Century Petroleum Corp. (OTCMKTS: CYPE) over the last five days the stock has shot up more than 350%. This time last week, the stock was trading just above $0.10 and now CYPE is pushing towards a half dollar. The company has been rolling ever since it announced a reverse merger with a Nigerian cement company.
Now, CYPE’s new Chairman Dr. Cletus M. Ibeto has added a new CEO, Errol A. Booker. Ibeto is a billionaire and well known in Nigeria. The move played extremely well with shareholders and a flood of bullish sentiment has buoyed the stock. That said, it is still unclear as to what investors can expect from CYPE as the stock transitions from petroleum to cement.
Century Petroleum Corp. (OTCMKTS: CYPE), according to provided materials, the company’s new CEO, Ibeto, began cement bagging operations at its bagging terminal in Port Harcourt in the year 2005. It is an ultra-modern bagging plant with a flat-storage capacity of 50,000 metric tons and a production capacity of 1,500,000 metric tons per annum, which translates to a production capacity of 4,000+ metric tons per day.
It has two (2) production lines, each with a capacity of 2,700 of 50kg bags per hour or designed total production capacity of 5,400 of 50kg bags per hour. It also has a third production line – popularly known as the “big/jumbo bag plant” – for big bags of 1,500 kilograms, and also fourth production line for bulk cement powder which is loaded on special cement trucks fitted with tanks and discharge pumps.
An integral part of the plant facility is a modern purpose-built jetty (Ibeto Jetty) that can take in ships of 190+ meters long with a sophisticated and state-of-art ship-unloaders and mounted at the waterfront on the Jetty to facilitate discharge of bulk cement from offshore/foreign mother vessels.
In line with the Nigerian Backward Integration Policy (BIP) on cement and in response to the Federal Government’s call to increase local production of cement, Ibeto Cement Company Limited acquired the premier Nigeria Cement Company Limited (Nigercem) which has a plant located in Nkalagu, Ebonyi State. The strategic acquisition of Nigercem is aimed at expediting Ibeto Cement’s local production of cement by resuscitating the Nigercem plant and developing the project, as a brand new dry process plant.
Additionally, the Ibeto Cement Company Limited is also developing another 6,000 Metric Tons Per Day (TPD) Cement plant at Cross River State/Abia State of Nigeria.
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“I am extremely excited to have acquired Century Petroleum Corp and, having taken over the reins as the new Chairman of the Board of Directors of the company with the greatest sense of responsibility, this will enable me to put together teams that will help grow the company and propel it, and also members of the board that will help me breath life into what Century Petroleum will ultimately become.”
And here is another useful quote from the new Chairman as CYBE evolves into a Nigerian cement company (which might be the best indicator as to where the company is headed):
“As far as I am concerned and with the knowledge I have and what I know in this business, the cement business is an investors’ haven especially in Nigeria and a much more profitable business than crude oil where a lot of people think is the best place to invest. This probably explains why the few people in the business have deliberately created a very strong barrier to entry into the industry for prospective investors.
Century Petroleum Corp. (OTCMKTS: CYPE) has a market cap of 34.01M and 71.86M shares outstanding. CYPE is on our radar as the company transitions, but we are not buying anything yet as the murkiness of the financials here are too hard to ignore. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $CYPE stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CYPE, either long or short, and we have not been compensated for this article.