Century Petroleum Corp (CYPE)

[Tengri]

Latest DD package on CYPE…

Ibeto Cement Company Limited is one of the most dominant players in the fast-growing cement industry in Nigeria. It was conceived in 2001 following the Federal Government ban of the importation of cement in bags and the institution of a new policy of bulk importation and local bagging.

OPERATION

In 2005, it started producing cement in Rivers State. The production capacity of 1,500,000 tons per annum, which translates to a production capacity of 4,000+ metric tons per day
http://ibeto.com/IBETO-page.asp?P=24

2.2M metric tons x $113 per metric ton (2017) = $170M revenue potential from Rivers Plant

In 2015, it signed a contract with a Chinese firm, Sinoma International Engineering, to build a $386 million cement plant in Enugu State, with capacity of 2.2 million metric tons per year.
http://www.financialnigeria.com/ibeto-cement-in-390-million-deal-with-chinese-firm-news-142.html

2.2M metric tons x $113 per metric ton (2017) = $250M revenue potential from Enugu Plant

At present, Ibeto is developing two cement plants in Nigeria – one in Ebonyi State and one in Cross River State/Abia State. Each of the plant is a 6,000 metric tons per day plant and sitting on an abundant reserve of quality limestones.
https://globenewswire.com/news-release/2018/05/25/1512283/0/en/Century-Petroleum-Announces-The-Proposed-Reverse-Merger-With-A-Nigerian-Businessman.html

2 x 6000 = 12,000 metric tons per day = 4.4M metric tons per year
4.4M x $113 per metric ton (2017) = $490M revenue potential from Ebonyi and Cross River/Avia plants

FINANCING

Ibeto plans public listing with $850M investment deal with Milost. Ibeto has started the process of going public a reverse merger in the United States as efforts to become a publicly traded company. The Nigerian Billionaire Cletus Ibeto will personally consummate the acquisition of the publicly traded company to reverse the assets of his cement business
https://www.businesspost.ng/2018/05/24/ibeto-cement-plans-public-listing-with-850m-investment-deal-with-milost/

The public listing will allow Ibeto to raise enough capital to grow beyond west Africa through the acquisition of other profitable cement businesses outside Nigeria in next 12 months.
https://globenewswire.com/news-release/2018/05/24/1511317/0/en/Nigerian-Billionaire-Cletus-Ibeto-Closes-Financing-With-a-New-York-based-PE-Firm.html

VALUATION

271M Outstanding Shares
https://www.otcmarkets.com/stock/CYPE/security

Today’s Market Cap = $0.41 x 271M OS = $111M

~0.1x the financing deal or revenue potential