Listed Australian energy firm, Invictus Energy Limited has seen its market capitalisation dropping by a whopping US$96,8 million since its gas discovery in Zimbabwe last December, it has emerged.
On December 7, 2023, Invictus market capitalisation on the Australian Securities Exchange (ASX) rose by US$38,08 million, two days after the firm announced a major gas find at its Cabora Bassa project in the Muzarabani district of Mashonaland Central Province.
The capitalisation reached a peak of AU$264,62 million (US$173,59 million).
Since then, however, the market share has plummeted to AU$112,21 million (US$76,79 million), a drop of nearly 56% from the peak.
In a joint letter to its shareholders attached to its annual report for the period ended June 30, 2024, Invictus chairman and managing director, John Bentley and Scott Macmillon, respectively, said they were disappointed with the market’s response.
“It has also been a year of reflection as we consider the current market environment and the value that our unique suite of assets in the Cabora Bassa Basin represents,” read part of the letter.
“While we have made significant operational and commercial strides, it has been disappointing to see the equity market’s response to our Mukuyu gas discovery.
“In the board’s view, the current market capitalisation of the company does not adequately reflect the intrinsic value of our world-class assets in the Cabora Bassa Basin.
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“We remain focused on demonstrating this value through continued operational success and delivery of our strategic goals, and we believe the market will ultimately recognise the extraordinary opportunity that our portfolio presents.”
The poor performance of its share prices is also despite Invictus announcing, at the beginning of last month, that it had potentially discovered an estimated 184 million barrels of oil at its project.
Invictus also has made a secondary listing on the Victoria Falls Stock Exchange on August 6 this year.
The firm has been listed on the ASX since January 19, 2012.
“In tandem with our efforts to grow local investment and enhance liquidity for our shareholders, Invictus Energy successfully completed a secondary listing on the Victoria Falls Stock Exchange (VFEX),” the letter added.
“This listing creates an avenue for Zimbabwean investors to participate in our growth story and underscores our commitment to broadening our local investor base and our belief in creating value for the people of Zimbabwe as we progress toward production.
“It represents a key step in facilitating broader financial participation and community alignment with our projects.”
However, the Invictus executives noted that a pivotal moment during the year under review was the strategic investment made by the Mutapa Investment Fund, Zimbabwe’s Sovereign Wealth Fund.
“This investment demonstrates the growing national recognition of the potential of our projects. It also strengthens our partnership with Zimbabwe, aligning our success with the country’s broader economic and energy development objectives,” the letter read.
The firm also managed, during the period under review, to secure a series of Memorandums of Understanding (MoU) agreements for gas sales with key Zimbabwean entities.
These include Tatanga Energy, Sable Chemicals, and Eureka Gold Mine.
“These agreements provide a strong commercial foundation and a clear route for gas sales into the domestic market, supporting critical industries and energy needs across Zimbabwe,” the executives said.
“The gas sale MOUs are a critical component of our long-term strategy to ensure monetisation of our assets in a manner that delivers sustained value.
“They demonstrate the viability of our project and our commitment to ensuring our resources benefit the local economy.”
Looking ahead, the Invictus chairman and managing director said they both remained confident in their ability to deliver on the firm’s vision, and were excited about the tremendous opportunities laid before them.
“We are entering the next chapter of growth, and we are committed to realising the full potential of the Cabora Bassa Basin for the benefit of our shareholders, Zimbabwe, and the region,” the letter said.
