International Graphite (IG6:AU) has announced FEED Study Confirms Micronising Operation
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Many Peaks Minerals (MPK:AU) has announced Raises A$6.22m to Intensify Drilling at Ferke
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Basin Energy (BSN:AU) has announced Rock Chip Results Confirm Polymetallic Potential
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Inca Minerals (ICG:AU) has announced Stunalara Acceptances Reach 73.5%
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Here’s a quick recap of the crypto landscape for Wednesday (March 19) as of 9:00 p.m. UTC.
Bitcoin and Ethereum price update
Bitcoin (BTC) is currently trading at US$85,406.50, a 3.9 percent increase over the past 24 hours. The day’s trading range has seen a low of US$83,774.65 and a high of US$85,888.99.
Bitcoin performance, March 19, 2025.
Chart via TradingView.
Ethereum (ETH) is priced at US$2,032.78, marking a 6.7 percent increase over the same period. The cryptocurrency reached an intraday low of US$2,007.43 and a high of US$2,055.77.
Altcoin price update
- Solana (SOL) is currently valued at US$132.97, up 7.1 percent over the past 24 hours. SOL experienced a low of US$128.10 and a high of US$133.60 on Wednesday.
- XRP is trading at US$2.49, reflecting a 10.2 percent increase over the past 24 hours. The cryptocurrency recorded an intraday low of US$2.48 and a high of US$2.57.
- Sui (SUI) is priced at US$2.43, showing a 6.9 percent increase over the past 24 hours. It achieved a daily low of US$2.36 and a low of US$2.47.
- Cardano (ADA) is trading at US$0.7324, reflecting a 5.3 percent increase over the past 24 hours. Its lowest price on Wednesday was US$0.7225, with a high of US$0.7436.
Crypto news to know
US lawmakers aim for August deadline on crypto regulations
Speaking at Blockworks’ Digital Asset Summit in New York on Wednesday, Blockchain Association CEO Kristin Smith said US lawmakers are on track to establish rules for stablecoins and cryptocurrency market structure by August.
“I think we’re close to being able to get those done for August … they’re doing a lot of work on that behind the scenes right now,” Smith said at the event, which was attended by Cointelegraph.
Speaking at the summit on Tuesday (March 18), Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, said legislation is “imminent” following the Senate Banking Committee’s approval of the GENIUS Act last week. “I think that stables could be on the president’s desk here in the next two months,” Hines said.
Institutional crypto investment on the rise
A recent report from Coinbase and EY-Parthenon reveals that institutional investors are increasing their engagement with cryptocurrencies in 2025. The survey, conducted in January with responses from 352 institutional investor firms, shows that 83 percent plan to increase their crypto allocations this year.
Furthermore, 59 percent intend to allocate over 5 percent of their assets under management to crypto, and 73 percent already hold assets beyond Bitcoin and Ethereum, with SOL and XRP being the most popular. Additionally, 68 percent of respondents indicated a likelihood to purchase single-asset exchange-traded products for SOL and XRP.
Coinbase highlights the survey’s results in a press release, stating that ‘all signs indicate positive momentum’ for institutional crypto engagement in 2025, with increasing allocations, expanding use cases and adoption of new products.
Bernstein issues bullish rating for Coinbase
Bernstein’s Gautam Chhugani gave a bullish ‘outperform’ rating and a US$310 price target for cryptocurrency exchange platform Coinbase (NASDAQ:COIN), betting on the Trump’s administration’s plans for a US digital asset framework to boost the crypto industry. Chhugani also foresees growth in the US market offsetting competition, and highlighted the strong momentum in Coinbase’s subscription and services business.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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The US Federal Reserve held its second meeting of the year from Tuesday (March 18) to Wednesday (March 19) amid broad economic chaos caused by the Trump administration’s tariff threats.
As was widely expected, the central bank left interest rates at 4.25 to 4.5 percent, a range it set at its November meeting; it also said it will slow the pace at which it is shrinking its balance sheet.
In his post-meeting remarks, Chair Jerome Powell said the Fed remains focused on its dual mandate of maximum employment and price stability. He noted that labor market conditions are “solid” and said inflation has moved closer to the Fed’s 2 percent target, although he did acknowledge that it remains “somewhat elevated.”
The US consumer price index (CPI) was up 3 percent year-on-year in January, up slightly from 2.9 percent in December. CPI fell marginally in February to come in at 2.8 percent. The US personal consumption expenditures price index has also remained relatively flat, with a 2.5 percent year-on-year rise in January versus December’s 2.6 percent.
The sticky inflation numbers come against a backdrop of global uncertainty as US President Donald Trump implements and threatens tariff action. Tariffs could drive consumer prices higher on critical goods for US consumers, including new gasoline, homes and cars, as the US relies on oil, lumber and steel imports from Canada.
Powell noted that uncertainty is running high with Trump now in office, saying that his administration is making policy changes in four key areas: trade, immigration, fiscal policy and regulation.
“It is the net effect of these policy changes that will matter for the economy and the path of monetary policy. While there have been recent developments in some of these areas, especially trade, uncertainty around changes and their economic outlook is high,” Powell said, adding that the Fed is focusing on ‘separating the signal from the noise.’
The Fed will adjust its policy based on incoming data, and is well positioned to wait for greater clarity.
When asked by a reporter why the Fed is still predicting two rate cuts this year despite waning consumer sentiment, Powell emphasized that the data shows the economy has remained strong.
“I would tell people that the economy seems to be healthy; we understand that sentiment seems to be quite negative at this time, and that probably has to do with turmoil at the beginning of an administration,” he said.
Following the Fed’s announcement, the gold price spiked to a new record high in the US$3,045 per ounce range. The silver price declined for most of the morning, but moved up after the Fed decision, staying above US$33.50 per ounce.
The S&P 500 (INDEXSP:INX) climbed 1.04 percent to 5,675, while the Nasdaq-100 (INDEXNASDAQ:NDX) rose 1.25 percent to 19,707 and the Dow Jones Industrial Average (INDEXDJX:.DJI) moved up 0.83 percent to 41,920.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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Calibre Mining’s (TSX:CXB,OTCQX:CXBMF)largest shareholder has come out against Equinox Gold’s (TSX:EQX,NYSEAMERICAN:EQX) US$1.8 billion takeover bid, casting doubt over the year’s biggest gold deal.
According to Bloomberg, Van Eck Associates, which holds an 8.69 percent stake in Calibre, has voiced its opposition, citing a lack of operational synergies and concerns over the dilution of Calibre’s quality.
Van Eck was also the second largest investor in Equinox as of December 31, 2024.
The proposed all-stock transaction, announced in February, aims to create a mid-tier gold producer with annual output of approximately 1.2 million ounces. However, the deal still requires shareholder and regulatory approval. Both companies have scheduled shareholder votes, with two-thirds majorities required for approval.
“We are not supportive of this transaction. We don’t see any synergies between any of the companies’ operations,” Imaru Casanova, portfolio manager at Van Eck’s International Investors Gold Fund, said in an email to Bloomberg on Tuesday (March 18). “Both operate in the Americas, but in vastly different locations.”
Casanova also emphasized that Calibre was poised for a revaluation as it advanced its flagship Valentine project in Newfoundland, Canada. Valentine is set to become Atlantic Canada’s largest gold mine.
Equinox operates mines across Canada, Mexico, Brazil and the US, while Calibre’s assets are concentrated in Nicaragua and the US. The deal would make the combined company one of the top 15 global gold producers.
Equinox declined to comment on Van Eck’s opposition, while Calibre did not immediately respond to inquiries.
The Equinox-Calibre deal is part of a broader trend of consolidation in the gold sector, driven by gold’s surging price and strong company balance sheets. However, investors remain cautious, given the industry’s history of high-priced mergers that fail to generate expected returns. Many mining mergers since 2010 have struggled to deliver, with industry reports highlighting skepticism due to overvalued acquisitions and underperforming transactions.
As mentioned, the purchase still requires approval from shareholders and regulatory bodies.
With Van Eck’s significant opposition, other institutional investors may reconsider their stance before the vote.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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Falco Resources Ltd. (TSX.V: FPC) (‘ Falco’ or the ‘ Company’ ) is pleased to publish the results of an independent survey of the population of Rouyn-Noranda and Abitibi-Témiscamingue conducted by Léger regarding the understanding and social acceptability of the Falco Horne 5 underground mine project (the ‘ Project’ ).
Three out of four people support the Project
The results show that Falco enjoys strong majority support in Rouyn-Noranda, where 72% of respondents are in favour of the Horne 5 Project, and in Abitibi-Témiscamingue, where support reaches 74%. These results demonstrate the population’s significant support for the Project, particularly given its economic spin-offs and positive impact on employment.
Trust in Falco
Respondents recognize the benefits the Project will bring to the region, emphasizing its key role in local and regional economic growth and job creation. Despite some concerns about environmental impacts, a strong majority of respondents (73%) are confident that Falco will work with civil society actors to ensure responsible implementation of the Project.
A Project for the common good
In addition, a high proportion of respondents (74%) felt that the Project should proceed for the community’s benefit, strengthening the legitimacy and social acceptability of the Falco Horne 5 Project in the region.
Hélène Cartier, Vice-President of Environment, Sustainable Development and Community Relations, stated: ‘As demonstrated by the numerous briefs submitted to BAPE, these results confirm the population’s strong support for our Project and our commitment to act responsibly. We will continue our concerted efforts with all stakeholders to ensure a mutually beneficial development. We believe this strong support justifies our request to the Québec government to deem the project acceptable.’
Luc Lessard, President and CEO, added: ‘These results are a testament to the broad support for the Project among Rouyn-Noranda residents, consistent with what we have been seeing for several years now. Falco has submitted to the authorities at the Québec government a mining development project that will be of great benefit to the city, the Abitibi-Témiscamingue region and all of Québec. It remains surprising, however, that after more than 8 years, the government has yet to recognize the Project’s conformity.’
The Company will continue its discussions with the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (the ‘ Ministère ‘) to have the Project’s compliance recognized and complete the environmental analysis.
Highlights
Favourability of the Project
- 73% of respondents were in favor of the Project (28% very favorable, 46% somewhat favorable)
- Only 15% are unfavorable (5% very unfavorable, 10% somewhat unfavorable).
Main reasons for being in favor
- 47% : Job creation
- 26% : Positive impact on the local economy
Main perceptions
- 86% believe the Project will have a positive economic impact
- 80% believe mining projects strengthen regional pride
- 73% are confident that Falco will make its project acceptable and aligned with applicable societal and environmental expectations
- 61% believe Falco will take public opinion into account
The survey was conducted from February 27 to March 9, 2025, among 500 Abitibi-Témiscamingue residents aged 18 and over. The presumed margin of error is ±4.38%, 19 times out of 20. The survey can be viewed by clicking on the following link: https://bit.ly/3RfaMlZ
The Falco Horne 5 Project features a state-of-the-art mining operation that maximizes the use and rehabilitation of previously disturbed sites such as Quemont and Norbec. The Project will generate significant economic benefits, contributing approximately $3.8 billion to Québec’s GDP, including $2.2 billion to the regional GDP, notably through the creation of 900 jobs during construction and 500 jobs during operations. By adding value to critical and strategic minerals, it will actively contribute to the energy transition and decarbonization of the economy.
ABOUT FALCO
Falco Resources is one of the largest mineral claim holders in the province of Quebec, with an extensive portfolio of properties in the Abitibi Greenstone Belt. Falco holds rights to approximately 67,000 hectares of land in the Noranda Mining Camp, which represents 67% of the camp and includes 13 former gold and base metal mining sites. Falco’s main asset is the Horne 5 Project located beneath the former Horne mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Development Corp. is Falco’s largest shareholder, with a 16% interest in the Company.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Hélène Cartier
Vice President, Environment, Sustainable Development and Community Relations
514 216-8611
hcartier@falcores.com
FOR MORE INFORMATION ON THE METHODOLOGY:
Éric Normandeau
Strategic consultant, Léger
514 245-0195
enormandeau@leger360.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and information (collectively ‘ forward-looking statements ‘) within the meaning of applicable securities laws. These statements include references to the social acceptability and development of the Project, its economic spin-offs and positive impacts on employment, the benefits the Project will bring to the region, its key role in local and regional economic growth and job creation, and public support for the Project.
These statements are based on information currently available to the Company, and the Company provides no assurance that actual results will meet management’s expectations. The occurrence of such events or the making of such statements are subject to several risk factors, including, without limitation, the risk factors identified in Falco’s annual management report and other continuous disclosure documents available at www.sedarplus.com .
Although Falco believes that the assumptions and factors applied in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this press release, and there can be no assurance that such events will occur within the time frames disclosed or at all. As mentioned by Falco in its public disclosure and previous press releases, certain major issues have been raised by the Ministère in connection with the development of the Project and in the BAPE process, including the Project’s compliance with section 197 of the Règlement sur l’assainissement de l’atmosphère (RAA). There can be no assurance or guarantee that the Ministère will change its position with respect to the application of section 197 of the RAA to the Project, that Falco will be able to respond to the Ministère’s numerous additional requests in a timely manner or that Falco will be able to raise the funds necessary to pursue the additional studies requested by the Ministère, which could materially delay or prevent the granting of the required authorizations and thus adversely affect the development of the Project and Falco’s financial condition. Except as required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
News Provided by GlobeNewswire via QuoteMedia
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Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces an operational update, our financial results for the year ended December 31, 2024 a quarterly dividend of US$0.10 per common share and filing of our annual information form. We will be hosting a live webcast to discuss our Q4 2024 results on Wednesday March 19, 2025 at 8:00 a.m. Mountain time .
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
President & CEO, Corey C. Ruttan commented:
‘Through 2024 we increased our productive capacity both at the Caburé Unit and on our 100% interest Murucututu project. This allowed us to increase our firm natural gas sales volumes for 2025 resulting in a strong start to the year with a 37% increase in our sales volumes. We are increasing our base dividend to US$0.10 per share, consistent with our long-standing commitment to a more disciplined capital allocation model, balancing returns to stakeholders and organic growth.’
Operational Update
As announced on December 17, 2024 , our updated long-term gas sales agreement came into effect on January 1, 2025 increasing Alvopetro’s contracted firm reference volumes by 33%. As a result, Alvopetro’s daily sales in January and February increased 37% from Q4 2024 sales to an average of 2,375 boepd, including 13.4 MMcfpd of natural gas, natural gas liquids sales from condensate of 129 bopd and oil sales of 10 bopd. Effective February 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL1.95 /m 3 , a 7% increase from the January 2025 price of BRL1.83 /m 3 and consistent with the Q4 2024 price of BRL1.94 /m 3 . All natural gas sales from February 1, 2025 to April 30, 2025 will be sold at BRL1.95 /m 3 ( $10.55 /Mcf, net of applicable sales taxes, based on average heat content to date and the January 31, 2025 BRL/USD exchange rate of 5.83).
On February 5, 2025 , we announced the terms of a farmin agreement in Canada , pursuant to which Alvopetro agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres (6,122 net acres) of land in Western Saskatchewan . The first two earning wells have now been drilled and are being completed and equipped. Both wells are expected to be on production within the next 30 days. Alvopetro’s estimated total costs for the two earning wells is expected to be approximately C$4.0 million ( $2.8 million ). After these initial two earning wells Alvopetro’s working interest will be 50%.
On the Company’s Murucututu natural gas field, we spud the first of two development wells planned for 2025 in February. Drilling is underway. On the unitized area (the ‘Unit’) which includes the Caburé natural gas field, Alvopetro has five development wells planned for 2025, with the first well expected to be drilled in April.
On February 26, 2025 , we announced our December 31, 2024 reserves based on the independent reserve assessment and evaluation prepared by GLJ Ltd. (‘GLJ’) dated February 26, 2025 with an effective date of December 31, 2024 (the ‘GLJ Reserves and Resources Report’). Highlights include:
- After 2024 production of 0.7 MMboe, 1P reserves increased 65% to 4.5 MMboe, representing a 1P production replacement ratio (1) of 372%. The increase was mainly due to the successful working interest redetermination at the Caburé field and increases of Caruaçu assigned reserves on our 100% Murucututu field following success on the 183-A3 well completion, somewhat offset by technical revisions related to the Gomo Formation.
- 2P reserve volumes increased 5% to 9.1 MMboe, representing a 2P production replacement ratio of 167% (1) . The increase in 2P volumes was due to the higher working interest on the Caburé field following the redetermination, partially offset by 2024 production of 0.7 MMboe. At Murucututu, additional reserves associated with the Caruaçu reservoir were offset by technical revisions reducing reserves assigned to the Gomo Formation.
- With increased reserve volumes, 1P net present value before tax, discounted at 10% (‘NPV10’) increased 53% to $177.7 million and 2P NPV10 increased 6% to $327.8 million .
- Risked best estimate contingent resources decreased by 0.8 MMboe from 5.4 MMboe to 4.5 MMboe at December 31, 2024 with a NPV10 of $110.0 million , decreases from December 31, 2023 of 15% and 13% respectively. The decreases were associated with the migration of volumes to reserves for the Caruaçu Formation.
- Risked best estimate prospective resources increased from 9.6 MMboe to 10.2 MMboe with a NPV10 of $208.9 million , increases of 6% and 13% respectively from December 31, 2023 .
Financial and Operating Highlights – Fourth Quarter of 2024
- Our average daily sales decreased to 1,738 boepd in Q4 2024 (-19% from Q4 2023 and -17% from Q3 2024) with reduced natural gas demand as well as shutdowns during the month of November for planned facility turnarounds and inspections.
- Our average realized natural gas price decreased to $10.51 /Mcf in Q4 2024 (-18% from Q4 2023 and -4% from Q3 2024), due mainly to the devaluation of the BRL relative to the USD, which depreciated 18% compared to the average rate in Q4 2023. Our overall averaged realized sales price was $63.88 per boe (-18% from Q4 2023 and -4% from Q3 2024).
- With lower sales volumes and lower prices, our natural gas, oil and condensate revenue decreased to $10.2 million (-33% from Q4 2023 and -21% from Q3 2024).
- Our operating netback (1) in the quarter was $55.09 per boe (- $14.60 per boe from Q4 2023) due mainly to the reduction in our realized sales price per boe as well as higher production expenses per boe with lower overall production.
- We generated funds flows from operations (1) of $7.0 million ( $0.19 per basic share and per diluted share), decreases of $5.4 million compared to Q4 2023 and $2.9 million compared to Q3 2024 due mainly to lower sales volumes and lower realized prices.
- We reported net income of $2.2 million in Q4 2024, an increase of $1.6 million compared to Q4 2023 despite lower sales volumes and realized prices due to impairment losses recognized in Q4 2023, offset by foreign exchange losses in Q4 2024 compared to foreign exchange gains in Q4 2023.
- Capital expenditures totaled $4.7 million , including costs to re-enter the 183-B1 well on our exploratory Block 183 and costs associated with the facilities upgrade at our Caburé field.
- Our working capital surplus was $13.2 million as of December 31, 2024 , increasing $0.1 million from December 31, 2023 and decreasing $2.7 million from September 30, 2024 .
Financial and Operating Highlights – Year Ended December 31, 2024
- We reported net income of $16.3 million , compared to $28.5 million in 2023 (-43%).
- We generated funds flow from operations (1) of $33.3 million ( $0.89 per basic share and per diluted share), a decrease of $14.8 million compared to 2023.
- Capital expenditures totaled $15.3 million in 2024.
- Dividends declared totaled $0.36 per share in 2024 compared to $0.56 per share in 2023 (-36%).
|
(1) Refer to the sections entitled ‘ Oil and Natural Gas Advisories – Other Metrics ‘ and ‘ Non-GAAP and Other Financial Measures ‘. |
The following table provides a summary of Alvopetro’s financial and operating results for the periods noted. The consolidated financial statements with the Management’s Discussion and Analysis (‘MD&A’) are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca .
|
As at and Three Months Ended December 31 |
As at and Year Ended December 31, |
||||||
|
2024 |
2023 |
Change (%) |
2024 |
2023 |
Change (%) |
||
|
Financial |
|||||||
|
($000s, except where noted) |
|||||||
|
Natural gas, oil and condensate sales |
10,214 |
15,300 |
(33) |
45,517 |
59,687 |
(24) |
|
|
Net income |
2,243 |
652 |
244 |
16,295 |
28,525 |
(43) |
|
|
Per share – basic ($) (1) |
0.06 |
0.02 |
200 |
0.44 |
0.77 |
(43) |
|
|
Per share – diluted ($) (1) |
0.06 |
0.02 |
200 |
0.43 |
0.76 |
(43) |
|
|
Cash flows from operating activities |
7,114 |
7,904 |
(10) |
34,901 |
47,702 |
(27) |
|
|
Per share – basic ($) (1) |
0.19 |
0.21 |
(10) |
0.94 |
1.29 |
(27) |
|
|
Per share – diluted ($) (1) |
0.19 |
0.21 |
(10) |
0.93 |
1.26 |
(26) |
|
|
Funds flow from operations (2) |
6,966 |
12,393 |
(44) |
33,275 |
48,030 |
(31) |
|
|
Per share – basic ($) (1) |
0.19 |
0.33 |
(42) |
0.89 |
1.29 |
(31) |
|
|
Per share – diluted ($) (1) |
0.19 |
0.33 |
(42) |
0.89 |
1.27 |
(30) |
|
|
Dividends declared |
3,283 |
5,127 |
(36) |
13,170 |
20,462 |
(36) |
|
|
Per share (1) (2) |
0.09 |
0.14 |
(36) |
0.36 |
0.56 |
(36) |
|
|
Capital expenditures |
4,682 |
4,934 |
(5) |
15,305 |
27,449 |
(44) |
|
|
Cash and cash equivalents |
21,697 |
18,326 |
18 |
21,697 |
18,326 |
18 |
|
|
Net working capital (2) |
13,181 |
13,117 |
– |
13,181 |
13,117 |
– |
|
|
Weighted average shares outstanding |
|||||||
|
Basic (000s) (1) |
37,315 |
37,262 |
– |
37,289 |
37,121 |
– |
|
|
Diluted (000s) (1) |
37,566 |
37,963 |
(1) |
37,558 |
37,770 |
(1) |
|
|
Operations |
|||||||
|
Average daily sales volumes: |
|||||||
|
Natural gas (Mcfpd), by field: |
|||||||
|
Caburé (Mcfpd) |
7,476 |
11,699 |
(36) |
9,228 |
11,742 |
(21) |
|
|
Murucututu (Mcfpd) |
2,231 |
546 |
309 |
928 |
487 |
91 |
|
|
Total natural gas (Mcfpd) |
9,707 |
12,245 |
(21) |
10,156 |
12,229 |
(17) |
|
|
NGLs – condensate (bopd) |
109 |
92 |
18 |
90 |
99 |
(9) |
|
|
Oil (bopd) |
11 |
10 |
10 |
12 |
6 |
100 |
|
|
Total (boepd) |
1,738 |
2,143 |
(19) |
1,794 |
2,142 |
(16) |
|
|
Average realized prices (2) : |
|||||||
|
Natural gas ($/Mcf) |
10.51 |
12.85 |
(18) |
11.42 |
12.64 |
(10) |
|
|
NGLs – condensate ($/bbl) |
75.95 |
89.45 |
(15) |
84.84 |
86.29 |
(2) |
|
|
Oil ($/bbl) |
61.74 |
73.67 |
(16) |
66.94 |
71.22 |
(6) |
|
|
Total ($/boe) |
63.88 |
77.60 |
(18) |
69.31 |
76.33 |
(9) |
|
|
Operating netback ($/boe) (2) |
|||||||
|
Realized sales price |
63.88 |
77.60 |
(18) |
69.31 |
76.33 |
(9) |
|
|
Royalties |
(2.15) |
(2.07) |
4 |
(1.99) |
(2.13) |
(7) |
|
|
Production expenses |
(6.64) |
(5.84) |
14 |
(6.33) |
(5.38) |
18 |
|
|
Operating netback |
55.09 |
69.69 |
(21) |
60.99 |
68.82 |
(11) |
|
|
Operating netback margin (2) |
86 % |
90 % |
(4) |
88 % |
90 % |
(2) |
|
|
Notes: |
|
|
(1) |
Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share. |
|
(2) |
See ‘Non-GAAP and Other Financial Measures’ section within this news release. |
Quarterly Dividend of US$0.10 per Share
With our updated gas sales agreement in effect as of January 1, 2025 and higher production levels forecasted in the first quarter of 2025 our Board of Directors determined it was appropriate to increase the declared quarterly dividend to US$0.10 per common share, payable in cash on April 15, 2025, to shareholders of record at the close of business on March 31, 2025. This dividend is designated as an ‘eligible dividend’ for Canadian income tax purposes.
Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%. Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada. For further information, see Alvopetro’s website at https://alvopetro.com/Dividends-Non-resident-Shareholders .
Annual Information Form
Alvopetro has filed its annual information form (‘AIF’) with the Canadian securities regulators on SEDAR+. The AIF
includes the disclosure and reports relating to oil and gas reserves data and other oil and gas information required
pursuant to National Instrument 51-101 of the Canadian Securities Administrators. The AIF may be accessed
electronically at www.sedarplus.ca and on our website at www.alvopetro.com .
2024 Results Webcast
Alvopetro will host a live webcast to discuss our 2024 financial results at 8:00 am Mountain time on Wednesday March 19, 2025. Details for joining the event are as follows:
DATE: March 19, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/84540021301
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kBRCh4fgE
WEBINAR ID : 845 4002 1301
The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com .
Corporate Presentation
Alvopetro’s updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter – https://twitter.com/AlvopetroEnergy
Instagram – https://www.instagram.com/alvopetro/
LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltd
Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro’s organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Abbreviations:
|
$000s |
= |
thousands of U.S. dollars |
|
1P |
= |
proved reserves |
|
2P |
= |
proved plus probable reserves |
|
boepd |
= |
barrels of oil equivalent (‘boe’) per day |
|
bopd |
= |
barrels of oil and/or natural gas liquids (condensate) per day |
|
BRL |
= |
Brazilian Real |
|
Mcf |
= |
thousand cubic feet |
|
Mcfpd |
= |
thousand cubic feet per day |
|
MMcf |
= |
million cubic feet |
|
MMcfpd |
= |
million cubic feet per day |
|
NGLs |
= |
natural gas liquids (condensate) |
|
NPV10 |
= |
net present value before tax, discounted at 10% |
|
Q3 2024 |
= |
three months ended September 30, 2024 |
|
Q4 2023 |
= |
three months ended December 31, 2023 |
|
Q4 2024 |
= |
three months ended December 31, 2024 |
|
USD |
= |
United States dollars |
|
GAAP or IFRS |
= |
IFRS Accounting Standards |
Non-GAAP and Other Financial Measures
This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company’s reported financial performance or position. These are complementary measures that are used by management in assessing the Company’s financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the ‘ Non-GAAP Measures and Other Financial Measures ‘ section of the Company’s MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca .
Non-GAAP Financial Measures
Operating netback
Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the ‘ Operating Netback ‘ section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.
Non-GAAP Financial Ratios
Operating netback per boe
Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent (‘boe’). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company’s producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the ‘ Operating Netback ‘ section of the Company’s MD&A using our IFRS measures. The Company’s MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.
Operating netback margin
Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Operating netback – $ per boe |
55.09 |
69.69 |
60.99 |
68.82 |
|
Average realized price – $ per boe |
63.88 |
77.60 |
69.31 |
76.33 |
|
Operating netback margin |
86 % |
90 % |
88 % |
90 % |
Funds Flow from Operations Per Share
Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
|
$ per share |
2024 |
2023 |
2024 |
2023 |
|
Per basic share: |
||||
|
Cash flows from operating activities |
0.19 |
0.21 |
0.94 |
1.29 |
|
Funds flow from operations |
0.19 |
0.33 |
0.89 |
1.29 |
|
Per diluted share: |
||||
|
Cash flows from operating activities |
0.19 |
0.21 |
0.93 |
1.26 |
|
Funds flow from operations |
0.19 |
0.33 |
0.89 |
1.27 |
Capital Management Measures
Funds Flow from Operations
Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company’s ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
|
Three Months Ended December 31, |
Year Ended December 31, |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash flows from operating activities |
7,114 |
7,904 |
34,901 |
47,702 |
|
Changes in non-cash working capital |
(148) |
4,489 |
(1,626) |
328 |
|
Funds flow from operations |
6,966 |
12,393 |
33,275 |
48,030 |
Net Working Capital
Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:
|
As at December 31 |
|||
|
2024 |
2023 |
||
|
Total current assets |
26,984 |
25,995 |
|
|
Total current liabilities |
(13,803) |
(12,878) |
|
|
Net working capital |
13,181 |
13,117 |
|
Supplementary Financial Measures
‘ Average realized natural gas price – $/Mcf ‘ is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company’s natural gas sales volumes.
‘ Average realized NGL – condensate price – $/bbl ‘ is comprised of condensate sales as determined in accordance with IFRS, divided by the Company’s NGL sales volumes from condensate.
‘ Average realized oil price – $/bbl ‘ is comprised of oil sales as determined in accordance with IFRS, divided by the Company’s oil sales volumes.
‘ Average realized price – $/boe ‘ is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company’s total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
‘ Dividends per share ‘ is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.
‘ Royalties per boe ‘ is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
‘ Production expenses per boe ‘ is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
Oil and Natural Gas Advisories
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain information contained in the GLJ Reserves and Resources Report but represents only a portion of the disclosure required under National Instrument 51-101 (‘NI 51-101’). Full disclosure with respect to the Company’s reserves as at December 31, 2024 is included in the Company’s annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ). The GLJ Reserves and Resources Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the ‘COGE Handbook’ or ‘COGEH’) that are consistent with the standards of NI 51-101. GLJ is a qualified reserves evaluator as defined in NI 51-101.
All net present values in this press release are based on estimates of future operating and capital costs and GLJ’s forecast prices as of December 31, 2024 . The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and are consistent with NI 51-101 and used by GLJ. The net present values of future net revenue attributable to Alvopetro’s reserves estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company’s reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Cabur é Working Interest
Alvopetro’s working interest in the Caburé natural gas field is 56.2% as of December 31, 2024 and the date hereof. This working interest is subject to redetermination, the first of which was completed in April 2024 . An independent expert (the ‘Expert’) was engaged in connection with the first redetermination to evaluate the redetermination and the impact to each party’s working interest. Following the Expert’s decision, Alvopetro’s working interest was increased from 49.1% to 56.2%. Alvopetro’s partner filed a notice of dispute with respect to the Expert’s decision, seeking to stay the redetermination procedure. Alvopetro subsequently filed a request for emergency arbitration before the International Chamber of Commerce (‘ICC’) seeking to make the Expert decision effective starting on June 1, 2024 . In May 2024 , Alvopetro received the decision of the emergency arbitrator (‘the Order’) wherein the arbitrator found in favour of Alvopetro, making the Expert decision effective June 1, 2024 until such time as the dispute is reviewed by and decided upon by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC. The redetermination dispute has proceeded to a full arbitration under the Rules of the ICC, however the timing and outcome of the full arbitration is uncertain and the resulting impact on the reserves and the net present value of future net revenue attributable to such reserves as presented herein may be material. In addition, future redeterminations may also have a material impact on Alvopetro’s reserves and future cash flows.
Contingent Resources
This news release discloses estimates of Alvopetro’s contingent resources and the net present value associated with net revenues associated with the production of such contingent resources as included in the GLJ Reserves and Resources Report. There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over estimates of reserves. Full disclosure with respect to the Company’s contingent resources as at December 31, 2024 is included in the Company’s annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ).
Prospective Resources
This news release discloses estimates of Alvopetro’s prospective resources included in the GLJ Reserves and Resources Report. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Full disclosure with respect to the Company’s prospective resources as at December 31, 2024 is included in the Company’s annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ).
Other Metrics
This new release contains references to ‘production replacement ratio’, a metric commonly used in the oil and natural gas industry, which has been calculated by management. This term does not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.
‘Production replacement ratio’ is calculated by dividing the change in reserve volumes plus current year production by current year production. Alvopetro’s 1P production replacement ratio and 2P production replacement ratio in 2024 is calculated as:
|
1P |
2P |
|
|
Reserve volumes as at December 31, 2024 – Mboe |
4,512 |
9,148 |
|
Reserve volumes as at December 31, 2023 – Mboe |
2,727 |
8,711 |
|
Reserve additions – Mboe |
1,785 |
437 |
|
2024 production – Mboe |
657 |
657 |
|
Change in reserves before 2024 production – Mboe |
2,442 |
1,094 |
|
2024 production replacement ratio |
372 % |
167 % |
BOE Disclosure
The term barrels of oil equivalent (‘boe’) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Contracted Natural Gas Volumes
The 2025 contracted daily firm volumes under Alvopetro’s long-term gas sales agreement of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro’s reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro’s natural gas is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 /d (13.1MMcfpd).
Forward-Looking Statements and Cautionary Language
This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘may’, ‘believe’, ‘estimate’, ‘forecast’, ‘anticipate’, ‘should’ and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro’s long-term gas sales agreement, the timing and taxation of dividends and plans for dividends in the future, plans relating to the Company’s operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, future production and sales volumes, the expected timing of production commencement in Canada , arbitration procedures associated with the redetermination of working interests of the Caburé natural gas field, anticipated timing for upcoming drilling and testing of other wells, and projected financial results. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro’s SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Alvopetro Energy Ltd.
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