil (BO)
  • Net income from hedging transactions balanced, compared to EUR -10.5 million losses in the previous year
  • Equity ratio surpassing 40% for the first time since 2015

In the first quarter, the average realized oil price after hedges was USD 74.62/bbl, with WTI trading at an average of USD 75.93/bbl. The consolidated balance sheet reflects the positive results, with consolidated equity increasing to EUR 144.8 million at the end of Q1 2023 and the equity ratio reaching 40.2%.

Cash flow from operating activities amounted to EUR 42.9 million, while cash flow from investing activities reached EUR 37.6 million. The company expects a significant increase in production volumes in the second half of the year, particularly with the start of production from ten wells in a joint venture with Oxy and three of 1876 Resources’ own wells.

For 2023, the company’s guidance projects revenues between EUR 150 and 170 million, EBITDA between EUR 115 and 130 million, and a clearly positive Group result.

Read the original press release for more details : https://rohstoff.de/en/eur-42-7-million-revenue-in-q1-2023/

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Disclaimer
All transactions are carried out by The SiLLC Assembly, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions, and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relate to The SiLLC Assembly International.

Deutsche Rohstoff AG Establishment of a lithium exploration subsidiary in Australia

Deutsche Rohstoff AG and its Australian partner SensOre have established the Australian subsidiary Exploration Ventures AI Pty Ltd.

Joint Venture with SensOre/Focus on Western Australia

Mannheim, 23. January 2023 Deutsche Rohstoff AG and its Australian partner SensOre (ASX: S3N) have established the Australian subsidiary Exploration Ventures AI Pty Ltd (“EXAI”). The company is focused on the exploration of lithium in Western Australia. Deutsche Rohstoff AG will hold a 70% share in the company. Since formation, EXAI has already secured three early-stage exploration projects through three Farm-in agreements and one exploration license application.

Since early 2022, SensOre and Deutsche Rohstoff AG had identified particularly prospective targets based on SensOre’s technology. The approach combines artificial intelligence (AI) technology, big data and comprehensive geoscientific know-how. With this approach, SensOre aims to become a global leader in minerals targeting.

The focus is on Western Australia (“WA”), as the state is not only one of the world’s most active and successful mining regions, but also currently accounts for approximately 90% of the lithium mined from hard rock. In addition to the world’s largest lithium (spodumene) mine, the Greenbushes Mine in the southwestern part of the state, other projects have begun production in recent years and new deposits have been discovered. Thus, the successful identification of a lithium deposit in WA holds tremendous potential.

The three projects identified to date are very promising from the perspective of the EXAI Joint Venture, but additional potential targets are being evaluated in parallel and possibly acquired. In the context of early-stage exploration, an initial small investment is common, after which a decision is made as to which projects will be pursued and which lack sufficient prospectivity.

Exploration expenditures for the initial Farm-ins amount to approximately AUD 1 million (EUR 0.64 million) in the first 12 to 18 months after successful due diligence, which will be spent mainly on initial geological and geophysical exploration work. The share of Deutsche Rohstoff AG in these expenditures amounts to 70% in accordance with the share in EXAI. With positive results and indications, a decision will be made on a drilling program for individual projects. Under the three Farm-in agreements and with positive results, the Joint Venture could invest about AUD 10 million (EUR 6.5 million) over the next 4 to 4.5 years to acquire a 51-80% interest in the projects.

The two Farm-ins include the Gecko North project about 60 km Northwest of the Mt Marion lithium mine as well as parts of the Montague project about 100 km west of the Kathleen Valley lithium deposit. In addition, the Joint Venture has submitted a wholly-owned exploration application for the Bowgarder Well license in the western Yilgarn Craton approximately 300 km North of the city of Perth.

Lithium represents an indispensable component in current battery technologies. Therefore, even in more conservative scenarios for the electric car sector, massive additional demand for lithium is expected. The price for the most common lithium mining product, spodumene concentrate (SC6), has increased since 2020 from around 500 USD/ton to currently around 6,000/USD per ton. Deutsche Rohstoff AG sees the Joint Venture with SensOre as a unique opportunity to participate in this exciting market and to find economically interesting lithium deposits.

Mannheim, 23. January 2023

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de

Contact

Deutsche Rohstoff AG

Phone +49 621 490 817 0

info@rohstoff.de

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

Deutsche Rohstoff Group recorded higher oil production in the current quarter than expected in October

  • Oil and gas production in Q4 higher than expected
  • Revenue and EBITDA 2022 around 7% above forecast of 14 October
  • Forecast 2023 and outlook 2024 unchanged
  • EBITDA increases by a further ca. EUR 10 million

Mannheim, Dezember 12, 2022 16:30h Deutsche Rohstoff Group recorded higher oil production in the current quarter than expected in October. The four US-subsidiaries produced an average of over 9,650 BOEPD (barrels of oil equivalent per day) in the first 11 months of 2022. Compared to 30 September (9,339 BOEPD), this represents an increase in expected total production of about 110,000 BOE.

The increase in revenue is mainly due to higher production volumes from the existing wells in Colorado, as well as very high initial production from the wells in Utah, which started production in Q4. Some additional wells in Utah will start production in H1 2023. In Wyoming, the wells were also all able to produce at or above plan.

Forecast 2022 (increase)

  • Sales of EUR 163 to 168 million (previous forecast EUR 152 to 157 million)
  • EBITDA EUR 138 to 143 million (previously EUR 128 to 133 million)

Forecast 2023 (unchanged)

For 2023, the Company confirms the forecast as follows:

Base scenario

  • Group sales: EUR 140 to 160 million
  • EBITDA: EUR 110 to 125 million

Increased price scenario

  • Group sales: EUR 155 to 175 million
  • EBITDA: EUR 125 to 140 million

The assumptions for the basis of the forecast remain unchanged at a EUR/USD exchange rate of 1.12 EUR/USD, a natural gas price of USD 4, and a WTI price of USD 75 in the base scenario and USD 85 in the increased price scenario.

For 2024, the Executive Board continues to expect sales above EUR 120 million and EBITDA above EUR 100 million. This is based on only 4 additional net wells at Cub Creek until mid-2023, non-operated wells in Utah until mid-2023 and the already contractually secured Occidental joint venture.

For a definition of the term EBITDA, please refer to the Deutsche Rohstoff AG website at https://rohstoff.de/en/apm/.

Mannheim, 12 December 2022

Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de

Contact

Deutsche Rohstoff AG

Phone +49 621 490 817 0

info@rohstoff.de

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.


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